Question 1

Kickbacks from vendors to buyers might generate which one of the following symptoms?

Accepted Answer

A)  Buyer not relating well to other buyers and vendors 
B)  Decreasing purchases from favored vendor 
C)  Increasing purchases from other vendors 
D)  Decreasing prices and increasing quality 
A)  Buyer not relating well to other buyers and vendors 
B)  Decreasing purchases from favored vendor 
C)  Increasing purchases from other vendors 
D)  Decreasing prices and increasing quality A

Question 2

Which of the following records data for each case in a graph and analyzes the slope?

Accepted Answer

A)  summarization analysis 
B)  time trend analysis 
C)  fuzzy matching method 
D)  cross tables method 
A)  summarization analysis 
B)  time trend analysis 
C)  fuzzy matching method 
D)  cross tables method B

Question 3

While using n-grams, a match percentage of or generally indicates very similar values.

Accepted Answer

A)  10 percent, smaller 
B)  20 percent, greater 
C)  5 percent, smaller 
D)  40 percent, greater 
A)  10 percent, smaller 
B)  20 percent, greater 
C)  5 percent, smaller 
D)  40 percent, greater B

Question 4

A red flag search to detect kickbacks would include:

Accepted Answer

A)  invoices without valid purchase order. 
B)  employee and vendor telephone numbers are the same. 
C)  purchase orders with zero dollar amounts by buyer. 
D)  price increases greater than 20% for several consecutive years. 
A)  invoices without valid purchase order. 
B)  employee and vendor telephone numbers are the same. 
C)  purchase orders with zero dollar amounts by buyer. 
D)  price increases greater than 20% for several consecutive years.

Question 5

Which of the following financial statements can be used to answer the question, "Where did the cash come from to pay dividends?"

Accepted Answer

A)  Income statement 
B)  Balance sheet 
C)  Statement of cash flows 
D)  Trial balance 
A)  Income statement 
B)  Balance sheet 
C)  Statement of cash flows 
D)  Trial balance

Question 6

In a Matosas matrix, there is a for each indicator, and there may be as many as .

Accepted Answer

A)  row; 50 rows 
B)  column; 10 columns 
C)  column; 100 columns 
D)  row; 1,000 rows 
A)  row; 50 rows 
B)  column; 10 columns 
C)  column; 100 columns 
D)  row; 1,000 rows

Question 7

has been adopted by most major accounting firms and is a powerful platform for data analysis.

Accepted Answer

A)  ACL Audit Analytics 
B)  CaseWare's IDEA 
C)  Microsoft Office + Active Data 
D)  SAS 
A)  ACL Audit Analytics 
B)  CaseWare's IDEA 
C)  Microsoft Office + Active Data 
D)  SAS

Question 8

Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?

Accepted Answer

A)  Calculating key ratios and comparing them from period to period 
B)  Comparing account balances in the statements from one period to the next 
C)  Performing a vertical analysis 
D)  Performing a horizontal analysis 
A)  Calculating key ratios and comparing them from period to period 
B)  Comparing account balances in the statements from one period to the next 
C)  Performing a vertical analysis 
D)  Performing a horizontal analysis

Question 9

The proactive method of fraud detection is a six-step process. Which of the following is the correct process sequence?

Accepted Answer

A)  Identify possible frauds that could exist; catalog possible fraud symptoms; understand the business; use technology to gather data about symptoms; automotive detection procedures; analyze results; and investigate symptoms 
B)  Catalog possible fraud symptoms; understand the business; identify possible frauds that could exist; analyze results; use technology to gather data about symptoms; and investigate symptoms 
C)  Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; investigate symptoms; use technology to gather data about symptoms; and analyze results 
D)  Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; use technology to gather data about symptoms; analyze results; and investigate symptoms 
A)  Identify possible frauds that could exist; catalog possible fraud symptoms; understand the business; use technology to gather data about symptoms; automotive detection procedures; analyze results; and investigate symptoms 
B)  Catalog possible fraud symptoms; understand the business; identify possible frauds that could exist; analyze results; use technology to gather data about symptoms; and investigate symptoms 
C)  Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; investigate symptoms; use technology to gather data about symptoms; and analyze results 
D)  Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; use technology to gather data about symptoms; analyze results; and investigate symptoms

Question 10

One of the most common errors investigators make when analyzing time trends is:

Accepted Answer

A)  incorrect data preparation. 
B)  focusing only on one variable, time (the x-axis if graphed). 
C)  not monitoring the time taken. 
D)  not standardizing for time. 
A)  incorrect data preparation. 
B)  focusing only on one variable, time (the x-axis if graphed). 
C)  not monitoring the time taken. 
D)  not standardizing for time.

Question 11

One way to view the results of multiple indicators is to use a chart called a:

Accepted Answer

A)  Soundex algorithm. 
B)  summarization chart. 
C)  Pareto chart. 
D)  Matosas matrix. 
A)  Soundex algorithm. 
B)  summarization chart. 
C)  Pareto chart. 
D)  Matosas matrix.

Question 12

are a two-dimensional view with cases in one dimension and the calculations in the other.

Accepted Answer

A)  N-grams 
B)  Z-scores 
C)  Pivot tables 
D)  Soundex algorithms 
A)  N-grams 
B)  Z-scores 
C)  Pivot tables 
D)  Soundex algorithms

Question 13

While methods like high-low slope, average slope, handshaking, and Box-Jenkins exist, one of the most popular techniques for summarizing the slope of a graph is:

Accepted Answer

A)  summarization. 
B)  stratification. 
C)  statistical regression. 
D)  arithmetic progression. 
A)  summarization. 
B)  stratification. 
C)  statistical regression. 
D)  arithmetic progression.

Question 14

According to Benford's Law, the first digit of random data sets will most often begin with which number?

Accepted Answer

A)  7 
B)  1 
C)  3 
D)  4 
A)  7 
B)  1 
C)  3 
D)  4

Question 15

Which of the following is an extension of stratification?

Accepted Answer

A)  Matosas matrix 
B)  A pivot table 
C)  Summarization 
D)  Soundex 
A)  Matosas matrix 
B)  A pivot table 
C)  Summarization 
D)  Soundex

Question 16

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

Accepted Answer

A)  N-grams 
B)  Z-score 
C)  Time-trend analysis 
D)  Soundex algorithm 
A)  N-grams 
B)  Z-score 
C)  Time-trend analysis 
D)  Soundex algorithm

Question 17

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:

Accepted Answer

A)  inductive fraud detection. 
B)  deductive fraud detection. 
C)  Benford's Law. 
D)  horizontal analysis. 
A)  inductive fraud detection. 
B)  deductive fraud detection. 
C)  Benford's Law. 
D)  horizontal analysis.

Question 18

According to Benford's Law, 5 will be the first digit of a random number set:

Accepted Answer

A)  more often than 1. 
B)  less often than 4. 
C)  about the same as 6. 
D)  more often than 3. 
A)  more often than 1. 
B)  less often than 4. 
C)  about the same as 6. 
D)  more often than 3.

Question 19

Which of the following is true?

Accepted Answer

A)  Stratification is the splitting of data into case-specific tables. 
B)  Stratification is an extension of summarization. 
C)  Summarization provides detail for each grouping into tables. 
D)  Stratification is utilized to create a z-score across data sets. 
A)  Stratification is the splitting of data into case-specific tables. 
B)  Stratification is an extension of summarization. 
C)  Summarization provides detail for each grouping into tables. 
D)  Stratification is utilized to create a z-score across data sets.

Question 20

Which of the following may result from a careful review of a Matosas matrix?

Accepted Answer

A)  This action identifies indicators that have been circumvented. 
B)  This action identifies indicator information that has been incorrectly input. 
C)  This helps investigators improve the set of indicators utilized. 
D)  This helps investigators identify fraud perpetrators. 
A)  This action identifies indicators that have been circumvented. 
B)  This action identifies indicator information that has been incorrectly input. 
C)  This helps investigators improve the set of indicators utilized. 
D)  This helps investigators identify fraud perpetrators.

Kickbacks from vendors to buyers might generate which one of the following symptoms?

Which of the following records data for each case in a graph and analyzes the slope?

While using n-grams, a match percentage of or generally indicates very similar values.

A red flag search to detect kickbacks would include:

Which of the following financial statements can be used to answer the question, "Where did the cash come from to pay dividends?"

In a Matosas matrix, there is a for each indicator, and there may be as many as .

has been adopted by most major accounting firms and is a powerful platform for data analysis.

Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?

The proactive method of fraud detection is a six-step process. Which of the following is the correct process sequence?

One of the most common errors investigators make when analyzing time trends is:

One way to view the results of multiple indicators is to use a chart called a:

are a two-dimensional view with cases in one dimension and the calculations in the other.

While methods like high-low slope, average slope, handshaking, and Box-Jenkins exist, one of the most popular techniques for summarizing the slope of a graph is:

According to Benford's Law, the first digit of random data sets will most often begin with which number?

Which of the following is an extension of stratification?

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:

According to Benford's Law, 5 will be the first digit of a random number set:

Which of the following is true?

Which of the following may result from a careful review of a Matosas matrix?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 6: Data-Driven Fraud Detection

Kickbacks from vendors to buyers might generate which one of the following symptoms?

Which of the following records data for each case in a graph and analyzes the slope?

While using n-grams, a match percentage of or generally indicates very similar values.

A red flag search to detect kickbacks would include:

Which of the following financial statements can be used to answer the question, "Where did the cash come from to pay dividends?"

In a Matosas matrix, there is a for each indicator, and there may be as many as .

has been adopted by most major accounting firms and is a powerful platform for data analysis.

Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?

The proactive method of fraud detection is a six-step process. Which of the following is the correct process sequence?

One of the most common errors investigators make when analyzing time trends is:

One way to view the results of multiple indicators is to use a chart called a:

are a two-dimensional view with cases in one dimension and the calculations in the other.

While methods like high-low slope, average slope, handshaking, and Box-Jenkins exist, one of the most popular techniques for summarizing the slope of a graph is:

According to Benford's Law, the first digit of random data sets will most often begin with which number?

Which of the following is an extension of stratification?

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:

According to Benford's Law, 5 will be the first digit of a random number set:

Which of the following is true?

Which of the following may result from a careful review of a Matosas matrix?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters