Question 1

The correct order of the six elements of the fraud-fighting model is:

Accepted Answer

A)  tone at the top; education and training; proactive detection; integrity risk and controls; reporting and monitoring; investigation and follow-up. 
B)  tone at the top; education and training; integrity risk and controls; reporting and monitoring; proactive detection; investigation and follow-up. 
C)  education and training; integrity risk and controls; reporting and monitoring; proactive detection; investigation and follow-up; tone at the top. 
D)  education and training; tone at the top; integrity risk and controls; reporting and monitoring; proactive detection; investigation and follow-up. 
A)  tone at the top; education and training; proactive detection; integrity risk and controls; reporting and monitoring; investigation and follow-up. 
B)  tone at the top; education and training; integrity risk and controls; reporting and monitoring; proactive detection; investigation and follow-up. 
C)  education and training; integrity risk and controls; reporting and monitoring; proactive detection; investigation and follow-up; tone at the top. 
D)  education and training; tone at the top; integrity risk and controls; reporting and monitoring; proactive detection; investigation and follow-up.

Question 2

Control activities can be grouped as preventive controls and detective controls. Which of the following is a detective control?

Accepted Answer

A)  System of authorizations 
B)  Segregation of duties 
C)  Independent checks 
D)  Physical safeguards 
A)  System of authorizations 
B)  Segregation of duties 
C)  Independent checks 
D)  Physical safeguards

Question 3

What is the last stage in the current (default) model that most organizations typically use for dealing with fraud?

Accepted Answer

A)  Fraud incident 
B)  Resolution 
C)  Investigation 
D)  Action 
A)  Fraud incident 
B)  Resolution 
C)  Investigation 
D)  Action

Question 4

Which of the following indicates proactive fraud auditing?

Accepted Answer

A)  Creating an awareness among employees that their actions can be reviewed at any time 
B)  Establishing controls to discourage collusion between employees 
C)  Creating an expectation of punishment for a fraud act 
D)  Establishing a system of segregation of duties throughout the organization 
A)  Creating an awareness among employees that their actions can be reviewed at any time 
B)  Establishing controls to discourage collusion between employees 
C)  Creating an expectation of punishment for a fraud act 
D)  Establishing a system of segregation of duties throughout the organization

Question 5

Which of the following describes the overall tone of the organization that management establishes through its modeling and labeling, organization, communication, and other activities?

Accepted Answer

A)  Detection framework 
B)  Risk mitigation channel 
C)  Support network 
D)  Control environment 
A)  Detection framework 
B)  Risk mitigation channel 
C)  Support network 
D)  Control environment

Question 6

Once a fraud has occurred and a preventive solution developed, the solution should:

Accepted Answer

A)  not be implemented because of the reactive circumstance in which it was created. 
B)  be implemented only after testing by external auditors. 
C)  always be implemented by default. 
D)  be implemented only if it meets the cost-effectiveness test. 
A)  not be implemented because of the reactive circumstance in which it was created. 
B)  be implemented only after testing by external auditors. 
C)  always be implemented by default. 
D)  be implemented only if it meets the cost-effectiveness test.

Question 7

Which of the following help employees deal with substance abuse (alcohol and drugs), gambling, money management, and health, family, and personal problems?

Accepted Answer

A)  Employee Assistance Programs 
B)  Equal Employment Opportunity Programs 
C)  Employees Anonymous Programs 
D)  Whistle-Blowing Programs 
A)  Employee Assistance Programs 
B)  Equal Employment Opportunity Programs 
C)  Employees Anonymous Programs 
D)  Whistle-Blowing Programs

Question 8

One of the most important responsibilities of an employer is the hiring and retention of employees. Which of the following situations reflects the current market scenario?

Accepted Answer

A)  High turnover, high loyalty 
B)  High turnover, low loyalty 
C)  Low turnover, high loyalty 
D)  Low turnover, low loyalty 
A)  High turnover, high loyalty 
B)  High turnover, low loyalty 
C)  Low turnover, high loyalty 
D)  Low turnover, low loyalty

Question 9

Which method will result in the biggest savings?

Accepted Answer

A)  Fraud prevention-including EAP plans 
B)  Fraud detection-including audit proactively, monitoring 
C)  Investigation-including criminal prosecution 
D)  Promotion-including raising rank or position 
A)  Fraud prevention-including EAP plans 
B)  Fraud detection-including audit proactively, monitoring 
C)  Investigation-including criminal prosecution 
D)  Promotion-including raising rank or position

Question 10

A "right-to-audit" clause:

Accepted Answer

A)  provides rights to the vendor to audit the company's books at any time. 
B)  gives an external auditor the right to audit the company's books. 
C)  is considered in civil court as an invasion of privacy. 
D)  alerts vendors that the company reserves the right to audit the vendor's books at any time. 
A)  provides rights to the vendor to audit the company's books at any time. 
B)  gives an external auditor the right to audit the company's books. 
C)  is considered in civil court as an invasion of privacy. 
D)  alerts vendors that the company reserves the right to audit the vendor's books at any time.

The correct order of the six elements of the fraud-fighting model is:

Control activities can be grouped as preventive controls and detective controls. Which of the following is a detective control?

What is the last stage in the current (default) model that most organizations typically use for dealing with fraud?

Which of the following indicates proactive fraud auditing?

Which of the following describes the overall tone of the organization that management establishes through its modeling and labeling, organization, communication, and other activities?

Once a fraud has occurred and a preventive solution developed, the solution should:

Which of the following help employees deal with substance abuse (alcohol and drugs), gambling, money management, and health, family, and personal problems?

One of the most important responsibilities of an employer is the hiring and retention of employees. Which of the following situations reflects the current market scenario?

Which method will result in the biggest savings?

A "right-to-audit" clause:

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

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 4: Preventing Fraud

The correct order of the six elements of the fraud-fighting model is:

Control activities can be grouped as preventive controls and detective controls. Which of the following is a detective control?

What is the last stage in the current (default) model that most organizations typically use for dealing with fraud?

Which of the following indicates proactive fraud auditing?

Which of the following describes the overall tone of the organization that management establishes through its modeling and labeling, organization, communication, and other activities?

Once a fraud has occurred and a preventive solution developed, the solution should:

Which of the following help employees deal with substance abuse (alcohol and drugs), gambling, money management, and health, family, and personal problems?

One of the most important responsibilities of an employer is the hiring and retention of employees. Which of the following situations reflects the current market scenario?

Which method will result in the biggest savings?

A "right-to-audit" clause:

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

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