Question 1

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Accepted Answer

A) Management evidence 
B) Testimonial evidence 
C) Physical evidence 
D) Personal observation 
A) Management evidence 
B) Testimonial evidence 
C) Physical evidence 
D) Personal observation C

Question 2

All of the following factors can be associated with high levels of fraud and detract from a positive work environment EXCEPT:

Accepted Answer

A) top management that does not pay attention to behavior of employees. 
B) lack of recognition of job performance. 
C) unrealistically low pay. 
D) low turnover. 
A) top management that does not pay attention to behavior of employees. 
B) lack of recognition of job performance. 
C) unrealistically low pay. 
D) low turnover. D

Question 3

Which investigative method involves searching for ways in which perpetrators have spent or used their stolen assets?

Accepted Answer

A) Theft act 
B) Concealment 
C) Conversion 
D) Layering 
A) Theft act 
B) Concealment 
C) Conversion 
D) Layering C

Question 4

Which of the following is NOT a part of the evidence square?

Accepted Answer

A) Management evidence 
B) Documentary evidence 
C) Testimonial evidence 
D) Physical evidence 
A) Management evidence 
B) Documentary evidence 
C) Testimonial evidence 
D) Physical evidence

Question 5

Civil suits are usually quite rare in cases of employee fraud because:

Accepted Answer

A) there is usually not enough evidence to prosecute. 
B) employee fraud is a victimless crime. 
C) it is difficult for a jury to unanimously decide on a conviction. 
D) perpetrators have usually spent the money. 
A) there is usually not enough evidence to prosecute. 
B) employee fraud is a victimless crime. 
C) it is difficult for a jury to unanimously decide on a conviction. 
D) perpetrators have usually spent the money.

Question 6

Audits,public record searches,and net worth calculations are used to gather what type of evidence in fraud investigation?

Accepted Answer

A) Testimonial 
B) Forensic 
C) Documentary 
D) Observational 
A) Testimonial 
B) Forensic 
C) Documentary 
D) Observational

Question 7

Which of the following is a prerequisite for a fraud investigation?

Accepted Answer

A) Predication 
B) A specific allegation of fraud against another party 
C) Consistent bottom-line improvement 
D) Rationalization 
A) Predication 
B) A specific allegation of fraud against another party 
C) Consistent bottom-line improvement 
D) Rationalization

Question 8

Which of the following is NOT one of the ways in which a fraud investigation must be conducted?

Accepted Answer

A) Investigators should be experienced and objective professionals. 
B) Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated. 
C) Investigators should not keep management apprised of the investigations process. 
D) Investigators must be sure to follow appropriate investigative techniques. 
A) Investigators should be experienced and objective professionals. 
B) Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated. 
C) Investigators should not keep management apprised of the investigations process. 
D) Investigators must be sure to follow appropriate investigative techniques.

Question 9

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Accepted Answer

A) helps in training employees about appropriate behavior. 
B) often prompt smaller frauds. 
C) pay big dividends. 
D) helps in severely punishing fraud perpetrators. 
A) helps in training employees about appropriate behavior. 
B) often prompt smaller frauds. 
C) pay big dividends. 
D) helps in severely punishing fraud perpetrators.

Question 10

Which of the following is an example of a whistle-blowing system?

Accepted Answer

A) Bulletin board service 
B) Supervisor intervention 
C) Removing middle management layer 
D) Fraud reporting hotline 
A) Bulletin board service 
B) Supervisor intervention 
C) Removing middle management layer 
D) Fraud reporting hotline

Question 11

Which of the following statements is NOT true?

Accepted Answer

A) It is much more difficult to get a criminal conviction than it is to get a judgment in a civil case. 
B) Only a preponderance of the evidence (more than 50 percent)is necessary to win a civil case. 
C) Criminal convictions are only successful if there is 100 percent proof that the perpetrator "intentionally" stole money or other assets. 
D) Civil actions are quite rare in cases of employee fraud because perpetrators have usually spent the money they stole. 
A) It is much more difficult to get a criminal conviction than it is to get a judgment in a civil case. 
B) Only a preponderance of the evidence (more than 50 percent)is necessary to win a civil case. 
C) Criminal convictions are only successful if there is 100 percent proof that the perpetrator "intentionally" stole money or other assets. 
D) Civil actions are quite rare in cases of employee fraud because perpetrators have usually spent the money they stole.

Question 12

In the past,most frauds were detected:

Accepted Answer

A) by surveillance and undercover operations. 
B) by accident. 
C) by providing ways for people to report suspicions of fraud. 
D) by examining transaction records and documents to determine if there are anomalies that could represent fraud. 
A) by surveillance and undercover operations. 
B) by accident. 
C) by providing ways for people to report suspicions of fraud. 
D) by examining transaction records and documents to determine if there are anomalies that could represent fraud.

Question 13

Research in moral development strongly suggests that honesty can be best reinforced when:

Accepted Answer

A) expectations of honesty are implied. 
B) fraud perpetrators are given a second chance. 
C) fraud perpetrators are severely punished. 
D) a proper example is set by management. 
A) expectations of honesty are implied. 
B) fraud perpetrators are given a second chance. 
C) fraud perpetrators are severely punished. 
D) a proper example is set by management.

Question 14

Which of the following is true of the "swing group" of employees in organizations?

Accepted Answer

A) Individuals in this group have situational ethics. 
B) Individuals in this group are dishonest at all times. 
C) Individuals in this group do not know how to translate their ethical values to the business world. 
D) Individuals in this group completely lack ethical courage. 
A) Individuals in this group have situational ethics. 
B) Individuals in this group are dishonest at all times. 
C) Individuals in this group do not know how to translate their ethical values to the business world. 
D) Individuals in this group completely lack ethical courage.

Question 15

Some of the most common investigative techniques for gathering this evidence include data mining,audits,computer searches,net worth calculations,and financial statement analysis.

Accepted Answer

A) Documentary evidence 
B) Testimonial evidence 
C) Physical evidence 
D) Personal observation 
A) Documentary evidence 
B) Testimonial evidence 
C) Physical evidence 
D) Personal observation

Question 16

Research on honesty shows that individuals fall into three groups: (1)those who will almost always be honest,
(2)those who are situationally honest,and
(3)those who will always be dishonest.
Which of these groups is (are)the biggest?

Accepted Answer

A) Group 1 (50%) 
B) Group 2 (40%) 
C) Group 3 (45%) 
D) Groups 1 and 3 (35% each) 
A) Group 1 (50%) 
B) Group 2 (40%) 
C) Group 3 (45%) 
D) Groups 1 and 3 (35% each)

Question 17

Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?

Accepted Answer

A) Sherman Act 
B) Glass-Steagall Act 
C) Sarbanes Oxley Act 
D) Gramm-Leach-Bliley Act 
A) Sherman Act 
B) Glass-Steagall Act 
C) Sarbanes Oxley Act 
D) Gramm-Leach-Bliley Act

Question 18

Which is the highest level in the ethical maturity model?

Accepted Answer

A) Ethical leadership 
B) Ethical courage 
C) Personal ethical understanding 
D) Application of ethics to business situations 
A) Ethical leadership 
B) Ethical courage 
C) Personal ethical understanding 
D) Application of ethics to business situations

Question 19

Which of the following is a component of the evidence square?

Accepted Answer

A) Rationalization 
B) Perceived pressure 
C) Personal observation 
D) Perceived opportunity 
A) Rationalization 
B) Perceived pressure 
C) Personal observation 
D) Perceived opportunity

Question 20

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions,and there are four levels in it.Which of the following level is NOT one among them.

Accepted Answer

A) Personal ethical understanding 
B) Corporate code of ethics 
C) Application of ethics 
D) Ethical courage 
E) Ethical leadership 
A) Personal ethical understanding 
B) Corporate code of ethics 
C) Application of ethics 
D) Ethical courage 
E) Ethical leadership

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

All of the following factors can be associated with high levels of fraud and detract from a positive work environment EXCEPT:

Which investigative method involves searching for ways in which perpetrators have spent or used their stolen assets?

Which of the following is NOT a part of the evidence square?

Civil suits are usually quite rare in cases of employee fraud because:

Audits,public record searches,and net worth calculations are used to gather what type of evidence in fraud investigation?

Which of the following is a prerequisite for a fraud investigation?

Which of the following is NOT one of the ways in which a fraud investigation must be conducted?

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Which of the following is an example of a whistle-blowing system?

Which of the following statements is NOT true?

In the past,most frauds were detected:

Research in moral development strongly suggests that honesty can be best reinforced when:

Which of the following is true of the "swing group" of employees in organizations?

Some of the most common investigative techniques for gathering this evidence include data mining,audits,computer searches,net worth calculations,and financial statement analysis.

Research on honesty shows that individuals fall into three groups: (1)those who will almost always be honest, (2)those who are situationally honest,and (3)those who will always be dishonest. Which of these groups is (are)the biggest?

Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?

Which is the highest level in the ethical maturity model?

Which of the following is a component of the evidence square?

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions,and there are four levels in it.Which of the following level is NOT one among them.

The Nature of Fraud

Why People Commit Fraud

Preventing Fraud

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 3: Fighting Fraud: an Overview

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

All of the following factors can be associated with high levels of fraud and detract from a positive work environment EXCEPT:

Which investigative method involves searching for ways in which perpetrators have spent or used their stolen assets?

Which of the following is NOT a part of the evidence square?

Civil suits are usually quite rare in cases of employee fraud because:

Audits,public record searches,and net worth calculations are used to gather what type of evidence in fraud investigation?

Which of the following is a prerequisite for a fraud investigation?

Which of the following is NOT one of the ways in which a fraud investigation must be conducted?

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Which of the following is an example of a whistle-blowing system?

Which of the following statements is NOT true?

In the past,most frauds were detected:

Research in moral development strongly suggests that honesty can be best reinforced when:

Which of the following is true of the "swing group" of employees in organizations?

Some of the most common investigative techniques for gathering this evidence include data mining,audits,computer searches,net worth calculations,and financial statement analysis.

Research on honesty shows that individuals fall into three groups: (1)those who will almost always be honest, (2)those who are situationally honest,and (3)those who will always be dishonest. Which of these groups is (are)the biggest?

Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?

Which is the highest level in the ethical maturity model?

Which of the following is a component of the evidence square?

Recent research has shown that there is an ethical maturity model (EMM)that explains why people make unethical decisions,and there are four levels in it.Which of the following level is NOT one among them.

The Nature of Fraud

Why People Commit Fraud

Preventing Fraud

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