Question 1

Which of the following statements is accurate?

Accepted Answer

A)  External auditors are usually specifically trained to detect fraud. 
B)  Audits of books and records rarely discover frauds. 
C)  Less than 5 percent of all frauds are detected by auditors. 
D)  The presence of auditors provides a major deterrent effect. 
A)  External auditors are usually specifically trained to detect fraud. 
B)  Audits of books and records rarely discover frauds. 
C)  Less than 5 percent of all frauds are detected by auditors. 
D)  The presence of auditors provides a major deterrent effect. D

Question 2

When perceived pressures and/or opportunities are low, a person needs more to commit fraud.

Accepted Answer

A)  support from people at workplace 
B)  rationalization 
C)  courage 
D)  motivation 
A)  support from people at workplace 
B)  rationalization 
C)  courage 
D)  motivation B

Question 3

Which of the following is an example of a whistle-blowing system?

Accepted Answer

A)  Bulletin board service 
B)  Supervisor intervention 
C)  Removing middle management layer 
D)  Fraud reporting hotline 
A)  Bulletin board service 
B)  Supervisor intervention 
C)  Removing middle management layer 
D)  Fraud reporting hotline D

Question 4

Which of the following questions should be answered when considering fraud risk and fraud prevention?

Accepted Answer

A)  Which types of fraud are the easiest and least costly to prevent? 
B)  Which employees are in the best position to commit fraud? 
C)  Which symptoms of a fraud act are most likely to be spotted? 
D)  What are all of the types of possible fraud that can be committed? 
A)  Which types of fraud are the easiest and least costly to prevent? 
B)  Which employees are in the best position to commit fraud? 
C)  Which symptoms of a fraud act are most likely to be spotted? 
D)  What are all of the types of possible fraud that can be committed?

Question 5

Research on honesty shows that individuals fall into three groups: (1) those who will almost always be honest,
(2) those who are situationally honest, and
(3) those who will always be dishonest. Which of these groups is (are) the biggest?

Accepted Answer

A)  Group 1 (50%) 
B)  Group 2 (40%) 
C)  Group 3 (45%) 
D)  Groups 1 and 3 (35% each) 
A)  Group 1 (50%) 
B)  Group 2 (40%) 
C)  Group 3 (45%) 
D)  Groups 1 and 3 (35% each)

Question 6

Studies show that legal action against fraudsters is typically taken:

Accepted Answer

A)  less than 25 percent of the time. 
B)  less than 50 percent of the time. 
C)  more than 75 percent of the time. 
D)  at least 50 percent of the time. 
A)  less than 25 percent of the time. 
B)  less than 50 percent of the time. 
C)  more than 75 percent of the time. 
D)  at least 50 percent of the time.

Question 7

Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?

Accepted Answer

A)  Sherman Act 
B)  Glass-Steagall Act 
C)  Sarbanes-Oxley Act 
D)  Gramm-Leach-Bliley Act 
A)  Sherman Act 
B)  Glass-Steagall Act 
C)  Sarbanes-Oxley Act 
D)  Gramm-Leach-Bliley Act

Question 8

Which of the following is a result of the presence of fraud prevention controls within an organization?

Accepted Answer

A)  Employees are less likely to commit fraud. 
B)  The organization's insurance company will reduce its bond rate based on the controls in place. 
C)  The auditors will be less thorough during audits. 
D)  Employees feel more trusted. 
A)  Employees are less likely to commit fraud. 
B)  The organization's insurance company will reduce its bond rate based on the controls in place. 
C)  The auditors will be less thorough during audits. 
D)  Employees feel more trusted.

Question 9

Which of the following is true about legal action taken by organizations that are the victims of fraud?

Accepted Answer

A)  Legal action is taken in fewer than half of frauds committed. 
B)  Legal criminal action is brought by the victim organization. 
C)  Civil action is a good way to get restitution. 
D)  Civil action sends a message to others not to commit fraud. 
A)  Legal action is taken in fewer than half of frauds committed. 
B)  Legal criminal action is brought by the victim organization. 
C)  Civil action is a good way to get restitution. 
D)  Civil action sends a message to others not to commit fraud.

Question 10

All of the following are part of the fraud element triangle EXCEPT:

Accepted Answer

A)  the theft act. 
B)  concealment. 
C)  conversion. 
D)  rationalization. 
A)  the theft act. 
B)  concealment. 
C)  conversion. 
D)  rationalization.

Question 11

Which of the following is NOT a proactive hiring procedure?

Accepted Answer

A)  Conducting background investigations on prospective employees 
B)  Instilling in employees a desire to develop ethical awareness and courage to do the right thing 
C)  Thoroughly checking references provided 
D)  Learning how to interpret responses to inquiries of references about job candidates 
A)  Conducting background investigations on prospective employees 
B)  Instilling in employees a desire to develop ethical awareness and courage to do the right thing 
C)  Thoroughly checking references provided 
D)  Learning how to interpret responses to inquiries of references about job candidates

Question 12

Research has shown that detect most frauds.

Accepted Answer

A)  auditors 
B)  customers 
C)  vendors 
D)  employees 
A)  auditors 
B)  customers 
C)  vendors 
D)  employees

Question 13

Which of the following is NOT a part of the evidence square?

Accepted Answer

A)  Management evidence 
B)  Documentary evidence 
C)  Testimonial evidence 
D)  Physical evidence 
A)  Management evidence 
B)  Documentary evidence 
C)  Testimonial evidence 
D)  Physical evidence

Question 14

Which of the following is NOT a method that an organization can adopt to proactively eliminate fraud opportunities?

Accepted Answer

A)  Accurately identify sources and measure risks. 
B)  Implement appropriate preventative and detective controls. 
C)  Create widespread monitoring by employees. 
D)  Eliminate protections for whistle-blowers. 
A)  Accurately identify sources and measure risks. 
B)  Implement appropriate preventative and detective controls. 
C)  Create widespread monitoring by employees. 
D)  Eliminate protections for whistle-blowers.

Question 15

According to the text, which of the following is a consideration that influences the risk of fraud when identifying a company's fraud risks?

Accepted Answer

A)  Current employee demographics 
B)  Top management personal characteristics 
C)  Industry characteristics 
D)  Customer demographics 
A)  Current employee demographics 
B)  Top management personal characteristics 
C)  Industry characteristics 
D)  Customer demographics

Question 16

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Accepted Answer

A)  help in training employees about appropriate behavior. 
B)  often prompt smaller frauds. 
C)  pay big dividends. 
D)  aid in punishing fraud perpetrators. 
A)  help in training employees about appropriate behavior. 
B)  often prompt smaller frauds. 
C)  pay big dividends. 
D)  aid in punishing fraud perpetrators.

Question 17

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Accepted Answer

A)  Documentary evidence 
B)  Testimonial evidence 
C)  Physical evidence 
D)  Personal observation 
A)  Documentary evidence 
B)  Testimonial evidence 
C)  Physical evidence 
D)  Personal observation

Question 18

Although there are multiple approaches to fraud investigation, most investigators tend to rely heavily on:

Accepted Answer

A)  invigilation. 
B)  surveillance. 
C)  interviews. 
D)  confrontation. 
A)  invigilation. 
B)  surveillance. 
C)  interviews. 
D)  confrontation.

Question 19

Which of the following is NOT a primary way fraud can be detected early?

Accepted Answer

A)  By accident 
B)  Finding anomalies in the financial records 
C)  Someone reports suspicious activity 
D)  Watching those employees whose honesty test results were suspicious 
A)  By accident 
B)  Finding anomalies in the financial records 
C)  Someone reports suspicious activity 
D)  Watching those employees whose honesty test results were suspicious

Question 20

Which of the following statements is NOT true?

Accepted Answer

A)  It is much more difficult to get a criminal conviction than it is to get a judgment in a civil case. 
B)  A preponderance of the evidence (more than 50 percent) is necessary to win a civil case. 
C)  Criminal convictions are only successful if there is overwhelming, undeniable proof that the perpetrator "intentionally" stole money or other assets. 
D)  Civil actions are quite rare in cases of employee fraud because perpetrators have usually spent the money they stole. 
A)  It is much more difficult to get a criminal conviction than it is to get a judgment in a civil case. 
B)  A preponderance of the evidence (more than 50 percent) is necessary to win a civil case. 
C)  Criminal convictions are only successful if there is overwhelming, undeniable proof that the perpetrator "intentionally" stole money or other assets. 
D)  Civil actions are quite rare in cases of employee fraud because perpetrators have usually spent the money they stole.

Which of the following statements is accurate?

When perceived pressures and/or opportunities are low, a person needs more to commit fraud.

Which of the following is an example of a whistle-blowing system?

Which of the following questions should be answered when considering fraud risk and fraud prevention?

Research on honesty shows that individuals fall into three groups: (1) those who will almost always be honest, (2) those who are situationally honest, and (3) those who will always be dishonest. Which of these groups is (are) the biggest?

Studies show that legal action against fraudsters is typically taken:

Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?

Which of the following is a result of the presence of fraud prevention controls within an organization?

Which of the following is true about legal action taken by organizations that are the victims of fraud?

All of the following are part of the fraud element triangle EXCEPT:

Which of the following is NOT a proactive hiring procedure?

Research has shown that detect most frauds.

Which of the following is NOT a part of the evidence square?

Which of the following is NOT a method that an organization can adopt to proactively eliminate fraud opportunities?

According to the text, which of the following is a consideration that influences the risk of fraud when identifying a company's fraud risks?

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Although there are multiple approaches to fraud investigation, most investigators tend to rely heavily on:

Which of the following is NOT a primary way fraud can be detected early?

Which of the following statements is NOT true?

The Nature of Fraud

Who Commits Fraud and Why

Preventing Fraud

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 3: Fighting Fraud: an Overview

Which of the following statements is accurate?

When perceived pressures and/or opportunities are low, a person needs more to commit fraud.

Which of the following is an example of a whistle-blowing system?

Which of the following questions should be answered when considering fraud risk and fraud prevention?

Research on honesty shows that individuals fall into three groups: (1) those who will almost always be honest, (2) those who are situationally honest, and (3) those who will always be dishonest. Which of these groups is (are) the biggest?

Studies show that legal action against fraudsters is typically taken:

Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?

Which of the following is a result of the presence of fraud prevention controls within an organization?

Which of the following is true about legal action taken by organizations that are the victims of fraud?

All of the following are part of the fraud element triangle EXCEPT:

Which of the following is NOT a proactive hiring procedure?

Research has shown that detect most frauds.

Which of the following is NOT a part of the evidence square?

Which of the following is NOT a method that an organization can adopt to proactively eliminate fraud opportunities?

According to the text, which of the following is a consideration that influences the risk of fraud when identifying a company's fraud risks?

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Although there are multiple approaches to fraud investigation, most investigators tend to rely heavily on:

Which of the following is NOT a primary way fraud can be detected early?

Which of the following statements is NOT true?

The Nature of Fraud

Who Commits Fraud and Why

Preventing Fraud

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