Definition of Corporate Governance:
* Corporate governance establishes the framework for decision-making and accountability within an organization. It includes roles, rights, and responsibilities of stakeholders such as the board, management, and shareholders.
Why D is Correct:
* The governance structure formalizes the distribution of roles and ensures clarity in accountability and oversight.
Why Other Options are Incorrect:
* A: Fraud risk management supports governance but is not its foundation.
* B: Governance encompasses more than financial reporting accuracy.
* C: Governance practices are essential even when owners are setting strategy.

Allowing employees to report fraud anonymously is a best practice in fraud reporting programs. This encourages whistleblowers to come forward without fear of retaliation or reprisal, increasing the likelihood of fraud detection. Transparency about confidentiality policies further supports employee trust in the reporting system.

Fraud Prevention Through Performance Management:Performance measurement and management programs can play a role in preventing fraud by ensuring accountability, setting ethical expectations, and reinforcing organizational goals.
Analysis of Options:
A: Ethics-based metrics:Encourages accountability and reduces fraud risks.
B: Regular training:Ensures employees are competent, reducing errors and opportunities for fraud.
D: Reasonable performance goals:Prevents pressure to commit fraud by setting realistic benchmarks.
C: Loosely defined job descriptions:This creates ambiguity, reduces accountability, and increases the risk of fraud, making it ineffective.
Conclusion:Option C is not an effective way to prevent fraud.
References:ACFE fraud prevention strategies and organizational best practices.

* Definition of Organizational Crime:
* Organizational crime involves illegal actions conducted by or on behalf of organizations to benefit the organization or its management.
* Why D is Correct:
* Bid rigging is a classic example of organizational crime, where multiple companies collude to manipulate competitive bidding processes for mutual benefit.
* Why Other Options are Incorrect:
* A, B, and C:These represent individual crimes for personal gain, not organizational-level misconduct.
References for All Questions:
* COSO Internal Control-Integrated Framework.
* Criminological theories and studies on deterrence and organizational crime.
* Diane Vaughan's research on organizational factors contributing to deviance.

Comprehensive and Detailed in Depth Explanation:
Management is ultimately responsible for setting the ethical tone of an organization, often referred to as the
"tone at the top." This tone influences the overall ethical culture, guiding employee behavior and setting the standard for compliance and integrity. While legal, HR, and fraud professionals play supporting roles, it is leadership's responsibility to establish, model, and reinforce ethical conduct.