Question 1

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. B

Question 2

What is the strongest factor in deterring future fraud activity?

Accepted Answer

A)  Legal prosecution. 
B)  Sanctions. 
C)  Termination. 
D)  Counseling. 
A)  Legal prosecution. 
B)  Sanctions. 
C)  Termination. 
D)  Counseling. A

Question 3

All of the following functions should be set up as segregated duties except:

Accepted Answer

A)  Writing checks 
B)  Making bank deposits 
C)  Reconciling bank statements 
D)  All of the above should be set up as segregated duties 
A)  Writing checks 
B)  Making bank deposits 
C)  Reconciling bank statements 
D)  All of the above should be set up as segregated duties D

Question 4

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 5

Every fraud is comprised of all the following elements except:

Accepted Answer

A)  The theft act 
B)  Concealment 
C)  Conversion 
D)  All of the above are elements of fraud. 
A)  The theft act 
B)  Concealment 
C)  Conversion 
D)  All of the above are elements of fraud.

Question 6

The following are all types of power except:

Accepted Answer

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

Question 7

Failure to discipline a fraud perpetrator generally leads to all of the following except:

Accepted Answer

A)  Helping the perpetrator build a solid resume 
B)  An increase of "perceived opportunity" within an organization 
C)  Frauds of greater magnitude by the same perpetrator 
D)  All of the above 
A)  Helping the perpetrator build a solid resume 
B)  An increase of "perceived opportunity" within an organization 
C)  Frauds of greater magnitude by the same perpetrator 
D)  All of the above

Question 8

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 9

Which of the following statements about accounting systems is incorrect?

Accepted Answer

A)  An effective accounting system provides an audit trail that allows frauds to be discovered. 
B)  An effective accounting system makes concealment difficult. 
C)  An effective accounting system can almost always effectively prevent "kickbacks." 
D)  Without a good accounting system, it is often difficult to distinguish between actual fraud and unintentional error 
A)  An effective accounting system provides an audit trail that allows frauds to be discovered. 
B)  An effective accounting system makes concealment difficult. 
C)  An effective accounting system can almost always effectively prevent "kickbacks." 
D)  Without a good accounting system, it is often difficult to distinguish between actual fraud and unintentional error

Question 10

Teaching and Training are examples of

Accepted Answer

A)  Modeling 
B)  Labeling 
C)  Physical Safeguards 
D)  Independent Checks 
A)  Modeling 
B)  Labeling 
C)  Physical Safeguards 
D)  Independent Checks

Question 11

Which of the following factors creates an opportunity for fraud?

Accepted Answer

A)  Greed 
B)  Living beyond one's means 
C)  Lack of an audit trail 
D)  The organization owes it to me 
A)  Greed 
B)  Living beyond one's means 
C)  Lack of an audit trail 
D)  The organization owes it to me

Question 12

Control Factors are -

Accepted Answer

A)  An effective control environment 
B)  An ethical Accounting System 
C)  Internal control activities 
D)  Anything that prevents or detects fraud 
A)  An effective control environment 
B)  An ethical Accounting System 
C)  Internal control activities 
D)  Anything that prevents or detects fraud

Question 13

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 14

Which of the following is true about fraud perpetrators compared to property offenders:

Accepted Answer

A)  Fraud perpetrators are more likely to be caught 
B)  Fraud perpetrators are more educated 
C)  Fraud perpetrators are more likely to be convicted 
D)  Fraud perpetrators are much younger 
A)  Fraud perpetrators are more likely to be caught 
B)  Fraud perpetrators are more educated 
C)  Fraud perpetrators are more likely to be convicted 
D)  Fraud perpetrators are much younger

Question 15

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

Accepted Answer

A)  Rapist. 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)  Rapist. 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 16

Most fraud perpetrators:

Accepted Answer

A)  Have little education 
B)  Have a criminal record. 
C)  Are new to the company 
D)  None of the above 
A)  Have little education 
B)  Have a criminal record. 
C)  Are new to the company 
D)  None of the above

Question 17

The ACFE estimates that employee fraud costs small companies an average of:

Accepted Answer

A)  $60,000 per incident 
B)  $120,000 per incident 
C)  $240,000 per incident 
D)  $480,000 per incident 
A)  $60,000 per incident 
B)  $120,000 per incident 
C)  $240,000 per incident 
D)  $480,000 per incident

Question 18

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)  Both B and C are correct. 
A)  Income statement. 
B)  Balance sheet. 
C)  Statement of cash flows. 
D)  Both B and C are correct.

Question 19

People who commit fraud are most similar to which of the following groups?

Accepted Answer

A)  Burglars 
B)  College students 
C)  Convicted murderers 
D)  Police officers 
A)  Burglars 
B)  College students 
C)  Convicted murderers 
D)  Police officers

Question 20

Which of the following is an example of a non-control factor of fraud?

Accepted Answer

A)  An employee inflates an expense report 
B)  An auto shop uses sub-standard parts and charges for premium transmission parts 
C)  Internal controls are overridden so a manager can steal cash 
D)  An investment opportunity is run by someone previously convicted of fraud 
A)  An employee inflates an expense report 
B)  An auto shop uses sub-standard parts and charges for premium transmission parts 
C)  Internal controls are overridden so a manager can steal cash 
D)  An investment opportunity is run by someone previously convicted of fraud

Which of the following is not a true statement?

What is the strongest factor in deterring future fraud activity?

All of the following functions should be set up as segregated duties except:

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

Every fraud is comprised of all the following elements except:

The following are all types of power except:

Failure to discipline a fraud perpetrator generally leads to all of the following except:

Which racial group is most likely to commit fraud?

Which of the following statements about accounting systems is incorrect?

Teaching and Training are examples of

Which of the following factors creates an opportunity for fraud?

Control Factors are -

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

Which of the following is true about fraud perpetrators compared to property offenders:

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

Most fraud perpetrators:

The ACFE estimates that employee fraud costs small companies an average of:

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

People who commit fraud are most similar to which of the following groups?

Which of the following is an example of a non-control factor of 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

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 2: Why People Commit Fraud

Which of the following is not a true statement?

What is the strongest factor in deterring future fraud activity?

All of the following functions should be set up as segregated duties except:

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

Every fraud is comprised of all the following elements except:

The following are all types of power except:

Failure to discipline a fraud perpetrator generally leads to all of the following except:

Which racial group is most likely to commit fraud?

Which of the following statements about accounting systems is incorrect?

Teaching and Training are examples of

Which of the following factors creates an opportunity for fraud?

Control Factors are -

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

Which of the following is true about fraud perpetrators compared to property offenders:

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

Most fraud perpetrators:

The ACFE estimates that employee fraud costs small companies an average of:

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

People who commit fraud are most similar to which of the following groups?

Which of the following is an example of a non-control factor of 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

Fraud in E-Commerce

Legal Follow-Up

Filters