fraud chaps 7-8

  1. Which of the following is not a category used in the fraud triangle plus inquiry paradigm?



    A. Action investigative techniques.
  2. When beginning an investigation, fraud examiners should use techniques that will:



    C. Not arouse suspicion.
  3. When conducting interviews during an investigation, which of the following words should usually be avoided?



    D. Investigation.
  4. When beginning a fraud investigation, which of the following methods is most useful in identifying possible suspects?



    B. Preparing a vulnerability chart.
  5. invigilation:



    C. Provides evidence to help determine whether fraud is occurring.
  6. Which of the following is not a theft investigative method?



    C. Surveillance and covert operations.
  7. When deciding whether or not to investigate, which of the following factors should an organization not consider?



    D. All of the above should be considered.
  8. Surveillance, when properly performed, is done:



    A. Without the perpetrator’s knowledge.
  9. Which of the following is not included in a vulnerability chart?



    D. Internal controls that a company plans to institute in the future.
  10. A vulnerability chart:
    a. Forces investigators to explicitly consider all aspects of a fraud.
    b. Shows the history of fraud in a company. c. Identifies weaknesses in every aspect of a company’s internal control.
    d. Gives a detailed record of all the movements and activities of the suspect.
    a. Forces investigators to explicitly consider all aspects of a fraud.
  11. Fixed-point, or stationary, observations can be conducted by:



    A. Anyone.
  12. Surveillance logs should include all of the following except:



    C. Cost of the surveillance equipment used.
  13. Wiretapping, a form of electronic surveillance, can be used by:
    a. Internal auditors.
    b. Company controllers.
    c. CPAs.
    d. All of the above.
    e. None of the above.
    e. None of the above.
  14. Which theft investigative method is most limited in value during employee fraud investigations because of concerns regarding employees’ privacy at work?



    A. Electronic surveillance.
  15. Who should be consulted before any form of surveillance takes place?



    B. Legal counsel and human resources.
  16. When seizing computers, a calculation (also called a hash) that ensures you have an exact clone and have not changed data is called a(n):



    D. ODBC connection.
  17. A snapshot of active memory should be done:



    D. After seizure of the computer but before turning off the computer
  18. ________ must be present before beginning an investigation.



    A. Predication
  19. Theft investigation methods include all of the following except:




    D. seizing computers.
  20. A vulnerability chart:




    E. coordinates the various elements of the possible fraud.
  21. Types of surveillance include all of the following except:



    C. All of the choices are types of
  22. Undercover operations:




    D. None of the choices are true of undercover operations.
  23. Invigilation:




    A. can backfire.
  24. Which of the following answers presents the steps in the correct order used to seize electronic evidence?
    I. Clone the device.
    II. Secure the device.
    III. Search the device using automated searches.
    IV. Search the device manually.



    A. II, I, IV, III
  25. When a file is "deleted" on a disk, the data is removed from the disk.
    True              
    False
    False
  26. Checksums:



    A. should be calculated immediately upon seizing a computer drive.
  27. Email:



    C. exists in many places including the computer or electronic device of the sender and the servers involved in transmission.
  28. In a fraud investigation, documents:



    A. Usually contain extremely valuable information.
  29. Chain of custody refers to:


    A. A record of when a document is received and what has happened to it since its receipt
  30. Marking documentary evidence is important to ensure that:



    D. Documents can be identified later.
  31. 4. Discovery sampling:
    a. Is a type of variables sampling.
    b. Is one of the more difficult statistical sampling methods to understand.
    c. Is never used in conducting a fraud examination.
    d. Deals with the probability of discovering at least one error in a given sample size if the population error is a certain percentage.
    d. Deals with the probability of discovering at least one error in a given sample size if the population error is a certain percentage.
  32. Documentary evidence such as private tax returns can usually be obtained only by:



    D. All of the above.
  33. Which of the following is not true regarding document experts?



    D. All of the above are true statements.
  34. Which of the following is not a benefit of statistical sampling?



    B. It allows auditors to be certain that fraud does not exist in a population.
  35. Which of the following methods of gathering documents is based primarily on luck?



    A. Documents provided by tipsters.
  36. Which of the following is true of graphologists?



    C. They study handwriting as a way to interpret and identify personalities.
  37. What can a fraud examiner conclude if one or more instances of fraud are found in a sample taken from a population?



    D. The population contains fraud.
  38. What can a fraud examiner conclude if his or her tests confirm that no instances of fraud are present in a sample taken from a population?



    B. Only that no fraud is present in that particular sample.
  39. How are most frauds concealed?
    a. By shredding source documents.
    b. By converting to a paperless office without paper transactions.
    c. By creating fictitious documents or altering source documents.
    d. By firing employees who will not go along with the fraud.
    c. By creating fictitious documents or altering source documents.
  40. Which of the following is usually the best way to obtain documentary evidence?



    A. Computer-based queries of full-population accounting and other databases.
  41. Programs like CaseMap, Case Central, ZANTAZ, Ringtail, and DatiCon are examples of:



    C. Software packages used to index and store evidence.
  42. Documents:




    E. may contain fingerprints.
  43. Information on the back of a check typically includes all of the following except:
    a. teller who processed the transaction.
    b. branch number where check was cashed. c. whether the check represented a payment or was deposited.
    d. All of the choices are true regarding checks.
    e. None of the choices are true regarding checks.
    b. branch number where check was cashed.
  44. Marking the evidence includes:




    D. copying the document and storing the original in an envelope.
  45. Link analysis is used to:



    D. associate people, places and events.
  46. Documentary evidence may be obtained in a variety of ways. Rank the following methods for acquiring documents from the most effective to the least effective.
    I. Traditional audits, including discovery sampling.
    II. Computer-based queries of full-population accounting and other databases.
    III. Tips, accidents, chance.



    D. II, I, III
  47. Auditors perform a variety of tests, each of which yields a form of evidence. Which of the following are tests auditors perform?
    I. Establishment of chain of custody
    II. Tests of reasonableness
    III. Physical examinations
    IV. Recalculations
    a. I, II, III, and IV
    b. I and III only
    c. II, III, and IV only
    d. I, III, and IV only
    c. II, III, and IV only
  48. Discovery sampling:
    a. allows an auditor to make inferences about a sample based on a study of the population. b. is only considered useful and efficient with relatively small populations.
    c. is among the most difficult forms of statistical sampling to understand and implement.
    d. All of the choices are true regarding discovery sampling.
    e. None of the choices are true regarding discovery sampling.
    e. None of the choices are true regarding discovery sampling.
  49. An auditor who is conducting a sampling test for fraud will be 100% certain fraud exists if one fictitious transaction is discovered.
    True
    False
    True
  50. Regarding sampling procedures, the more confident an auditor wants to be, the smaller the sample size that must be examined.
    True
    False
    False
  51. Sampling risk is:
    a. the risk that findings will be misinterpreted; for example, not recognizing an error or mistake.
    b. the risk that the sample is not representative of the population.
    c. a significant risk that cannot be reduced.
    d. All of the choices are true regarding sampling risk.
    b. the risk that the sample is not representative of the population.
Author
es2437
ID
264514
Card Set
fraud chaps 7-8
Description
fraud
Updated