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Directions : Read the following Passage, and answer the questions based on this passage.
Despite the best efforts of those responsible for preventing fraud, one inevitable reality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraud prevention and detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.
One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce the notion that all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.
The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.
Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls to mitigate them, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.
Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.
Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false or embellished information or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.
While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.
Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the business
Q. What will be appropriate title for this passage?
  • a)
    corruption and its repercussions
  • b)
    fraud: analysis and recommendations
  • c)
    fraud: prevention and detection
  • d)
    corruption and hierarchy
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
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Directions : Read the following Passage, and answer the questions base...
 "fraud: prevention and detection" will be apt title for the given passage.
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Directions: Read the following passage carefully and answer the question. Certain words/phrases are given in bold to help you locate them while answering the question.Many children in elementary classrooms across India cannot read and write proficiently, as demonstrated on an annual basis by the Annual Status of Education Reports (ASER). This affects other school-based learning, as well as functioning in societies and economies that prize literacy.It was heartening, therefore, to see a chapter devoted to "Foundational Literacy and Numeracy" in the draft National Education Policy, 2019. [A] The focus it places on the early years is welcome, and the continuity it recommends between the pre-primary and primary years is necessary. Likewise, its emphasis on mother tongue-based education and oral language development are critical. However, the analysis presented on why children fail to learn to read and write largely points to factors surrounding the teaching and learning process — the health and nutritional status of children, high student-teacher ratios, and so on. While each of these factors is undoubtedly important, they do not address with sufficient clarity curricular, pedagogical and teacher education-related issues that plague the teaching and learning of early literacy in many Indian classrooms.Most classrooms across India view the task of foundational literacy as teaching children to master the script, and being able to read simple words and passages with comprehension. Higher order meaning making, critical thinking, reading and responding to literature, and writing are typically reserved for later years of schooling. This draft reinforces such restrictive and outdated ideas about the goals of a foundational literacy programme.Research evidence from around the globe demonstrates unequivocally that even very young children are capable of using early forms of reading, writing and drawing to express themselves and to communicate; they are also capable of inferential meaning-making, critical thinking, and so on. This entire body of scholarship, referred to as "emergent literacy", has been ignored in the draft. This has powerful consequences for the recommendations that follow, which propose largely oral activities for the pre-primary grades, reading hours for Grades 1-3, with an additional hour for writing starting only in Grades 4 and 5. It contradicts evidence suggesting that young children be taught listening, speaking, reading and writing simultaneously and not sequentially.Another concern is that the recommendations are based on generic theories of early childhood education, such as multiple age groups learning together in flexible, play- and activity-based ways. They don't draw upon ideas specific to the teaching and learning of early literacy. [B] Early literacy requires a "balance" for helping children to acquire the script, and engaging them with higher order meaning making. It also requires knowledge of a variety of pedagogical approaches, such as reading aloud to children, guiding children in their efforts to read and write, encouraging independent exploration, helping them learn about different genres of texts, and so on. Further, it needs a balance of materials — moving beyond textbooks and workbooks to high quality children's literature, material created by the children themselves, and the like.Teachers need to know how to differentiate instruction for learners at different levels and how to provide specific help to students who are struggling. This also requires sufficient time — an average of two-three hours per day, as per the recommendations of the Ministry of Human Resource Development (MHRD). While it may be beyond the scope of a policy document to detail specific curricular and pedagogical approaches, it must provide sufficient direction for a national curriculum framework to pick up from — in this case, it should signal the need for a balanced and comprehensive approach to foundational literacy and knowledgeable teachers for its implementation. Earlier documents addressing this issue (for example, MHRD's Padhe Bharat, Badhe Bharat, 2014, and Ambedkar University's position paper on Early Language and Literacy in India, 2016) have been far more specific in recommending a comprehensive approach with expanded time, and a balance of goals, methods and materials.Statement: [B] 'Early literacy requires a ''balance'' for helping children to acquire the script, and engaging them with higher order meaning making' in the passage may not be grammatically or contextually correct. Choose the most suitable alternative that will replace the statement to adhere to the grammatical syntax of the paragraph.

Directions: Read the following passage carefully and answer the question. Certain words/phrases are given in bold to help you locate them while answering the question.Many children in elementary classrooms across India cannot read and write proficiently, as demonstrated on an annual basis by the Annual Status of Education Reports (ASER). This affects other school-based learning, as well as functioning in societies and economies that prize literacy.It was heartening, therefore, to see a chapter devoted to "Foundational Literacy and Numeracy" in the draft National Education Policy, 2019. [A] The focus it places on the early years is welcome, and the continuity it recommends between the pre-primary and primary years is necessary. Likewise, its emphasis on mother tongue-based education and oral language development are critical. However, the analysis presented on why children fail to learn to read and write largely points to factors surrounding the teaching and learning process — the health and nutritional status of children, high student-teacher ratios, and so on. While each of these factors is undoubtedly important, they do not address with sufficient clarity curricular, pedagogical and teacher education-related issues that plague the teaching and learning of early literacy in many Indian classrooms.Most classrooms across India view the task of foundational literacy as teaching children to master the script, and being able to read simple words and passages with comprehension. Higher order meaning making, critical thinking, reading and responding to literature, and writing are typically reserved for later years of schooling. This draft reinforces such restrictive and outdated ideas about the goals of a foundational literacy programme.Research evidence from around the globe demonstrates unequivocally that even very young children are capable of using early forms of reading, writing and drawing to express themselves and to communicate; they are also capable of inferential meaning-making, critical thinking, and so on. This entire body of scholarship, referred to as "emergent literacy", has been ignored in the draft. This has powerful consequences for the recommendations that follow, which propose largely oral activities for the pre-primary grades, reading hours for Grades 1-3, with an additional hour for writing starting only in Grades 4 and 5. It contradicts evidence suggesting that young children be taught listening, speaking, reading and writing simultaneously and not sequentially.Another concern is that the recommendations are based on generic theories of early childhood education, such as multiple age groups learning together in flexible, play- and activity-based ways. They don't draw upon ideas specific to the teaching and learning of early literacy. [B] Early literacy requires a "balance" for helping children to acquire the script, and engaging them with higher order meaning making. It also requires knowledge of a variety of pedagogical approaches, such as reading aloud to children, guiding children in their efforts to read and write, encouraging independent exploration, helping them learn about different genres of texts, and so on. Further, it needs a balance of materials — moving beyond textbooks and workbooks to high quality children's literature, material created by the children themselves, and the like.Teachers need to know how to differentiate instruction for learners at different levels and how to provide specific help to students who are struggling. This also requires sufficient time — an average of two-three hours per day, as per the recommendations of the Ministry of Human Resource Development (MHRD). While it may be beyond the scope of a policy document to detail specific curricular and pedagogical approaches, it must provide sufficient direction for a national curriculum framework to pick up from — in this case, it should signal the need for a balanced and comprehensive approach to foundational literacy and knowledgeable teachers for its implementation. Earlier documents addressing this issue (for example, MHRD's Padhe Bharat, Badhe Bharat, 2014, and Ambedkar University's position paper on Early Language and Literacy in India, 2016) have been far more specific in recommending a comprehensive approach with expanded time, and a balance of goals, methods and materials.What aspect(s) of the National Literacy Policy, 2019 has/have been appreciated by the author?

Directions: Read the following passage carefully and answer the question. Certain words/phrases are given in bold to help you locate them while answering the question.Many children in elementary classrooms across India cannot read and write proficiently, as demonstrated on an annual basis by the Annual Status of Education Reports (ASER). This affects other school-based learning, as well as functioning in societies and economies that prize literacy.It was heartening, therefore, to see a chapter devoted to "Foundational Literacy and Numeracy" in the draft National Education Policy, 2019. [A] The focus it places on the early years is welcome, and the continuity it recommends between the pre-primary and primary years is necessary. Likewise, its emphasis on mother tongue-based education and oral language development are critical. However, the analysis presented on why children fail to learn to read and write largely points to factors surrounding the teaching and learning process — the health and nutritional status of children, high student-teacher ratios, and so on. While each of these factors is undoubtedly important, they do not address with sufficient clarity curricular, pedagogical and teacher education-related issues that plague the teaching and learning of early literacy in many Indian classrooms.Most classrooms across India view the task of foundational literacy as teaching children to master the script, and being able to read simple words and passages with comprehension. Higher order meaning making, critical thinking, reading and responding to literature, and writing are typically reserved for later years of schooling. This draft reinforces such restrictive and outdated ideas about the goals of a foundational literacy programme.Research evidence from around the globe demonstrates unequivocally that even very young children are capable of using early forms of reading, writing and drawing to express themselves and to communicate; they are also capable of inferential meaning-making, critical thinking, and so on. This entire body of scholarship, referred to as "emergent literacy", has been ignored in the draft. This has powerful consequences for the recommendations that follow, which propose largely oral activities for the pre-primary grades, reading hours for Grades 1-3, with an additional hour for writing starting only in Grades 4 and 5. It contradicts evidence suggesting that young children be taught listening, speaking, reading and writing simultaneously and not sequentially.Another concern is that the recommendations are based on generic theories of early childhood education, such as multiple age groups learning together in flexible, play- and activity-based ways. They don't draw upon ideas specific to the teaching and learning of early literacy. [B] Early literacy requires a "balance" for helping children to acquire the script, and engaging them with higher order meaning making. It also requires knowledge of a variety of pedagogical approaches, such as reading aloud to children, guiding children in their efforts to read and write, encouraging independent exploration, helping them learn about different genres of texts, and so on. Further, it needs a balance of materials — moving beyond textbooks and workbooks to high quality children's literature, material created by the children themselves, and the like.Teachers need to know how to differentiate instruction for learners at different levels and how to provide specific help to students who are struggling. This also requires sufficient time — an average of two-three hours per day, as per the recommendations of the Ministry of Human Resource Development (MHRD). While it may be beyond the scope of a policy document to detail specific curricular and pedagogical approaches, it must provide sufficient direction for a national curriculum framework to pick up from — in this case, it should signal the need for a balanced and comprehensive approach to foundational literacy and knowledgeable teachers for its implementation. Earlier documents addressing this issue (for example, MHRD's Padhe Bharat, Badhe Bharat, 2014, and Ambedkar University's position paper on Early Language and Literacy in India, 2016) have been far more specific in recommending a comprehensive approach with expanded time, and a balance of goals, methods and materials.What concern do the recommendations need to address in early childhood education?

Directions: Read the following passage carefully and answer the question. Certain words/phrases are given in bold to help you locate them while answering the question.Many children in elementary classrooms across India cannot read and write proficiently, as demonstrated on an annual basis by the Annual Status of Education Reports (ASER). This affects other school-based learning, as well as functioning in societies and economies that prize literacy.It was heartening, therefore, to see a chapter devoted to "Foundational Literacy and Numeracy" in the draft National Education Policy, 2019. [A] The focus it places on the early years is welcome, and the continuity it recommends between the pre-primary and primary years is necessary. Likewise, its emphasis on mother tongue-based education and oral language development are critical. However, the analysis presented on why children fail to learn to read and write largely points to factors surrounding the teaching and learning process — the health and nutritional status of children, high student-teacher ratios, and so on. While each of these factors is undoubtedly important, they do not address with sufficient clarity curricular, pedagogical and teacher education-related issues that plague the teaching and learning of early literacy in many Indian classrooms.Most classrooms across India view the task of foundational literacy as teaching children to master the script, and being able to read simple words and passages with comprehension. Higher order meaning making, critical thinking, reading and responding to literature, and writing are typically reserved for later years of schooling. This draft reinforces such restrictive and outdated ideas about the goals of a foundational literacy programme.Research evidence from around the globe demonstrates unequivocally that even very young children are capable of using early forms of reading, writing and drawing to express themselves and to communicate; they are also capable of inferential meaning-making, critical thinking, and so on. This entire body of scholarship, referred to as "emergent literacy", has been ignored in the draft. This has powerful consequences for the recommendations that follow, which propose largely oral activities for the pre-primary grades, reading hours for Grades 1-3, with an additional hour for writing starting only in Grades 4 and 5. It contradicts evidence suggesting that young children be taught listening, speaking, reading and writing simultaneously and not sequentially.Another concern is that the recommendations are based on generic theories of early childhood education, such as multiple age groups learning together in flexible, play- and activity-based ways. They don't draw upon ideas specific to the teaching and learning of early literacy. [B] Early literacy requires a "balance" for helping children to acquire the script, and engaging them with higher order meaning making. It also requires knowledge of a variety of pedagogical approaches, such as reading aloud to children, guiding children in their efforts to read and write, encouraging independent exploration, helping them learn about different genres of texts, and so on. Further, it needs a balance of materials — moving beyond textbooks and workbooks to high quality children's literature, material created by the children themselves, and the like.Teachers need to know how to differentiate instruction for learners at different levels and how to provide specific help to students who are struggling. This also requires sufficient time — an average of two-three hours per day, as per the recommendations of the Ministry of Human Resource Development (MHRD). While it may be beyond the scope of a policy document to detail specific curricular and pedagogical approaches, it must provide sufficient direction for a national curriculum framework to pick up from — in this case, it should signal the need for a balanced and comprehensive approach to foundational literacy and knowledgeable teachers for its implementation. Earlier documents addressing this issue (for example, MHRD's Padhe Bharat, Badhe Bharat, 2014, and Ambedkar University's position paper on Early Language and Literacy in India, 2016) have been far more specific in recommending a comprehensive approach with expanded time, and a balance of goals, methods and materials.Which factor(s) hamper(s) the early education of children?

Directions: Read the following passage carefully and answer the question. Certain words/phrases are given in bold to help you locate them while answering the question.Many children in elementary classrooms across India cannot read and write proficiently, as demonstrated on an annual basis by the Annual Status of Education Reports (ASER). This affects other school-based learning, as well as functioning in societies and economies that prize literacy.It was heartening, therefore, to see a chapter devoted to "Foundational Literacy and Numeracy" in the draft National Education Policy, 2019. [A] The focus it places on the early years is welcome, and the continuity it recommends between the pre-primary and primary years is necessary. Likewise, its emphasis on mother tongue-based education and oral language development are critical. However, the analysis presented on why children fail to learn to read and write largely points to factors surrounding the teaching and learning process — the health and nutritional status of children, high student-teacher ratios, and so on. While each of these factors is undoubtedly important, they do not address with sufficient clarity curricular, pedagogical and teacher education-related issues that plague the teaching and learning of early literacy in many Indian classrooms.Most classrooms across India view the task of foundational literacy as teaching children to master the script, and being able to read simple words and passages with comprehension. Higher order meaning making, critical thinking, reading and responding to literature, and writing are typically reserved for later years of schooling. This draft reinforces such restrictive and outdated ideas about the goals of a foundational literacy programme.Research evidence from around the globe demonstrates unequivocally that even very young children are capable of using early forms of reading, writing and drawing to express themselves and to communicate; they are also capable of inferential meaning-making, critical thinking, and so on. This entire body of scholarship, referred to as "emergent literacy", has been ignored in the draft. This has powerful consequences for the recommendations that follow, which propose largely oral activities for the pre-primary grades, reading hours for Grades 1-3, with an additional hour for writing starting only in Grades 4 and 5. It contradicts evidence suggesting that young children be taught listening, speaking, reading and writing simultaneously and not sequentially.Another concern is that the recommendations are based on generic theories of early childhood education, such as multiple age groups learning together in flexible, play- and activity-based ways. They don't draw upon ideas specific to the teaching and learning of early literacy. [B] Early literacy requires a "balance" for helping children to acquire the script, and engaging them with higher order meaning making. It also requires knowledge of a variety of pedagogical approaches, such as reading aloud to children, guiding children in their efforts to read and write, encouraging independent exploration, helping them learn about different genres of texts, and so on. Further, it needs a balance of materials — moving beyond textbooks and workbooks to high quality children's literature, material created by the children themselves, and the like.Teachers need to know how to differentiate instruction for learners at different levels and how to provide specific help to students who are struggling. This also requires sufficient time — an average of two-three hours per day, as per the recommendations of the Ministry of Human Resource Development (MHRD). While it may be beyond the scope of a policy document to detail specific curricular and pedagogical approaches, it must provide sufficient direction for a national curriculum framework to pick up from — in this case, it should signal the need for a balanced and comprehensive approach to foundational literacy and knowledgeable teachers for its implementation. Earlier documents addressing this issue (for example, MHRD's Padhe Bharat, Badhe Bharat, 2014, and Ambedkar University's position paper on Early Language and Literacy in India, 2016) have been far more specific in recommending a comprehensive approach with expanded time, and a balance of goals, methods and materials.Why does the author cite the examples of 'Padhe Bharat, Badhe Bharat' and 'Ambedkar University's position paper'?

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Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer?
Question Description
Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Banking Exams. Download more important topics, notes, lectures and mock test series for Banking Exams Exam by signing up for free.
Here you can find the meaning of Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions : Read the following Passage, and answer the questions based on this passage.Despite the best efforts of those responsible for preventing fraud, oneinevitablereality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraudpreventionand detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4.One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce thenotionthat all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls.The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management–Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size.Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls tomitigatethem, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring.Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — gets the message out to both internal and external communities that the organization is committed to preventing and deterring fraud.Among the many elements in fraud prevention are HR procedures, authority limits, and transaction level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false orembellishedinformation or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk.While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow.Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the businessQ. What will be appropriate title for this passage?a)corruption and its repercussionsb)fraud: analysis and recommendationsc)fraud: prevention and detectiond)corruption and hierarchye)None of theseCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Banking Exams tests.
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