Question 1

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 2

An effective accounting system is designed to provide which of the following to help discover fraud?

Accepted Answer

A) An audit trail 
B) Matching of expenses to revenues 
C) Set of controls 
D) Set of accounting procedures 
A) An audit trail 
B) Matching of expenses to revenues 
C) Set of controls 
D) Set of accounting procedures

Question 3

Which racial group is most likely to commit fraud?

Accepted Answer

A) Caucasian 
B) African American 
C) Asian 
D) Hispanic 
E) People of every race commit fraud 
A) Caucasian 
B) African American 
C) Asian 
D) Hispanic 
E) People of every race commit fraud

Question 4

​Which of the following is a true statement regarding the fraud scale depicted in the text?

Accepted Answer

A) ​The greater the perceived opportunity to commit fraud, the less rationalization is takes to commit fraud. 
B) ​The more dishonest a person is, the higher the need to rationalize the fraud act. 
C) ​When the financial pressure increases, even low perceived opportunity is sufficient to commit fraud. 
D) ​As the 'need' to gamble increases, rationalization to commit fraud becomes easier. 
A) ​The greater the perceived opportunity to commit fraud, the less rationalization is takes to commit fraud. 
B) ​The more dishonest a person is, the higher the need to rationalize the fraud act. 
C) ​When the financial pressure increases, even low perceived opportunity is sufficient to commit fraud. 
D) ​As the 'need' to gamble increases, rationalization to commit fraud becomes easier.

Question 5

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 6

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?

Accepted Answer

A) Income statement. 
B) Balance sheet. 
C) Statement of cash flows. 
D) Statement of retained earnings. 
A) Income statement. 
B) Balance sheet. 
C) Statement of cash flows. 
D) Statement of retained earnings.

Question 7

_____ is the ability of the perpetrator to relate to the potential co-conspirator.

Accepted Answer

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

Question 8

According to Max Weber,______ is the probability that a person can carry out his or her own will despite resistance.

Accepted Answer

A) power 
B) persuasion 
C) prejudice 
D) potency 
A) power 
B) persuasion 
C) prejudice 
D) potency

Question 9

When management fraud occurs,companies usually:

Accepted Answer

A) overstate assets and net income. 
B) understate assets and net income. 
C) overstate assets and understate net income. 
D) understate assets and overstate net income. 
A) overstate assets and net income. 
B) understate assets and net income. 
C) overstate assets and understate net income. 
D) understate assets and overstate net income.

Question 10

Which of the following is NOT a true statement?

Accepted Answer

A) Almost every fraud involves rationalization. 
B) All frauds involve financial or vice-related pressures. 
C) Perceived opportunity diminishes when fraud perpetrators are prosecuted. 
A) Almost every fraud involves rationalization. 
B) All frauds involve financial or vice-related pressures. 
C) Perceived opportunity diminishes when fraud perpetrators are prosecuted.

Question 11

Studies show that in advanced countries,levels of honesty are:

Accepted Answer

A) Generally stable 
B) Increasing 
C) Decreasing 
A) Generally stable 
B) Increasing 
C) Decreasing

Question 12

Who do criminologists compare fraudsters to in relation to repeat offenses and why?

Accepted Answer

A) Rapists.They repeat their crimes because they are not severely punished. 
B) Shoplifters.They steal goods frequently and in small quantities until they are confronted. 
C) Bank Robbers.They steal a lot of money from wealthy sources. 
D) Bank Tellers.They have access to a large amount of resources and they are perceived to be trustworthy people. 
A) Rapists.They repeat their crimes because they are not severely punished. 
B) Shoplifters.They steal goods frequently and in small quantities until they are confronted. 
C) Bank Robbers.They steal a lot of money from wealthy sources. 
D) Bank Tellers.They have access to a large amount of resources and they are perceived to be trustworthy people.

Question 13

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 14

Which of the following is true regarding the fraud triangle?​

Accepted Answer

A) ​The three elements of the fraud triangle are inter-active. 
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) ​A financial pressure to commit fraud is the strongest pressure of the three fraud triangle elements. 
A) ​The three elements of the fraud triangle are inter-active. 
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) ​A financial pressure to commit fraud is the strongest pressure of the three fraud triangle elements.

Question 15

Greed,living beyond one's means and high bills all describe what type of fraud-related pressure?

Accepted Answer

A) Financial 
B) Peer 
C) Environmental 
D) Work-Related 
A) Financial 
B) Peer 
C) Environmental 
D) Work-Related

Question 16

Wilma participates in a fraud scheme by executing some derivative trades because she believed that a senior analyst knew more about complex derivative transactions than she did.These transactions were fraudulent in nature.Which type of power was employed to deceive Wilma?

Accepted Answer

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

Question 17

​Which of the following statements is false?

Accepted Answer

A) ​Half-truths are often a part of rationalization. 
B) ​The bigger the fraud act, the more believable the rationalization. 
C) ​Many fraud perpetrators believe their rationalizations to be true. 
D) ​Perceived rationalizations are a part of the fraud triangle. 
A) ​Half-truths are often a part of rationalization. 
B) ​The bigger the fraud act, the more believable the rationalization. 
C) ​Many fraud perpetrators believe their rationalizations to be true. 
D) ​Perceived rationalizations are a part of the fraud triangle.

Question 18

According to the study mentioned in the text,which of the following is true about fraud perpetrators compared to property offenders?

Accepted Answer

A) Fraud perpetrators are more likely to be caught than property offenders 
B) Fraud perpetrators are more educated than property offenders 
C) Fraud perpetrators are more likely to be men than property offenders 
D) Fraud perpetrators are much younger than property offenders 
A) Fraud perpetrators are more likely to be caught than property offenders 
B) Fraud perpetrators are more educated than property offenders 
C) Fraud perpetrators are more likely to be men than property offenders 
D) Fraud perpetrators are much younger than property offenders

Question 19

Documents and records are an important control activity.Which of the following statements concerning this activity is true?

Accepted Answer

A) They serve as excellent preventive controls. 
B) Adequate accountability can exist even in their absence. 
C) The entire accounting system serves as a documentary control. 
D) They are poor detective controls. 
A) They serve as excellent preventive controls. 
B) Adequate accountability can exist even in their absence. 
C) The entire accounting system serves as a documentary control. 
D) They are poor detective controls.

Question 20

​Which of the following is an example of a vice pressure?

Accepted Answer

A) ​expensive extramarital relationship(s). 
B) ​an extravagant life-style. 
C) needing to appear successful.​ 
D) ​being offered a bribe. 
A) ​expensive extramarital relationship(s). 
B) ​an extravagant life-style. 
C) needing to appear successful.​ 
D) ​being offered a bribe.

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

An effective accounting system is designed to provide which of the following to help discover fraud?

Which racial group is most likely to commit fraud?

Which of the following is a true statement regarding the fraud scale depicted in the text?

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?

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?

_____ is the ability of the perpetrator to relate to the potential co-conspirator.

According to Max Weber,______ is the probability that a person can carry out his or her own will despite resistance.

When management fraud occurs,companies usually:

Which of the following is NOT a true statement?

Studies show that in advanced countries,levels of honesty are:

Who do criminologists compare fraudsters to in relation to repeat offenses and why?

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

Which of the following is true regarding the fraud triangle?

Greed,living beyond one's means and high bills all describe what type of fraud-related pressure?

Wilma participates in a fraud scheme by executing some derivative trades because she believed that a senior analyst knew more about complex derivative transactions than she did.These transactions were fraudulent in nature.Which type of power was employed to deceive Wilma?

Which of the following statements is false?

According to the study mentioned in the text,which of the following is true about fraud perpetrators compared to property offenders?

Documents and records are an important control activity.Which of the following statements concerning this activity is true?

Which of the following is an example of a vice pressure?

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

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

An effective accounting system is designed to provide which of the following to help discover fraud?

Which racial group is most likely to commit fraud?

​Which of the following is a true statement regarding the fraud scale depicted in the text?

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?

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?

_____ is the ability of the perpetrator to relate to the potential co-conspirator.

According to Max Weber,______ is the probability that a person can carry out his or her own will despite resistance.

When management fraud occurs,companies usually:

Which of the following is NOT a true statement?

Studies show that in advanced countries,levels of honesty are:

Who do criminologists compare fraudsters to in relation to repeat offenses and why?

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

Which of the following is true regarding the fraud triangle?​

Greed,living beyond one's means and high bills all describe what type of fraud-related pressure?

Wilma participates in a fraud scheme by executing some derivative trades because she believed that a senior analyst knew more about complex derivative transactions than she did.These transactions were fraudulent in nature.Which type of power was employed to deceive Wilma?

​Which of the following statements is false?

According to the study mentioned in the text,which of the following is true about fraud perpetrators compared to property offenders?

Documents and records are an important control activity.Which of the following statements concerning this activity is true?

​Which of the following is an example of a vice pressure?

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

Which of the following is a true statement regarding the fraud scale depicted in the text?

Which of the following is true regarding the fraud triangle?

Which of the following statements is false?

Which of the following is an example of a vice pressure?