Question 1

An employee has five new cars and a gold watch. These facts would be considered:

Accepted Answer

A)  Lifestyle symptoms 
B)  Accounting anomalies 
C)  Tips and complaints 
D)  Analytical symptoms 
A)  Lifestyle symptoms 
B)  Accounting anomalies 
C)  Tips and complaints 
D)  Analytical symptoms

Question 2

The default model that deals with fraud has which of the following stages

Accepted Answer

A)  Fraud incident 
B)  Action 
C)  Resolution 
D)  All of the above 
A)  Fraud incident 
B)  Action 
C)  Resolution 
D)  All of the above

Question 3

Which factors are crucial in creating a culture of honesty, openness, and assistance?

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)  All of the above 
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)  All of the above

Question 4

Which of the following is usually the most effective tool in preventing and detecting fraud?

Accepted Answer

A)  Discouraging collusion 
B)  Investigation of fraud symptoms 
C)  Internal controls 
D)  Strict policies of investigations and punishment 
A)  Discouraging collusion 
B)  Investigation of fraud symptoms 
C)  Internal controls 
D)  Strict policies of investigations and punishment

Question 5

The best way to limit opportunities for committing fraud in an organization is to:

Accepted Answer

A)  Establish clear vendor policies 
B)  Create a tip hotline 
C)  Maintain good internal controls 
D)  Monitor employees 
A)  Establish clear vendor policies 
B)  Create a tip hotline 
C)  Maintain good internal controls 
D)  Monitor employees

Question 6

The following must be done before a proactive program that looks for fraud symptoms is built:

Accepted Answer

A)  Investigate fraud symptoms. 
B)  Identify risk exposures. 
C)  Identify fraud symptoms. 
D)  Two of the above. 
E)  None of the above. 
A)  Investigate fraud symptoms. 
B)  Identify risk exposures. 
C)  Identify fraud symptoms. 
D)  Two of the above. 
E)  None of the above.

Question 7

A "right-to-audit" clause

Accepted Answer

A)  Alerts the company that a vendor reserves the right to audit the company's books at any time 
B)  Gives an external auditor the right to audit the company 
C)  Should not be used because it isn't an effective tool in fraud investigations 
D)  Alerts vendors that the company reserves the right to audit the vendor's books at any time. 
A)  Alerts the company that a vendor reserves the right to audit the company's books at any time 
B)  Gives an external auditor the right to audit the company 
C)  Should not be used because it isn't an effective tool in fraud investigations 
D)  Alerts vendors that the company reserves the right to audit the vendor's books at any time.

Question 8

Fraud is most commonly detected through __________.

Accepted Answer

A)  Tips 
B)  Advances in technology 
C)  Confessions 
D)  Internal audits 
A)  Tips 
B)  Advances in technology 
C)  Confessions 
D)  Internal audits

Question 9

In order to minimize fraud, a fraud-savvy organization should:

Accepted Answer

A)  Not prosecute the fraud perpetrator to avoid publicity 
B)  Minimize the fraud's impact on the organization by not talking about the fraud in the organization 
C)  Trust its employees by reducing monitoring of employees in order to regain employee moral after fraud detection 
D)  Develop and promote a company code of conduct 
A)  Not prosecute the fraud perpetrator to avoid publicity 
B)  Minimize the fraud's impact on the organization by not talking about the fraud in the organization 
C)  Trust its employees by reducing monitoring of employees in order to regain employee moral after fraud detection 
D)  Develop and promote a company code of conduct

Question 10

The responsibility for preventing fraud is often seen as belonging to:

Accepted Answer

A)  The internal auditors 
B)  Corporate security 
C)  The external auditors 
D)  Managers 
E)  Someone else 
A)  The internal auditors 
B)  Corporate security 
C)  The external auditors 
D)  Managers 
E)  Someone else

Question 11

Even with the best possible internal control system in place, its effectiveness still depends on what?

Accepted Answer

A)  Creating an expectation of punishment. 
B)  Identifying the nature of the risks involved and the losses that could result from these risks. 
C)  The competency and dependability of the people enforcing it. 
D)  All of the above. 
A)  Creating an expectation of punishment. 
B)  Identifying the nature of the risks involved and the losses that could result from these risks. 
C)  The competency and dependability of the people enforcing it. 
D)  All of the above.

Question 12

Even with internal control procedures in place, many companies routinely experience fraud for all of the following reasons except:

Accepted Answer

A)  Management overrides controls. 
B)  Control procedures are not followed. 
C)  Control procedures are not effective fraud-prevention tools 
D)  Lack of rewards for complying with control procedures. 
A)  Management overrides controls. 
B)  Control procedures are not followed. 
C)  Control procedures are not effective fraud-prevention tools 
D)  Lack of rewards for complying with control procedures.

Question 13

Having a manager watch over employee's shoulders is a good example of:

Accepted Answer

A)  Discouraging collusion 
B)  Monitoring employees 
C)  Creating an expectation of punishment 
D)  None of the above 
A)  Discouraging collusion 
B)  Monitoring employees 
C)  Creating an expectation of punishment 
D)  None of the above

Question 14

Fraud prevention saves the most money because __________.

Accepted Answer

A)  No fraud means no investigation cost 
B)  No fraud means no detection cost 
C)  No fraud means no litigation cost 
D)  All of the above 
A)  No fraud means no investigation cost 
B)  No fraud means no detection cost 
C)  No fraud means no litigation cost 
D)  All of the above

Question 15

The following elements are crucial in creating a culture of honesty except:

Accepted Answer

A)  Hiring qualified individuals 
B)  Implementing employee assistance programs 
C)  Developing an organizational code of conduct 
D)  Promoting an open-door policy 
A)  Hiring qualified individuals 
B)  Implementing employee assistance programs 
C)  Developing an organizational code of conduct 
D)  Promoting an open-door policy

Question 16

The principle mechanism for deterring fraud is internal controls. The primary responsibility for establishing and maintaining these controls rests with

Accepted Answer

A)  The internal auditors 
B)  Management 
C)  Corporate security 
D)  Independent auditors 
A)  The internal auditors 
B)  Management 
C)  Corporate security 
D)  Independent auditors

Question 17

Which of the following is a sign of a positive work environment?

Accepted Answer

A)  Yearly turnover of hourly employees exceeds 25% 
B)  Company returns that consistently beat the industry average 
C)  Departments cut work parties to keep within their budget 
D)  Employees work long hours because they care about the company 
A)  Yearly turnover of hourly employees exceeds 25% 
B)  Company returns that consistently beat the industry average 
C)  Departments cut work parties to keep within their budget 
D)  Employees work long hours because they care about the company

Question 18

True or False. Internal controls are "fraud proof".

Accepted Answer

A) True 
 B)False

Question 19

What are key attributes for a low-fraud environment?

Accepted Answer

A)  Rules, consequences, and fear 
B)  Recognition, remorse, and restitution 
C)  Honesty, openness, =and assistance 
D)  Opportunity, incentive, and rationalization 
A)  Rules, consequences, and fear 
B)  Recognition, remorse, and restitution 
C)  Honesty, openness, =and assistance 
D)  Opportunity, incentive, and rationalization

Question 20

Which is the following is not one of the four factors in fraud prevention that are crucial in crating a culture of honesty, openness, and assistance:

Accepted Answer

A)  Hiring honest people and training them in fraud awareness 
B)  Providing employee assistance programs (EAPs) 
C)  Creating a positive work environment 
D)  Paying the employees higher wages 
E)  All of the above are factors in fraud prevention 
A)  Hiring honest people and training them in fraud awareness 
B)  Providing employee assistance programs (EAPs) 
C)  Creating a positive work environment 
D)  Paying the employees higher wages 
E)  All of the above are factors in fraud prevention

An employee has five new cars and a gold watch. These facts would be considered:

The default model that deals with fraud has which of the following stages

Which factors are crucial in creating a culture of honesty, openness, and assistance?

Which of the following is usually the most effective tool in preventing and detecting fraud?

The best way to limit opportunities for committing fraud in an organization is to:

The following must be done before a proactive program that looks for fraud symptoms is built:

A "right-to-audit" clause

Fraud is most commonly detected through __________.

In order to minimize fraud, a fraud-savvy organization should:

The responsibility for preventing fraud is often seen as belonging to:

Even with the best possible internal control system in place, its effectiveness still depends on what?

Even with internal control procedures in place, many companies routinely experience fraud for all of the following reasons except:

Having a manager watch over employee's shoulders is a good example of:

Fraud prevention saves the most money because __________.

The following elements are crucial in creating a culture of honesty except:

The principle mechanism for deterring fraud is internal controls. The primary responsibility for establishing and maintaining these controls rests with

Which of the following is a sign of a positive work environment?

True or False. Internal controls are "fraud proof".

What are key attributes for a low-fraud environment?

Which is the following is not one of the four factors in fraud prevention that are crucial in crating a culture of honesty, openness, and assistance:

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

An employee has five new cars and a gold watch. These facts would be considered:

The default model that deals with fraud has which of the following stages

Which factors are crucial in creating a culture of honesty, openness, and assistance?

Which of the following is usually the most effective tool in preventing and detecting fraud?

The best way to limit opportunities for committing fraud in an organization is to:

The following must be done before a proactive program that looks for fraud symptoms is built:

A "right-to-audit" clause

Fraud is most commonly detected through __________.

In order to minimize fraud, a fraud-savvy organization should:

The responsibility for preventing fraud is often seen as belonging to:

Even with the best possible internal control system in place, its effectiveness still depends on what?

Even with internal control procedures in place, many companies routinely experience fraud for all of the following reasons except:

Having a manager watch over employee's shoulders is a good example of:

Fraud prevention saves the most money because __________.

The following elements are crucial in creating a culture of honesty except:

The principle mechanism for deterring fraud is internal controls. The primary responsibility for establishing and maintaining these controls rests with

Which of the following is a sign of a positive work environment?

True or False. Internal controls are "fraud proof".

What are key attributes for a low-fraud environment?

Which is the following is not one of the four factors in fraud prevention that are crucial in crating a culture of honesty, openness, and assistance:

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