CFE Exam - Fraud Prevention and Deterrence

CFE Exam - Fraud Prevention and Deterrence What did BF Skinner say is the least effective method of changing behavior? - ✔✔Punishment because The behavior continues as soon as the punishment is discontinued How is ...

CFE Exam - Fraud Prevention and Deterrence What did BF Skinner say is the least effective method of changing behavior? - ✔✔Punishment because The behavior continues as soon as the punishment is discontinued How is behavior most effectively modified? - ✔✔Managing and modifying desires through reinforcement (replacing destructive behaviors with productive ones) What are the two different types of reinforcement? - ✔✔Positive and negative What is negative reinforcement? - ✔✔With drawl a negative stimulus in exchange for the response What is positive reinforcement? - ✔✔Present a positive stimulus in exchange for the desired response What does punishment involve? - ✔✔Either applying a negative stimulus or withdrawing a positive stimulus How does punishment work? - ✔✔By providing negative consequences. For example and ministry in penalties and taking away desirables What does Skinner say about conditioning? - ✔✔We can condition incompatible behavior that interferes with a persons usually acts by encouraging the improper behaviors opposite (rewarding a for child controlling outbursts) What can you do to condition fraudsters? - ✔✔Reward honesty, openness, and cooperation What is the theory of differential association? - ✔✔deviance is learned behavior that results from continual exposure to others who violate norms; What are the main points of theory of differential association? Edwin Sutherland - ✔✔1. Criminal behavior is learned 2. Acquired through communication and personal groups 3. Learning differs from pure invitation 4. Criminal behavior is an expression of general needs and values 5. Motives and drives are learned from definitions of legal codes as being favorable or unfavorable What is social control theory? - ✔✔A persons chances of violating the law are increased when a person fails to become attached to the variety of control agencies of the society Under social control theory, what are people likely to ask themselves when possibly violating the law? - ✔✔What will my spouse or my mother or father think if they find out? Under social control theory, what deters people from committing criminal acts? - ✔✔People whose opinion or important to them will be disappointed or shamed. They feel deeply about what these people think What does differential reinforcement theory state? - ✔✔Criminal behavior is begun or persists depending on the degree that is being rewarded or punished, as well as the rewards or punishments attached to his alternative What does differential reinforcement theory say about behavior? - ✔✔Behavior is reinforced with positive rewards are gained or punishment is avoided What type of behavior is differential reinforcement theory? - ✔✔Learned behavior What is white collar crime? - ✔✔The violators position of economic power, influence, or trust in a legitimate economic or political institution order for the purpose of illegal gain What is organizational opportunity? - ✔✔Organization and complexity make a larger different then the offenders social status What are some aspects of trials of punishment for white collar defendants? - ✔✔1. White collar defendants are more likely to insist on a trial 2. The higher the social status, the more likely to be imprisoned 3. Offenders want fined rather than prison 4. The higher the status of the higher the penalty What factors are contributing to the rise of white-collar crime? - ✔✔1. Rising personal debt due to the economy 2. New technology gives rise to opportunity 3. A culture that promises that no one has to settle for second-best What is organizational crime? - ✔✔Crime committed by businesses, particularly corporations and the government. Money goes to the organization What is occupational crime? - ✔✔illegal activities committed in the workplace by individuals acting solely in their own personal interest What type of companies are more prone to misbehavior? - ✔✔1. Complexed companies because department and locations are isolated making it less likely to detect criminal behavior 2. Specialized companies because people don't know how things work What does Edward Gross state about the nature of organizations and crime? - ✔✔All organizations are inherently prone to crime because the reliance on the bottom line. They're not necessarily criminal. What are Diane Vaughan findings on criminal organizations? - ✔✔Organizations can be criminogenic because they encourage loyalty How do you companies encourage loyalty? - ✔✔1. Recruiting and attracting similar individuals 2. Rewarding the "company man" 3. retirement and benefits 4. Company parties and social functions 5. Long hour 6. Specialized skills keep employee from seeking elsewhere What is the findings of Charles McCaghy? - ✔✔Profit pressure What is managements role in supporting criminal conduct?** - ✔✔1. Government regulations are unjust because their cost and cut into profits 2. Regulations are unnecessary bc they regulate unimportant things 3. Damages are diffused through a large number of consumers making it a small loss 4. Valuations occur out of economic necessity - rise stock value What are the three approaches to control corporate crime? - ✔✔1. Voluntary change in corporate attitude and structure 2. Government intervention and legal measures to deter and punish 3. Consumer action What represents the most feared consequence of sanctions imposed on the corporation? - ✔✔Mass media publicity about law violations What are the two main theories about how to prevent and reduce fraud? - ✔✔Compliance and Deterrence What is compliance designed to do? - ✔✔Conformity to the law without having to detect, process, or penalize Violators What does compliance involve? - ✔✔Providing economic incentives for voluntary compliance to the laws And using the administrative efforts to control violations before they occur What is the Deterrence designed to do? - ✔✔Detect law violations, determine who is responsible, and penalize offenders to deter future violations What does deterrence involved? - ✔✔Effort to control individuals immediate behaviors, not the long term behaviors targeted by compliance systems What are US corporate sentencing guidelines designed to do? - ✔✔Provide incentives for organizations to Maine internal mechanism preventing, detecting, and reporting criminal conduct Are corporate sentencing guidelines mandatory? - ✔✔No. They're advisory What most federal judges do for US corporate sentencing guidelines? - ✔✔Consider the guidelines when sentencing but not required to sentence within the range that by them. But judges are required to consider the adequacy of company compliance policies How much can fines be increased and decreased for a company? - ✔✔They can be increased by as much as 400% or reduced by as much is 95% What are some factors that contribute to an increase in fines? - ✔✔1. Tolerance of criminal activity 2. Prior history 3. Violation of the prior court order 4. Obstruction of justice Factors that contribute to a reduction - ✔✔1. Self reporting 2. Implementing an effective program to prevent and defect violations of law What are the guidelines state about victims? - ✔✔Whenever possible the organization must pay for restitution to the victim of the crime What does Donald R Cresseys findings state?