Fighting Fraud: An Overview

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Question 1
Free
Multiple Choice

Which of the following are the most effective fraud detectors?

Choose correct answer/s
A

Auditors

B

Customers

C

Vendors

D

Employees

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Question 2
Free
Multiple Choice

Research has shown that __________ and __________ detect most frauds:

Choose correct answer/s
A

Employees and managers

B

Security and police

C

IRS and FBI

D

Auditors and Board of Directors

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Question 3
Free
Multiple Choice

Organizations can eliminate opportunities to commit fraud by

Choose correct answer/s
A

Accurately identifying sources and measuring risks

B

Implementing appropriate preventative and detective controls

C

Creating widespread monitoring by employees

D

Installing independent checks and effective audits

E

All of the above.

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Question 4
Free
Multiple Choice

Audits, public record searches, and net worth calculations are used to gather which type of evidence?

Choose correct answer/s
A

Testimonial

B

Forensic

C

Documentary

D

Observational

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Question 5
Free
Multiple Choice

Which of the following is not part of the evidence square?

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A

Management evidence

B

Documentary evidence

C

Personal Observation

D

Physical evidence

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Question 6
Multiple Choice

All of the following factors can be associated with high levels of fraud except:

Choose correct answer/s
A
Top management that does not pay attention to appropriate behavior
B
Lack of recognition of job performance
C
Unrealistically low pay
D
Lack of understanding of different department functions
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Question 7
Multiple Choice

Which of the following best creates a culture of honesty and integrity in the workplace?

Choose correct answer/s
A
Hire the right kind of employees
B
Security cameras
C
Peer evaluations
D
Ergonomic furniture
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Question 8
Multiple Choice

Research shows that legal action is taken against fraud perpetrators in:

Choose correct answer/s
A
Almost all fraud cases.
B
More than half of fraud cases.
C
Less than half of fraud cases.
D
Almost no fraud cases.
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Question 9
Multiple Choice

In order to prevent fraud, a company should create a corporate culture of honesty and integrity. Which of the following is helpful in creating this kind of culture?

Choose correct answer/s
A
Giving employees positive feedback and recognition of job performance.
B
Management conducted by a few key people who do not accept advice or participation from other employees
C
Conducting background checks before hiring a new employee
D
Both A and C
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Question 10
Multiple Choice

An example of kickback fraud is:

Choose correct answer/s
A
Fraud perpetrated by an employee and the vendor
B
Fraud perpetrated by two or more employees
C
Fraud that conceals cash shortages by transferring funds
D
None of the above
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Question 11
Multiple Choice

Which of the following is (are) the primary ways to detect fraud?

Choose correct answer/s
A
By chance
B
By proactively searching for symptoms of fraud
C
By encouraging early recognition of symptoms
D
By asking all employees if they know of any fraud
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Question 12
Multiple Choice

Which of the following helps to maintain a culture of honesty and integrity?

Choose correct answer/s
A
Train management about effective modeling
B
Pay salaries based upon the amount each person can prove they earned for the company in a year.
C
Reward "whistle-blowers" who help to find fraud with 25% of recovered assets.
D
Earn employee's trust by giving $100 gifts to the person in the department who was most efficient for the month.
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Question 13
Multiple Choice

The elements of fraud consist of all of the following except:

Choose correct answer/s
A
Concealment
B
Theft Act
C
Conversion
D
Conviction
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Question 14
Multiple Choice

Which of the following is not one of the four types of evidence that can be collected in a fraud investigation?

Choose correct answer/s
A
Testimonial evidence
B
Documentary evidence
C
Physical evidence
D
Personal observation
E
None of the above
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Question 15
Multiple Choice

Which of the flowing statement about fraud is not true?

Choose correct answer/s
A
Most frauds start small and, if not detected, continue to grow larger and larger.
B
Events that scare or threaten the perpetrator result in discontinuance of the theft.
C
When scare or threat disappear, the fraud perpetrator will test the system by stealing small amount of money.
D
None of above
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Question 16
Multiple Choice

What type of evidence does invigilation fall into?

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A
Testimonial evidence
B
Documentary evidence
C
Physical evidence
D
Personal observation
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Question 17
Multiple Choice

Most frauds begin in ________ increments and then he/she becomes greedy; as a result, most frauds will ________ over time.

Choose correct answer/s
A
Small, increase slowly
B
Medium, increase slowly
C
Small, increase dramatically
D
Medium, increase dramatically
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Question 18
Multiple Choice

"Invigilation" is defined as:

Choose correct answer/s
A
Specific policies designed to provide management with assurance that its fraud prevention measures are effective.
B
Imposing strict temporary controls so that, during the observation period, perpetrating fraud is extremely difficult.
C
Circumstances that, taken as a whole, would suggest that fraud has occurred.
D
A structured interview of a suspect for the purpose of obtaining an admission of guilt.
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Question 19
Multiple Choice

Which of the following is not part of a good corporate fraud policy?

Choose correct answer/s
A
Insisting top management model appropriate behavior
B
Establishing a threshold for which frauds will be prosecuted
C
Creating a positive work environment
D
Hiring the right kind of employees
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Question 20
Multiple Choice

Which of the following is the best way to create a culture of honesty and integrity?

Choose correct answer/s
A
Insist that top management model appropriate behavior
B
Hire the right kind of employees
C
Develop and maintain effective policies
D
All of the above
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