Chapter 2: Why People Commit Fraud

9. Who generally has the highest risk of becoming a fraud victim?
A. Businessperson
B. Older, less educated people
C. College students
D. None of the above

10. How frequently do most people rationalize?
A. Often
B. Sometimes
C. Rarely
D. Never

11. Which of the following kinds of pressure is most often associated with fraud?
A. Work-related pressure
B. Financial pressure
C. Vice pressure
D. All of the above

12. Which of the following is not a primary control procedure?
A. Use of documents and records to create an audit trail
B. Independent checks
C. Decreasing work-related pressure
D. Physical safeguards

13. It is the ______ of existing controls, not the ______ of controls, that allows most frauds to be perpetrated.
A. Existence, use, lack
B. Lack, ignoring, existence
C. Overriding, ignoring, lack
D. Overriding, lack, use

14. On what element of the fraud triangle do most fraud-fighters usually focus all or most of their preventive efforts?
A. Perceived pressure
B. Perceived opportunity
C. Perceived weak internal controls
D. Rationalization

15. Which of the following is not a control activity (procedure)?
A. System of authorizations
B. Appropriate hiring procedures
C. Independent checks
D. Documents and records
E. All of the above are control activities

16. Which of the following is not a common vice that motivates people to commit fraud?
A. Gambling
B. Drugs
C. Expensive extramarital relationships
D. Alcohol
E. All of the above are vices that motivate people