Question 1

In the past, most frauds were detected:

Accepted Answer

A)  by surveillance and undercover operations. 
B)  by accident. 
C)  by providing ways for people to report suspicions of fraud. 
D)  by examining transaction records and documents to determine if there were anomalies that could represent fraud. 
A)  by surveillance and undercover operations. 
B)  by accident. 
C)  by providing ways for people to report suspicions of fraud. 
D)  by examining transaction records and documents to determine if there were anomalies that could represent fraud.

Question 2

Which of the following is a component of the evidence square?

Accepted Answer

A)  Rationalization 
B)  Perceived pressure 
C)  Personal observation 
D)  Perceived opportunity 
A)  Rationalization 
B)  Perceived pressure 
C)  Personal observation 
D)  Perceived opportunity

Question 3

refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has occurred, is occurring, or will incur.

Accepted Answer

A)  Audit process 
B)  Surveillance 
C)  Predication 
D)  Investigation 
A)  Audit process 
B)  Surveillance 
C)  Predication 
D)  Investigation

Question 4

Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions, and there are four levels in it. Which of the following is NOT one of them?

Accepted Answer

A)  Personal ethical understanding 
B)  Memorization of the corporate code of ethics 
C)  Ethical courage 
D)  Ethical leadership 
A)  Personal ethical understanding 
B)  Memorization of the corporate code of ethics 
C)  Ethical courage 
D)  Ethical leadership

Question 5

A person may have very strong ethics in the way he or she treats family and friends, but not understand how failure to submit tax withholdings to the government affects peoples' lives or constitutes unethical or fraudulent behavior. This is an ethical issue encountered in which level of the ethical maturity model?

Accepted Answer

A)  Personal ethical understanding 
B)  Ethical courage 
C)  Ethical leadership 
D)  Application of ethics to business situations 
A)  Personal ethical understanding 
B)  Ethical courage 
C)  Ethical leadership 
D)  Application of ethics to business situations

Question 6

Which of the following is NOT one of the ways in which a fraud investigation must be conducted?

Accepted Answer

A)  Investigators should be experienced and objective professionals. 
B)  Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated. 
C)  Investigators should keep all managers apprised of investigation activities. 
D)  Investigators must be sure to follow appropriate investigative techniques. 
A)  Investigators should be experienced and objective professionals. 
B)  Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated. 
C)  Investigators should keep all managers apprised of investigation activities. 
D)  Investigators must be sure to follow appropriate investigative techniques.

Question 7

Which of the following is one of the three basic elements of the fraud motivation triangle?

Accepted Answer

A)  Concealment 
B)  Theft act 
C)  Opportunity 
D)  Conversion 
A)  Concealment 
B)  Theft act 
C)  Opportunity 
D)  Conversion

Question 8

Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions. Which of the following represents the foundation of ethics according to this model?

Accepted Answer

A)  Personal ethical understanding 
B)  Ethical courage 
C)  Ethical leadership 
D)  Application of ethics to business situations 
A)  Personal ethical understanding 
B)  Ethical courage 
C)  Ethical leadership 
D)  Application of ethics to business situations

Question 9

Communicating expectations about honesty and integrity throughout a company includes all of the following elements EXCEPT:

Accepted Answer

A)  identifying appropriate values and ethics. 
B)  fraud awareness training. 
C)  consistent punishment for violators. 
D)  insisting that top management model appropriate behavior. 
A)  identifying appropriate values and ethics. 
B)  fraud awareness training. 
C)  consistent punishment for violators. 
D)  insisting that top management model appropriate behavior.

Question 10

Which of the following is the largest employee group in most organizations?

Accepted Answer

A)  Employees who display ethical leadership 
B)  Group of employees who will always be honest 
C)  Group of employees who will be dishonest anytime it benefits them 
D)  Swing group of employees who could be honest or dishonest 
A)  Employees who display ethical leadership 
B)  Group of employees who will always be honest 
C)  Group of employees who will be dishonest anytime it benefits them 
D)  Swing group of employees who could be honest or dishonest

Question 11

What is the overall term for the investigative technique that includes gathering evidence through data mining, audits, computer searches, net worth calculations, and financial statement analysis?

Accepted Answer

A)  Documentary evidence 
B)  Testimonial evidence 
C)  Physical evidence 
D)  Personal observation 
A)  Documentary evidence 
B)  Testimonial evidence 
C)  Physical evidence 
D)  Personal observation

Question 12

Which type of evidence is gathered from individuals using investigative techniques such as interviewing, interrogation, and honesty tests?

Accepted Answer

A)  Documentary evidence 
B)  Testimonial evidence 
C)  Physical evidence 
D)  Personal observation 
A)  Documentary evidence 
B)  Testimonial evidence 
C)  Physical evidence 
D)  Personal observation

Question 13

Which of the following is a possible indication that fraud may be present?

Accepted Answer

A)  An employee's spouse is diagnosed with Alzheimer's disease. 
B)  An employee's lifestyle changes suddenly. 
C)  An employee's spouse has a serious vehicle accident. 
D)  An employee reports that another employee is a gambling addict. 
A)  An employee's spouse is diagnosed with Alzheimer's disease. 
B)  An employee's lifestyle changes suddenly. 
C)  An employee's spouse has a serious vehicle accident. 
D)  An employee reports that another employee is a gambling addict.

Question 14

Which of the following was NOT discussed as a way to create a culture of honesty and integrity?

Accepted Answer

A)  Offer rewards for honest behavior 
B)  Communicate expectations throughout the organization 
C)  Hire the right kinds of employees 
D)  Create a positive work environment 
A)  Offer rewards for honest behavior 
B)  Communicate expectations throughout the organization 
C)  Hire the right kinds of employees 
D)  Create a positive work environment

Question 15

In the ethical maturity model, instilling in others a desire to develop ethical awareness and courage is referred to as:

Accepted Answer

A)  personal codes of ethics. 
B)  ethical motivation. 
C)  ethical leadership. 
D)  the application of ethics to business situations. 
A)  personal codes of ethics. 
B)  ethical motivation. 
C)  ethical leadership. 
D)  the application of ethics to business situations.

Question 16

In recent years, organizations have implemented a number of initiatives to more proactively detect fraud. The first and most common proactive fraud detection approach has been to:

Accepted Answer

A)  install reporting hotlines. 
B)  conduct undercover operations. 
C)  install surveillance cameras. 
D)  collect physical evidence. 
A)  install reporting hotlines. 
B)  conduct undercover operations. 
C)  install surveillance cameras. 
D)  collect physical evidence.

Question 17

Which of the following approaches is most useful in creating a culture of honesty and integrity in the workplace?

Accepted Answer

A)  Hiring the right kind of employees 
B)  Security cameras 
C)  Peer evaluations 
D)  Ergonomics 
A)  Hiring the right kind of employees 
B)  Security cameras 
C)  Peer evaluations 
D)  Ergonomics

Question 18

Which of the following is FALSE concerning legal actions by organizations regarding fraud?

Accepted Answer

A)  Legal action is expensive. 
B)  Legal action is time consuming. 
C)  Legal action is sometimes embarrassing. 
D)  Legal action stops future frauds. 
A)  Legal action is expensive. 
B)  Legal action is time consuming. 
C)  Legal action is sometimes embarrassing. 
D)  Legal action stops future frauds.

Question 19

Which of the following key activities related to fraud is the most important and cost-effective way to reduce losses from fraud?

Accepted Answer

A)  Follow-up legal action 
B)  Early fraud detection 
C)  Fraud investigation 
D)  Fraud prevention 
A)  Follow-up legal action 
B)  Early fraud detection 
C)  Fraud investigation 
D)  Fraud prevention

Question 20

Which of the following is a prerequisite for a fraud investigation?

Accepted Answer

A)  Predication 
B)  A specific allegation of fraud against another party 
C)  Consistent bottom-line improvement 
D)  Rationalization 
A)  Predication 
B)  A specific allegation of fraud against another party 
C)  Consistent bottom-line improvement 
D)  Rationalization

In the past, most frauds were detected:

Which of the following is a component of the evidence square?

refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has occurred, is occurring, or will incur.

Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions, and there are four levels in it. Which of the following is NOT one of them?

Which of the following is NOT one of the ways in which a fraud investigation must be conducted?

Which of the following is one of the three basic elements of the fraud motivation triangle?

Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions. Which of the following represents the foundation of ethics according to this model?

Communicating expectations about honesty and integrity throughout a company includes all of the following elements EXCEPT:

Which of the following is the largest employee group in most organizations?

What is the overall term for the investigative technique that includes gathering evidence through data mining, audits, computer searches, net worth calculations, and financial statement analysis?

Which type of evidence is gathered from individuals using investigative techniques such as interviewing, interrogation, and honesty tests?

Which of the following is a possible indication that fraud may be present?

Which of the following was NOT discussed as a way to create a culture of honesty and integrity?

In the ethical maturity model, instilling in others a desire to develop ethical awareness and courage is referred to as:

In recent years, organizations have implemented a number of initiatives to more proactively detect fraud. The first and most common proactive fraud detection approach has been to:

Which of the following approaches is most useful in creating a culture of honesty and integrity in the workplace?

Which of the following is FALSE concerning legal actions by organizations regarding fraud?

Which of the following key activities related to fraud is the most important and cost-effective way to reduce losses from fraud?

Which of the following is a prerequisite for a fraud investigation?

The Nature of Fraud

Who Commits Fraud and Why

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 3: Fighting Fraud: an Overview

In the past, most frauds were detected:

Which of the following is a component of the evidence square?

refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has occurred, is occurring, or will incur.

Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions, and there are four levels in it. Which of the following is NOT one of them?

Which of the following is NOT one of the ways in which a fraud investigation must be conducted?

Which of the following is one of the three basic elements of the fraud motivation triangle?

Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions. Which of the following represents the foundation of ethics according to this model?

Communicating expectations about honesty and integrity throughout a company includes all of the following elements EXCEPT:

Which of the following is the largest employee group in most organizations?

What is the overall term for the investigative technique that includes gathering evidence through data mining, audits, computer searches, net worth calculations, and financial statement analysis?

Which type of evidence is gathered from individuals using investigative techniques such as interviewing, interrogation, and honesty tests?

Which of the following is a possible indication that fraud may be present?

Which of the following was NOT discussed as a way to create a culture of honesty and integrity?

In the ethical maturity model, instilling in others a desire to develop ethical awareness and courage is referred to as:

In recent years, organizations have implemented a number of initiatives to more proactively detect fraud. The first and most common proactive fraud detection approach has been to:

Which of the following approaches is most useful in creating a culture of honesty and integrity in the workplace?

Which of the following is FALSE concerning legal actions by organizations regarding fraud?

Which of the following key activities related to fraud is the most important and cost-effective way to reduce losses from fraud?

Which of the following is a prerequisite for a fraud investigation?

The Nature of Fraud

Who Commits Fraud and Why

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters