Conversion Investigation Methods
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Questions Bank
- The Nature of FraudWhy People Commit FraudFighting Fraud: An OverviewPreventing FraudRecognizing the Symptoms of FraudData-Driven Fraud DetectionInvestigating Theft ActsInvestigating ConcealmentConversion Investigation MethodsInquiry Methods and Fraud ReportsFinancial Statement FraudRevenue- and Inventory-Related Financial Statement FraudsLiability, Asset, and Inadequate Disclosure FraudsFraud Against OrganizationsConsumer FraudBankruptcy, Divorce, and Tax FraudFraud in E-CommerceLegal Follow-Up
Question 1
Free
Multiple Choice
Which of the following types of information do credit reporting agencies not maintain?
Choose correct answer/s
Information of current and former employers
Account information such as payment schedules, items purchased, and buying habits.
Marketing information such as customer breakdowns by age, sex, and income levels
Consumer information such as addresses and family members
Credit reporting agencies maintain all of the above information
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Question 2
Free
Multiple Choice
Using the data below the income from unknown sources for year 2 and 3 respectively are: 
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-27,800; -41,800
275,800; 267,800
81,800; 311,800
65,800; 47,800
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Question 3
Free
Multiple Choice
Social Security contains information about an individual. Which item below is not included in an individual's social security number?
Choose correct answer/s
Area the person was living when the number was issued
A unique serial number for a person
Race
Group number
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Question 4
Free
Multiple Choice
Searching through someone's garbage is considered a legal activity when:
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the trash is more than 14 days old
the trash is in the person's possession
the trash has left the person's home or sidewalk
Stealing a person's trash is never considered a legal activity.
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Question 5
Free
Multiple Choice
Income from known sources subtracted from total income gives a reasonable estimate of:
Choose correct answer/s
Unknown funds
Liabilities
Living Expenses
Net Worth
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Question 6
Multiple Choice
During an interview with Heidi Royce, she confessed to accepting $64,500 in kickbacks from a key supplier over the last 6 months. Heidi's income for the year was $48,000 and her living expenses totaled $94,500 due mainly to medical costs of $40,000. She has a current net worth of $20,000. What was her (increase/decrease) in net worth?
Choose correct answer/s
$6,500
$2,000
$71,000
$9,500
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Question 7
Multiple Choice
What is the purpose of the net worth calculation in fraud?
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It is used to determine the extent of stolen funds
It is used to determine how much money can be stolen without causing a company to go bankrupt.
It is used to help locate fraudulent asset accounts
All of the above
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Question 8
Multiple Choice
Which of the following is not one of the credit reporting agencies used to check identity theft?
Choose correct answer/s
Experian
Equifax
Transunion
Proquest
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Question 9
Multiple Choice
________ is both a federal and state source of information.
Choose correct answer/s
Secretary of state
Bureau of prisons
Department of defense
Permit departments
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Question 10
Multiple Choice
Which of the following is not a needed component for computing a person's Net Worth?
Choose correct answer/s
Parent's financial status
Prior year's net worth
Funds from known sources
Net worth increase
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Question 11
Multiple Choice
Which of the following is not a type of information that can be obtained from the County Land Office and Tax Assessor's Office?
Choose correct answer/s
Real Estate that has been purchased
Automobile registration
Property's current assessed value
Liens removed
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Question 12
Multiple Choice
All of the following federal agencies maintain information that can help fraud investigations except which?
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ATF
Social Security Administration
Department of Justice
Postal Service
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Question 13
Multiple Choice
Which of the following agencies is generally the least productive in a records search?
Choose correct answer/s
Searching Local agencies
Searching County agencies
Searching State agencies
Searching Federal agencies
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Question 14
Multiple Choice
Which of the following is not a federal source of information?
Choose correct answer/s
Secretary of State
CIA
Bureau of Prisons
FBI
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Question 15
Multiple Choice
Evidence gathered from searching through someone's trash:
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Can help identify concealment attempts
Can help to determine how a perpetrator is spending stolen money
Can help understand how a perpetrator is stealing money
All of the above are true
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Question 16
Multiple Choice
Net worth calculations do all of the following except:
Choose correct answer/s
Determine Net worth
Determine funds from unknown sources
Determine where fraudulent monies are hidden
Determine a person's Net Worth Increase
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Question 17
Multiple Choice
Which of the following statements is false regarding the net worth method?
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The net worth method generally understates amounts stolen.
Much of the information necessary for determining an individual's assets, liabilities, living expenses, and income is available through public records.
Courts are generally suspicious of dollar amounts determined by the net worth method because courts realize that the net worth method can only provide approximations of the amount stolen.
The net worth method is useful for obtaining confessions from suspects during interviews or interrogations.
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Question 18
Multiple Choice
Which of the following is not a good reason for involving postal inspectors in a fraud investigation?
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Postal inspectors share jurisdiction with other federal, state, and local agencies.
Postal inspectors work for the prosecution of offenders who violate postal laws.
Postal inspectors have access to an individual's past and current addresses.
Postal inspectors work to protect citizens from loss through theft that uses the mail system.
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Question 19
Multiple Choice
Mandy calls a local newspaper and pretends to be a neighbor who is away for the winter. She obtains account history and orders newspaper service for six months. Has Mandy committed fraud?
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No. The newspaper has not yet been delivered nor paid.
Yes. She is in violation of the Gramm-Leach Bliley Act of 1999.
No. Her neighbor can obtain all of the newspapers when they return next spring.
Yes. She has engaged in mail fraud, Title 18, U.S. Code Section 1344.
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Question 20
Multiple Choice
You are investigating a fraud in which you suspect that one of your suppliers from another state has been giving bribes and kickbacks to your purchasing agent in exchange for a lucrative, exclusive contract. Which of the following agencies/individuals would be the most helpful in investigating this fraud?
Choose correct answer/s
The FBI because they have national jurisdiction and can investigate and prosecute violators from a different state.
The state attorney general for the supplier's state because they are responsible for enforcing all state civil and criminal laws.
Postal inspectors because the bribes and kickbacks were most likely made through the mail system; therefore, federal mail statutes apply.
The IRS because your purchasing agent is not too bright and probably reported the bribes and kickbacks as income on his tax returns.
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