8. Which of the following non-control factors provide opportunities for fraud?

A. Inability to judge the quality of performance.
B. Lack of access to information.
C. Failure to discipline fraud perpetrators.
D. Lack of an audit trail.
E. All of the above.

17. Which of the following is not a way that management can establish a good control environment?

A. Having a clear organizational structure.
B. Proper training.
C. Communicating openly.
D. Appropriate hiring procedures.
E. All of the above are ways that management can establish a good control environment.

18. Which of the following is not an element of most frauds?

A. Taking the assets.
B. Concealment.
C. Breaking and entering.
D. Conversion.

19. Which of the following is an example of legitimate power?

A. The offer of valuable stock options.
B. A decision to participate in fraud based upon fear.
C. Your boss tells you to do something.
D. You do something because your colleague is more knowledgeable than you are in that particular subject matter.

20. Which of the following is an example of referent power?

A. Fear that you may lose your job.
B. Your friend asks you to do a special favor for him or her.
C. The offer of a job promotion.
D. Your teacher asks you to do an assignment.



Answer :

Final answer:

Effective organizational governance involves separating decision management from decision control through oversight by boards of directors.


Explanation:

Decision management involves seeking proposals, making decisions, implementing them, and monitoring performance, while decision control ensures that decisions are in the organization's best interest. The separation of these functions is crucial for effective governance. Boards of directors oversee decision control to align decisions with organizational goals.


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