1. Which of the following is one of the business objectives designated by the COSO framework of internal controls?

A. Efficiency and effectiveness of operations

B. Maximize shareholder wealth

C. Information and communication

D. Control activities

2. According to the SEC, which of the following compromises independence between an auditor and his client?

A. If the auditor also prepares the tax returns for his client

B. If the relationship between the auditor and the client places the accountant in the position of auditing his own work

C. If the auditor has been on the engagement for more than four years

D. If the client pays the audit fees

3. What is one common criticism of corporate governance programs?

A. Public recognition of whistleblowers deters some people from reporting instances of fraud.

B. Whistleblower policies do not incentivize or reward employees to report instances of fraud to management or the board.

C. Punishment inflicted on fraudsters is too harsh.

D. Monetary rewards are too generous.

4. What is the best way to mitigate the risk of fraud with regard to social media?

A. Implement a social media policy.

B. Restrict access to social media sites on company computers to all employees outside of the public relations department.

C. Limit the social media presence of your organization to reputable sites such as LinkedIn and Twitter.

D. Require all employees to adjust their Facebook privacy settings in a particular way.