Question 1

Benford's Law is best exemplified by what type of distribution curve?

Accepted Answer

A)  First digit numbers are evenly distributed 
B)  First digit numbers do not follow a defined pattern 
C)  Number sets will begin with a 1, more often than a 2, a 2 more often than a 3, and so on 
D)  None of the above 
A)  First digit numbers are evenly distributed 
B)  First digit numbers do not follow a defined pattern 
C)  Number sets will begin with a 1, more often than a 2, a 2 more often than a 3, and so on 
D)  None of the above

Question 2

__________ is the splitting of complex data sets into case-specific tables.

Accepted Answer

A)  Summarization 
B)  Stratification 
C)  Data Mining 
D)  None of the above 
A)  Summarization 
B)  Stratification 
C)  Data Mining 
D)  None of the above

Question 3

Open database connectivity is usually the best way to retrieve data for analysis for all of the following reasons except:

Accepted Answer

A)  It can retrieve data in real time 
B)  It allows use of SQL 
C)  It allows repetitive pulls for iterative analysis 
D)  It directly retrieves metadata like column types and relationships 
E)  All of the above are valid reasons 
A)  It can retrieve data in real time 
B)  It allows use of SQL 
C)  It allows repetitive pulls for iterative analysis 
D)  It directly retrieves metadata like column types and relationships 
E)  All of the above are valid reasons

Question 4

____________ is a fuzzy logic technique that works best with large sequences of characters.

Accepted Answer

A)  n-gram 
B)  Soundex 
C)  SRD 
D)  Audiograph 
A)  n-gram 
B)  Soundex 
C)  SRD 
D)  Audiograph

Question 5

Benford's law can help detect fraud by

Accepted Answer

A)  Establishing weaknesses in the accounting controls system 
B)  Identifying accounting anomalies 
C)  Identifying employees that are a high risk for fraud 
D)  Showing attempts by fraudsters to make stolen amounts look random 
A)  Establishing weaknesses in the accounting controls system 
B)  Identifying accounting anomalies 
C)  Identifying employees that are a high risk for fraud 
D)  Showing attempts by fraudsters to make stolen amounts look random

Question 6

SRD does all of the following except:

Accepted Answer

A)  Detect potential collusion between employees and vendors 
B)  Identify suspect relationships between employees and customers 
C)  Locate repeat risk management claims across a corporation 
D)  Identify suspect relationships between upper management and other employees 
E)  Find employees or clients who are "in cahoots" with lists of known criminals 
A)  Detect potential collusion between employees and vendors 
B)  Identify suspect relationships between employees and customers 
C)  Locate repeat risk management claims across a corporation 
D)  Identify suspect relationships between upper management and other employees 
E)  Find employees or clients who are "in cahoots" with lists of known criminals

Question 7

Individuals use financial statements to best detect fraud by focusing on:

Accepted Answer

A)  Unexplained changes in financial statement balances 
B)  Earnings expectations 
C)  Management discussion and analysis 
D)  Consistencies 
A)  Unexplained changes in financial statement balances 
B)  Earnings expectations 
C)  Management discussion and analysis 
D)  Consistencies

Question 8

Which of the following methods of data analysis is most direct in focusing on changes?

Accepted Answer

A)  Vertical 
B)  Horizontal 
C)  Ratios 
D)  It can be easily adapted to any company 
E)  It can query any size companies database 
A)  Vertical 
B)  Horizontal 
C)  Ratios 
D)  It can be easily adapted to any company 
E)  It can query any size companies database

Question 9

Detecting fraud through financial statement ratios is much easier than assessing changes in the financial statement numbers themselves because:

Accepted Answer

A)  They are sensitive to changes in key variables 
B)  Benchmarks are known 
C)  All of the above 
D)  None of the above 
A)  They are sensitive to changes in key variables 
B)  Benchmarks are known 
C)  All of the above 
D)  None of the above

Question 10

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers:

Accepted Answer

A)  Inductive fraud detection 
B)  Deductive Fraud detection 
C)  Benford's law 
D)  Horizontal Analysis 
E)  Vertical Analysis 
A)  Inductive fraud detection 
B)  Deductive Fraud detection 
C)  Benford's law 
D)  Horizontal Analysis 
E)  Vertical Analysis

Question 11

What is the most direct approach to focusing on changes in the balance sheet?

Accepted Answer

A)  Vertical Analysis 
B)  Horizontal Analysis 
C)  Ratio Analysis 
D)  None of the Above 
A)  Vertical Analysis 
B)  Horizontal Analysis 
C)  Ratio Analysis 
D)  None of the Above

Question 12

Benford's Law is:

Accepted Answer

A)  An algorithm that predicts the probability of fraud within the company. 
B)  A tool that converts financial statements to percentages 
C)  An algorithm that accurately predicts the probability of selected digits of groups of numbers in a random sample. 
D)  The number of dollars of borrowed funds for every dollar invested. 
A)  An algorithm that predicts the probability of fraud within the company. 
B)  A tool that converts financial statements to percentages 
C)  An algorithm that accurately predicts the probability of selected digits of groups of numbers in a random sample. 
D)  The number of dollars of borrowed funds for every dollar invested.

Question 13

Which of the following proactive fraud detection methods uses Benford's Law to detect fraud?

Accepted Answer

A)  Commercial data-mining software 
B)  Digital analysis of company databases 
C)  Deductive fraud detection 
D)  None of the above 
A)  Commercial data-mining software 
B)  Digital analysis of company databases 
C)  Deductive fraud detection 
D)  None of the above

Question 14

Which of the following frauds would require a contractor and the company committing fraud to be in collusion?

Accepted Answer

A)  Billing at wrong rates 
B)  Charging for fake employees 
C)  Kickbacks for favors 
D)  Over billing for equipment used 
A)  Billing at wrong rates 
B)  Charging for fake employees 
C)  Kickbacks for favors 
D)  Over billing for equipment used

Question 15

All of the following are data analysis software except?

Accepted Answer

A)  ACL 
B)  MySQL 
C)  Picalo 
D)  IDEA 
E)  All of the above are examples of Data Analysis software 
A)  ACL 
B)  MySQL 
C)  Picalo 
D)  IDEA 
E)  All of the above are examples of Data Analysis software

Question 16

ACL stands for:

Accepted Answer

A)  Account coverage level. 
B)  Audit command language. 
C)  Actuarial confidence level. 
D)  Auditors can't learn 
A)  Account coverage level. 
B)  Audit command language. 
C)  Actuarial confidence level. 
D)  Auditors can't learn

Question 17

Benford's law states that five will be the first digit of a random number set.

Accepted Answer

A)  More often than four. 
B)  Less often than four. 
C)  About the same as six. 
A)  More often than four. 
B)  Less often than four. 
C)  About the same as six.

Question 18

Benford's Law states that the most likely first digit of any randomly selected number will be which of the following?

Accepted Answer

A)  1 
B)  7 
C)  3 
D)  4 
A)  1 
B)  7 
C)  3 
D)  4

Question 19

The following are all techniques for time trend analysis except:

Accepted Answer

A)  Graphing each case 
B)  Regression analysis 
C)  All of the above 
D)  None of the above 
A)  Graphing each case 
B)  Regression analysis 
C)  All of the above 
D)  None of the above

Question 20

All of following are methods of gathering information about a business except:

Accepted Answer

A)  Become familiar with competitor processes 
B)  Interview key personnel 
C)  Observe employees performing their duties 
D)  Analyze financial statements and other accounting information 
E)  All of the above are acceptable methods of gathering information about a business 
A)  Become familiar with competitor processes 
B)  Interview key personnel 
C)  Observe employees performing their duties 
D)  Analyze financial statements and other accounting information 
E)  All of the above are acceptable methods of gathering information about a business

Benford's Law is best exemplified by what type of distribution curve?

__________ is the splitting of complex data sets into case-specific tables.

Open database connectivity is usually the best way to retrieve data for analysis for all of the following reasons except:

____________ is a fuzzy logic technique that works best with large sequences of characters.

Benford's law can help detect fraud by

SRD does all of the following except:

Individuals use financial statements to best detect fraud by focusing on:

Which of the following methods of data analysis is most direct in focusing on changes?

Detecting fraud through financial statement ratios is much easier than assessing changes in the financial statement numbers themselves because:

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers:

What is the most direct approach to focusing on changes in the balance sheet?

Benford's Law is:

Which of the following proactive fraud detection methods uses Benford's Law to detect fraud?

Which of the following frauds would require a contractor and the company committing fraud to be in collusion?

All of the following are data analysis software except?

ACL stands for:

Benford's law states that five will be the first digit of a random number set.

Benford's Law states that the most likely first digit of any randomly selected number will be which of the following?

The following are all techniques for time trend analysis except:

All of following are methods of gathering information about a business except:

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

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 6: Data-Driven Fraud Detection

Benford's Law is best exemplified by what type of distribution curve?

__________ is the splitting of complex data sets into case-specific tables.

Open database connectivity is usually the best way to retrieve data for analysis for all of the following reasons except:

____________ is a fuzzy logic technique that works best with large sequences of characters.

Benford's law can help detect fraud by

SRD does all of the following except:

Individuals use financial statements to best detect fraud by focusing on:

Which of the following methods of data analysis is most direct in focusing on changes?

Detecting fraud through financial statement ratios is much easier than assessing changes in the financial statement numbers themselves because:

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers:

What is the most direct approach to focusing on changes in the balance sheet?

Benford's Law is:

Which of the following proactive fraud detection methods uses Benford's Law to detect fraud?

Which of the following frauds would require a contractor and the company committing fraud to be in collusion?

All of the following are data analysis software except?

ACL stands for:

Benford's law states that five will be the first digit of a random number set.

Benford's Law states that the most likely first digit of any randomly selected number will be which of the following?

The following are all techniques for time trend analysis except:

All of following are methods of gathering information about a business except:

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

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