Question 1

Which of the following examples is NOT a billing scheme?

Accepted Answer

A)  Mary purchases a new laptop for her brother-in-law with company's funds. 
B)  Mark submits a receipt of his cab fare for reimbursement, which includes an extra $10. 
C)  Joven double pays a vendor for the purchase of inventory and then pockets the second payment when it is returned. 
D)  Harry submits invoices in the name of the dummy company and collects the amount. 
A)  Mary purchases a new laptop for her brother-in-law with company's funds. 
B)  Mark submits a receipt of his cab fare for reimbursement, which includes an extra $10. 
C)  Joven double pays a vendor for the purchase of inventory and then pockets the second payment when it is returned. 
D)  Harry submits invoices in the name of the dummy company and collects the amount.

Question 2

What is known as the net asset value (NAV)?

Accepted Answer

A)  The closing price of the securities that comprise a particular fund's portfolio plus the value of any uninvested cash that the fund manager maintains for the fund 
B)  A concept used in finance and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset 
C)  The value of an entity's assets less the value of its current liabilities at the end of the trading day 
D)  The difference between the replacement cost of a fixed asset and its book value appearing on the balance sheet 
A)  The closing price of the securities that comprise a particular fund's portfolio plus the value of any uninvested cash that the fund manager maintains for the fund 
B)  A concept used in finance and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset 
C)  The value of an entity's assets less the value of its current liabilities at the end of the trading day 
D)  The difference between the replacement cost of a fixed asset and its book value appearing on the balance sheet

Question 3

An ice cream store cashier sells two-scoop ice cream cones to customers and enters the sales as single-scoop sales, while keeping the difference for himself. Which fraud is being committed here?

Accepted Answer

A)  Larceny 
B)  Disbursement 
C)  Skimming 
D)  Illegal gratuities 
A)  Larceny 
B)  Disbursement 
C)  Skimming 
D)  Illegal gratuities

Question 4

A conflict of interest occurs when:

Accepted Answer

A)  an employer knows of an employee's interest in a business deal or negotiation. 
B)  an employee has an economic or personal interest in a transaction that adversely affects the company. 
C)  employees offer, give, receive or solicit anything of value in order to influence an official act. 
D)  employees demand payments from vendors for deciding in the vendors' favor. 
A)  an employer knows of an employee's interest in a business deal or negotiation. 
B)  an employee has an economic or personal interest in a transaction that adversely affects the company. 
C)  employees offer, give, receive or solicit anything of value in order to influence an official act. 
D)  employees demand payments from vendors for deciding in the vendors' favor.

Question 5

Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:

Accepted Answer

A)  Something of value is offered to influence a business decision 
B)  Payment is received by an employee with the employer's consent 
C)  The employee extorts money from a potential purchaser or supplier 
D)  Something of value is offered to influence an official act of government 
A)  Something of value is offered to influence a business decision 
B)  Payment is received by an employee with the employer's consent 
C)  The employee extorts money from a potential purchaser or supplier 
D)  Something of value is offered to influence an official act of government

Question 6

For ghost-employee fraud schemes to work, four things must happen. Which of the following is NOT one among them?

Accepted Answer

A)  The ghost must be added to the payroll. 
B)  Timekeeping and wage rate information must be collected. 
C)  A paycheck must be issued to the ghost. 
D)  A member of human resources must be involved in the fraud. 
A)  The ghost must be added to the payroll. 
B)  Timekeeping and wage rate information must be collected. 
C)  A paycheck must be issued to the ghost. 
D)  A member of human resources must be involved in the fraud.

Question 7

Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?

Accepted Answer

A)  Larceny 
B)  Disbursement 
C)  Skimming 
D)  Illegal gratuities 
A)  Larceny 
B)  Disbursement 
C)  Skimming 
D)  Illegal gratuities

Question 8

Which of the following statements regarding larceny is NOT true?

Accepted Answer

A)  Larceny is easier to detect than skimming and is less common. 
B)  Larceny occurs when employees steal cash before the amounts have been recorded in the accounting system. 
C)  Smaller occurrences of larceny are often written off as "shorts" or "miscounts." 
D)  Perpetrators of larcenies must have direct access to inventory or other assets. 
A)  Larceny is easier to detect than skimming and is less common. 
B)  Larceny occurs when employees steal cash before the amounts have been recorded in the accounting system. 
C)  Smaller occurrences of larceny are often written off as "shorts" or "miscounts." 
D)  Perpetrators of larcenies must have direct access to inventory or other assets.

Question 9

Which of the following is the least costly disbursement scheme?

Accepted Answer

A)  Check tampering 
B)  Billing scheme 
C)  Register disbursement scheme 
D)  Expense scheme 
A)  Check tampering 
B)  Billing scheme 
C)  Register disbursement scheme 
D)  Expense scheme

Question 10

Which function of the victim company is usually involved in kickback schemes?

Accepted Answer

A)  Sales 
B)  Accounting 
C)  Human resources 
D)  Purchasing 
A)  Sales 
B)  Accounting 
C)  Human resources 
D)  Purchasing

Question 11

Which of the following statements with reference to extortion is true?

Accepted Answer

A)  It is a crime even if the extortion message is only sent but not received. 
B)  The words "pay up or else" are insufficient to constitute extortion. 
C)  It is a crime even if the extortion message is sent either unwillingly or without the knowledge of the sender. 
D)  An extortionate threat made to another in jest is not extortion. 
A)  It is a crime even if the extortion message is only sent but not received. 
B)  The words "pay up or else" are insufficient to constitute extortion. 
C)  It is a crime even if the extortion message is sent either unwillingly or without the knowledge of the sender. 
D)  An extortionate threat made to another in jest is not extortion.

Question 12

The 2010 ACFE Report to the Nation on Occupational Fraud & Abuse covers three types of fraud against organizations. Which of the following is one of them?

Accepted Answer

A)  Corruption 
B)  Bid-rigging 
C)  Check tampering 
D)  Lapping 
A)  Corruption 
B)  Bid-rigging 
C)  Check tampering 
D)  Lapping

Question 13

Bid-rigging is a type of which of the following?

Accepted Answer

A)  Skimming 
B)  Bribery 
C)  Extortion 
D)  Illegal gratuity 
A)  Skimming 
B)  Bribery 
C)  Extortion 
D)  Illegal gratuity

Question 14

Which is the least common expense disbursement scheme?

Accepted Answer

A)  Mischaracterizing expenses 
B)  Submitting the same expenses multiple times 
C)  Submitting fictitious expenses 
D)  Overstating expenses 
A)  Mischaracterizing expenses 
B)  Submitting the same expenses multiple times 
C)  Submitting fictitious expenses 
D)  Overstating expenses

Question 15

Why is larceny is easier to detect than skimming?

Accepted Answer

A)  Larceny involves stealing cash after it has already been recorded in the company's accounting system. 
B)  Larceny involves fraudulent disbursements of cash, while skimming involves fraudulent receipts of cash. 
C)  Larceny involves stealing cash as it is paid by a customer. 
D)  Larcenies can take place in any circumstance in which an employee has access to cash. 
A)  Larceny involves stealing cash after it has already been recorded in the company's accounting system. 
B)  Larceny involves fraudulent disbursements of cash, while skimming involves fraudulent receipts of cash. 
C)  Larceny involves stealing cash as it is paid by a customer. 
D)  Larcenies can take place in any circumstance in which an employee has access to cash.

Question 16

What is the point of difference between illegal gratuity and bribery schemes?

Accepted Answer

A)  Compared to illegal gratuities, briberies occur relatively infrequently and are usually quite small. 
B)  Illegal gratuities do not necessarily involve an intent to influence a business decision but rather to reward someone for making a favorable decision. 
C)  Illegal gratuities usually involve the use of actual or threatened force, fear, or economic duress. 
D)  Illegal gratuities are made before deals are approved. 
A)  Compared to illegal gratuities, briberies occur relatively infrequently and are usually quite small. 
B)  Illegal gratuities do not necessarily involve an intent to influence a business decision but rather to reward someone for making a favorable decision. 
C)  Illegal gratuities usually involve the use of actual or threatened force, fear, or economic duress. 
D)  Illegal gratuities are made before deals are approved.

Question 17

According to the ACFE study, which of the following is the most common form of occupational fraud?

Accepted Answer

A)  Bid-rigging 
B)  Fraudulent statements 
C)  Corruption 
D)  Asset misappropriation 
A)  Bid-rigging 
B)  Fraudulent statements 
C)  Corruption 
D)  Asset misappropriation

Question 18

Which of the following groups listed is most likely to perpetrate frauds against the organization?

Accepted Answer

A)  Customers 
B)  Vendors 
C)  Competitors 
D)  Employees 
A)  Customers 
B)  Vendors 
C)  Competitors 
D)  Employees

Question 19

Which of the following is NOT one of the most common types of billing schemes?

Accepted Answer

A)  Setting up dummy companies (shell companies) to submit invoices to the victim organization 
B)  Altering or double-paying a non-accomplice vendor's statements 
C)  Overbilling the company for travel and other related business expenses, such as business lunches, hotel bills, and air travel 
D)  Making personal purchases with company funds 
A)  Setting up dummy companies (shell companies) to submit invoices to the victim organization 
B)  Altering or double-paying a non-accomplice vendor's statements 
C)  Overbilling the company for travel and other related business expenses, such as business lunches, hotel bills, and air travel 
D)  Making personal purchases with company funds

Question 20

Which of the following is the most likely reason fraud within a company is detected?

Accepted Answer

A)  Internal audits are conducted both routinely and unexpectedly. 
B)  External auditors have become more knowledgeable in how to look for fraud. 
C)  Internal controls have become more sophisticated. 
D)  Employees who have suspicions about possible fraud report them. 
A)  Internal audits are conducted both routinely and unexpectedly. 
B)  External auditors have become more knowledgeable in how to look for fraud. 
C)  Internal controls have become more sophisticated. 
D)  Employees who have suspicions about possible fraud report them.

Which of the following examples is NOT a billing scheme?

What is known as the net asset value (NAV)?

An ice cream store cashier sells two-scoop ice cream cones to customers and enters the sales as single-scoop sales, while keeping the difference for himself. Which fraud is being committed here?

A conflict of interest occurs when:

Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:

For ghost-employee fraud schemes to work, four things must happen. Which of the following is NOT one among them?

Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?

Which of the following statements regarding larceny is NOT true?

Which of the following is the least costly disbursement scheme?

Which function of the victim company is usually involved in kickback schemes?

Which of the following statements with reference to extortion is true?

The 2010 ACFE Report to the Nation on Occupational Fraud & Abuse covers three types of fraud against organizations. Which of the following is one of them?

Bid-rigging is a type of which of the following?

Which is the least common expense disbursement scheme?

Why is larceny is easier to detect than skimming?

What is the point of difference between illegal gratuity and bribery schemes?

According to the ACFE study, which of the following is the most common form of occupational fraud?

Which of the following groups listed is most likely to perpetrate frauds against the organization?

Which of the following is NOT one of the most common types of billing schemes?

Which of the following is the most likely reason fraud within a company is detected?

The Nature of Fraud

Who Commits Fraud and Why

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

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 14: Fraud Against Organizations

Which of the following examples is NOT a billing scheme?

What is known as the net asset value (NAV)?

An ice cream store cashier sells two-scoop ice cream cones to customers and enters the sales as single-scoop sales, while keeping the difference for himself. Which fraud is being committed here?

A conflict of interest occurs when:

Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:

For ghost-employee fraud schemes to work, four things must happen. Which of the following is NOT one among them?

Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?

Which of the following statements regarding larceny is NOT true?

Which of the following is the least costly disbursement scheme?

Which function of the victim company is usually involved in kickback schemes?

Which of the following statements with reference to extortion is true?

The 2010 ACFE Report to the Nation on Occupational Fraud & Abuse covers three types of fraud against organizations. Which of the following is one of them?

Bid-rigging is a type of which of the following?

Which is the least common expense disbursement scheme?

Why is larceny is easier to detect than skimming?

What is the point of difference between illegal gratuity and bribery schemes?

According to the ACFE study, which of the following is the most common form of occupational fraud?

Which of the following groups listed is most likely to perpetrate frauds against the organization?

Which of the following is NOT one of the most common types of billing schemes?

Which of the following is the most likely reason fraud within a company is detected?

The Nature of Fraud

Who Commits Fraud and Why

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

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters