Question 1

The most common method of detection in corruption cases is:

Accepted Answer

Tips from whistleblowers or employees are the most common method of detection in corruption cases, according to various studies and surveys conducted globally. Internal audits and controls play a crucial role in preventing and detecting corruption but are not the most common method of detection. Detecting corruption by accident is rare and unpredictable.

Question 2

SIMULATION One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

Accepted Answer

Embezzling

Question 3

In Cressey's fraud  triangle, its three of the legs are Opportunity, Pressure and

Accepted Answer

The three legs of Cressey's fraud triangle are Opportunity, Pressure, and Rationalization. Violation and Isolation are not part of the fraud triangle.

Question 4

According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Accepted Answer

The answer of According to a survey, in principal perpetrator,...

Question 5

__________ can be defined as conduct detrimental to the organization and to the employee.

Accepted Answer

Employee deviance includes any behavior that is harmful or counterproductive to the organization or fellow employees. This can include things like sabotage, gossiping, harassment, and excessive absenteeism. Employee theft and fraud are specific types of deviant behavior that may also be considered misconduct but do not capture the full range of deviant behaviors.

Question 6

__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

Accepted Answer

Bribery is the act of offering, giving, receiving or soliciting anything of value to influence an official act. Corruption refers to a broader range of unethical and illegal activities, while diverting business to vendors and lacking approval authority are not directly related to bribery.

Question 7

Which of the following offender types in which people who take the money and run away?

Accepted Answer

Absconders are offenders who flee or run away, often after violating parole or probation. This can include taking money and disappearing. Long-term violators refers to offenders who consistently violate the terms of their release over an extended period of time, but does not necessarily imply running away. "Offender types" is too broad and does not specifically address the issue of taking money and running away.

Question 8

Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.

Accepted Answer

The perceived certainty of detection is inversely related to employee theft; the stronger the perception that theft would be detected, the less likely employees are to engage in deviant behavior.

Question 9

The principal way to detect omitted credits from books of account is through:

Accepted Answer

The answer of The principal way to detect omitted credits...

Question 10

Which of the following is NOT the reason why senior management will overstate business statement?

Accepted Answer

Senior management would not overstate business statements to comply with debt covenants as this would require accurate reporting. They are more likely to overstate statements to meet personal performance criteria or trigger performance-related compensation, or to show a pattern of growth to support the sale of a business.

Question 11

Which of the following are the classifications for the Corruption?

Accepted Answer

The four classifications of Corruption are bribery, economic extortion, illegal gratuities, and conflicts of interest. Therefore option A is the correct answer. The other options include some of the classifications but not all of them.

Question 12

SIMULATION __________ means that traditional bribery statutes proscribe only payments made to influence the decisions of government agents or employees.

Accepted Answer

The answer of SIMULATION __________ means that traditional bribery statutes...

Question 13

Bid-rigging scheme occurs when:

Accepted Answer

A bid-rigging scheme occurs when an employee fraudulently assists a vendor in winning a contract through the competitive bidding process. This may involve manipulating the bidding process, sharing confidential information, or colluding with the vendor to ensure their bid is successful. Options B and C do not accurately describe bid-rigging schemes.

Question 14

In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.

Accepted Answer

The answer of In Fraud scale pressure, opportunity and integrity...

Question 15

The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others is called:

Accepted Answer

Corruption involves misuse of power or position for personal gain, which is what is described in the given scenario. Bribery involves offering or accepting something of value in exchange for a favor, while conflict of interest refers to a situation where an individual's personal interests conflict with their duties to their employer or organization. Overbilling refers to intentionally charging more than what is fair or agreed-upon.

Question 16

When situational pressures and perceived opportunities are low and personal integrity is high, occupational fraud is much more likely to occur than when the opposite is true.

Accepted Answer

When situational pressures and perceived opportunities are low and personal integrity is high, it is less likely for occupational fraud to occur. When these factors are high and personal integrity is low, it is more likely for occupational fraud to occur.

Question 17

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Accepted Answer

Proper documentation ensures that all inventory transactions are recorded accurately and can be traced back to the source. Segregation of duties prevents any one person from having complete control over inventory transactions. Independent checks involve verifying the inventory records periodically to identify any discrepancies or errors. Physical safeguards ensure that the inventory is protected from theft or damage. Together, these measures can help prevent inventory fraud. The other choices either include irrelevant measures or involve fraudulent activities themselves, such as physical padding or prenumbered affiliations.

Question 18

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

Accepted Answer

Offering a payment can still be considered a bribe, even if the illicit payment is never actually made. The act of making the offer itself is enough to be considered bribery.

Question 19

People commit financial statement fraud to:

Accepted Answer

The answer of People commit financial statement fraud to:
...

Question 20

Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

Accepted Answer

Undisclosed payments made by vendors to employees of purchasing companies are referred to as kickbacks.

Exam 1: Certified Fraud Examiner