Question 1

Which method will result in biggest savings?

Accepted Answer

A) Fraud prevention--including EAP plans. 
B) Fraud detection--including audit proactively,monitoring. 
C) Investigation--including criminal prosecution. 
D) Promotion--including raising rank or position. 
A) Fraud prevention--including EAP plans. 
B) Fraud detection--including audit proactively,monitoring. 
C) Investigation--including criminal prosecution. 
D) Promotion--including raising rank or position. A

Question 2

A good internal control system includes:

Accepted Answer

A) hostile work environments. 
B) rigid rules. 
C) segregation of duties. 
D) following strict hiring procedures. 
A) hostile work environments. 
B) rigid rules. 
C) segregation of duties. 
D) following strict hiring procedures. C

Question 3

When only a very small amount of money has been embezzled:

Accepted Answer

A) taking no action is the best course of action. 
B) the perpetrator should be punished by publishing the details of the fraud in the local newspapers. 
C) the perpetrator should be prosecuted. 
D) the company should transfer the perpetrator to a position with more supervision. 
A) taking no action is the best course of action. 
B) the perpetrator should be punished by publishing the details of the fraud in the local newspapers. 
C) the perpetrator should be prosecuted. 
D) the company should transfer the perpetrator to a position with more supervision. C

Question 4

An employee recently bought five new cars and remodeled his/her home.These facts would be considered as a:

Accepted Answer

A) lifestyle symptom. 
B) accounting anomaly. 
C) unusual behavior. 
D) analytical symptom. 
A) lifestyle symptom. 
B) accounting anomaly. 
C) unusual behavior. 
D) analytical symptom.

Question 5

Approximately ____ of all frauds are committed by individual acting alone.The remaining ____ involves collusion and often involve the ____ thefts.

Accepted Answer

A) 63%,37%,smallest 
B) 71%,29%,biggest 
C) 47%,53%,smallest 
D) 18%,82%,biggest 
A) 63%,37%,smallest 
B) 71%,29%,biggest 
C) 47%,53%,smallest 
D) 18%,82%,biggest

Question 6

The last step of the fraud fighting model is follow-up.What is the likely outcome when a company allow perpetrators to go unprosecuted?

Accepted Answer

A) The company will avoid bad publicity. 
B) The perpetrator and others in the company will commit fraud again in the future. 
C) The perpetrator will be saved from pain and embarrassment and having learned his or her lesson will not commit fraud again. 
D) Management will send a signal that fraud will not be tolerated. 
A) The company will avoid bad publicity. 
B) The perpetrator and others in the company will commit fraud again in the future. 
C) The perpetrator will be saved from pain and embarrassment and having learned his or her lesson will not commit fraud again. 
D) Management will send a signal that fraud will not be tolerated.

Question 7

Which of the following should employers always obtain from the applicant to obtain information from references?

Accepted Answer

A) A verbal authorization 
B) A hold harmless agreement 
C) A privacy statement 
D) A no-objection certificate 
A) A verbal authorization 
B) A hold harmless agreement 
C) A privacy statement 
D) A no-objection certificate

Question 8

A good fraud auditing involves four steps.Which of the following is the correct sequence?

Accepted Answer

A) Identifying fraud risk exposures;building audit programs to proactively look for symptoms and exposures;investigating fraud symptoms identified;and identifying the fraud symptoms of each exposure. 
B) Identifying fraud risk exposures;identifying the fraud symptoms of each exposure;building audit programs to proactively look for symptoms and exposures;and investigating fraud symptoms identified. 
C) Building audit programs that proactively check for symptoms and exposures;identifying fraud risk exposures;identifying the fraud symptoms of each exposure;and investigating fraud symptoms identified. 
D) Identifying the fraud symptoms of each exposure;identifying fraud risk exposures;investigating fraud symptoms identified;and building audit programs to proactively look for symptoms and exposures. 
A) Identifying fraud risk exposures;building audit programs to proactively look for symptoms and exposures;investigating fraud symptoms identified;and identifying the fraud symptoms of each exposure. 
B) Identifying fraud risk exposures;identifying the fraud symptoms of each exposure;building audit programs to proactively look for symptoms and exposures;and investigating fraud symptoms identified. 
C) Building audit programs that proactively check for symptoms and exposures;identifying fraud risk exposures;identifying the fraud symptoms of each exposure;and investigating fraud symptoms identified. 
D) Identifying the fraud symptoms of each exposure;identifying fraud risk exposures;investigating fraud symptoms identified;and building audit programs to proactively look for symptoms and exposures.

Question 9

Identify a situation that could usually lead to a conflict of interest.

Accepted Answer

A) A manager has to choose between two of his best employees for the post of assistant manager. 
B) A sales supervisor has to allocate targets to her team members,based on revenue generation probability per region. 
C) A market analyst is asked to create a comparative growth forecast for four firms in an industry. 
D) A purchase manager in a company runs an operation that produces the raw materials required by the company. 
A) A manager has to choose between two of his best employees for the post of assistant manager. 
B) A sales supervisor has to allocate targets to her team members,based on revenue generation probability per region. 
C) A market analyst is asked to create a comparative growth forecast for four firms in an industry. 
D) A purchase manager in a company runs an operation that produces the raw materials required by the company.

Question 10

Which of the following questions should be avoided during a job interview?

Accepted Answer

A) How old are you? 
B) If the opportunities in your previous assignment were good,why did you leave it? 
C) Assume that a colleague is not cooperating with you.What steps will you take to correct it? 
D) What motivates you at work? 
A) How old are you? 
B) If the opportunities in your previous assignment were good,why did you leave it? 
C) Assume that a colleague is not cooperating with you.What steps will you take to correct it? 
D) What motivates you at work?

Question 11

Which of these help employees deal with substance abuse (alcohol and drugs),gambling,money management,and health,family,and personal problems?

Accepted Answer

A) Employee Assistance Programs 
B) Equal Employment Opportunity Programs 
C) Employees Anonymous Programs 
D) Whistle-Blowing Programs 
A) Employee Assistance Programs 
B) Equal Employment Opportunity Programs 
C) Employees Anonymous Programs 
D) Whistle-Blowing Programs

Question 12

An operating condition that can contribute to a higher risk of fraud is ________ .

Accepted Answer

A) management by crisis 
B) high company loyalty 
C) flexible rules 
D) proper authorization 
A) management by crisis 
B) high company loyalty 
C) flexible rules 
D) proper authorization

Question 13

An organization requires that employees in its accounting department take mandatory two-week long continuous vacations once a year.It allows no exceptions to this rule.Which control activity is the company using?

Accepted Answer

A) Segregation of duties 
B) Proper authorizations 
C) Physical safeguards 
D) Independent checks 
A) Segregation of duties 
B) Proper authorizations 
C) Physical safeguards 
D) Independent checks

Question 14

Fraud is most commonly detected by:

Accepted Answer

A) monitoring employees. 
B) auditors. 
C) discouraging collusion. 
D) tips and complaints. 
A) monitoring employees. 
B) auditors. 
C) discouraging collusion. 
D) tips and complaints.

Question 15

Which of the following is NOT an indicator that a person with a salary of $50,000 per year is living above his or her lifestyle?

Accepted Answer

A) A person owns several expensive cars. 
B) A person closely monitors his/her investments. 
C) A person who hosts extravagant parties in their $500,000 home. 
D) A person who owns a multimillion dollar art collection. 
A) A person owns several expensive cars. 
B) A person closely monitors his/her investments. 
C) A person who hosts extravagant parties in their $500,000 home. 
D) A person who owns a multimillion dollar art collection.

Question 16

Developing and promoting a well-defined corporate code of conduct is related to which element of the fraud-fighting model?

Accepted Answer

A) Investigation & follow-up 
B) Education & training 
C) Tone at the top 
D) Proactive fraud detection 
A) Investigation & follow-up 
B) Education & training 
C) Tone at the top 
D) Proactive fraud detection

Question 17

Which of the following environments will be LEAST conducive to fraud?

Accepted Answer

A) Perceived inequalities in the organization and inadequate pay 
B) Unreasonable budget expectations 
C) Proactive management 
D) High employee turnover 
A) Perceived inequalities in the organization and inadequate pay 
B) Unreasonable budget expectations 
C) Proactive management 
D) High employee turnover

Question 18

Which of the following would usually be an environment conducive to fraud?

Accepted Answer

A) Low turnover 
B) Reactive rather than proactive management 
C) Supportive rather than rivalrous relationships 
D) Long-term business focus 
A) Low turnover 
B) Reactive rather than proactive management 
C) Supportive rather than rivalrous relationships 
D) Long-term business focus

Question 19

What are the 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

An organization has a policy requiring the dual counting of all incoming cash receipts.Which control activity is being used here?

Accepted Answer

A) Segregation of duties 
B) Proper authorizations 
C) Physical safeguards 
D) Documents and records 
A) Segregation of duties 
B) Proper authorizations 
C) Physical safeguards 
D) Documents and records

Which method will result in biggest savings?

A good internal control system includes:

When only a very small amount of money has been embezzled:

An employee recently bought five new cars and remodeled his/her home.These facts would be considered as a:

Approximately of all frauds are committed by individual acting alone.The remaining involves collusion and often involve the thefts.

The last step of the fraud fighting model is follow-up.What is the likely outcome when a company allow perpetrators to go unprosecuted?

Which of the following should employers always obtain from the applicant to obtain information from references?

A good fraud auditing involves four steps.Which of the following is the correct sequence?

Identify a situation that could usually lead to a conflict of interest.

Which of the following questions should be avoided during a job interview?

Which of these help employees deal with substance abuse (alcohol and drugs),gambling,money management,and health,family,and personal problems?

An operating condition that can contribute to a higher risk of fraud is ________ .

An organization requires that employees in its accounting department take mandatory two-week long continuous vacations once a year.It allows no exceptions to this rule.Which control activity is the company using?

Fraud is most commonly detected by:

Which of the following is NOT an indicator that a person with a salary of $50,000 per year is living above his or her lifestyle?

Developing and promoting a well-defined corporate code of conduct is related to which element of the fraud-fighting model?

Which of the following environments will be LEAST conducive to fraud?

Which of the following would usually be an environment conducive to fraud?

What are the key attributes for a low-fraud environment?

An organization has a policy requiring the dual counting of all incoming cash receipts.Which control activity is being used here?

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

Which method will result in biggest savings?

A good internal control system includes:

When only a very small amount of money has been embezzled:

An employee recently bought five new cars and remodeled his/her home.These facts would be considered as a:

Approximately ____ of all frauds are committed by individual acting alone.The remaining ____ involves collusion and often involve the ____ thefts.

The last step of the fraud fighting model is follow-up.What is the likely outcome when a company allow perpetrators to go unprosecuted?

Which of the following should employers always obtain from the applicant to obtain information from references?

A good fraud auditing involves four steps.Which of the following is the correct sequence?

Identify a situation that could usually lead to a conflict of interest.

Which of the following questions should be avoided during a job interview?

Which of these help employees deal with substance abuse (alcohol and drugs),gambling,money management,and health,family,and personal problems?

An operating condition that can contribute to a higher risk of fraud is ________ .

An organization requires that employees in its accounting department take mandatory two-week long continuous vacations once a year.It allows no exceptions to this rule.Which control activity is the company using?

Fraud is most commonly detected by:

Which of the following is NOT an indicator that a person with a salary of $50,000 per year is living above his or her lifestyle?

Developing and promoting a well-defined corporate code of conduct is related to which element of the fraud-fighting model?

Which of the following environments will be LEAST conducive to fraud?

Which of the following would usually be an environment conducive to fraud?

What are the key attributes for a low-fraud environment?

An organization has a policy requiring the dual counting of all incoming cash receipts.Which control activity is being used here?

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

Approximately of all frauds are committed by individual acting alone.The remaining involves collusion and often involve the thefts.