Identify all the examples and indicators of a positive corporate culture that promotes ethics and deters fraud. (Check ALL that apply. Correct answers earn points. Incorrect answers lose points.)

		Board members are well-informed about the economic environment and the business conditions. They ask good, detailed questions about the organization's operations, financial reports and future prospects. They seek differing sources of information, including various members of management and outsiders.
		A company conducts annual training on ethics, fraud and regulatory compliance matters. Each year, they update the training to focus on areas of highest risk. Completion of training is considered in year end performance reviews.
		The CEO of the company has an annual "Chairman's Values Award" which honors an employee that best exemplifies the company's ethical standards.
		A not-for-profit organization has a clear statement of values and ethics. They developed the statement with input from the board, management and lower level staff. It talks about the real challenges that the organization faces. The organization put the statement on its website and the senior management continues to cite the statement when describing the reasons for some of their decisions.
		The company's top three salesman drive a significant amount of revenue. Their supervisors are aware that they routinely take clients out to lavish entertainment, including dinner, sports events, and rock concerts, some of which is not compliant with the company's stated policies. The salesman are reimbursed for their expenses associated with client entertainment and receive year-end bonuses for closing sales.
		The company conducts an annual employee survey that measures employee satisfaction and other metrics. The survey asks specific questions about whether employees and their supervisors are aware of the code of conduct and feel comfortable reporting suspected wrongdoing.
		Sridhar works for ABC Corp. He is concerned that his supervisor's instruction to reduce inventory reserves is not appropriate, because the inventories in the warehouse for his his business unit are increasingly obsolete and unsaleable. He checked the code of conduct, and it included specific guidance on how to raise his concerns and reconcile differences of opinion. He was reassured by statements that there will be no retaliation if he uses this procedures.
		The Chief Operating Officer has driven down employee expense reimbursements by 15%, but takes the corporate jet to his vacation home.
		A company has a code of conduct and whistleblower policy that was authored by a leading law firm based on its standard recommendations to its clients. The company has operations in 12 countries, but all the documentation is in English. The company plans to retain the law firm to update it, since it hasn't been revised in 3 years.
		The CFO was recently divorced. During the divorce proceedings, the CFO's former husband .alleged that she had withheld critical financial information and lied to the the court. The court ruled that she had made significant misstatements and ruled in favor of her husband. It caused a great deal of gossip in the company, but the CEO made clear that personal matters, like a divorce, had no bearing on the CFO's role within the company.
		An accounting staff member identified a potential issue in the financial statements that would cause them to be misstated. He raised the concern with his supervisor, and the issuance of the financial statements was delayed. The day the delay in issuing financial results was announced, the company's stock price dropped 16%. The accounting staff member and the supervisor received positive performance reviews at year end.
		The board has set overall objectives for the fraud risk management at the company, but delegates the responsibility for executing the program to the head of internal audit. The audit committee chair meets quarterly with the head of internal audit to receives progress reports on the program and identify any potential fraud occurrences.