Question 1

Fraud discovery departments are typically assigned to the HR Director.
FALSE

Accepted Answer

A) True 
 B)False  False

Question 2

In many cases fraud indicators lead to:

Accepted Answer

A)  The need for additional auditors to be present for the audit. 
B)  Criminal or civil actions against the CEO or CFO of the Corporation. 
C)  The discovery of errors or unusual events that can reasonably be explained upon further examination. 
D)  .The discovery of loop holed in the IRS Tax Code that are left up to interpretation. 
A)  The need for additional auditors to be present for the audit. 
B)  Criminal or civil actions against the CEO or CFO of the Corporation. 
C)  The discovery of errors or unusual events that can reasonably be explained upon further examination. 
D)  .The discovery of loop holed in the IRS Tax Code that are left up to interpretation. C

Question 3

The objectives of fraud detection include:

Accepted Answer

A)  Detect fraud. 
B)  Prevent fraud. 
C)  Comply with SOX. 
D)  .Both A and B. 
A)  Detect fraud. 
B)  Prevent fraud. 
C)  Comply with SOX. 
D)  .Both A and B. D

Question 4

Accidental discovery of fraud is typically found:

Accepted Answer

A)  While business owners are attempting to figure out why they don't have enough cash. 
B)  During a financial statement audit. 
C)  During the sale of a business. 
D)  By other employees through rumors. 
A)  While business owners are attempting to figure out why they don't have enough cash. 
B)  During a financial statement audit. 
C)  During the sale of a business. 
D)  By other employees through rumors.

Question 5

As a general rule, preventative and detective controls cost more than corrective controls.

Accepted Answer

A) True 
 B)False

Question 6

A tip hotline should include:

Accepted Answer

A)  The Securities and Exchange Commission's toll free number. 
B)  A hotline disclosure policy to protect the tipster as well as the accused. 
C)  Caller ID so the receiving agency can call the tipster back. 
D)  A minimum of three language options. 
A)  The Securities and Exchange Commission's toll free number. 
B)  A hotline disclosure policy to protect the tipster as well as the accused. 
C)  Caller ID so the receiving agency can call the tipster back. 
D)  A minimum of three language options.

Question 7

Which of the following is NOT a way that fraud is usually detected?

Accepted Answer

A)  Tips and hotlines. 
B)  Admission by the guilty party. 
C)  Financial Statement Audits. 
D)  By accident. 
A)  Tips and hotlines. 
B)  Admission by the guilty party. 
C)  Financial Statement Audits. 
D)  By accident.

Question 8

Explain how a detection of fraud may not necessarily mean that fraud exists.

Accepted Answer

The indicators in of themselves are not

Question 9

Pattern data analysis is also known as:

Accepted Answer

A)  3rd party verification. 
B)  Data mining. 
C)  Data milling. 
D)  Forensic Data Analysis. 
A)  3rd party verification. 
B)  Data mining. 
C)  Data milling. 
D)  Forensic Data Analysis.

Question 10

How does Internal Auditing help an organization?

Accepted Answer

A)  It reduced the cost of external auditors having to spend as many billable hours during the audit because the internal auditor does most of the work. 
B)  It helps and organization by providing more credibility to the pubic so they will gain additional investors. 
C)  It brings the organization into compliance with several Federal and State mandated programs. 
D)  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. 
A)  It reduced the cost of external auditors having to spend as many billable hours during the audit because the internal auditor does most of the work. 
B)  It helps and organization by providing more credibility to the pubic so they will gain additional investors. 
C)  It brings the organization into compliance with several Federal and State mandated programs. 
D)  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Question 11

Where are fraud discovery personnel assigned within an organization?

Accepted Answer

A)  Within the customer service department. 
B)  Within the Human Resources department. 
C)  As their own department, operating independently. 
D)  Within any department that typically has the highest risk for fraud 
A)  Within the customer service department. 
B)  Within the Human Resources department. 
C)  As their own department, operating independently. 
D)  Within any department that typically has the highest risk for fraud

Question 12

Which of the following is a preventative control?

Accepted Answer

A)  Taking periodic inventory. 
B)  Leaving recently arrived inventory in a customer area prior to accepting it. 
C)  Periodically checking customer balances versus account write-offs. 
D)  Keeping inventory in a locked room that only a shift leader has the keys for. 
A)  Taking periodic inventory. 
B)  Leaving recently arrived inventory in a customer area prior to accepting it. 
C)  Periodically checking customer balances versus account write-offs. 
D)  Keeping inventory in a locked room that only a shift leader has the keys for.

Question 13

Total Fraud Costs (TFC) =

Accepted Answer

A)  Personnel Costs + Auditing Costs + Potential Losses . 
B)  Prevention Costs + Detection Costs + Correction Costs + Losses. 
C)  Auditing Costs - Losses. 
D)  Prosecution Costs + Detection Costs + Correction Costs. 
A)  Personnel Costs + Auditing Costs + Potential Losses . 
B)  Prevention Costs + Detection Costs + Correction Costs + Losses. 
C)  Auditing Costs - Losses. 
D)  Prosecution Costs + Detection Costs + Correction Costs.

Question 14

Pressure/incentive typically relates to:

Accepted Answer

A)  Situations in which an employee has an unmet substantial financial need. 
B)  Opportunity, as without opportunity fraud can become possible. 
C)  The employee fabricating an internal moral excuse for the fraud. 
D)  Mafia or blackmail situations. 
A)  Situations in which an employee has an unmet substantial financial need. 
B)  Opportunity, as without opportunity fraud can become possible. 
C)  The employee fabricating an internal moral excuse for the fraud. 
D)  Mafia or blackmail situations.

Question 15

Describe the different ways in which fraud is detected.

Accepted Answer

There are various ways in whic

Question 16

Under Benford's Law:

Accepted Answer

A)  All numbers should occur as each other. 
B)  1 should appear more than 2 and 3 should appear more than 4. 
C)  9 should appear more than 8 and 7 should appear more than 6.. 
D)  Vendor total amounts of sales by invoice should contain the same frequency of numbers as Customer totals. 
A)  All numbers should occur as each other. 
B)  1 should appear more than 2 and 3 should appear more than 4. 
C)  9 should appear more than 8 and 7 should appear more than 6.. 
D)  Vendor total amounts of sales by invoice should contain the same frequency of numbers as Customer totals.

Question 17

Describe the fraud detection process.

Accepted Answer

The fraud detection process involves ide

Question 18

Rationalization/attitude typically relates to:

Accepted Answer

A)  situations in which an employee has an unmet substantial financial need. 
B)  Opportunity, as without opportunity fraud can become possible. 
C)  The employee fabricating an internal moral excuse for the fraud. 
D)  Mafia or blackmail situations 
A)  situations in which an employee has an unmet substantial financial need. 
B)  Opportunity, as without opportunity fraud can become possible. 
C)  The employee fabricating an internal moral excuse for the fraud. 
D)  Mafia or blackmail situations

Question 19

SAS 99 charges the auditor with the responsibility:

Accepted Answer

A)  For implementing internal controls after their audit. 
B)  To asses and document managements overly strict internal controls. 
C)  To assess and document managements overriding of internal controls. 
D)  .Both A and B 
A)  For implementing internal controls after their audit. 
B)  To asses and document managements overly strict internal controls. 
C)  To assess and document managements overriding of internal controls. 
D)  .Both A and B

Question 20

Tip and fraud hotlines only help catch fraud.

Accepted Answer

A) True 
 B)False

Fraud discovery departments are typically assigned to the HR Director. FALSE

In many cases fraud indicators lead to:

The objectives of fraud detection include:

Accidental discovery of fraud is typically found:

As a general rule, preventative and detective controls cost more than corrective controls.

A tip hotline should include:

Which of the following is NOT a way that fraud is usually detected?

Explain how a detection of fraud may not necessarily mean that fraud exists.

Pattern data analysis is also known as:

How does Internal Auditing help an organization?

Where are fraud discovery personnel assigned within an organization?

Which of the following is a preventative control?

Total Fraud Costs (TFC) =

Pressure/incentive typically relates to:

Describe the different ways in which fraud is detected.

Under Benford's Law:

Describe the fraud detection process.

Rationalization/attitude typically relates to:

SAS 99 charges the auditor with the responsibility:

Tip and fraud hotlines only help catch fraud.

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

Filters

Exam 6: Fraud Detection

Fraud discovery departments are typically assigned to the HR Director. FALSE

In many cases fraud indicators lead to:

The objectives of fraud detection include:

Accidental discovery of fraud is typically found:

As a general rule, preventative and detective controls cost more than corrective controls.

A tip hotline should include:

Which of the following is NOT a way that fraud is usually detected?

Explain how a detection of fraud may not necessarily mean that fraud exists.

Pattern data analysis is also known as:

How does Internal Auditing help an organization?

Where are fraud discovery personnel assigned within an organization?

Which of the following is a preventative control?

Total Fraud Costs (TFC) =

Pressure/incentive typically relates to:

Describe the different ways in which fraud is detected.

Under Benford's Law:

Describe the fraud detection process.

Rationalization/attitude typically relates to:

SAS 99 charges the auditor with the responsibility:

Tip and fraud hotlines only help catch fraud.

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

Filters