Question 1

​Which of the following questions should be answered when considering fraud risk and fraud prevention?

Accepted Answer

A) ​which types of fraud are the easiest and least costly to prevent 
B) ​which employees are in the best position to commit fraud 
C) ​which symptoms of a fraud act are most likely to be spotted 
D) ​all types of possible fraud that can be committed 
A) ​which types of fraud are the easiest and least costly to prevent 
B) ​which employees are in the best position to commit fraud 
C) ​which symptoms of a fraud act are most likely to be spotted 
D) ​all types of possible fraud that can be committed

Question 2

Studies show that legal action against fraudsters is typically taken:

Accepted Answer

A) Less than 25 percent of the time. 
B) Less than 50 percent of the time. 
C) More than 75 percent of the time. 
D) At least 50 percent of the time. 
A) Less than 25 percent of the time. 
B) Less than 50 percent of the time. 
C) More than 75 percent of the time. 
D) At least 50 percent of the time.

Question 3

Investigative methods utilized to catch a fraud perpetrator while he/she is actually receiving a kickback fall under which of the following categories?

Accepted Answer

A) Theft act investigative methods 
B) Concealment investigative methods 
C) Conversion investigative methods 
D) Collusion investigative methods 
A) Theft act investigative methods 
B) Concealment investigative methods 
C) Conversion investigative methods 
D) Collusion investigative methods

Question 4

Which level in the ethical maturity model can be summarized as "willingness to pay the price for ethics?"

Accepted Answer

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

Question 5

​Which of the following is NOT a proactive hiring procedure?

Accepted Answer

A) ​conducting background investigations on prospective employees 
B) ​instilling in employees a desire to develop ethical awareness and courage to do the right thing 
C) ​thoroughly checking references provided 
D) ​learning how to interpret responses to inquiries of references about job candidates 
A) ​conducting background investigations on prospective employees 
B) ​instilling in employees a desire to develop ethical awareness and courage to do the right thing 
C) ​thoroughly checking references provided 
D) ​learning how to interpret responses to inquiries of references about job candidates

Question 6

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Accepted Answer

A) help in training employees about appropriate behavior. 
B) often prompt smaller frauds. 
C) pay big dividends. 
D) aid in punishing fraud perpetrators. 
A) help in training employees about appropriate behavior. 
B) often prompt smaller frauds. 
C) pay big dividends. 
D) aid in punishing fraud perpetrators.

Question 7

Civil suits are usually quite rare in cases of employee fraud because:

Accepted Answer

A) there is usually not enough evidence to prosecute. 
B) employee fraud is a victimless crime. 
C) it is difficult for a jury to unanimously decide on a conviction. 
D) perpetrators have usually spent the money. 
A) there is usually not enough evidence to prosecute. 
B) employee fraud is a victimless crime. 
C) it is difficult for a jury to unanimously decide on a conviction. 
D) perpetrators have usually spent the money.

Question 8

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 9

Research on honesty shows that individuals fall into three groups:?(1)those who will almost always be honest,?(2)those who are situationally honest,and?(3)those who will always be dishonest.?Which of these groups is (are)the biggest?

Accepted Answer

A) Group 1 (50%) 
B) Group 2 (40%) 
C) Group 3 (45%) 
D) Groups 1 and 3 (35% each) 
A) Group 1 (50%) 
B) Group 2 (40%) 
C) Group 3 (45%) 
D) Groups 1 and 3 (35% each)

Question 10

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 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

Research in moral development strongly suggests that honesty can be best reinforced when:

Accepted Answer

A)  	expectations of honesty are implied. 
B)  	fraud perpetrators are given a second chance. 
C)  	appreciation is exhibited for honesty. 
D)  	a proper example is set by management. 
A)  	expectations of honesty are implied. 
B)  	fraud perpetrators are given a second chance. 
C)  	appreciation is exhibited for honesty. 
D)  	a proper example is set by management.

Question 13

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 inform management of only the basics of the investigations in case they are involved. 
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 inform management of only the basics of the investigations in case they are involved. 
D) Investigators must be sure to follow appropriate investigative techniques.

Question 14

Which one 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

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

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 16

Stuart,a CFE,is investigating a possible management fraud.He found an email on an employee's computer to use as evidence in the case.Under which category of evidence would an email message fall?

Accepted Answer

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

Question 17

All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT:

Accepted Answer

A) Accurately identifying sources and measuring risks. 
B) Implementing appropriate preventative and detective controls. 
C) Creating widespread monitoring by employees. 
D) Eliminating protections for whistle blowers. 
A) Accurately identifying sources and measuring risks. 
B) Implementing appropriate preventative and detective controls. 
C) Creating widespread monitoring by employees. 
D) Eliminating protections for whistle blowers.

Question 18

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

Accepted Answer

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

Question 19

​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 20

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.

Which of the following questions should be answered when considering fraud risk and fraud prevention?

Studies show that legal action against fraudsters is typically taken:

Investigative methods utilized to catch a fraud perpetrator while he/she is actually receiving a kickback fall under which of the following categories?

Which level in the ethical maturity model can be summarized as "willingness to pay the price for ethics?"

Which of the following is NOT a proactive hiring procedure?

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Civil suits are usually quite rare in cases of employee fraud because:

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

Research on honesty shows that individuals fall into three groups:?(1)those who will almost always be honest,?(2)those who are situationally honest,and?(3)those who will always be dishonest.?Which of these groups is (are)the biggest?

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

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?

Research in moral development strongly suggests that honesty can be best reinforced when:

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

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

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Stuart,a CFE,is investigating a possible management fraud.He found an email on an employee's computer to use as evidence in the case.Under which category of evidence would an email message fall?

All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT:

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?

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

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

​Which of the following questions should be answered when considering fraud risk and fraud prevention?

Studies show that legal action against fraudsters is typically taken:

Investigative methods utilized to catch a fraud perpetrator while he/she is actually receiving a kickback fall under which of the following categories?

Which level in the ethical maturity model can be summarized as "willingness to pay the price for ethics?"

​Which of the following is NOT a proactive hiring procedure?

Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:

Civil suits are usually quite rare in cases of employee fraud because:

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

Research on honesty shows that individuals fall into three groups:?(1)those who will almost always be honest,?(2)those who are situationally honest,and?(3)those who will always be dishonest.?Which of these groups is (are)the biggest?

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

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?

Research in moral development strongly suggests that honesty can be best reinforced when:

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

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

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Stuart,a CFE,is investigating a possible management fraud.He found an email on an employee's computer to use as evidence in the case.Under which category of evidence would an email message fall?

All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT:

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?

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

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

Which of the following questions should be answered when considering fraud risk and fraud prevention?

Which of the following is NOT a proactive hiring procedure?

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