Question 1

Fraud professionals and forensic accountants use the term red flag to indicate:

Accepted Answer

A)  that they are looking for symptoms and badges of fraud. 
B)  that all personnel will be investigated. 
C)  that evidence of fraud or abuse have been located and identified. 
D)  that a person or group of people have been identified as possible fraudsters or abuser. 
A)  that they are looking for symptoms and badges of fraud. 
B)  that all personnel will be investigated. 
C)  that evidence of fraud or abuse have been located and identified. 
D)  that a person or group of people have been identified as possible fraudsters or abuser.

Question 2

Which of the following is not part of or one of the three elements of professional skepticism for a fraud investigation?

Accepted Answer

A)  An attitude that includes a questioning mind and a critical assessment of the evidence. 
B)  A commitment to persuasive evidence. 
C)  That the plaintiff and/or the defendant may be masking the true underlying story. 
D)  The investigation must reveal a benefit to the plaintiff. 
A)  An attitude that includes a questioning mind and a critical assessment of the evidence. 
B)  A commitment to persuasive evidence. 
C)  That the plaintiff and/or the defendant may be masking the true underlying story. 
D)  The investigation must reveal a benefit to the plaintiff.

Question 3

Anthony and Cleopatra are lying dead on the floor in a villa. Nearby on the floor is a broken bowl. There is no mark on either of their bodies, and they were not poisoned. With this information, determine how they died.

Accepted Answer

Anthony and Cleopatr

Question 4

Rationalization must occur before the act of abuse or fraud.

Accepted Answer

A) True 
 B)False

Question 5

The fraud examiner or forensic accountant can easily identify the assumptions that he/she has made while "thinking out of the box."

Accepted Answer

A) True 
 B)False

Question 6

When discussing the costs of fraud and other litigations, by the time a formal investigation is launched and the allegations are addressed within the legal arena, the parties have already incurred substantial cost.

Accepted Answer

A) True 
 B)False

Question 7

Financial forensics is the application of financial principles and theories to facts or hypotheses at issue in a legal dispute and consists of two primary functions.

Accepted Answer

A) True 
 B)False

Question 8

When the losses caused by fraud are correlated to the levels of compensation of the perpetrator, the line is somewhat linear, with slow rise from low compensation to approximately:

Accepted Answer

A)  $100,000 annually where the rate of loss skyrockets. 
B)  $300,000 annually where the rate of loss skyrockets. 
C)  $500,000 annually where the rate of loss skyrockets. 
D)  $750,000 annually where the rate of loss skyrockets. 
A)  $100,000 annually where the rate of loss skyrockets. 
B)  $300,000 annually where the rate of loss skyrockets. 
C)  $500,000 annually where the rate of loss skyrockets. 
D)  $750,000 annually where the rate of loss skyrockets.

Question 9

Forensic and Litigation Advisory Services FLAS professionals may either work to bolster if hired by the defendant or to undercut if hired by the plaintiff a case.

Accepted Answer

A) True 
 B)False

Question 10

An employee enters the work place on a day off and utilizes the leased plotter/printer for four hours to produce graphics for his child's school play. The lease payment is $80 per hour and his wages are $20 per hour. Select the correct statement from the choices below.

Accepted Answer

A)  This is an abuse at the assumed value of $400. 
B)  This is an instance of fraud at the assumed value of $400. 
C)  This is an abuse at the assumed value of $320. 
D)  This is an instance of fraud at the assumed value of $320. 
A)  This is an abuse at the assumed value of $400. 
B)  This is an instance of fraud at the assumed value of $400. 
C)  This is an abuse at the assumed value of $320. 
D)  This is an instance of fraud at the assumed value of $320.

Question 11

As compensation of the perpetrator increases the losses associated with the perpetrator rise most likely because:

Accepted Answer

A)  the perpetrator has a greater appreciation of costly pleasures. 
B)  the perpetrator has greater access to company funds and assets. 
C)  the perpetrator has a higher cost of status and image. 
D)  the perpetrator can coerce others into the scheme. 
A)  the perpetrator has a greater appreciation of costly pleasures. 
B)  the perpetrator has greater access to company funds and assets. 
C)  the perpetrator has a higher cost of status and image. 
D)  the perpetrator can coerce others into the scheme.

Question 12

Describe the fraud examiner/forensic accountant's approach to investigations.

Accepted Answer

Fraud examination and forensic

Question 13

Which of the following is not one of the three-pronged processes of remediation?

Accepted Answer

A)  The prevention and detection of a fraud that has already occurred. 
B)  The recovery of losses through insurance, the legal system, or other means. 
C)  Support for the legal process as it tries to resolve the matter in the legal environment. 
D)  The modification of operational processes, procedures, and internal controls to minimize the chances of a similar fraud recurring. 
A)  The prevention and detection of a fraud that has already occurred. 
B)  The recovery of losses through insurance, the legal system, or other means. 
C)  Support for the legal process as it tries to resolve the matter in the legal environment. 
D)  The modification of operational processes, procedures, and internal controls to minimize the chances of a similar fraud recurring.

Question 14

Select the most correct statement from those below.

Accepted Answer

A)  Timing - Recurring for auditing and fraud examination, nonrecurring for financial forensics. 
B)  Objectives - Opinion for auditing and financial forensics, affix blame for fraud examination. 
C)  Relationship - Nonadversarial for auditing, adversarial for fraud examination, and independent for financial forensics. 
D)  Methodology - Audit techniques for auditing and financial forensics, fraud examination techniques for fraud examination. 
A)  Timing - Recurring for auditing and fraud examination, nonrecurring for financial forensics. 
B)  Objectives - Opinion for auditing and financial forensics, affix blame for fraud examination. 
C)  Relationship - Nonadversarial for auditing, adversarial for fraud examination, and independent for financial forensics. 
D)  Methodology - Audit techniques for auditing and financial forensics, fraud examination techniques for fraud examination.

Question 15

Line employees are the principle perpetrators in approximately 39 percent of schemes, yielding company losses of approximately $150,000.

Accepted Answer

A) True 
 B)False

Question 16

M/C Fraud deterrence begins:

Accepted Answer

A)  with the employer's internal controls. 
B)  in the employee's mind. 
C)  with the fraud examination. 
D)  with regulatory and legal actions such as PCAOB Auditing Standard No. 5, AICPA Statement on Auditing Standards SAS No. 99, and the Sarbanes-Oxley Act. 
A)  with the employer's internal controls. 
B)  in the employee's mind. 
C)  with the fraud examination. 
D)  with regulatory and legal actions such as PCAOB Auditing Standard No. 5, AICPA Statement on Auditing Standards SAS No. 99, and the Sarbanes-Oxley Act.

Question 17

Since forensic accounting works with fact as documented by legal records the reports seldom add an adversarial nature to the engagements, and professionals can expect that their work will be accepted by the opposing side.

Accepted Answer

A) True 
 B)False

Question 18

The difference between abuse and fraud may be the difference in consequences - being reprimanded or being fired by the company and prosecuted by the justice system.

Accepted Answer

A) True 
 B)False

Question 19

Define "fraud" and define "abuse." In the process, identify differences between the two.

Accepted Answer

Fraud, sometimes referred to as the frau

Question 20

Auditing is responsible for:

Accepted Answer

A)  litigation support and redemption. 
B)  risk assessment and internal controls. 
C)  risk assessment and calculation of damages. 
D)  business valuation and risk assessment. 
A)  litigation support and redemption. 
B)  risk assessment and internal controls. 
C)  risk assessment and calculation of damages. 
D)  business valuation and risk assessment.

Fraud professionals and forensic accountants use the term red flag to indicate:

Which of the following is not part of or one of the three elements of professional skepticism for a fraud investigation?

Anthony and Cleopatra are lying dead on the floor in a villa. Nearby on the floor is a broken bowl. There is no mark on either of their bodies, and they were not poisoned. With this information, determine how they died.

Rationalization must occur before the act of abuse or fraud.

The fraud examiner or forensic accountant can easily identify the assumptions that he/she has made while "thinking out of the box."

When discussing the costs of fraud and other litigations, by the time a formal investigation is launched and the allegations are addressed within the legal arena, the parties have already incurred substantial cost.

Financial forensics is the application of financial principles and theories to facts or hypotheses at issue in a legal dispute and consists of two primary functions.

When the losses caused by fraud are correlated to the levels of compensation of the perpetrator, the line is somewhat linear, with slow rise from low compensation to approximately:

Forensic and Litigation Advisory Services FLAS professionals may either work to bolster if hired by the defendant or to undercut if hired by the plaintiff a case.

An employee enters the work place on a day off and utilizes the leased plotter/printer for four hours to produce graphics for his child's school play. The lease payment is $80 per hour and his wages are $20 per hour. Select the correct statement from the choices below.

As compensation of the perpetrator increases the losses associated with the perpetrator rise most likely because:

Describe the fraud examiner/forensic accountant's approach to investigations.

Which of the following is not one of the three-pronged processes of remediation?

Select the most correct statement from those below.

Line employees are the principle perpetrators in approximately 39 percent of schemes, yielding company losses of approximately $150,000.

M/C Fraud deterrence begins:

Since forensic accounting works with fact as documented by legal records the reports seldom add an adversarial nature to the engagements, and professionals can expect that their work will be accepted by the opposing side.

The difference between abuse and fraud may be the difference in consequences - being reprimanded or being fired by the company and prosecuted by the justice system.

Define "fraud" and define "abuse." In the process, identify differences between the two.

Auditing is responsible for:

Careers in Fraud Examination and Financial Forensics

Who Commits Fraud and Why: Criminology and Ethics

Complex Frauds and Financial Crimes

Cybercrime: Computer and Internet Fraud

Legal, Regulatory, and Professional Environment

Fraud Detection: Red Flags and Targeted Risk Assessment

Detection and Investigations

Effective Interviewing and Interrogation

Using Information Technology for Fraud Examination and Financial Forensics

Cash Receipt Schemes and Other Asset Misappropriations

Cash Disbursement Schemes

Corruption and the Human Factor

Financial Statement Fraud

Consulting, Litigation Support, and Expert Witnesses: Damages, Valuations, and Other Engagements

Remediation and Litigation Advisory Services

Filters

Exam 1: Core Foundation Related to Fraud Examination and Financial Forensics

Fraud professionals and forensic accountants use the term red flag to indicate:

Which of the following is not part of or one of the three elements of professional skepticism for a fraud investigation?

Anthony and Cleopatra are lying dead on the floor in a villa. Nearby on the floor is a broken bowl. There is no mark on either of their bodies, and they were not poisoned. With this information, determine how they died.

Rationalization must occur before the act of abuse or fraud.

The fraud examiner or forensic accountant can easily identify the assumptions that he/she has made while "thinking out of the box."

When discussing the costs of fraud and other litigations, by the time a formal investigation is launched and the allegations are addressed within the legal arena, the parties have already incurred substantial cost.

Financial forensics is the application of financial principles and theories to facts or hypotheses at issue in a legal dispute and consists of two primary functions.

When the losses caused by fraud are correlated to the levels of compensation of the perpetrator, the line is somewhat linear, with slow rise from low compensation to approximately:

Forensic and Litigation Advisory Services FLAS professionals may either work to bolster if hired by the defendant or to undercut if hired by the plaintiff a case.

An employee enters the work place on a day off and utilizes the leased plotter/printer for four hours to produce graphics for his child's school play. The lease payment is $80 per hour and his wages are $20 per hour. Select the correct statement from the choices below.

As compensation of the perpetrator increases the losses associated with the perpetrator rise most likely because:

Describe the fraud examiner/forensic accountant's approach to investigations.

Which of the following is not one of the three-pronged processes of remediation?

Select the most correct statement from those below.

Line employees are the principle perpetrators in approximately 39 percent of schemes, yielding company losses of approximately $150,000.

M/C Fraud deterrence begins:

Since forensic accounting works with fact as documented by legal records the reports seldom add an adversarial nature to the engagements, and professionals can expect that their work will be accepted by the opposing side.

The difference between abuse and fraud may be the difference in consequences - being reprimanded or being fired by the company and prosecuted by the justice system.

Define "fraud" and define "abuse." In the process, identify differences between the two.

Auditing is responsible for:

Careers in Fraud Examination and Financial Forensics

Who Commits Fraud and Why: Criminology and Ethics

Complex Frauds and Financial Crimes

Cybercrime: Computer and Internet Fraud

Legal, Regulatory, and Professional Environment

Fraud Detection: Red Flags and Targeted Risk Assessment

Detection and Investigations

Effective Interviewing and Interrogation

Using Information Technology for Fraud Examination and Financial Forensics

Cash Receipt Schemes and Other Asset Misappropriations

Cash Disbursement Schemes

Corruption and the Human Factor

Financial Statement Fraud

Consulting, Litigation Support, and Expert Witnesses: Damages, Valuations, and Other Engagements

Remediation and Litigation Advisory Services

Filters