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11) Danny works in group sales at Big Time Coffee. Big Time contracts with companies to provide high-end coffee service in their corporate offices. He is dismayed to discover his fellow employees are routinely obtaining sales contracts (and associated bonuses) by offering personal incentives to potential clients. Personal incentives are strictly prohibited by Big Time. This bothers Danny.

Which ethical model would most likely conclude that this practice is unethical?

A. Utilitarian.

B. Common Good.

C. Fairness or Justice.

D. Rights and Duties.

12) Centralized tracking of compliance with controls across the organization is best associated with

A. The control environment.

B. Monitoring.

C. Enterprise resource planning.

D. Organizational ethics.

13) In a DFD, a single data flow intersects both an entity and a process. This flow should

A. be labeled, and should be part of the main data flow progression.

B. not be labeled, and should be part of the main data flow progression.

C. not be labeled, and should be out of the main data flow progression.

D. be labeled, and should be out of the main data flow progression.

14) Computer fraudsters profile differently than traditional fraudsters. However, they share some common characteristics. Which of the following groups helps BEST differentiate these two types of fraudsters?

A. Management experience, pressure, and age.

B. Gender, national/international status, and rationalization.

C. Pressure, opportunity, and rationalization.

D. Motivation, national/international status, and age.

15) Which of the following statements reflects an auditors responsibility for detecting fraud?

A. An auditor is responsible for detecting employee errors and simple fraud, but not for discovering fraudulent acts involving employee collusion or management override.

B. An auditor should plan the audit to detect fraud caused by departures from GAAP.

C. An auditor is not responsible for detecting fraud unless the application of auditing standards would result in such detection.

D. An auditor should design the audit to provide reasonable assurance that errors and fraud material to the financial statements are detected.