Reading Comprehension Based on SBI PO Pre 2017

english questions SBI PO Pre 2017

Dear Students, Finally the most challenging and toughest exam SBI PO has started today, 29 April 2017. In the English section, there were total 30 questions. Reading Comprehension 10 Q, Cloze test 10 Q and Phrase replacement 10 Q. In this post, we will discuss questions related to ‘Reading Comprehension’. These types of questions are based on the Reading habits and vocabulary. Students are advised to revise vocabulary and Read a lot and practice RCs daily. We have already provided Important Phrasal verbs for SBI PO and other bank exams as well. 


Directions (1-10): 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.
Q1. According to the passage, what is the fundamental difference
between fraud prevention and fraud detection?
(a) 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.
(b) prevention means to stop something from happening, while detection
means to figure out the cause of an action
(c) prevention is not to allow data exchange and detection is to
identify the problem
(d) prevention encompasses policies, procedures, training, and
communication, detection involves activities and programs designed to identify
fraud
(e) None of these
Q2. 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
Q3. How the HR department of an organization can play vital role in
the prevention of fraud in the company?
(a) by announcing yearly appraisal and spreading the goodwill among
the employees
(b) by highlighting the activities that are unfavorable in terms of finance
(c) by evaluating employee’s credentials and competence, and being
aware of any issues of personal integrity, confirmation of work history and
education presented on a job application
(d) the company can hire a detective to understand the fraud patterns
(e) None of these
Q4. What is the strong deterrent for fraud according to this passage?
(a) the fear of getting caught
(b) the fear of not getting paid
(c) the feeling of being marginalized
(d) the HR policies and its repercussions
(e) None of these
Q5. Apart from the employees, who are the other entities that have
been suggested to keep a watch on for fraud purposes?
(a) the lower-class employees and the transport department of the organization
(b) on new and existing suppliers, customers, and business partners to
identify any issues of fraud
(c) the foreign members for hawala money and other transactions
(d) high echelon and lower strata of the organization
(e) None of these
Q6. In the following question, find the word that is most similar in
the meaning to the word “mitigate”?
(a) benefactor
(b) attenuate
(c) benevolent
(d) vitriolic
(e) vituperate
Q7. In the following question, find the word that is most similar in
the meaning to the word “Notion”?
(a) impression
(b) chagrin
(c) chauvinistic
(d) Felonious
(e) charlatan
Q8. In the
following question, find the word that is opposite in the meaning to the word “prevention”?
(a) despotic
(b) harbinger
(c) fortuitously
(d) immaculate
(e) permissive
Q9. In the following question, find the word that is opposite in the
meaning to the word “embellished”?
(a) accredit
(b) unaccredited
(c) inadmissible
(d) increment
(e) simplify
Q10. In the following question, find the word that is opposite in the
meaning to the word “inevitable”?
(a) malapropos
(b) opportunely
(c) sequestrate
(d) uncertain
(e) commandeer