Question 1

Which of the following is least effective while searching for anomalies?

Accepted Answer

A)  Comparing account balances in the statements from one period to the next. 
B)  Calculating key ratios and comparing them from one period to the next. 
C)  Performing horizontal analysis. 
D)  Performing vertical analysis. 
A)  Comparing account balances in the statements from one period to the next. 
B)  Calculating key ratios and comparing them from one period to the next. 
C)  Performing horizontal analysis. 
D)  Performing vertical analysis.

Question 2

From the select balance sheet items below, calculate the quick ratio.

Accepted Answer

A)  0.83 
B)  1.25 
C)  1.63 
D)  1.08 
A)  0.83 
B)  1.25 
C)  1.63 
D)  1.08

Question 3

One of the disadvantages of Benford's Law in detecting fraud is:

Accepted Answer

A)  potential suspects are more likely to know you are trying to detect fraud than if you didn't use such detection techniques. 
B)  users must be thoroughly trained in its complexities to implement and use. 
C)  that those cases with the lowest probabilities do not match Benford's Law and may need further investigation. 
D)  it only broadly identifies the possible existence of fraud; it fails to narrow possibilities to a manageable field of promising leads. 
A)  potential suspects are more likely to know you are trying to detect fraud than if you didn't use such detection techniques. 
B)  users must be thoroughly trained in its complexities to implement and use. 
C)  that those cases with the lowest probabilities do not match Benford's Law and may need further investigation. 
D)  it only broadly identifies the possible existence of fraud; it fails to narrow possibilities to a manageable field of promising leads.

Question 4

Which of the following statements is NOT true?

Accepted Answer

A)  Accounting errors are usually spread evenly throughout a data set. 
B)  Traditional auditing methods are more suited to finding errors than fraud. 
C)  Accounting anomalies indicate fraud has occurred or is occurring. 
D)  Fraud investigation involves determining who committed the fraud, the schemes used, and how much money or assets were taken. 
A)  Accounting errors are usually spread evenly throughout a data set. 
B)  Traditional auditing methods are more suited to finding errors than fraud. 
C)  Accounting anomalies indicate fraud has occurred or is occurring. 
D)  Fraud investigation involves determining who committed the fraud, the schemes used, and how much money or assets were taken.

Question 5

Which of the following statements is true about ODBC?

Accepted Answer

A)  It allows use of the powerful SQL language for searching and filtering data. 
B)  It is generally slower and less robust than text files. 
C)  IT departments are very comfortable in giving out ODBC connections. 
D)  It is an application-level setting rather than a system-wide setting. 
A)  It allows use of the powerful SQL language for searching and filtering data. 
B)  It is generally slower and less robust than text files. 
C)  IT departments are very comfortable in giving out ODBC connections. 
D)  It is an application-level setting rather than a system-wide setting.

Question 6

Which of the following statements is true about the characteristics of real-time analysis?

Accepted Answer

A)  With real-time analysis in place, there is no need for continual improvement and updating of indicators. 
B)  It is a distinct technique because it specifically analyzes each transaction for correctness rather than for fraud. 
C)  Effective real-time analysis allows real-time modification and deletion of less-effective indicators. 
D)  The most effective real-time analysis uses indicators that are hard-coded into the system. 
A)  With real-time analysis in place, there is no need for continual improvement and updating of indicators. 
B)  It is a distinct technique because it specifically analyzes each transaction for correctness rather than for fraud. 
C)  Effective real-time analysis allows real-time modification and deletion of less-effective indicators. 
D)  The most effective real-time analysis uses indicators that are hard-coded into the system.

Question 7

A is a financial statement that reflects account balances at a specific point in time like a snapshot.

Accepted Answer

A)  periodic statement 
B)  position statement 
C)  change statement 
D)  static statement 
A)  periodic statement 
B)  position statement 
C)  change statement 
D)  static statement

Question 8

Identify the formula used to calculate z-score.

Accepted Answer

A)  (Mean − Value)/Standard Deviation 
B)  (Mean − Value)/(Mean + Value) 
C)  (Value − Mean)/Standard Deviation 
D)  (Value − Mean)/Median 
A)  (Mean − Value)/Standard Deviation 
B)  (Mean − Value)/(Mean + Value) 
C)  (Value − Mean)/Standard Deviation 
D)  (Value − Mean)/Median

Question 9

Digital analysis is:

Accepted Answer

A)  the art of analyzing the digits that make up number sets like invoice amounts, reported hours, and costs. 
B)  a technique which calculates the average probability for each grouping of data. 
C)  the searching for expected relationships between numbers. 
D)  the use of numeric values for decision making. 
A)  the art of analyzing the digits that make up number sets like invoice amounts, reported hours, and costs. 
B)  a technique which calculates the average probability for each grouping of data. 
C)  the searching for expected relationships between numbers. 
D)  the use of numeric values for decision making.

Question 10

For enhanced data analysis, which of the following is a good option for users who want a familiar interface and a less expensive alternative to ACL and IDEA?

Accepted Answer

A)  ActiveData 
B)  Pearl 
C)  DataSource 
D)  Excel 
A)  ActiveData 
B)  Pearl 
C)  DataSource 
D)  Excel

Which of the following is least effective while searching for anomalies?

From the select balance sheet items below, calculate the quick ratio.

One of the disadvantages of Benford's Law in detecting fraud is:

Which of the following statements is NOT true?

Which of the following statements is true about ODBC?

Which of the following statements is true about the characteristics of real-time analysis?

A is a financial statement that reflects account balances at a specific point in time like a snapshot.

Identify the formula used to calculate z-score.

Digital analysis is:

For enhanced data analysis, which of the following is a good option for users who want a familiar interface and a less expensive alternative to ACL and IDEA?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 6: Data-Driven Fraud Detection

Which of the following is least effective while searching for anomalies?

From the select balance sheet items below, calculate the quick ratio.

One of the disadvantages of Benford's Law in detecting fraud is:

Which of the following statements is NOT true?

Which of the following statements is true about ODBC?

Which of the following statements is true about the characteristics of real-time analysis?

A is a financial statement that reflects account balances at a specific point in time like a snapshot.

Identify the formula used to calculate z-score.

Digital analysis is:

For enhanced data analysis, which of the following is a good option for users who want a familiar interface and a less expensive alternative to ACL and IDEA?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters