Question 1

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 2

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 D

Question 3

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

Accepted Answer

A) Theft act 
B) Concealment 
C) Conversion 
D) Rationalization 
A) Theft act 
B) Concealment 
C) Conversion 
D) Rationalization D

Question 4

Investigative techniques under which approach include invigilation,surveillance,and covert operations?

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 5

In the past,most frauds were detected:

Accepted Answer

A) by surveillance and undercover operations. 
B) by accident. 
C) by providing ways for people to report suspicions of fraud. 
D) by examining transaction records and documents to determine if there are anomalies that could represent fraud. 
A) by surveillance and undercover operations. 
B) by accident. 
C) by providing ways for people to report suspicions of fraud. 
D) by examining transaction records and documents to determine if there are anomalies that could represent fraud.

Question 6

In the ethical maturity model,instilling in others a desire to develop ethical awareness and courage is referred to as:

Accepted Answer

A) Personal codes of ethics. 
B) Ethical motivation. 
C) Ethical leadership. 
D) Application of ethics to business situations. 
A) Personal codes of ethics. 
B) Ethical motivation. 
C) Ethical leadership. 
D) Application of ethics to business situations.

Question 7

​Which of the following is true about whistle-blowing?

Accepted Answer

A) ​Whistle-blowers are respected by colleagues. 
B) ​Whistle-blowing is a good way to get back at a co-worker. 
C) ​Whistle-blowing systems should include an anonymous hotline. 
D) ​Whistle-blowing usually provides monetary rewards. 
A) ​Whistle-blowers are respected by colleagues. 
B) ​Whistle-blowing is a good way to get back at a co-worker. 
C) ​Whistle-blowing systems should include an anonymous hotline. 
D) ​Whistle-blowing usually provides monetary rewards.

Question 8

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

Question 9

​Which of the following is a possible indication that fraud may be present?

Accepted Answer

A) ​An employee's spouse is diagnosed with Alzheimer's disease. 
B) ​An employee's lifestyle changes suddenly. 
C) ​An employee's spouse has a serious vehicle accident. 
D) ​An employee reports that another employee is a gambling addict. 
A) ​An employee's spouse is diagnosed with Alzheimer's disease. 
B) ​An employee's lifestyle changes suddenly. 
C) ​An employee's spouse has a serious vehicle accident. 
D) ​An employee reports that another employee is a gambling addict.

Question 10

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions,and there are four levels in it.Which of the following level is NOT one among them.

Accepted Answer

A) Personal ethical understanding 
B) Corporate code of ethics 
C) Application of ethics 
D) Ethical courage 
E) Ethical leadership 
A) Personal ethical understanding 
B) Corporate code of ethics 
C) Application of ethics 
D) Ethical courage 
E) Ethical leadership

Question 11

Which of the following is true of why fraud should be detected early?​

Accepted Answer

A) ​Most frauds start small and get larger over time. 
B) ​Determining motive is a strong tool to prevent similar frauds in the future. 
C) ​When top management is the perpetrator, preventions can be implemented once the fraud has been discovered. 
D) ​Fraud is often obvious and more easily detected when first committed. 
A) ​Most frauds start small and get larger over time. 
B) ​Determining motive is a strong tool to prevent similar frauds in the future. 
C) ​When top management is the perpetrator, preventions can be implemented once the fraud has been discovered. 
D) ​Fraud is often obvious and more easily detected when first committed.

Question 12

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.

Question 13

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 14

In an organization,individuals who suspect fraud usually don't come forward because they:

Accepted Answer

A) feel that perpetrator will get caught anyway. 
B) do not want to accuse someone. 
C) fear being branded as a whistle-blower. 
D) will lose the friendship of the perpetrator. 
A) feel that perpetrator will get caught anyway. 
B) do not want to accuse someone. 
C) fear being branded as a whistle-blower. 
D) will lose the friendship of the perpetrator.

Question 15

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions.Which of the following represents the foundation of ethics according to this model?

Accepted Answer

A) Personal ethical understanding 
B) Ethical courage 
C) Ethical leadership 
D) Application of ethics to business situations 
A) Personal ethical understanding 
B) Ethical courage 
C) Ethical leadership 
D) Application of ethics to business situations

Question 16

​Which of the following is true about legal action taken by organizations who 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 the 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 the 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 17

Which type of evidence is gathered from individuals using investigative techniques such as interviewing,interrogation,and honesty tests?

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

​Which of the following is NOT true regarding why fraud prevention controls are important?

Accepted Answer

A) ​Preventing fraud also saves the family of the perpetrator from embarrassment (guilt by association). 
B) ​Once the fraud has been committed, the cost of any legal action taken can cause the victims to lose even more. 
C) ​The organization that isn't proactive about possible fraud is more likely to have an employee commit a fraud act. 
D) ​Fraud control costs are less than the known costs that would have been lost through fraud. 
A) ​Preventing fraud also saves the family of the perpetrator from embarrassment (guilt by association). 
B) ​Once the fraud has been committed, the cost of any legal action taken can cause the victims to lose even more. 
C) ​The organization that isn't proactive about possible fraud is more likely to have an employee commit a fraud act. 
D) ​Fraud control costs are less than the known costs that would have been lost through fraud.

Question 19

​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 organization employee demographics 
B) ​top management personal characteristics 
C) ​industry characteristics 
D) ​customer demographics 
A) ​current organization employee demographics 
B) ​top management personal characteristics 
C) ​industry characteristics 
D) ​customer demographics

Question 20

_______ refers to the circumstances,taken as a whole,that would lead a reasonable,prudent professional to believe a fraud has occurred,is occurring,or will incur.

Accepted Answer

A) Audit process 
B) Surveillance 
C) Predication 
D) Investigation 
A) Audit process 
B) Surveillance 
C) Predication 
D) Investigation

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

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

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

Investigative techniques under which approach include invigilation,surveillance,and covert operations?

In the past,most frauds were detected:

In the ethical maturity model,instilling in others a desire to develop ethical awareness and courage is referred to as:

Which of the following is true about whistle-blowing?

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

Which of the following is a possible indication that fraud may be present?

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions,and there are four levels in it.Which of the following level is NOT one among them.

Which of the following is true of why fraud should be detected early?

Which of the following statements is NOT true?

Research has shown that ______ detect most frauds.

In an organization,individuals who suspect fraud usually don't come forward because they:

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions.Which of the following represents the foundation of ethics according to this model?

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

Which type of evidence is gathered from individuals using investigative techniques such as interviewing,interrogation,and honesty tests?

Which of the following is NOT true regarding why fraud prevention controls are important?

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

_______ refers to the circumstances,taken as a whole,that would lead a reasonable,prudent professional to believe a fraud has occurred,is occurring,or will incur.

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 is an example of a whistle-blowing system?

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

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

Investigative techniques under which approach include invigilation,surveillance,and covert operations?

In the past,most frauds were detected:

In the ethical maturity model,instilling in others a desire to develop ethical awareness and courage is referred to as:

​Which of the following is true about whistle-blowing?

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

​Which of the following is a possible indication that fraud may be present?

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions,and there are four levels in it.Which of the following level is NOT one among them.

Which of the following is true of why fraud should be detected early?​

Which of the following statements is NOT true?

Research has shown that ______ detect most frauds.

In an organization,individuals who suspect fraud usually don't come forward because they:

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions.Which of the following represents the foundation of ethics according to this model?

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

Which type of evidence is gathered from individuals using investigative techniques such as interviewing,interrogation,and honesty tests?

​Which of the following is NOT true regarding why fraud prevention controls are important?

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

_______ refers to the circumstances,taken as a whole,that would lead a reasonable,prudent professional to believe a fraud has occurred,is occurring,or will incur.

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

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

Which of the following is true about whistle-blowing?

Which of the following is a possible indication that fraud may be present?

Which of the following is true of why fraud should be detected early?

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

Which of the following is NOT true regarding why fraud prevention controls are important?

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