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

Accepted Answer

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

Accepted Answer

B

Question 3

Audit is a _________ investigative method.
A)theft
B)conversion
C)concealment
D)inquiry

Accepted Answer

C

Question 4

_______ is a popular program used to index and store evidence.
A)CaseCentral
B)IDEA
C)TANZAN
D)SQL

Accepted Answer

CaseCentral is a widely used program for organizing and storing evidence in legal cases. It allows for indexing and searching through vast amounts of data, making it a valuable tool for litigation teams. IDEA is a data analysis software, TANZAN is an open-source data cleaning tool, and SQL is a programming language for managing relational databases, none of which are specifically designed for indexing and storing evidence in legal cases.

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.

Accepted Answer

When a document is in the custody of a public office, it is considered a public document and can be obtained as a photocopy, which is admissible as secondary evidence in a court of law.

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.

Accepted Answer

It is generally considered a best practice to use copies of the original document during investigations and trials to prevent damage or loss of the original. However, it is important to keep the original document in a secure location and retain it for future reference if necessary.

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.

Accepted Answer

Concealment investigation includes several methods, such as document investigation, physical asset counts, and computer searches, to gather evidence related to fraud or other unethical activities. Eyewitness accounts may be useful, but they are not the primary focus of this type of investigation. Honesty testing may be used as a technique, but it is not the only one. Firing employees who refuse to participate in a fraud scheme is a form of coercion, but it is not the same as concealment.

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

Accepted Answer

Bates numbers are used by attorneys involved in litigation to track all documents. Bates numbering is used as an indexing and identification tool for all types of litigation documents, including discovery requests, pleadings, and exhibits. The bates numbers are unique identifiers that are stamped or written on each page of a document to ensure that they can be easily identified and tracked throughout the legal process.

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

Accepted Answer

Chain of custody refers to the documentation of the chronological history of evidence, including when it was received, who handled it, and what tests or analyses were performed on it. This is important in legal and forensic contexts to ensure that evidence is not tampered with or contaminated.

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

Accepted Answer

The answer of Which aspect of documentary evidence should be...

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

Accepted Answer

The time of the transaction does not appear on a check that has been cashed. The other options (teller number, date, and transaction number) are typically included on a bank receipt or statement to provide a record 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

Accepted Answer

The answer of Which statistical sampling allows an auditor to...

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

Accepted Answer

The description given matches with discovery sampling which involves selecting a narrow segment of transactions based on certain criteria to detect any anomalies or irregularities. It is a form of non-statistical sampling and is simple to conduct.

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.

Accepted Answer

This is a non-sampling risk because it is not related to the size or selection of the sample, but rather a failure in the investigator's judgment or procedures.

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

Accepted Answer

Non-sampling risk is the risk that the auditor fails to detect a material misstatement due to factors not related to sampling, such as fraud or errors in documents or records. In this case, the auditor may fail to recognize a fraudulent check as being fraudulent. Sampling risk refers to the risk that the auditor draws an incorrect conclusion from a sample, while systematic risk refers to risks inherent in the economy or industry that affect all companies to some extent. Systemic risk refers to the risk of widespread financial shock or collapse.

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

Accepted Answer

The most common way to obtain private documents is by voluntary consent, which can be either oral or written. This means that the person or organization being asked for the private documents agrees to release them voluntarily, without the need for a search warrant or 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

Accepted Answer

Subpoenas and voluntary consents can be executed by anyone authorized to do so by the court or the law enforcement agency, and can be used in both criminal and civil cases. Interviews can also be conducted by non-law enforcement personnel such as private investigators or attorneys. However, search warrants can only be executed by law enforcement officials and are limited to criminal cases where there is probable cause to believe that evidence of a crime can be found in a particular location.

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

Accepted Answer

Subpoena and voluntary consent are common ways to obtain documentary evidence, but the third choice of invigilation, surveillance, or search warrant may not be applicable in all situations or may require a higher burden of proof. A search warrant, for example, requires probable cause and can be difficult to obtain. Therefore, choice B is the best option as it includes the most feasible and commonly used methods of obtaining documentary evidence - subpoena, search warrant, and voluntary consent.

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

Accepted Answer

Sampling risk is the risk that the sample chosen is not a true representation of the entire population, which can lead to inaccurate conclusions being drawn. Systematic risk refers to the overall risk inherent in a particular market or industry, while non-sampling risk refers to errors in data collection and analysis that are not related to the sampling process. Compliance risk is the risk of legal or regulatory sanctions for non-compliance with laws or regulations.

Question 20

Methods for concealment investigation include all but which of the following?
A)Document examination
B)Honesty testing
C)Audits
D)Computer searches

Accepted Answer

All of the other methods listed (document examination, audits, and computer searches) are commonly used in concealment investigations. Honesty testing, on the other hand, is controversial and may not be reliable or admissible in court.

Quiz 8: Investigating Concealment

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?

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

Audit is a _________ investigative method.

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

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

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

Which of the following statements is true?

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

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

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

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

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

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

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

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

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

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

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

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

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