Question 1

The majority of frauds are committed by:

Accepted Answer

A)  Someone acting alone. 
B)  Two or more people acting together. 
C)  Teenagers with long hair. 
D)  Investment scams. 
A)  Someone acting alone. 
B)  Two or more people acting together. 
C)  Teenagers with long hair. 
D)  Investment scams. A

Question 2

What two business trends are likely to increase collusion fraud?

Accepted Answer

A)  Emphasis on quarterly earnings targets from analysts 
B)  Elimination of middle management 
C)  Closer relationships between buyers and suppliers 
D)  Increasingly complex nature of business 
A)  Emphasis on quarterly earnings targets from analysts 
B)  Elimination of middle management 
C)  Closer relationships between buyers and suppliers 
D)  Increasingly complex nature of business C

Question 3

Which of the following is not a factor of fraud prevention?

Accepted Answer

A)  Hiring honest people and training them in fraud awareness. 
B)  Creating a positive work environment. 
C)  Disseminating a well-understood and respected code of conduct or ethics. 
D)  Providing employees with salaries above the industry norms. 
A)  Hiring honest people and training them in fraud awareness. 
B)  Creating a positive work environment. 
C)  Disseminating a well-understood and respected code of conduct or ethics. 
D)  Providing employees with salaries above the industry norms. D

Question 4

The key factors of a good internal control system includes

Accepted Answer

A)  Accounting system including information that is valid, complete, and timely 
B)  Physical control of assets 
C)  Segregation of duties 
D)  All of the above 
A)  Accounting system including information that is valid, complete, and timely 
B)  Physical control of assets 
C)  Segregation of duties 
D)  All of the above

Question 5

Most frauds are committed by

Accepted Answer

A)  Individuals 
B)  Groups 
A)  Individuals 
B)  Groups

Question 6

Which is not an operating condition that can contribute to a higher risk of fraud?

Accepted Answer

A)  Management by crisis 
B)  Low company loyalty 
C)  High Morale 
D)  Comparatively low compensation 
A)  Management by crisis 
B)  Low company loyalty 
C)  High Morale 
D)  Comparatively low compensation

Question 7

Which of the following is not a good way to eliminate opportunities for fraud?

Accepted Answer

A)  Install good internal controls 
B)  Discreetly and quietly terminate employees who have been caught 
C)  Discourage collusion 
D)  Monitor employees 
A)  Install good internal controls 
B)  Discreetly and quietly terminate employees who have been caught 
C)  Discourage collusion 
D)  Monitor employees

Question 8

Which is not a good internal control?

Accepted Answer

A)  Mandatory vacations for all bank employees 
B)  Having only one manager with access petty cash 
C)  Keeping pre-authorized General Ledger tickets on hand 
D)  B and C 
A)  Mandatory vacations for all bank employees 
B)  Having only one manager with access petty cash 
C)  Keeping pre-authorized General Ledger tickets on hand 
D)  B and C

Question 9

Collusion involves which of the following?

Accepted Answer

A)  Employees working with other employees in the company 
B)  Employees working with others outside the company, such as vendors 
C)  All of the above 
D)  None of the above 
A)  Employees working with other employees in the company 
B)  Employees working with others outside the company, such as vendors 
C)  All of the above 
D)  None of the above

Question 10

What's the best method to reduce collusion?

Accepted Answer

A)  Mandatory vacations 
B)  Monitoring employee interaction 
C)  Job transfers 
D)  A & C 
A)  Mandatory vacations 
B)  Monitoring employee interaction 
C)  Job transfers 
D)  A & C

Question 11

The last step in the "fraud savvy" model for dealing with fraud includes follow-up. What is a likely outcome when a company allows perpetrators to go un-prosecuted?

Accepted Answer

A)  The company will avoid bad publicity 
B)  The perpetrator and others in the company will commit fraud again in the future 
C)  The perpetrator will be saved from pain and embarrassment and having learned his or her lesson will not commit fraud again 
D)  Management will send a signal that fraud will not be tolerated 
A)  The company will avoid bad publicity 
B)  The perpetrator and others in the company will commit fraud again in the future 
C)  The perpetrator will be saved from pain and embarrassment and having learned his or her lesson will not commit fraud again 
D)  Management will send a signal that fraud will not be tolerated

Question 12

Each of the following personnel policies, operating conditions, and procedures appear to contribute to a high fraud environment EXCEPT:

Accepted Answer

A)  Perceived inequalities in the organization and inadequate pay. 
B)  Inadequate expense accounts and unreasonable budget expectations 
C)  Proactive management 
D)  Managers with impulsive, insensitive, dominant, or emotional personalities 
E)  High employee turnover. 
A)  Perceived inequalities in the organization and inadequate pay. 
B)  Inadequate expense accounts and unreasonable budget expectations 
C)  Proactive management 
D)  Managers with impulsive, insensitive, dominant, or emotional personalities 
E)  High employee turnover.

Question 13

The single most effective tool in preventing and detecting fraud is

Accepted Answer

A)  Proactive fraud auditing 
B)  Tip hotlines 
C)  Creating an expectation of punishment 
D)  Good internal controls 
A)  Proactive fraud auditing 
B)  Tip hotlines 
C)  Creating an expectation of punishment 
D)  Good internal controls

Question 14

_________ focuses more on creating a culture of openness than eliminating opportunities.

Accepted Answer

A)  Proactive auditing 
B)  Installing good internal controls 
C)  Monitoring employees 
D)  Creating a positive work environment 
A)  Proactive auditing 
B)  Installing good internal controls 
C)  Monitoring employees 
D)  Creating a positive work environment

Question 15

Which business trend(s) increase the likelihood of fraud:
I- Increasing complexity of business
II- Fewer paper trails & more Oral agreements

Accepted Answer

A)  I only 
B)  II only 
C)  I & II 
D)  Neither I or II 
A)  I only 
B)  II only 
C)  I & II 
D)  Neither I or II

Question 16

Which of the following should be emphasized in an employee-reporting program?
I. Fraud, waste, and abuse occur in very few companies.
II. The company actively encourages employees with information to come forward.
III. The employee's name must be disclosed.
IV. The report need not be made to one's immediate supervisor.

Accepted Answer

A)  II and III. 
B)  I, II, III, and IV. 
C)  I, II, and IV. 
D)  II and IV. 
A)  II and III. 
B)  I, II, III, and IV. 
C)  I, II, and IV. 
D)  II and IV.

Question 17

Approximately, what percentage of frauds are committed by people acting alone?

Accepted Answer

A)  30% 
B)  50% 
C)  70% 
D)  90% 
A)  30% 
B)  50% 
C)  70% 
D)  90%

Question 18

Deciding to not prosecute a fraud perpetrator should be a possibility when:

Accepted Answer

A)  The perpetrator sincerely apologizes and pays back management the entire amount that he or she fraudulently took. 
B)  The company the perpetrator stole from is so small that it would not be cost-effective to hire a lawyer. 
C)  Top management has taken care of the issue privately, and the perpetrator has been fired. 
D)  Deciding not to prosecute should never be a possibility. 
A)  The perpetrator sincerely apologizes and pays back management the entire amount that he or she fraudulently took. 
B)  The company the perpetrator stole from is so small that it would not be cost-effective to hire a lawyer. 
C)  Top management has taken care of the issue privately, and the perpetrator has been fired. 
D)  Deciding not to prosecute should never be a possibility.

Question 19

Eliminating opportunities for fraud includes all of the following except:

Accepted Answer

A)  Installing good internal controls 
B)  Monitoring employees 
C)  Alerting vendors and contractors to company policies 
D)  Hiring honest people 
A)  Installing good internal controls 
B)  Monitoring employees 
C)  Alerting vendors and contractors to company policies 
D)  Hiring honest people

Question 20

Which is not a good measure of fraud detection?

Accepted Answer

A)  Analyzing employee spending habits 
B)  Having a 1-800 for anonymous tips 
C)  Including a "right-to-audit" clause on the back of all purchase invoices 
D)  All of the above are good detection measures 
A)  Analyzing employee spending habits 
B)  Having a 1-800 for anonymous tips 
C)  Including a "right-to-audit" clause on the back of all purchase invoices 
D)  All of the above are good detection measures

The majority of frauds are committed by:

What two business trends are likely to increase collusion fraud?

Which of the following is not a factor of fraud prevention?

The key factors of a good internal control system includes

Most frauds are committed by

Which is not an operating condition that can contribute to a higher risk of fraud?

Which of the following is not a good way to eliminate opportunities for fraud?

Which is not a good internal control?

Collusion involves which of the following?

What's the best method to reduce collusion?

The last step in the "fraud savvy" model for dealing with fraud includes follow-up. What is a likely outcome when a company allows perpetrators to go un-prosecuted?

Each of the following personnel policies, operating conditions, and procedures appear to contribute to a high fraud environment EXCEPT:

The single most effective tool in preventing and detecting fraud is

_________ focuses more on creating a culture of openness than eliminating opportunities.

Which business trend(s) increase the likelihood of fraud: I- Increasing complexity of business II- Fewer paper trails & more Oral agreements

Approximately, what percentage of frauds are committed by people acting alone?

Deciding to not prosecute a fraud perpetrator should be a possibility when:

Eliminating opportunities for fraud includes all of the following except:

Which is not a good measure of fraud detection?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

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 4: Preventing Fraud

The majority of frauds are committed by:

What two business trends are likely to increase collusion fraud?

Which of the following is not a factor of fraud prevention?

The key factors of a good internal control system includes

Most frauds are committed by

Which is not an operating condition that can contribute to a higher risk of fraud?

Which of the following is not a good way to eliminate opportunities for fraud?

Which is not a good internal control?

Collusion involves which of the following?

What's the best method to reduce collusion?

The last step in the "fraud savvy" model for dealing with fraud includes follow-up. What is a likely outcome when a company allows perpetrators to go un-prosecuted?

Each of the following personnel policies, operating conditions, and procedures appear to contribute to a high fraud environment EXCEPT:

The single most effective tool in preventing and detecting fraud is

_________ focuses more on creating a culture of openness than eliminating opportunities.

Which business trend(s) increase the likelihood of fraud: I- Increasing complexity of business II- Fewer paper trails & more Oral agreements

Approximately, what percentage of frauds are committed by people acting alone?

Deciding to not prosecute a fraud perpetrator should be a possibility when:

Eliminating opportunities for fraud includes all of the following except:

Which is not a good measure of fraud detection?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

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