14 Chapter Deterrence and prevention are terms that mean the same thing. False Removing the root cause of fraudulent behavior such as economic deprivation is called fraud deterrence. False Modification of behavior through the perception of negative sanctions is called: Deterrence Employees who perceive that they will be caught engaging in occupational fraud and abuse are less likely to commit it. This concept is called: Perception of detection Which one of the following choices is not an action that an organization can take to increase the perception of detection: Conduct clandestine audits Vigorously prosecuting fraud perpetrators is considered to be the best proactive way to prevent fraud. False The majority of calls received on hotlines will result in fraud investigations. False According to the corporate sentencing guidelines, corporations can legally be held criminally responsible for the acts of their employees even if those acts were done in the course and scope of their employment and for the purpose of benefiting the corporation. True According to the corporate sentencing guidelines, corporations cannot be held criminally responsible for the collective knowledge of several employees even if no single intended employee to commit the crime. True According to the Corporate sentencing guidelines, corporations are required to perform certain minimum steps for due diligence. Which is not required? Assign internal audit personnel to ensure compliance To comply with minimum steps for due diligence in the corporate sentencing guidelines, if an organization detects that an offense has been committed, the organization must take all steps to appropriately respond to the offense and prevent future offenses. False
The imperative ethics principle is a school of ethical thought advocating that concrete ethical principles cannot be violated. True The school of ethical thought that advocates situational ethics, i.e. each behavior should be evaluated at its own merits is called: Utilitarian ethical principle The concept that deals with motivations of employees to right what they perceive as workplace wrongs through counterproductive behavior is called: Wages in kind Abusive conduct is the counterproductive, fraudulent, or other activities of employees that is detrimental to the organization. True Setting the tone at the top by management provides a stronger message to employees rather than a strong ethics policy. True