Question 1

Which of the following is NOT a characteristic of management fraud?

Accepted Answer

A) Top management deception. 
B) Manipulation of financial statements. 
C) Kickbacks or bribes. 
D) Pressure to earn year-end bonuses. 
A) Top management deception. 
B) Manipulation of financial statements. 
C) Kickbacks or bribes. 
D) Pressure to earn year-end bonuses. C

Question 2

The Anti-Kickback Act of 1986 intends to prevent:

Accepted Answer

A) bribery, by punishing perpetrators with up to 15 years in prison. 
B) any scheme by a contractor to gain the business of a global entity. 
C) the giving or receiving of any thing of value by a subcontractor to a prime contractor in contracts. 
D) the custom of lobbyists to give gifts to influence laws regarding business transactions. 
A) bribery, by punishing perpetrators with up to 15 years in prison. 
B) any scheme by a contractor to gain the business of a global entity. 
C) the giving or receiving of any thing of value by a subcontractor to a prime contractor in contracts. 
D) the custom of lobbyists to give gifts to influence laws regarding business transactions. C

Question 3

In fraud prosecution cases,______ matter consists of the underlying data and all corroborating information available.

Accepted Answer

A) evidential 
B) remedial 
C) supplemental 
D) elementary 
A) evidential 
B) remedial 
C) supplemental 
D) elementary A

Question 4

Employee embezzlement can be direct or indirect.Indirect fraud occurs when:

Accepted Answer

A) an employee uses company assets to run his/her private business. 
B) employees establish dummy companies and have their employers pay for goods that are not actually delivered. 
C) an employee receives a kickback from a vendor. 
D) an employee steals company cash, inventory, tools, or other assets. 
A) an employee uses company assets to run his/her private business. 
B) employees establish dummy companies and have their employers pay for goods that are not actually delivered. 
C) an employee receives a kickback from a vendor. 
D) an employee steals company cash, inventory, tools, or other assets.

Question 5

To be successful,plaintiffs in civil cases must prove their case by which of the following?

Accepted Answer

A) Preponderance of evidence. 
B) Beyond a reasonable doubt. 
C) To a degree of reasonable mitigation. 
D) To the standard of prima facie. 
A) Preponderance of evidence. 
B) Beyond a reasonable doubt. 
C) To a degree of reasonable mitigation. 
D) To the standard of prima facie.

Question 6

The elements of fraud include all of the following EXCEPT:

Accepted Answer

A) a material point is misrepresented. 
B) the misrepresentation is intentional. 
C) the misrepresentation is known to the victim. 
D) the victim must sustain damages. 
A) a material point is misrepresented. 
B) the misrepresentation is intentional. 
C) the misrepresentation is known to the victim. 
D) the victim must sustain damages.

Question 7

The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that U.S.organizations lose _____ percent of their annual revenues to fraud.

Accepted Answer

A) 8 
B) 7 
C) 23 
D) 17 
A) 8 
B) 7 
C) 23 
D) 17

Question 8

What is the most cost-effective way to minimize the cost of fraud?

Accepted Answer

A) Prevention 
B) Detection 
C) Investigation 
D) Prosecution 
A) Prevention 
B) Detection 
C) Investigation 
D) Prosecution

Question 9

Scammers often use their victim's ethnic identity to gain their trust and then steal their life savings.This is an example of:

Accepted Answer

A) vendor fraud. 
B) affinity fraud. 
C) embezzlement. 
D) occupational fraud. 
A) vendor fraud. 
B) affinity fraud. 
C) embezzlement. 
D) occupational fraud.

Question 10

A company was the victim of several frauds that totaled approximately $10 million in one year.With a profit margin of 10 percent,and assuming that the company's product sold for $1,000 per unit,how many additional units must the company sell to compensate for the fraud losses?

Accepted Answer

A) 1 million 
B) 100 million 
C) 100,000 
D) 10,000 
A) 1 million 
B) 100 million 
C) 100,000 
D) 10,000

Question 11

A company is a victim of a $414 million fraud.At that time its profit margin is 10%.How much additional revenue should the company generate in order to recover the effect on net income?

Accepted Answer

A) $41.4 million 
B) $414 million 
C) $4.14 billion 
D) $41.4 billion 
A) $41.4 million 
B) $414 million 
C) $4.14 billion 
D) $41.4 billion

Question 12

Civil claims begin when one party files a complaint against another,usually for the purpose of:

Accepted Answer

A) having a penalty imposed. 
B) sending the perpetrator to prison. 
C) proving the perpetrator guilty. 
D) being awarded financial restitution. 
A) having a penalty imposed. 
B) sending the perpetrator to prison. 
C) proving the perpetrator guilty. 
D) being awarded financial restitution.

Question 13

Perpetrators of some fraud schemes often target conspiracy theorists,promising access to the "secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns.Such schemes are best described as:

Accepted Answer

A) Affinity frauds. 
B) Ponzi schemes. 
C) Franchise frauds. 
D) Prime bank schemes. 
A) Affinity frauds. 
B) Ponzi schemes. 
C) Franchise frauds. 
D) Prime bank schemes.

Question 14

Which of the following is a common example of vendor fraud?

Accepted Answer

A) Fraud perpetrated through collusion between buyers and vendors. 
B) Fraud perpetrated by upper management. 
C) The perpetrator physically removes the inventory from the business premises. 
D) A fraud perpetrated through financial statement manipulation. 
A) Fraud perpetrated through collusion between buyers and vendors. 
B) Fraud perpetrated by upper management. 
C) The perpetrator physically removes the inventory from the business premises. 
D) A fraud perpetrated through financial statement manipulation.

Question 15

Fraud statistics come from all of the following sources EXCEPT:

Accepted Answer

A) Government agencies 
B) Researchers 
C) Insurance Companies 
D) Victims 
E) Fraud perpetrator 
A) Government agencies 
B) Researchers 
C) Insurance Companies 
D) Victims 
E) Fraud perpetrator

Question 16

Given below are the profit margins and fraud related losses of four economies.Which economy will have to generate the maximum dollar amount of additional revenues to recover the loss to aggregate income??Economy A 10% $225 million?Economy B 10% $150 million?Economy C 5% $100 million?Economy D 2% $ 50 million

Accepted Answer

A) Economy A 
B) Economy D 
C) Economy C 
D) Economy B 
A) Economy A 
B) Economy D 
C) Economy C 
D) Economy B

Question 17

Fraud has a direct dollar for dollar impact on a company's:

Accepted Answer

A) Revenues. 
B) Net income. 
C) Profit margin. 
D) Stock price. 
A) Revenues. 
B) Net income. 
C) Profit margin. 
D) Stock price.

Question 18

What is the single most critical element for a fraud to be successful?

Accepted Answer

A) Criminal intent 
B) Confidence 
C) Greed 
D) Compulsion 
A) Criminal intent 
B) Confidence 
C) Greed 
D) Compulsion

Question 19

One way that criminal law differs from civil law is that it:

Accepted Answer

A) provides remedies for violations of private rights. 
B) must yield a unanimous verdict. 
C) can have a jury of fewer than 12 persons. 
D) allows for various claims in one action. 
A) provides remedies for violations of private rights. 
B) must yield a unanimous verdict. 
C) can have a jury of fewer than 12 persons. 
D) allows for various claims in one action.

Question 20

The following are all elements of Title 26,U.S.Code Section 7201 EXCEPT:

Accepted Answer

A) not reporting bribe income may be grounds for being charged with tax evasion. 
B) filing income tax that excludes income from fraud may be considered an improper tax filing. 
C) bribes paid may be deducted as business expenses. 
D) failure to report income from fraud may be grounds for being charged with tax evasion. 
A) not reporting bribe income may be grounds for being charged with tax evasion. 
B) filing income tax that excludes income from fraud may be considered an improper tax filing. 
C) bribes paid may be deducted as business expenses. 
D) failure to report income from fraud may be grounds for being charged with tax evasion.

Which of the following is NOT a characteristic of management fraud?

The Anti-Kickback Act of 1986 intends to prevent:

In fraud prosecution cases,______ matter consists of the underlying data and all corroborating information available.

Employee embezzlement can be direct or indirect.Indirect fraud occurs when:

To be successful,plaintiffs in civil cases must prove their case by which of the following?

The elements of fraud include all of the following EXCEPT:

The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that U.S.organizations lose _____ percent of their annual revenues to fraud.

What is the most cost-effective way to minimize the cost of fraud?

Scammers often use their victim's ethnic identity to gain their trust and then steal their life savings.This is an example of:

A company was the victim of several frauds that totaled approximately $10 million in one year.With a profit margin of 10 percent,and assuming that the company's product sold for $1,000 per unit,how many additional units must the company sell to compensate for the fraud losses?

A company is a victim of a $414 million fraud.At that time its profit margin is 10%.How much additional revenue should the company generate in order to recover the effect on net income?

Civil claims begin when one party files a complaint against another,usually for the purpose of:

Perpetrators of some fraud schemes often target conspiracy theorists,promising access to the "secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns.Such schemes are best described as:

Which of the following is a common example of vendor fraud?

Fraud statistics come from all of the following sources EXCEPT:

Fraud has a direct dollar for dollar impact on a company's:

What is the single most critical element for a fraud to be successful?

One way that criminal law differs from civil law is that it:

The following are all elements of Title 26,U.S.Code Section 7201 EXCEPT:

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 1: The Nature of Fraud

Which of the following is NOT a characteristic of management fraud?

The Anti-Kickback Act of 1986 intends to prevent:

In fraud prosecution cases,______ matter consists of the underlying data and all corroborating information available.

Employee embezzlement can be direct or indirect.Indirect fraud occurs when:

To be successful,plaintiffs in civil cases must prove their case by which of the following?

The elements of fraud include all of the following EXCEPT:

The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that U.S.organizations lose _____ percent of their annual revenues to fraud.

What is the most cost-effective way to minimize the cost of fraud?

Scammers often use their victim's ethnic identity to gain their trust and then steal their life savings.This is an example of:

A company was the victim of several frauds that totaled approximately $10 million in one year.With a profit margin of 10 percent,and assuming that the company's product sold for $1,000 per unit,how many additional units must the company sell to compensate for the fraud losses?

A company is a victim of a $414 million fraud.At that time its profit margin is 10%.How much additional revenue should the company generate in order to recover the effect on net income?

Civil claims begin when one party files a complaint against another,usually for the purpose of:

Perpetrators of some fraud schemes often target conspiracy theorists,promising access to the "secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns.Such schemes are best described as:

Which of the following is a common example of vendor fraud?

Fraud statistics come from all of the following sources EXCEPT:

Fraud has a direct dollar for dollar impact on a company's:

What is the single most critical element for a fraud to be successful?

One way that criminal law differs from civil law is that it:

The following are all elements of Title 26,U.S.Code Section 7201 EXCEPT:

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters