Question 1

A fraud perpetrator used the float time between banks to give the impression that he had money in his accounts. Which crime is he committing?

Accepted Answer

A)  Floating 
B)  Strip 
C)  Spinning 
D)  Kiting 
A)  Floating 
B)  Strip 
C)  Spinning 
D)  Kiting

Question 2

is the ability of the fraud perpetrator to make an individual perceive punishment if he or she does not participate in the fraud.

Accepted Answer

A)  Expert power 
B)  Coercive power 
C)  Legitimate power 
D)  Reward power 
A)  Expert power 
B)  Coercive power 
C)  Legitimate power 
D)  Reward power

Question 3

Which of the following is true regarding the fraud triangle?

Accepted Answer

A)  The three elements of the fraud triangle are interactive. 
B)  Rationalization for the fraud act is thought of after the fraud has been committed. 
C)  The perceived ability to conceal the fraud act concerns the rationalization side of the fraud triangle. 
D)  Work-related pressure to commit fraud is the strongest of the pressure triangle element. 
A)  The three elements of the fraud triangle are interactive. 
B)  Rationalization for the fraud act is thought of after the fraud has been committed. 
C)  The perceived ability to conceal the fraud act concerns the rationalization side of the fraud triangle. 
D)  Work-related pressure to commit fraud is the strongest of the pressure triangle element.

Question 4

According to the study mentioned in the text, people who commit fraud are most similar to which of the following groups?

Accepted Answer

A)  Property offenders 
B)  College students 
C)  Convicted felons 
D)  Animal lovers 
A)  Property offenders 
B)  College students 
C)  Convicted felons 
D)  Animal lovers

Question 5

Segregation of duties, as a control procedure, is most often used:

Accepted Answer

A)  when the task involved is complex. 
B)  when it is impossible for one person to complete a task. 
C)  when appraisals are conducted. 
D)  when cash is involved. 
A)  when the task involved is complex. 
B)  when it is impossible for one person to complete a task. 
C)  when appraisals are conducted. 
D)  when cash is involved.

Question 6

Individuals often participate in fraud because they believe that by not participating in the fraud scheme, they may lose their job. Which type of power is at play here?

Accepted Answer

A)  Expert power 
B)  Legitimate power 
C)  Coercive power 
D)  Reward power 
A)  Expert power 
B)  Legitimate power 
C)  Coercive power 
D)  Reward power

Question 7

Many individuals, when persuaded by a trusted friend to participate in fraud, will rationalize the actions as being justifiable. Which type of power is being employed in such situations?

Accepted Answer

A)  Referent power 
B)  Legitimate power 
C)  Coercive power 
D)  Reward power 
A)  Referent power 
B)  Legitimate power 
C)  Coercive power 
D)  Reward power

Question 8

Which of the following is NOT a possible control activity?

Accepted Answer

A)  Having separate authorization, bookkeeping, and custody functions. 
B)  Protecting access to important information with a password. 
C)  Requiring two individuals to work on the same task. 
D)  Supervisory review of each task completed by employees. 
A)  Having separate authorization, bookkeeping, and custody functions. 
B)  Protecting access to important information with a password. 
C)  Requiring two individuals to work on the same task. 
D)  Supervisory review of each task completed by employees.

Question 9

Which of the following is NOT an example of a control weakness or violation?

Accepted Answer

A)  The HR department failed to check an applicant's background and hired someone who had committed fraud in the past. 
B)  A manager instructs employees not to share passwords, and then shares her passwords with her immediate assistant. 
C)  A company has established codes of conduct and conducts training meetings to teach employees to distinguish between acceptable and unacceptable behavior. Attendance is voluntary. 
D)  The employees know who has responsibility for each business activity. Procedures to follow are in place. 
A)  The HR department failed to check an applicant's background and hired someone who had committed fraud in the past. 
B)  A manager instructs employees not to share passwords, and then shares her passwords with her immediate assistant. 
C)  A company has established codes of conduct and conducts training meetings to teach employees to distinguish between acceptable and unacceptable behavior. Attendance is voluntary. 
D)  The employees know who has responsibility for each business activity. Procedures to follow are in place.

Question 10

Which of the following people is most likely to have opportunities to commit fraud?

Accepted Answer

A)  Rob is a convicted bank robber who has been out of jail for 7 years and is working for a small firm whose manager knows about Rob's criminal background. 
B)  Jane is a recent high school graduate who loves shopping. She is on the lookout for a job. 
C)  Steve was just hired by his company, but he is always acting suspicious. 
D)  Sixty-two-year-old Dave has loyally worked up his company's corporate ladder for the past 24 years. 
A)  Rob is a convicted bank robber who has been out of jail for 7 years and is working for a small firm whose manager knows about Rob's criminal background. 
B)  Jane is a recent high school graduate who loves shopping. She is on the lookout for a job. 
C)  Steve was just hired by his company, but he is always acting suspicious. 
D)  Sixty-two-year-old Dave has loyally worked up his company's corporate ladder for the past 24 years.

Question 11

Some researchers have added a fourth element to the fraud triangle making it a fraud diamond. What is that element?

Accepted Answer

A)  Propensity toward illegal acts 
B)  Lack of self-respect 
C)  Greed 
D)  Capability 
A)  Propensity toward illegal acts 
B)  Lack of self-respect 
C)  Greed 
D)  Capability

Question 12

Which of the following creates opportunities for fraud?

Accepted Answer

A)  Requirement to change passwords on a regular basis 
B)  Inability to judge quality of performance 
C)  Controls that prevent or detect fraud 
D)  Segregation of duties 
A)  Requirement to change passwords on a regular basis 
B)  Inability to judge quality of performance 
C)  Controls that prevent or detect fraud 
D)  Segregation of duties

A fraud perpetrator used the float time between banks to give the impression that he had money in his accounts. Which crime is he committing?

is the ability of the fraud perpetrator to make an individual perceive punishment if he or she does not participate in the fraud.

Which of the following is true regarding the fraud triangle?

According to the study mentioned in the text, people who commit fraud are most similar to which of the following groups?

Segregation of duties, as a control procedure, is most often used:

Individuals often participate in fraud because they believe that by not participating in the fraud scheme, they may lose their job. Which type of power is at play here?

Many individuals, when persuaded by a trusted friend to participate in fraud, will rationalize the actions as being justifiable. Which type of power is being employed in such situations?

Which of the following is NOT a possible control activity?

Which of the following is NOT an example of a control weakness or violation?

Which of the following people is most likely to have opportunities to commit fraud?

Some researchers have added a fourth element to the fraud triangle making it a fraud diamond. What is that element?

Which of the following creates opportunities for fraud?

The Nature of Fraud

Fighting Fraud: an Overview

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 2: Who Commits Fraud and Why

A fraud perpetrator used the float time between banks to give the impression that he had money in his accounts. Which crime is he committing?

is the ability of the fraud perpetrator to make an individual perceive punishment if he or she does not participate in the fraud.

Which of the following is true regarding the fraud triangle?

According to the study mentioned in the text, people who commit fraud are most similar to which of the following groups?

Segregation of duties, as a control procedure, is most often used:

Individuals often participate in fraud because they believe that by not participating in the fraud scheme, they may lose their job. Which type of power is at play here?

Many individuals, when persuaded by a trusted friend to participate in fraud, will rationalize the actions as being justifiable. Which type of power is being employed in such situations?

Which of the following is NOT a possible control activity?

Which of the following is NOT an example of a control weakness or violation?

Which of the following people is most likely to have opportunities to commit fraud?

Some researchers have added a fourth element to the fraud triangle making it a fraud diamond. What is that element?

Which of the following creates opportunities for fraud?

The Nature of Fraud

Fighting Fraud: an Overview

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