Deck 8: Investigating Concealment

Question 1

Mark owns a 24-hour convenience store.Lately he has noticed that the liquor inventory purchases have gone up by huge amounts,although sales proceeds from this category haven't increased.He is doubting his two night-shift employees.Which is the best investigative method to uncover such a fraud?

A)Covert operation
B)Conversion investigation
C)Inquiry investigation
D)Concealment investigation

Answer 1

D

Question 2

Computer searches and physical asset counts usually focus on the ________ element of the fraud triangle.

A)theft
B)concealment
C)conversion
D)inquiry

Answer 2

B

Question 3

Audit is a _________ investigative method.

A)theft
B)conversion
C)concealment
D)inquiry

Answer 3

C

Question 4

_______ is a popular program used to index and store evidence.

A)CaseCentral
B)IDEA
C)TANZAN
D)SQL

Question 5

When the document is in the custody of a public office:

A)it is permissible to obtain photocopies,which are considered secondary evidence,in a court of law.
B)copies of the document should be made but kept separate from the original document.
C)the document (or a copy)cannot be used as evidence,in a court of law.
D)a summary of the document will suffice.

Question 6

Which of the following is generally considered a best practice while handling documentary evidence?

A)Copies of the document should be used during the investigation and trial and should be kept in the same file where the original is kept.
B)Photocopies are always preferable to original documents as evidence,as the original could be tampered with.
C)Copies of the document should not be made and only the original document should be used during investigation and trial.
D)Generally,a summary of the original document should be made for investigation and trial.

Question 7

Which of the following statements is true?

A)Concealment investigation includes document investigation,physical asset counts,and computer searches.
B)Most concealment investigation techniques focus on obtaining eyewitness accounts as evidence.
C)Honesty testing is considered as a concealment investigation technique.
D)Concealment is generally accomplished by firing employees who will not go along with the fraud.

Question 8

____ are used by attorneys involved in litigation to track all documents.

A)Link analyses
B)Bates numbers
C)Bar codes
D)RFID tags

Question 9

________ means that a record must be kept of when a document is received and what has happened to it since its receipt.

A)Organization of evidence
B)Mark of evidence
C)Coordination of evidence
D)Chain of custody

Question 10

Which aspect of documentary evidence should be kept in mind to ensure that the documents can be identified later and accessible for trial?

A)Organization of evidence
B)Coordination of evidence
C)Marking of evidence
D)Chain of custody of documents

Question 11

Which of the following does NOT appear on a check that has been cashed?

A)Teller number
B)Date
C)Transaction number
D)Time of the transaction

Question 12

Which statistical sampling allows an auditor to generalize and make inferences from the sample to the population?

A)Probability sampling
B)Unstructured sampling
C)Discovery sampling
D)Quota sampling

Question 13

________ is a simple,statistically based method of analyzing a subset of transactions from a larger pool.

A)Structured sampling
B)Probability sampling
C)Cluster sampling
D)Discovery sampling

Question 14

During a concealment investigation,an investigator fails to recognize that an invoice had been forged.This represents a:

A)sampling risk.
B)non-sampling risk.
C)systematic risk.
D)systemic risk.

Question 15

The risk that an auditor will examine a fraudulent check and not recognize it as being fraudulent is called _________ .

A)sampling risk
B)non-sampling risk
C)systematic risk
D)systemic risk

Question 16

The most common way to obtain private documents is by _________,which can be either oral or written.

A)inquiry
B)search warrant
C)voluntary consent
D)audit

Question 17

_______ are executed only by law enforcement officials and are generally used only in criminal cases.

A)Subpoenas
B)Voluntary consents
C)Search warrants
D)Interviews

Question 18

The three most common ways to obtain documentary evidence which are valuable but difficult to obtain are:

A)subpoena,voluntary consent,and invigilation
B)subpoena,search warrant,and voluntary consent
C)search warrant,invigilation,and surveillance
D)voluntary consent,surveillance,and invigilation

Question 19

_______ is the risk that the sample was not representative of the population.

A)Systematic risk
B)Non-sampling risk
C)Sampling risk
D)Compliance risk

Question 20

Methods for concealment investigation include all but which of the following?

A)Document examination
B)Honesty testing
C)Audits
D)Computer searches

Question 21

Once investigators enter their indicators into the centralized database,the software performs _______ to find connections between people,places,and events.

A)regression analysis
B)crime analysis
C)link analysis
D)correlation analysis

Question 22

The four most common examples of documentary evidence which are valuable but difficult to obtain are:

A)Web-based e-mail accounts,private bank records,tax returns,and brokerage records.
B)Sample analytical reports,photographs and videos,tax returns,and SEC filings.
C)Office e-mail accounts,private bank records,maps and diagrams,and sample analytical reports.
D)Photographs and videos,private bank records,tax returns,and brokerage records.

Question 23

Which of the following is NOT a characteristic of sampling risk?

A)To reduce sampling risk,the investigator can increase the sample size.
B)Sampling risk cannot be quantified,and can only be slightly reduced by careful planning of the sampling procedure.
C)To reduce sampling risk,the investigator can use a random number table.
D)In fraud examination,sampling risk can be significant.

Question 24

The best way to obtain documentary evidence is:

A)by chance,accident or tip discovery.
B)through computer-based queries of full-population accounting and other databases.
C)through interviews and interrogations.
D)through traditional audits like discovery sampling.

Question 25

In large cases that involve investigators,legal counsel,accountants,expert witnesses,and management representatives,coordination can be very difficult.________ can be useful in such cases.

A)DatiCon
B)Analyst's Notebook
C)CaseMap
D)Ringtail

Question 26

Which of the following observations is true about discovery sampling?

A)It is one of the more difficult statistical sampling variations to understand.
B)Auditors using this method can always be certain that fraud does not exist in a population of checks.
C)It allows an auditor to generalize and make inferences from the population to the sample.
D)It deals with the probability of discovering at least one error in a given sample size if the population error rate is a certain percentage.

Question 27

Orders issued by a court or a grand jury to produce documents are called:

A)writs of certiorari.
B)search warrants.
C)voluntary consent.
D)subpoenas.

Question 28

The least reliable method of obtaining documentary evidence is:

A)through traditional audits.
B)through computer-based queries
C)by using statistical techniques.
D)by accident.

Question 29

Discovery sampling is sometimes referred to as _____ sampling.

A)risk-devoid
B)cluster
C)unidimensional
D)stop-and-go

Question 30

Which of the following observations is true about subpoenas?

A)Subpoenas are generally used only in criminal cases.
B)Subpoenas are orders issued by the Company Law Board to produce documents.
C)Failure to honor a subpoena is punishable by law.
D)Every subpoena must be signed by the plaintiff and the accused.

Question 31

Which of the following is an alternative when original documents are too voluminous to permit careful examination?

A)A photocopy of the original document will suffice.
B)It will have to be excluded from usage as evidence.
C)A summary of its contents is acceptable.
D)There are no alternatives.The original has to be produced.