Management Can Change Business Activities and Processes Prone to Fraud

question 44

Multiple Choice

Management can change business activities and processes prone to fraud in order to reduce incentives and opportunities for fraud. An example of this would be management outsourcing certain operations such as:

• A) general Ledger record keeping.
• B) manufacturing.
• C) cash collections and transfers.
• D) marketing.

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Definitions:

Festinger and Carlsmith

Psychologists known for their 1959 cognitive dissonance experiment which demonstrated how attitudes can change to align with behavior.

Cognitive Dissonance

A psychological concept indicating the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Fundamental Attribution Error

The tendency to overestimate personality-based explanations for others' behavior while underestimating situational explanations.

Dispositional Cause

Cause of behavior attributed to internal factors such as personality or character.