Fraud Exam 1

What is the most critcal element for fraud to be successful

Four basic sources for statistics on how much fraud is occuring are all of the following except:
Auditing firms
Government agencies
Insurance companies
Victims of fraud

Which of the following is incorrectly connected?
Employee embezzlement - use positions to take assets belonging to an employer
Customer fraud - obtain the confidence of customers to get them to invest money
Vendor fraud - overbill or provide lower quality or fewer goods than agreed
Management fraud - manipulate the financial statements to make the company look better

Who is the main victim of customer fraud

____ often called financial statement fraud and involves top management's deceptive manipulation of financial statements

Losses incurred from fraud reduce a firm's income on a dollar for dollar basis. This means that for ever $1 of fraud, ____ is reduced by $1

What does criminal law differ from civil law

which of the following is not a fraud type

Which of the following is not a requirement for an individual to become a certified fraud examiner:
Be an associate member of ACFE in good standing
Meet minimum academic and professional requirements
Agree to abide by the Bylaws and code of professional ethics of the ACFE

Which of the following is not an element of fraud?
Unintentional results
Representation of an existing fact
Its materiality
Consequent damages suffered by plaintiff

What comprises the fraud triangle?

When committers of fraud are not reported and prosecuted they are likely to

Which of the following is not one of the 5 types of power discussed in the chapter?
Reward
Referent
Relative
Legitimate

People who commit fraud

Common pressures for committing fraud include:
Greed
Unexpected finanical needs
Living beyond one's means
All of the above

Audit trails are important because:
They help transactions to be understood
They help hide fraud
They help hold people accountalbe

When an organization catches someone committing fraud it usually

Work related pressures to commit fraud include
fear of losing job
dissatisfation with job
feeling undervalued

Fraud is more easily committed when:
One person has more information than the other
Both people have equal amounts of information
When there is trust between two people

Common types of vices are:
Gambling
Drugs
Extramarital affairs

Which of the following is not an element of the fraud triangle?
Pressure
Ethical Lapse
Opportunity
Rationalization

Proper modeling by upper management in the creation of the business culture of a company is an example of

Which of the following is not a primary way to detect fraud?
By chanceions
providing a fraud reporting system
examining transaction records
random investigat

The circumstances that would lead a reasonable professional to believe that fraud has occured, is occuring, or will occur is:

Fraud investigations should be:
Carefully conducted
Approved by management
Conducted only when predication is present

Actions taken after an occurrence of fraud in order to revocer mondy or other assets from the fraud perpetrators describes:

Of civil and criminal action which is more difficult to get and why?

Which of the following is the most cost effective way to reduce losses from fraud?

Which of the following is not considered a classification of investigation techniques for fraud?

Which of the following is not a part of the fraud element triangle?

EAP stands for

Employers cannot be held legally responsible for negligent acts of an employee
True False

Creating a positive work environment includes all of the following except:
Expecations of honesty through Code of Conduct
Open door policies
resume verification
positive personnel and operating procedures

The average ROI for EAP is

The following are all examples of preventive controls EXCEPT
segregation of duties
system of authorizations
physical safeguards
independent checks

SAS No. 99 requires auditors to

What percent of frauds involve collusion

Successful whistel blowing systems include
anonymity
independence
accessibility
follow up

What is the problem with the current model of dealign with fraud

Individuals who commit fraud usually do what with the stolen money

Which one is not a symptom of fraud
tips and complaints
internal control weakness
accounting anomalies
inadequate management

who is in the best position to detect fraud

which one is not an example of an accounting anomaly:
inaccuracies in the ledger
unexplained inventory shortages
stale items on banke reconciliations
ournal entries not balancing

Which of the following is a fraud symptom related to an internal control weakness?
Lack of proper authorization
Lack of independent checks
Inadequate accounting system
Lack of physical safeguards

Which of the following is NOT a fraud symptom related to journal entries?
Unexplained adjustments to receivables, payables, revenues, or expenses
Lack  of segregation of duties
Lack of independent checks
Overriding of existing controls

If a perpetrator has stolen assets, what is the easiest method for concealing the theft

Who is in the best position to detect fraud

Which of the following are examples of behavior changes of fraud perpetrators?
Increased drinking
Inability to relax
Unusual belligerence

What fraud symptom is characterized by an individual living above their income

What is the best description of a psychopath

Which of the following is not a benefit associated with data-driven fraud detection:
Permits full-population analysis
Provides a proactive approach to fraud detection
May detect frauds while they are still small
Generally less expensive and less time intensive

Which of the following is not a step in the data analysis process:
Understand the business
Identify possible frauds that could exist
Gather data about Symptoms
Confront employees who exhibit symptoms of fraud

Open Database connectivity is usually the best way to retrieve edata because

Benfords law states that:

Time trend analysis is useful in detecting fraud because

An outlier would not be produced by which of the following:

What are the primary benefits of using a Matosas matrix

What is financial statement reporting analysis

Which is not one of the four ways balance sheet and income statement can be changed to a change statements?
Horizontal analysis
Calculating key ratios
Comparing different statements overtime
Both A and B

What statements are balance sheets and income statement respectively