Deck 8: Investigating Concealment

Question 1

When the document is in the custody of a public office:

A) it is permissible to obtain photocopies, which are considered secondary evidence in a court of law.
B) copies of the document should be made but kept separate from the original document.
C) the document (or a copy) cannot be used as evidence in a court of law.
D) a summary of the document will suffice.

Answer 1

A

Question 2

The risk that an auditor will examine a fraudulent check and not recognize it as being fraudulent is called:

A) sampling risk.
B) nonsampling risk.
C) systematic risk.
D) systemic risk.

Answer 2

B

Question 3

is a simple, statistically based method of analyzing a subset of transactions from a larger pool.

A) Structured sampling
B) Probability sampling
C) Cluster sampling
D) Discovery sampling

Answer 3

D

Question 4

The three most common ways to obtain hard-to-get documentary evidence are:

A) subpoena, voluntary consent, and searching public records.
B) subpoena, search warrant, and voluntary consent.
C) search warrant, invigilation, and surveillance.
D) voluntary consent, surveillance, and invigilation.

Question 5

are used by attorneys involved in litigation to track all documents.

A) Link analyses
B) Bates numbers
C) Bar codes
D) RFID tags

Question 6

Which statistical sampling allows an auditor to generalize and make inferences from the sample to the population?

A) Probability sampling
B) Random sampling
C) Discovery sampling
D) Quota sampling

Question 7

Which of the following is the term for keeping a record of when a document is received and what has happened to it since its receipt?

A) Organization of custody
B) Evidence chain
C) Coordination of custody
D) Chain of custody

Question 8

What is the most common way to obtain private documents for investigation?

A) Subpoena
B) Search warrant
C) Voluntary consent
D) Audit

Question 9

Which of the following does NOT appear on a check that has been cashed?

A) Teller number
B) Date of the transaction
C) Transaction number
D) Time of the transaction

Question 10

are executed only by law enforcement officials and are generally used only in criminal cases.

A) Subpoenas
B) Voluntary consents
C) Search warrants
D) Interviews

Question 11

Methods for concealment investigation include all of the following EXCEPT:

A) document examination.
B) searching public records.
C) audits.
D) computer searches.

Question 12

Which aspect of documentary evidence should be kept in mind to ensure that the documents can be identified later and accessible for trial?

A) Organization of evidence
B) Coordination of evidence
C) Marking of evidence
D) Chain of custody of documents

Question 13

A traditional audit that includes discovery sampling is LEAST appropriate for:

A) canceled checks.
B) confirmation letters.
C) accounting databases.
D) printed delivery receipts.

Question 14

Which of the following is a popular program used to index and store evidence?

A) CaseMap
B) IDEA
C) TANZAN
D) SQL

Question 15

Which of the following statements is true?

A) Most concealment investigative procedures involve accessing and accumulating documentary evidence.
B) Most concealment investigation techniques focus on obtaining eyewitness accounts as evidence.
C) Honesty testing is considered a concealment investigation technique.
D) Concealment investigation is dependent on employee cooperation to gather evidence.

Question 16

During a concealment investigation, an investigator fails to recognize that an invoice had been forged. This represents a:

A) sampling risk.
B) nonsampling risk.
C) systematic risk.
D) systemic risk.

Question 17

What is the term for the risk that the sample was not representative of the population?

A) Systematic risk
B) Nonsampling risk
C) Sampling risk
D) Compliance risk

Question 18

Which of the following is generally considered a best practice while handling documentary evidence?

A) Copies of the document should be used during the investigation and should be kept in the same file where the original is kept.
B) Photocopies are always preferable to original documents as evidence, as the original could be tampered with.
C) Copies of the document should not be made and only the original document should be used during investigation and trial.
D) Generally, a summary of the original document should be made for investigation and trial.

Question 19

An audit is part of which type of investigative method?

A) Theft
B) Conversion
C) Concealment
D) Inquiry

Question 20

Mark owns a 24-hour convenience store. Lately he has noticed that the liquor inventory purchases have gone up by huge amounts, although sales proceeds from this category haven't increased. He suspects his two night-shift employees. Which is the best investigative method to uncover such a fraud?

A) Electronic investigation
B) Conversion investigation
C) Inquiry investigation
D) Concealment investigation

Question 21

Which of the following statements regarding subpoenas is accurate?

A) A subpoena can only be issued by a grand jury or the court.
B) A subpoena is one of the two ways to gain access to hard-to-get documentary information.
C) A subpoena must be signed by the chair of the grand jury.
D) A subpoena asks for voluntary information and cooperation.

Question 22

Which of the following statements regarding sampling risk is NOT accurate?

A) Sampling risk is the risk that the sample was not representative of the population.
B) Sampling risk is generally insignificant when looking for fraud.
C) To reduce sampling risk, the investigator can use a random number generator.
D) To reduce sampling risk, the investigator can increase the sample size.

Question 23

Which of the following statements regarding documents versus eyewitnesses is NOT accurate?

A) When faced with a choice between an eyewitness and a good document as evidence, most fraud experts choose the witness.
B) Unlike eyewitnesses, documents are almost always available to the fraud investigator who knows where to find them.
C) In today's interconnected financial world, it is nearly impossible to transfer money without creating a document trail.
D) Unlike witnesses, documents never tell inconsistent stories on two different occasions.

Question 24

Which of the following is NOT a warning sign indicating a possible problem with a document?

A) Disguised or unnatural handwriting
B) Authorized initialed changes
C) Inconsistency or disruption in the continuity of the content
D) Use of two or more different colors of ink

Question 25

Which of the following is NOT utilized to make determinations about a document being examined?

A) Forensic chemistry
B) Microscopy
C) Photography
D) Radiology

Question 26

Which of the following observations is true about subpoenas?

A) Subpoenas are generally used only in criminal cases.
B) Subpoenas are orders issued by the Company Law Board to produce documents.
C) Failure to honor a subpoena is punishable by law.
D) Every subpoena must be signed by the plaintiff and the accused.

Question 27

Which of the following observations about discovery sampling is accurate?

A) Discovery sampling is one of the more difficult statistical sampling variations to understand.
B) After using discovery sampling, auditors can be certain that fraud does not exist in a population of checks.
C) Discovery sampling allows an auditor to generalize and make inferences from the population to the sample.
D) Auditors can quantify both the risk and samples until they have sufficient evidence that fraud does not likely exist.

Question 28

Once investigators enter their indicators into the centralized database, the software performs to find connections between people, places, events, and documents.

A) regression analysis
B) search analysis
C) link analysis
D) correlation analysis

Question 29

What is another term used for discovery sampling?

A) Investigative sampling
B) Probability sampling
C) Statistical sampling
D) Stop-and-go sampling

Question 30

Which of the following is an alternative when original documents are too voluminous to permit careful examination?

A) A photocopy of the original document will suffice.
B) It will have to be excluded from usage as evidence.
C) A summary of its contents may be acceptable.
D) There are no alternatives. The original has to be produced.

Question 31

Which of the following statements regarding the FBI's Bureau Investigative Document Management and Analysis System (BIDMAS) is NOT accurate?

A) BIDMAS uses a commercial solution to scan and import documents into a central location.
B) Analytical tools in the BIDMAS system allow users to see interrelationships and correspondence between individuals in relation to search terms.
C) The FBI claims the BIDMAS system saves up to ten years in document review time compared with the previous manual process.
D) The BIDMAS system has a feature that reduces duplicate information automatically.

Question 32

Which of the following statements regarding search warrants is NOT accurate?

A) A "possible cause" condition must be met before a search warrant is issued.
B) There is a belief that documents have been used in committing a crime.
C) Only law enforcement officials can execute a search warrant.
D) Search warrants are generally used only in criminal cases.

Question 33

Computer-based queries of accounting and other databases are utilized in which of the following investigation methods?

A) Theft
B) Conversion
C) Concealment
D) Inquiry

Question 34

The four most common examples of hard-to-get documentary evidence are:

A) Web-based e-mail accounts, private bank records, tax returns, and brokerage records.
B) sample analytical reports, photographs and videos, tax returns, and SEC filings.
C) office e-mail accounts, private bank records, maps and diagrams, and sample analytical reports.
D) photographs and videos, private bank records, tax returns, and brokerage records.

Question 35

The best way to obtain documentary evidence is:

A) by chance, accident, or tip discovery.
B) through computer-based queries of full-population accounting and other databases.
C) through interviews and interrogations.
D) through discovery sampling.

Question 36

Which of the following is an example of secondary evidence?

A) Testimony of recipient of stolen assets
B) Confession of outside vendors who paid bribes
C) Testimony of witnesses of the fraud act
D) Photocopies of documentary evidence

Question 37

The least reliable method of obtaining documentary evidence is:

A) through traditional audits.
B) through computer-based queries
C) by using statistical techniques.
D) by accident.

Question 38

Orders issued by a court or a grand jury to produce documents are called:

A) writs of certiorari.
B) search warrants.
C) voluntary consent.
D) subpoenas.

Question 39

Which of the following is NOT an action by fraud perpetrators to hide/conceal their illegal act(s)?

A) Manipulating documentary evidence
B) Modifying records in computer databases
C) Photocopying fraud-related documents
D) Deleting records in computer databases

Question 40

Which of the following products can be useful to coordinate the evidence in large cases that involve investigators, legal counsel, accountants, expert witnesses, and management representatives?

A) DatiCon
B) Analyst's Notebook
C) CaseMap
D) Ringtail

Question 41

Which of the following items is NOT included on a subpoena?

A) The location of the documents being requested
B) The identity of who is making the request for the documents
C) The exact information being requested
D) The signature of a judge or court commissioner

Question 42

Which amendment of the Constitution provides the right of the people against unreasonable searches and seizures?

A) First
B) Second
C) Third
D) Fourth