Deck 11: Fraud and Forensic Accounting Investigation

Question 1

________ consists of notes,reports about conversations with clients or witnesses,or other confidential materials an attorney creates.

Answer 1

Work product

Question 2

In addition to detecting fraud,computer forensics can actually prevent fraud by acting as a(n)

A)Clearinghouse of information
B)Prosecution resource
C)Deterrent
D)Extension of management oversight

Answer 2

C

Question 3

Which of the following is one of the purposes for a forensic fraud investigation?

A)Revision of an organization's earnings statements
B)Dispute analysis or litigation
C)Reduction of pressure on employees
D)Pursuit of hackers

Answer 3

B

Question 4

The term ________ means mental state or "guilty mind."

Question 5

Signs of embezzlement by an employee may include all of the following EXCEPT

A)Expenditures are just under the review limit
B)Has a close relationship with a vendor
C)Never takes vacations
D)Lives within his means

Question 6

A fraud investigator retrieves all of the following items to prove fraud EXCEPT

A)User-access log-on reports
B)Time and data stamp reports
C)System log reports
D)Network backup files

Question 7

Charging separately for procedures that are actually part of a single procedure is an example of

A)Fraud committed for a company
B)Fraud committed against a company
C)Health care fraud
D)Occupational fraud

Question 8

A forensic investigator might be hired by a prosecutor to determine

A)Whether a company problem was due to error or fraud
B)How healthy a company is before investing in it
C)Whether a company's merger was legal
D)If a company's employees are receiving a fair market wage

Question 9

All of the following are good advice about how to handle a fraud suspect EXCEPT

A)Make copies of suspicious documents secretly
B)Don't interview the suspect in his office
C)Show the suspect all the evidence you have collected
D)Convert a verbal confession into a written statement

Question 10

Which of the following is NOT one of the three core skills of forensic accounting?

A)Uncovering the facts
B)Establishing the correct numbers
C)Preventing future fraud
D)Determining business value

Question 11

Types of fraud that may be perpetrated against a company may include which of the following?

A)Bribery
B)Misappropriation of assets
C)Kickbacks
D)All of the above

Question 12

The law of ________ holds that some information is protected by law from being released.

Question 13

Which of the following is NOT one of the ways that fraud investigations originate?

A)From internal audits
B)From anonymous tips
C)From the FBI
D)From complaints by customers or vendors

Question 14

Fraud is a crime that is carried out using ________ instead of a weapon.

Question 15

What is considered as the number one reason people feel pressured to commit fraud?

A)Financial problems
B)Health-related problems
C)The feeling of power in getting away with the deed
D)All of the above

Question 16

________ fraud is the deliberate misuse of an organization's resources for the goal of personal enrichment.

Question 17

Which of the following is NOT considered a way to commit fraud for a company?

A)Accounting cycle fraud
B)Bribery
C)Senior management financial reporting fraud
D)Extortion

Question 18

Which of the following is a specific element required to prove fraud?

A)A misleading statement
B)A victim's reliance on a false statement
C)Physical injury
D)A negative effect that did not cause damages

Question 19

An essential element of fraud is

A)Intent
B)Lying about facts
C)Concealment
D)Misrepresentation of truth

Question 20

Which of the following weaknesses in an organization can create an opportunity for fraud?

A)Questionable hiring practices
B)Lack of an audit trail
C)Allowing personnel to work unsupervised
D)Pressure from management

Question 21

Fraud is more likely to occur when someone feels ________ to commit fraud.

Question 22

_____ is defined as obtaining property from another by use of threatened force or fear.

Question 23

With a forensic accounting investigation,there is a presumption of ________.

Question 24

________ charges for services rendered but not actually performed.

Question 25

Something is ________ if it is relevant and significant to the situation.

Question 26

_____ fraud may be committed by a vendor or supplier.

Question 27

The fraud factor that is hardest to investigate is ________,because it cannot be seen.

Question 28

Refusing to testify in court on the basis that the testimony may be self-incriminating is called ________.

Question 29

Section 302 of the ________ Act compels companies to report all occupational fraud regardless of the amount of the loss.

Question 30

________ is also referred to as forensic financial investigation.