Question 1

Which of the following is always involved in planned bankruptcies?

Accepted Answer

A) Setting up a new company whose purpose is to help the perpetrator carry out the scheme 
B) Purchasing inventory in increasing amounts on credit 
C) Planning a bankruptcy with the creditors before a loan is made 
D) The perpetrator skipping town when the bankruptcy is filed 
A) Setting up a new company whose purpose is to help the perpetrator carry out the scheme 
B) Purchasing inventory in increasing amounts on credit 
C) Planning a bankruptcy with the creditors before a loan is made 
D) The perpetrator skipping town when the bankruptcy is filed

Question 2

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

Accepted Answer

A) Chapter 3 
B) Chapter 5 
C) Chapter 7 
D) Chapter 11 
E) Chapter 13 
A) Chapter 3 
B) Chapter 5 
C) Chapter 7 
D) Chapter 11 
E) Chapter 13

Question 3

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

Accepted Answer

A) True 
B) False 
A) True 
B) False

Question 4

Criminal bankruptcy fraud cases are generally prosecuted by the:

Accepted Answer

A) U.S.Attorney's office 
B) FBI 
C) CIA 
D) District Attorney's office 
A) U.S.Attorney's office 
B) FBI 
C) CIA 
D) District Attorney's office

Question 5

The best description of a fraudulent transfer in a bankruptcy setting is:

Accepted Answer

A) A transfer of assets made with the intent of placing them outside the reach of a bankruptcy court 
B) A transfer of cash in exchange for supplies or other business assets 
C) A transfer of assets made to another institution before a bankruptcy is filed 
D) A transfer to a fund or other account to hold assets for a period of time 
A) A transfer of assets made with the intent of placing them outside the reach of a bankruptcy court 
B) A transfer of cash in exchange for supplies or other business assets 
C) A transfer of assets made to another institution before a bankruptcy is filed 
D) A transfer to a fund or other account to hold assets for a period of time

Question 6

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Accepted Answer

A) Increases in operating losses that are not explained by economic factors 
B) The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease 
C) A sudden change in management is made without public notice 
D) The company sells goods at large discounts 
A) Increases in operating losses that are not explained by economic factors 
B) The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease 
C) A sudden change in management is made without public notice 
D) The company sells goods at large discounts

Question 7

Which of the following may indicate concealment of assets during a bankruptcy?

Accepted Answer

A) Large transfers of assets to related parties or individuals 
B) Rapid reduction in assets 
C) Missing, inaccurate, or damaged documents 
D) All of the above 
A) Large transfers of assets to related parties or individuals 
B) Rapid reduction in assets 
C) Missing, inaccurate, or damaged documents 
D) All of the above

Question 8

Which of the following has a lower fine dollar amount limit than the others?​

Accepted Answer

A) ​willful failure to file return, supply information, or pay taxes 
B) ​willful failure to collect or pay tax 
C) ​attempt to evade or defeat tax 
D) ​attempt to interfere in the administration of Internal Revenue laws 
A) ​willful failure to file return, supply information, or pay taxes 
B) ​willful failure to collect or pay tax 
C) ​attempt to evade or defeat tax 
D) ​attempt to interfere in the administration of Internal Revenue laws

Question 9

​Which of the following is usually the most complex step in the money laundering process?

Accepted Answer

A) ​integration 
B) ​layering 
C) ​placement 
D) ​transfering 
A) ​integration 
B) ​layering 
C) ​placement 
D) ​transfering

Question 10

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

Accepted Answer

A) Fraudsters don't have accurate records. 
B) Assets are taken away from one party and given to others. 
C) The perpetrators doe not feel that a fraud investigator will find them out. 
D) There is anger aimed at the other parties involved. 
A) Fraudsters don't have accurate records. 
B) Assets are taken away from one party and given to others. 
C) The perpetrators doe not feel that a fraud investigator will find them out. 
D) There is anger aimed at the other parties involved.

Question 11

All bankruptcy petitions are subject to:

Accepted Answer

A) Federal claims court jurisdiction 
B) U.S.Tax court jurisdiction 
C) Supreme court jurisdiction 
D) U.S.district court jurisdiction 
A) Federal claims court jurisdiction 
B) U.S.Tax court jurisdiction 
C) Supreme court jurisdiction 
D) U.S.district court jurisdiction

Question 12

Which is NOT something that a fraud perpetrator conducting a bust-out is likely to do?

Accepted Answer

A) Work to establish credibility 
B) Contact law enforcement to strengthen their cover 
C) Quietly buy an existing company that already has established credit or business 
D) Take on a business name similar to a well-reputed company 
E) A fraud perpetrator conducting a bust-out is likely to do all of the above 
A) Work to establish credibility 
B) Contact law enforcement to strengthen their cover 
C) Quietly buy an existing company that already has established credit or business 
D) Take on a business name similar to a well-reputed company 
E) A fraud perpetrator conducting a bust-out is likely to do all of the above

Question 13

Which of the following is listed as a possible indicator of a "bust-out"?

Accepted Answer

A) Transactions are frequently made on account but are normally made in cash 
B) The company decreases its credit purchases 
C) Records are missing, inaccurate, or damaged 
D) Credit references cannot be verified 
A) Transactions are frequently made on account but are normally made in cash 
B) The company decreases its credit purchases 
C) Records are missing, inaccurate, or damaged 
D) Credit references cannot be verified

Question 14

Which bankruptcy participant administers a bankruptcy estate?

Accepted Answer

A) Examiner 
B) Trustee 
C) Adjuster 
D) Creditor 
A) Examiner 
B) Trustee 
C) Adjuster 
D) Creditor

Question 15

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were​ underpaid?

Accepted Answer

A) ​Civil fines can be assessed. 
B) ​Penalties can be levied. 
C) ​The case can be referred to the IRS's Criminal Investigation Division. 
D) ​Charges can be pressed in the courts. 
A) ​Civil fines can be assessed. 
B) ​Penalties can be levied. 
C) ​The case can be referred to the IRS's Criminal Investigation Division. 
D) ​Charges can be pressed in the courts.

Question 16

Which of the following is NOT a duty/function that bankruptcy judges perform?

Accepted Answer

A) Approve reorganization plans 
B) Conduct hearings and trials to resolve disputes 
C) Appoint fraud examination firms to conduct audits 
D) Award professional fees 
E) Bankruptcy judges perform all of the above functions 
A) Approve reorganization plans 
B) Conduct hearings and trials to resolve disputes 
C) Appoint fraud examination firms to conduct audits 
D) Award professional fees 
E) Bankruptcy judges perform all of the above functions

Question 17

An examiner investigates and reports the results of a bankruptcy fraud investigation to the court.Which of the following is NOT included in his or her duties unless he or she is court appointed?

Accepted Answer

A) Operate a business 
B) Subpoena records 
C) Make business decisions 
D) Propose reorganization plans 
E) An examiner is not allowed to perform any of the above 
A) Operate a business 
B) Subpoena records 
C) Make business decisions 
D) Propose reorganization plans 
E) An examiner is not allowed to perform any of the above

Question 18

Which of the following statements correctly describes the part of an adjuster in divorce cases?

Accepted Answer

A) Investigates allegations of fraud or misconduct by the debtor or its principals as an advocate of the other party 
B) Investigates for instances of hiding assets in a chapter 11 filing 
C) Investigates claims against a debtor to determine whether or not they are valid 
D) Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtors estate and arranging asset sales 
A) Investigates allegations of fraud or misconduct by the debtor or its principals as an advocate of the other party 
B) Investigates for instances of hiding assets in a chapter 11 filing 
C) Investigates claims against a debtor to determine whether or not they are valid 
D) Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtors estate and arranging asset sales

Question 19

The Office of U.S.Trustee is responsible for all but which of the following functions?

Accepted Answer

A) Administering bankruptcy cases 
B) Officiating in court on matters of interest to the debtor's estate and creditors 
C) Overseeing and monitoring trustees 
D) Reviewing employees and fee applications 
E) The Office of U.S.Trustee is responsible for all of the above functions 
A) Administering bankruptcy cases 
B) Officiating in court on matters of interest to the debtor's estate and creditors 
C) Overseeing and monitoring trustees 
D) Reviewing employees and fee applications 
E) The Office of U.S.Trustee is responsible for all of the above functions

Question 20

Which of the following describes the result of a Chapter 7 filing?

Accepted Answer

A) "a complete liquidation or shutting down of the business" 
B) "courts give debtor time to reorganize" 
C) "2 years probation and/or up to 300 hours community service" 
D) "Debtors make regular payments for a number of years" 
A) "a complete liquidation or shutting down of the business" 
B) "courts give debtor time to reorganize" 
C) "2 years probation and/or up to 300 hours community service" 
D) "Debtors make regular payments for a number of years"

Which of the following is always involved in planned bankruptcies?

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

Criminal bankruptcy fraud cases are generally prosecuted by the:

The best description of a fraudulent transfer in a bankruptcy setting is:

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Which of the following may indicate concealment of assets during a bankruptcy?

Which of the following has a lower fine dollar amount limit than the others?

Which of the following is usually the most complex step in the money laundering process?

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

All bankruptcy petitions are subject to:

Which is NOT something that a fraud perpetrator conducting a bust-out is likely to do?

Which of the following is listed as a possible indicator of a "bust-out"?

Which bankruptcy participant administers a bankruptcy estate?

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were underpaid?

Which of the following is NOT a duty/function that bankruptcy judges perform?

An examiner investigates and reports the results of a bankruptcy fraud investigation to the court.Which of the following is NOT included in his or her duties unless he or she is court appointed?

Which of the following statements correctly describes the part of an adjuster in divorce cases?

The Office of U.S.Trustee is responsible for all but which of the following functions?

Which of the following describes the result of a Chapter 7 filing?

The Nature of Fraud

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

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 16: Bankruptcy, divorce, and Tax Fraud

Which of the following is always involved in planned bankruptcies?

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

Criminal bankruptcy fraud cases are generally prosecuted by the:

The best description of a fraudulent transfer in a bankruptcy setting is:

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Which of the following may indicate concealment of assets during a bankruptcy?

Which of the following has a lower fine dollar amount limit than the others?​

​Which of the following is usually the most complex step in the money laundering process?

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

All bankruptcy petitions are subject to:

Which is NOT something that a fraud perpetrator conducting a bust-out is likely to do?

Which of the following is listed as a possible indicator of a "bust-out"?

Which bankruptcy participant administers a bankruptcy estate?

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were​ underpaid?

Which of the following is NOT a duty/function that bankruptcy judges perform?

An examiner investigates and reports the results of a bankruptcy fraud investigation to the court.Which of the following is NOT included in his or her duties unless he or she is court appointed?

Which of the following statements correctly describes the part of an adjuster in divorce cases?

The Office of U.S.Trustee is responsible for all but which of the following functions?

Which of the following describes the result of a Chapter 7 filing?

The Nature of Fraud

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

E-Commerce Fraud

Legal Follow-Up

Filters

Which of the following has a lower fine dollar amount limit than the others?

Which of the following is usually the most complex step in the money laundering process?

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were underpaid?