Fighting Fraud: An Overview

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Questions Bank

The Nature of Fraud
Why People Commit Fraud
Fighting Fraud: An Overview
Preventing Fraud
Recognizing the Symptoms of Fraud
Data-Driven Fraud Detection
Investigating Theft Acts
Investigating Concealment
Conversion Investigation Methods
Inquiry Methods and Fraud Reports
Financial Statement Fraud
Revenue- and Inventory-Related Financial Statement Frauds
Liability, Asset, and Inadequate Disclosure Frauds
Fraud Against Organizations
Consumer Fraud
Bankruptcy, Divorce, and Tax Fraud
Fraud in E-Commerce
Legal Follow-Up

All Questions

Question 1

Free

Multiple Choice

Which of the following are the most effective fraud detectors?

Choose correct answer/s

Auditors

Customers

Vendors

Employees

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Question 2

Free

Multiple Choice

Research has shown that and detect most frauds:

Choose correct answer/s

Employees and managers

Security and police

IRS and FBI

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

Accurately identifying sources and measuring risks

Implementing appropriate preventative and detective controls

Creating widespread monitoring by employees

Installing independent checks and effective audits

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

Testimonial

Forensic

Documentary

Observational

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Question 5

Free

Multiple Choice

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

Choose correct answer/s

Management evidence

Documentary evidence

Personal Observation

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

Top management that does not pay attention to appropriate behavior

Lack of recognition of job performance

Unrealistically low pay

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

Hire the right kind of employees

Security cameras

Peer evaluations

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

Almost all fraud cases.

More than half of fraud cases.

Less than half of fraud cases.

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

Giving employees positive feedback and recognition of job performance.

Management conducted by a few key people who do not accept advice or participation from other employees

Conducting background checks before hiring a new employee

Both A and C

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Question 10

Multiple Choice

An example of kickback fraud is:

Choose correct answer/s

Fraud perpetrated by an employee and the vendor

Fraud perpetrated by two or more employees

Fraud that conceals cash shortages by transferring funds

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

By chance

By proactively searching for symptoms of fraud

By encouraging early recognition of symptoms

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

Train management about effective modeling

Pay salaries based upon the amount each person can prove they earned for the company in a year.

Reward "whistle-blowers" who help to find fraud with 25% of recovered assets.

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

Concealment

Theft Act

Conversion

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

Testimonial evidence

Documentary evidence

Physical evidence

Personal observation

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

Most frauds start small and, if not detected, continue to grow larger and larger.

Events that scare or threaten the perpetrator result in discontinuance of the theft.

When scare or threat disappear, the fraud perpetrator will test the system by stealing small amount of money.

None of above

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Question 16

Multiple Choice

What type of evidence does invigilation fall into?

Choose correct answer/s

Testimonial evidence

Documentary evidence

Physical evidence

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

Small, increase slowly

Medium, increase slowly

Small, increase dramatically

Medium, increase dramatically

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Question 18

Multiple Choice

"Invigilation" is defined as:

Choose correct answer/s

Specific policies designed to provide management with assurance that its fraud prevention measures are effective.

Imposing strict temporary controls so that, during the observation period, perpetrating fraud is extremely difficult.

Circumstances that, taken as a whole, would suggest that fraud has occurred.

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

Insisting top management model appropriate behavior

Establishing a threshold for which frauds will be prosecuted

Creating a positive work environment

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

Insist that top management model appropriate behavior

Hire the right kind of employees

Develop and maintain effective policies

All of the above

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Fighting Fraud: An Overview

Which of the following are the most effective fraud detectors?

Research has shown that __________ and __________ detect most frauds:

Organizations can eliminate opportunities to commit fraud by

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

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

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

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

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

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?

An example of kickback fraud is:

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

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

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

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

Which of the flowing statement about fraud is not true?

What type of evidence does invigilation fall into?

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

"Invigilation" is defined as:

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

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

Research has shown that and detect most frauds:

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