Question 1

Which of the following is the foundation for the components of internal control,providing discipline and structure?

Accepted Answer

A) Open door policy 
B) Control environment 
C) Whistle-blowing system 
D) Surveillance 
A) Open door policy 
B) Control environment 
C) Whistle-blowing system 
D) Surveillance

Question 2

Which method will result in biggest savings?

Accepted Answer

A) Fraud prevention--including EAP plans. 
B) Fraud detection--including audit proactively, monitoring. 
C) Investigation--including criminal prosecution. 
D) Promotion--including raising rank or position. 
A) Fraud prevention--including EAP plans. 
B) Fraud detection--including audit proactively, monitoring. 
C) Investigation--including criminal prosecution. 
D) Promotion--including raising rank or position.

Question 3

A good fraud auditing involves four steps.Which of the following is the correct sequence?

Accepted Answer

A) Identifying fraud risk exposures; building audit programs to proactively look for symptoms and exposures; investigating fraud symptoms identified; and identifying the fraud symptoms of each exposure. 
B) Identifying fraud risk exposures; identifying the fraud symptoms of each exposure; building audit programs to proactively look for symptoms and exposures; and investigating fraud symptoms identified. 
C) Building audit programs that proactively check for symptoms and exposures; identifying fraud risk exposures; identifying the fraud symptoms of each exposure; and investigating fraud symptoms identified. 
D) Identifying the fraud symptoms of each exposure; identifying fraud risk exposures; investigating fraud symptoms identified; and building audit programs to proactively look for symptoms and exposures. 
A) Identifying fraud risk exposures; building audit programs to proactively look for symptoms and exposures; investigating fraud symptoms identified; and identifying the fraud symptoms of each exposure. 
B) Identifying fraud risk exposures; identifying the fraud symptoms of each exposure; building audit programs to proactively look for symptoms and exposures; and investigating fraud symptoms identified. 
C) Building audit programs that proactively check for symptoms and exposures; identifying fraud risk exposures; identifying the fraud symptoms of each exposure; and investigating fraud symptoms identified. 
D) Identifying the fraud symptoms of each exposure; identifying fraud risk exposures; investigating fraud symptoms identified; and building audit programs to proactively look for symptoms and exposures.

Question 4

What is the last stage in the current (default)model that most organizations typically use for dealing with fraud?

Accepted Answer

A) Fraud incident 
B) Resolution 
C) Investigation 
D) Action 
A) Fraud incident 
B) Resolution 
C) Investigation 
D) Action

Question 5

Which of the following environments will be LEAST conducive to fraud?

Accepted Answer

A) Perceived inequalities in the organization and inadequate pay 
B) Unreasonable budget expectations 
C) Proactive management 
D) High employee turnover 
A) Perceived inequalities in the organization and inadequate pay 
B) Unreasonable budget expectations 
C) Proactive management 
D) High employee turnover

Question 6

Which of the following allows managers and others to become aware of employees' pressures,problems,and rationalizations thus enabling them to take fraud prevention steps?

Accepted Answer

A) Office grapevine 
B) Open door policies 
C) Code of ethics 
D) Pygmalion effect 
A) Office grapevine 
B) Open door policies 
C) Code of ethics 
D) Pygmalion effect

Question 7

Which of the following observations concerning collusive frauds is true?

Accepted Answer

A) They are usually slower to develop than frauds committed by one individual. 
B) Research indicates that majority of the frauds involve collusion. 
C) Frauds involving collusion are usually the easiest to detect because of the involvement of multiple players. 
D) Recent trends in business have dramatically decreased the number of collusive frauds. 
A) They are usually slower to develop than frauds committed by one individual. 
B) Research indicates that majority of the frauds involve collusion. 
C) Frauds involving collusion are usually the easiest to detect because of the involvement of multiple players. 
D) Recent trends in business have dramatically decreased the number of collusive frauds.

Question 8

When only a very small amount of money has been embezzled:

Accepted Answer

A) taking no action is the best course of action. 
B) the perpetrator should be punished by publishing the details of the fraud in the local newspapers. 
C) the perpetrator should be prosecuted. 
D) the company should transfer the perpetrator to a position with more supervision. 
A) taking no action is the best course of action. 
B) the perpetrator should be punished by publishing the details of the fraud in the local newspapers. 
C) the perpetrator should be prosecuted. 
D) the company should transfer the perpetrator to a position with more supervision.

Question 9

Which of these help employees deal with substance abuse (alcohol and drugs),gambling,money management,and health,family,and personal problems?

Accepted Answer

A) Employee Assistance Programs 
B) Equal Employment Opportunity Programs 
C) Employees Anonymous Programs 
D) Whistle-Blowing Programs 
A) Employee Assistance Programs 
B) Equal Employment Opportunity Programs 
C) Employees Anonymous Programs 
D) Whistle-Blowing Programs

Question 10

Which of the following should be emphasized in an employee-reporting program? I.
Fraud,waste,and abuse occur in few companies.
II)
The company actively encourages employees with information to come forward.
III)
The name of the employee reporting the fraud must be known.
IV)
The report need not be made to one's immediate supervisor.

Accepted Answer

A) II and III. 
B) I, II, III, and IV. 
C) I, II, and IV. 
D) II and IV. 
A) II and III. 
B) I, II, III, and IV. 
C) I, II, and IV. 
D) II and IV.

Which of the following is the foundation for the components of internal control,providing discipline and structure?

Which method will result in biggest savings?

A good fraud auditing involves four steps.Which of the following is the correct sequence?

What is the last stage in the current (default)model that most organizations typically use for dealing with fraud?

Which of the following environments will be LEAST conducive to fraud?

Which of the following allows managers and others to become aware of employees' pressures,problems,and rationalizations thus enabling them to take fraud prevention steps?

Which of the following observations concerning collusive frauds is true?

When only a very small amount of money has been embezzled:

Which of these help employees deal with substance abuse (alcohol and drugs),gambling,money management,and health,family,and personal problems?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

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 4: Preventing Fraud

Which of the following is the foundation for the components of internal control,providing discipline and structure?

Which method will result in biggest savings?

A good fraud auditing involves four steps.Which of the following is the correct sequence?

What is the last stage in the current (default)model that most organizations typically use for dealing with fraud?

Which of the following environments will be LEAST conducive to fraud?

Which of the following allows managers and others to become aware of employees' pressures,problems,and rationalizations thus enabling them to take fraud prevention steps?

Which of the following observations concerning collusive frauds is true?

When only a very small amount of money has been embezzled:

Which of these help employees deal with substance abuse (alcohol and drugs),gambling,money management,and health,family,and personal problems?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

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