Question 1

Which of the following is NOT a step for financial statement auditing concerning fraud?

Accepted Answer

A)  Gather information relevant to risks of misstatements in the financial reports. 
B)  Compare the financial statements to the owners personal assets. 
C)  Analyze and assess risks of misstatement in light of the entity's programs and controls. 
D)  Apply the information gathered to the structure and application of the audit. 
A)  Gather information relevant to risks of misstatements in the financial reports. 
B)  Compare the financial statements to the owners personal assets. 
C)  Analyze and assess risks of misstatement in light of the entity's programs and controls. 
D)  Apply the information gathered to the structure and application of the audit.

Question 2

The three risk management controls are:

Accepted Answer

A)  Preventative, deterrence and collateral. 
B)  Preventative, detective and collateral. 
C)  .Proforma, detective and corrective. 
D)  .Preventative, detective and corrective. 
A)  Preventative, deterrence and collateral. 
B)  Preventative, detective and collateral. 
C)  .Proforma, detective and corrective. 
D)  .Preventative, detective and corrective.

Question 3

Corrective controls are merely special types of controls that come into play once a loss is known to exist.

Accepted Answer

A) True 
 B)False

Question 4

Many government agencies also have an inspector general, whose job includes investigating possible frauds.

Accepted Answer

A) True 
 B)False

Question 5

In order for a hotline to be sufficient, it should be combined with:

Accepted Answer

A)  An ethics code. 
B)  Proper monitoring. 
C)  The right tone from the top of the company. 
D)  All of the above. 
A)  An ethics code. 
B)  Proper monitoring. 
C)  The right tone from the top of the company. 
D)  All of the above.

Question 6

Explain how fraud detection relates to enterprise risk management.

Accepted Answer

In the classical sense, the internal con

Question 7

Which of the following is NOT a key element to internal auditing?

Accepted Answer

A)  Independence. 
B)  Predictability. 
C)  Objectives. 
D)  Systematic. 
A)  Independence. 
B)  Predictability. 
C)  Objectives. 
D)  Systematic.

Question 8

The fraud triangle will often times involve blackmail for adultery.

Accepted Answer

A) True 
 B)False

Question 9

Fraud is typically limited to:

Accepted Answer

A)  Employees. 
B)  Employees, Vendors, Customers and the public. 
C)  Employees and owners. 
D)  .Vendors, Customers and public. 
A)  Employees. 
B)  Employees, Vendors, Customers and the public. 
C)  Employees and owners. 
D)  .Vendors, Customers and public.

Question 10

Fraud detection, as compared to prevention:

Accepted Answer

A)  Is considered a second line of defense. 
B)  Is considered equally important 
C)  Is totally unrelated. 
D)  Is considered the first line of defense. 
A)  Is considered a second line of defense. 
B)  Is considered equally important 
C)  Is totally unrelated. 
D)  Is considered the first line of defense.

Question 11

Content and text analyses involve using algorithms to automatically analyze and interpret the content of documents and conversations but always require human intervention to interpret the analysis.

Accepted Answer

A) True 
 B)False

Question 12

Fraud detection is considered a secondary layer to prevention.

Accepted Answer

A) True 
 B)False

Question 13

ERM stands for:

Accepted Answer

A)  Electronic Risk Measurements. 
B)  Environmentally Resilient Management 
C)  Enabled Rick Management. 
D)  Enterprise Risk Management. 
A)  Electronic Risk Measurements. 
B)  Environmentally Resilient Management 
C)  Enabled Rick Management. 
D)  Enterprise Risk Management.

Question 14

Describe the three step process under SAS 99, Consideration of Fraud in a Financial Statement Audit.

Accepted Answer

This requires auditors to follow a three

Question 15

Which of the following is NOT part of the fraud triangle?

Accepted Answer

A)  pressure/incentive. 
B)  opportunity. 
C)  financial distress. 
D)  rationalization/attitude. 
A)  pressure/incentive. 
B)  opportunity. 
C)  financial distress. 
D)  rationalization/attitude.

Question 16

Which of the following is a step in building a fraud detection system?

Accepted Answer

A)  Scoring and Assessment. 
B)  Risk avoidance and deniability. 
C)  Computer science development. 
D)  Analysis of industry financial statements. 
A)  Scoring and Assessment. 
B)  Risk avoidance and deniability. 
C)  Computer science development. 
D)  Analysis of industry financial statements.

Question 17

What are some additional elements that should be added to an organization if a Fraud Detection Hotline is going to be established?

Accepted Answer

A hotline disclosure policy is important

Question 18

Why would a company choose to employ a software package such as "FraudPoint" or Actimize Employee Fraud Solution?

Accepted Answer

Answers will vary, however mos

Question 19

Describe an optimal fraud detection system.

Accepted Answer

In order to design a loss management sys

Question 20

When implementing preventative or detective controls:

Accepted Answer

A)  75% of the money should be invested in detective controls. 
B)  Half of all control funds should be spent on preventative controls. 
C)  The costs associated with them should be weighed against the benefits. 
D)  For every preventative or detective control, one corrective control should be implemented. 
A)  75% of the money should be invested in detective controls. 
B)  Half of all control funds should be spent on preventative controls. 
C)  The costs associated with them should be weighed against the benefits. 
D)  For every preventative or detective control, one corrective control should be implemented.

Which of the following is NOT a step for financial statement auditing concerning fraud?

The three risk management controls are:

Corrective controls are merely special types of controls that come into play once a loss is known to exist.

Many government agencies also have an inspector general, whose job includes investigating possible frauds.

In order for a hotline to be sufficient, it should be combined with:

Explain how fraud detection relates to enterprise risk management.

Which of the following is NOT a key element to internal auditing?

The fraud triangle will often times involve blackmail for adultery.

Fraud is typically limited to:

Fraud detection, as compared to prevention:

Content and text analyses involve using algorithms to automatically analyze and interpret the content of documents and conversations but always require human intervention to interpret the analysis.

Fraud detection is considered a secondary layer to prevention.

ERM stands for:

Describe the three step process under SAS 99, Consideration of Fraud in a Financial Statement Audit.

Which of the following is NOT part of the fraud triangle?

Which of the following is a step in building a fraud detection system?

What are some additional elements that should be added to an organization if a Fraud Detection Hotline is going to be established?

Why would a company choose to employ a software package such as "FraudPoint" or Actimize Employee Fraud Solution?

Describe an optimal fraud detection system.

When implementing preventative or detective controls:

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

Which of the following is NOT a step for financial statement auditing concerning fraud?

The three risk management controls are:

Corrective controls are merely special types of controls that come into play once a loss is known to exist.

Many government agencies also have an inspector general, whose job includes investigating possible frauds.

In order for a hotline to be sufficient, it should be combined with:

Explain how fraud detection relates to enterprise risk management.

Which of the following is NOT a key element to internal auditing?

The fraud triangle will often times involve blackmail for adultery.

Fraud is typically limited to:

Fraud detection, as compared to prevention:

Content and text analyses involve using algorithms to automatically analyze and interpret the content of documents and conversations but always require human intervention to interpret the analysis.

Fraud detection is considered a secondary layer to prevention.

ERM stands for:

Describe the three step process under SAS 99, Consideration of Fraud in a Financial Statement Audit.

Which of the following is NOT part of the fraud triangle?

Which of the following is a step in building a fraud detection system?

What are some additional elements that should be added to an organization if a Fraud Detection Hotline is going to be established?

Why would a company choose to employ a software package such as "FraudPoint" or Actimize Employee Fraud Solution?

Describe an optimal fraud detection system.

When implementing preventative or detective controls:

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