Practice Test Geeks(ACFE) Association of Certified Fraud Examiners Practice Test
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Corporate Governance and Ethics Flashcards

7 cards from real ACFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Corporate Governance and Ethics flashcards as text

  1. Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign official is explicitly permitted?

    Answer: Facilitation payments to expedite routine government actions

    The FCPA contains a narrow exception for 'facilitating payments' (also called grease payments) made to expedite routine non-discretionary government functions.

  2. Which component of the COSO Internal Control framework addresses the organization's commitment to integrity and ethical values?

    Answer: Control Environment

    The Control Environment is the foundation of COSO's framework and includes the tone set by management regarding integrity, ethics, and governance.

  3. A whistleblower who reports securities fraud under the Dodd-Frank Act is entitled to:

    Answer: A monetary award of 10-30% of sanctions exceeding $1 million

    Dodd-Frank provides whistleblowers with 10-30% of monetary sanctions collected in SEC enforcement actions exceeding $1 million.

  4. What governance structure characteristic is MOST associated with weak oversight and increased fraud risk?

    Answer: Dominant CEO who also serves as board chairman

    A CEO who also chairs the board creates a power imbalance where the executive can effectively control the body meant to oversee them, increasing fraud risk.

  5. Which of the following best describes 'regulatory capture' as an ethics concern?

    Answer: A regulatory agency coming to advance the interests of those it is supposed to regulate

    Regulatory capture occurs when a regulatory agency is dominated by the industry it is supposed to oversee, undermining independent oversight.

  6. In corporate ethics, the 'rationalization' element of the fraud triangle refers to:

    Answer: The justification a fraudster uses to make their actions seem acceptable

    Rationalization is the self-justification that allows fraudsters to reconcile their behavior with their self-image as honest people.

  7. Which governance document typically establishes the fiduciary duties of corporate board members?

    Answer: Corporate bylaws and applicable state corporate law

    Fiduciary duties of directors are primarily established by corporate bylaws and the state corporate law under which the company is incorporated.