Question 1

"Invigilation" is defined as:

Accepted Answer

A)  Specific policies designed to provide management with assurance that its fraud prevention measures are effective. 
B)  Imposing strict temporary controls so that, during the observation period, perpetrating fraud is extremely difficult. 
C)  Circumstances that, taken as a whole, would suggest that fraud has occurred. 
D)  A structured interview of a suspect for the purpose of obtaining an admission of guilt. 
A)  Specific policies designed to provide management with assurance that its fraud prevention measures are effective. 
B)  Imposing strict temporary controls so that, during the observation period, perpetrating fraud is extremely difficult. 
C)  Circumstances that, taken as a whole, would suggest that fraud has occurred. 
D)  A structured interview of a suspect for the purpose of obtaining an admission of guilt. B

Question 2

Communicating expectations about fraud throughout a company includes all of the following except:

Accepted Answer

A)  Identifying appropriate values and ethics. 
B)  Fraud awareness training. 
C)  Consistent punishment for violators. 
D)  Insisting that top management model appropriate behavior. 
A)  Identifying appropriate values and ethics. 
B)  Fraud awareness training. 
C)  Consistent punishment for violators. 
D)  Insisting that top management model appropriate behavior. D

Question 3

Who wins when a fraud is committed?

Accepted Answer

A)  The victim 
B)  The organization 
C)  Family 
D)  The fraudster 
E)  None of the above 
A)  The victim 
B)  The organization 
C)  Family 
D)  The fraudster 
E)  None of the above E

Question 4

Which of the following is not part of a good corporate fraud policy?

Accepted Answer

A)  Insisting top management model appropriate behavior 
B)  Establishing a threshold for which frauds will be prosecuted 
C)  Creating a positive work environment 
D)  Hiring the right kind of employees 
A)  Insisting top management model appropriate behavior 
B)  Establishing a threshold for which frauds will be prosecuted 
C)  Creating a positive work environment 
D)  Hiring the right kind of employees

Question 5

Which of the following is false?

Accepted Answer

A)  Most frauds start small and get larger and larger if not detected. 
B)  Research has shown that auditors-not employees and managers-detect most frauds. 
C)  The elements of fraud include concealment, theft act, and conversion. 
D)  Preventing fraud is the most cost-effective way to reduce losses from fraud. 
A)  Most frauds start small and get larger and larger if not detected. 
B)  Research has shown that auditors-not employees and managers-detect most frauds. 
C)  The elements of fraud include concealment, theft act, and conversion. 
D)  Preventing fraud is the most cost-effective way to reduce losses from fraud.

Question 6

Evidence that is gathered using interviewing techniques is referred to as:

Accepted Answer

A)  Physical evidence 
B)  Interview evidence 
C)  Testimonial evidence 
D)  Observation evidence 
A)  Physical evidence 
B)  Interview evidence 
C)  Testimonial evidence 
D)  Observation evidence

Question 7

According to research, what percent of frauds are detected by auditors?

Accepted Answer

A)  5% 
B)  10% 
C)  20% 
D)  40% 
A)  5% 
B)  10% 
C)  20% 
D)  40%

Question 8

Which of the flowing statement about fraud is not true?

Accepted Answer

A)  Most frauds start small and, if not detected, continue to grow larger and larger. 
B)  Events that scare or threaten the perpetrator result in discontinuance of the theft. 
C)  When scare or threat disappear, the fraud perpetrator will test the system by stealing small amount of money. 
D)  None of above 
A)  Most frauds start small and, if not detected, continue to grow larger and larger. 
B)  Events that scare or threaten the perpetrator result in discontinuance of the theft. 
C)  When scare or threat disappear, the fraud perpetrator will test the system by stealing small amount of money. 
D)  None of above

Question 9

Which of the following is the best way to create a culture of honesty and integrity?

Accepted Answer

A)  Insist that top management model appropriate behavior 
B)  Hire the right kind of employees 
C)  Develop and maintain effective policies 
D)  All of the above 
A)  Insist that top management model appropriate behavior 
B)  Hire the right kind of employees 
C)  Develop and maintain effective policies 
D)  All of the above

Question 10

Which of the following is not one of the ways in which a fraud investigation must be conducted?

Accepted Answer

A)  Investigators should be experienced and objective professionals. 
B)  Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated. 
C)  Investigators should not keep management apprised of the investigations process. 
D)  Investigators must be sure to follow appropriate investigative techniques. 
A)  Investigators should be experienced and objective professionals. 
B)  Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated. 
C)  Investigators should not keep management apprised of the investigations process. 
D)  Investigators must be sure to follow appropriate investigative techniques.

Question 11

Research shows that legal action is taken against fraud perpetrators in:

Accepted Answer

A)  Almost all fraud cases. 
B)  More than half of fraud cases. 
C)  Less than half of fraud cases. 
D)  Almost no fraud cases. 
A)  Almost all fraud cases. 
B)  More than half of fraud cases. 
C)  Less than half of fraud cases. 
D)  Almost no fraud cases.

Question 12

In order to prevent fraud, a company should create a corporate culture of honesty and integrity. Which of the following is helpful in creating this kind of culture?

Accepted Answer

A)  Giving employees positive feedback and recognition of job performance. 
B)  Management conducted by a few key people who do not accept advice or participation from other employees 
C)  Conducting background checks before hiring a new employee 
D)  Both A and C 
A)  Giving employees positive feedback and recognition of job performance. 
B)  Management conducted by a few key people who do not accept advice or participation from other employees 
C)  Conducting background checks before hiring a new employee 
D)  Both A and C

Question 13

Which of the following is (are) the primary ways to detect fraud?

Accepted Answer

A)  By chance 
B)  By proactively searching for symptoms of fraud 
C)  By encouraging early recognition of symptoms 
D)  By asking all employees if they know of any fraud 
A)  By chance 
B)  By proactively searching for symptoms of fraud 
C)  By encouraging early recognition of symptoms 
D)  By asking all employees if they know of any fraud

Question 14

Which one of the following was not discussed as a way to create a culture of honesty and integrity?

Accepted Answer

A)  Offer rewards for honest behavior 
B)  Communicate expectations throughout the organization 
C)  Create a positive work environment 
D)  Hire the right kinds of employees 
E)  None of the above 
A)  Offer rewards for honest behavior 
B)  Communicate expectations throughout the organization 
C)  Create a positive work environment 
D)  Hire the right kinds of employees 
E)  None of the above

Question 15

Of the key activities related to fraud, which of the following is the most important and perhaps the most profitable?

Accepted Answer

A)  Follow-up legal action/resolution 
B)  Early fraud detection 
C)  Fraud investigation 
D)  Fraud prevention 
A)  Follow-up legal action/resolution 
B)  Early fraud detection 
C)  Fraud investigation 
D)  Fraud prevention

Question 16

Which of the following is not part of the evidence square?

Accepted Answer

A)  Management evidence 
B)  Documentary evidence 
C)  Personal Observation 
D)  Physical evidence 
A)  Management evidence 
B)  Documentary evidence 
C)  Personal Observation 
D)  Physical evidence

Question 17

John, a CFE, was conducting an investigation on some accusations that Jim, the division manager, was involved in fraudulent activities. During the course of the investigation, in order to gather more information, John mentions Jim's name and tries to get additional information from some uninvolved underlings at a company party. John is guilty of:

Accepted Answer

A)  Using questionable investigation techniques 
B)  Jumping to conclusions 
C)  Not reporting all facts objectively 
D)  Not insuring that those involved are on a "need to know" basis. 
A)  Using questionable investigation techniques 
B)  Jumping to conclusions 
C)  Not reporting all facts objectively 
D)  Not insuring that those involved are on a "need to know" basis.

Question 18

Many people who suspect that fraud is occurring in an organization won't come forward because:

Accepted Answer

A)  They think someone else will report the fraud 
B)  They don't want to wrongly accuse someone 
C)  All of the above 
D)  None of the above 
A)  They think someone else will report the fraud 
B)  They don't want to wrongly accuse someone 
C)  All of the above 
D)  None of the above

Question 19

Which is not one of the three basic elements of fraud?

Accepted Answer

A)  Concealment 
B)  Theft 
C)  Opportunity 
D)  Conversion 
A)  Concealment 
B)  Theft 
C)  Opportunity 
D)  Conversion

Question 20

Research indicates that fraud occurs less frequently when employees have feelings of ___________ toward their organization than when they feel abused, threatened, or ignored.

Accepted Answer

A)  Tenure 
B)  Avoidance 
C)  Ownership 
D)  Responsibility 
A)  Tenure 
B)  Avoidance 
C)  Ownership 
D)  Responsibility

"Invigilation" is defined as:

Communicating expectations about fraud throughout a company includes all of the following except:

Who wins when a fraud is committed?

Which of the following is not part of a good corporate fraud policy?

Which of the following is false?

Evidence that is gathered using interviewing techniques is referred to as:

According to research, what percent of frauds are detected by auditors?

Which of the flowing statement about fraud is not true?

Which of the following is the best way to create a culture of honesty and integrity?

Which of the following is not one of the ways in which a fraud investigation must be conducted?

Research shows that legal action is taken against fraud perpetrators in:

In order to prevent fraud, a company should create a corporate culture of honesty and integrity. Which of the following is helpful in creating this kind of culture?

Which of the following is (are) the primary ways to detect fraud?

Which one of the following was not discussed as a way to create a culture of honesty and integrity?

Of the key activities related to fraud, which of the following is the most important and perhaps the most profitable?

Which of the following is not part of the evidence square?

Many people who suspect that fraud is occurring in an organization won't come forward because:

Which is not one of the three basic elements of fraud?

Research indicates that fraud occurs less frequently when employees have feelings of ___________ toward their organization than when they feel abused, threatened, or ignored.

The Nature of Fraud

Why People Commit Fraud

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 3: Fighting Fraud: An Overview

"Invigilation" is defined as:

Communicating expectations about fraud throughout a company includes all of the following except:

Who wins when a fraud is committed?

Which of the following is not part of a good corporate fraud policy?

Which of the following is false?

Evidence that is gathered using interviewing techniques is referred to as:

According to research, what percent of frauds are detected by auditors?

Which of the flowing statement about fraud is not true?

Which of the following is the best way to create a culture of honesty and integrity?

Which of the following is not one of the ways in which a fraud investigation must be conducted?

Research shows that legal action is taken against fraud perpetrators in:

In order to prevent fraud, a company should create a corporate culture of honesty and integrity. Which of the following is helpful in creating this kind of culture?

Which of the following is (are) the primary ways to detect fraud?

Which one of the following was not discussed as a way to create a culture of honesty and integrity?

Of the key activities related to fraud, which of the following is the most important and perhaps the most profitable?

Which of the following is not part of the evidence square?

Many people who suspect that fraud is occurring in an organization won't come forward because:

Which is not one of the three basic elements of fraud?

Research indicates that fraud occurs less frequently when employees have feelings of ___________ toward their organization than when they feel abused, threatened, or ignored.

The Nature of Fraud

Why People Commit Fraud

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