Question 1

In order to win an award for damages for negligence, the injured party must prove liability and damages.

Accepted Answer

The injured party must prove that the defendant was negligent, which establishes liability, and that the negligence caused the damages suffered by the injured party. Without both elements, there can be no award for damages.

Question 2

In general, increasing the perception of detection may be the best way to deter employee theft, while increasing the sanctions that are imposed on occupational fraudsters will have a limited effect.

Accepted Answer

Studies have shown that increasing the likelihood of getting caught is a more effective deterrent to employee theft and occupational fraud than increasing the severity of punishment. This is because employees are more likely to take the risk of committing fraud if they think they won't be caught, regardless of the potential consequences. Therefore, it is recommended to focus on implementing strong control measures to increase the perception of detection.

Question 3

The term white-collar crime captures the essence of the type of perpetrator that one finds at the heart of occupational fraud and abuse.

Accepted Answer

White-collar crime refers to nonviolent crimes committed by individuals in positions of trust and responsibility, typically within business or government settings. This type of crime is often perpetrated by educated professionals who hold high-level positions, hence the term "white-collar." Occupational fraud and abuse is a type of white-collar crime that involves employees or managers within an organization stealing or misusing company resources for personal gain. Therefore, the term white-collar crime does capture the essence of the type of perpetrator involved in occupational fraud and abuse.

Question 4

The element of proximate cause for negligence means the plaintiff must establish that damages resulted from the defendant's breach of duty.

Accepted Answer

The answer of The element of proximate cause for negligence...

Question 5

Formal controls can be best described as the way an employee internalizes group norms of the organization.

Accepted Answer

Formal controls refer to the explicit policies, rules, and procedures established by an organization to guide employees' behavior and ensure that they conform to desired standards. These controls are put in place to influence behavior in a prescribed manner, often through the use of sanctions or rewards. Internalization of group norms refers to informal controls, which are typically based on shared values, beliefs, and attitudes that shape employee behaviors through socialization processes.

Question 6

Violations of ascribed obligations have historically proved to be strong motivators of financial crimes.

Accepted Answer

Ascribed obligations refer to the norms and expectations that are based on an individual's social status, such as their age, ethnicity, and gender. Violations of these obligations can lead to feelings of shame and pressure to compensate for the transgression, which can sometimes motivate individuals to engage in financial crimes. This phenomenon has been observed in various cultures and historical contexts. Therefore, option A is true.

Question 7

The nonshareable problems, Cressey investigated, threatened the status of the subjects, or threatened to prevent them from achieving a higher status than the one they occupied at the time of their violation.

Accepted Answer

Cressey's nonshareable problems, as discussed in his theory of "differential association," referred specifically to criminal behaviors that could potentially harm an individual's social standing or reputation. These behaviors threatened to prevent the individual from achieving a higher status than their current one, and thus were considered nonshareable. Therefore, the statement that these problems threatened the status of the subjects or prevented them from achieving a higher status is true.

Question 8

According to Albrecht, personal integrity refers to the personal code of ethical behavior that each person adopts.

Accepted Answer

Albrecht defines personal integrity as a personal code of ethical behavior that is unique to each individual. He emphasizes that personal integrity is essential for a good reputation and is not necessarily dependent on societal norms or laws.

Question 9

Cressey's classic fraud triangle helps explain the nature of all occupational offenders.

Accepted Answer

Cressey's fraud triangle explains the factors that lead to fraud (pressure, opportunity, and rationalization) but does not claim to explain the nature of all occupational offenders, as there can be other motivations and circumstances involved.

Question 10

For purposes of defining occupational fraud and abuse, employees include only top or middle managers.

Accepted Answer

Employees for the purposes of defining occupational fraud and abuse includes all levels of employees, not just top or middle managers.

Question 11

Perceived opportunity is necessary so that the perpetrator of a fraud can make his illegal behavior intelligible to him and maintain his concept of himself as a trusted person.

Accepted Answer

Perceived opportunity is a component of the fraud triangle, which includes perceived pressure, perceived opportunity, and rationalization. It allows the perpetrator to see a chance to commit fraud without getting caught, but rationalization is what helps them maintain their self-concept as a trusted person.

Question 12

Negligence applies when a person acts in a reasonable and prudent manner.

Accepted Answer

Negligence applies when a person fails to act in a reasonable and prudent manner.

Question 13

White-collar crime is not used interchangeably with occupational fraud and economic crime.

Accepted Answer

White-collar crime is often used interchangeably with terms like occupational fraud and economic crime, as they all typically refer to financially motivated, nonviolent crime committed by business and government professionals.

Question 14

According to Albrecht, opportunities to commit fraud may be created by individuals, or by deficient or missing internal controls.

Accepted Answer

Albrecht states that opportunities to commit fraud can be created by individuals or deficient internal controls, which means that the statement is true.

Question 15

Cressey called embezzlers "temptation violators."

Accepted Answer

Cressey referred to embezzlers as "trust violators," not "temptation violators," in his studies on the psychology behind embezzlement.

Question 16

Without visually representing the crime scene, very different conclusions are reached about who committed a crime.

Accepted Answer

Visual representation of a crime scene provides critical evidence and details that help investigators piece together what happened. Without this visual aid, different interpretations and conclusions can be drawn based on personal bias or incomplete information, leading to potential errors in identifying the culprit.

Question 17

Conspiracy is a means of prosecuting the individuals involved in illegal organized activity.

Accepted Answer

Conspiracy is a criminal charge that can be applied to individuals who plan, organize or participate in illegal activities with others. It can be used to prosecute individuals who may not necessarily have committed the actual crime, but were involved in the planning or preparation for it.

Question 18

Organizational crimes occur when entities, companies, corporations, not-for-profits, nonprofits, and government bodies, otherwise legitimate and law-abiding organizations, are involved in a criminal offense.

Accepted Answer

Organizational crimes do occur when seemingly legitimate organizations are involved in criminal activities. Examples of organizational crimes include insider trading, embezzlement, money laundering, and environmental crimes. These offenses can involve individuals within the organization or the organization as a whole.

Question 19

Ethics involves questions requiring reflective choice and their consequences to the individual and others decision problems.

Accepted Answer

Ethics requires individuals to make reflective choices and consider the consequences of their decisions not only to themselves but also to others involved.

Question 20

The amount of damages proven under negligence may be relatively uncertain.

Accepted Answer

The answer of The amount of damages proven under negligence...

Quiz 3: Who Commits Fraud and Why: Criminology and Ethics