Corporate Fraud and Internal Control Workbook: A Framework for Prevention

Chapter Seven

Controlling Fraud

THE FRAUD PREVENTION STRATEGY enacted by an organization is largely dependent on the nature and needs of the individual organization. The elimination of fraud must become an integral part of the organization's overall business approach if it is to maintain its effectiveness.

QUESTIONS: FILL IN THE BLANKS

Refer to Chapter 7 in Corporate Fraud and Internal Control: A Framework for Prevention.

1. Corporate governance as a whole relates to the ___________ , ___________ , and ___________ under which businesses are operated, regulated, and controlled, and includes such players as the board of directors and the audit committee as well as internal audit.

2. Corporate governance is associated with the quality of ___________ and reduction in instances of fraud.

3. In 2002, the United States enacted the Sarbanes-Oxley Act (SOX) with the intention of significantly expanding the responsibilities of ___________ , ___________ , audit committees, and boards of directors.

4. In 2003, the New York Stock Exchange ruled that the board of a publicly traded company be composed of a majority of ___________ and that the board's audit committee consist entirely of ___________ with at least one member having ___________ expertise.

5. In the implementation of SOX, what appears to have been missed is the principal reason why SOX was created in the first place: to prevent fraudulent ...