Question 1

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 to defraud federally insured financial institutions 
C)  The giving or receiving of any thing of value by a subcontractor to a prime contractor. 
D)  Individuals from using information to purchase or sell the company's securities. 
A)  Bribery, by punishing perpetrators with up to 15 years in prison 
B)  Any scheme to defraud federally insured financial institutions 
C)  The giving or receiving of any thing of value by a subcontractor to a prime contractor. 
D)  Individuals from using information to purchase or sell the company's securities.

Question 2

An example of a vendor committing fraud by itself is:

Accepted Answer

A)  An overcharge for purchased goods 
B)  The shipment of inferior goods 
C)  Non-shipment of goods even though payment is made 
D)  All of the above 
A)  An overcharge for purchased goods 
B)  The shipment of inferior goods 
C)  Non-shipment of goods even though payment is made 
D)  All of the above

Question 3

Which one of the following is not a characteristic of a criminal proceeding?

Accepted Answer

A)  Offense against society 
B)  More guilty than not guilty 
C)  Jury of 12 individuals 
D)  Only one claim may be heard at a time 
A)  Offense against society 
B)  More guilty than not guilty 
C)  Jury of 12 individuals 
D)  Only one claim may be heard at a time

Question 4

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 may be deducted as legitimate business expenses. 
D)  All of the above are elements of Title 26, U.S. Code Section 7201. 
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 may be deducted as legitimate business expenses. 
D)  All of the above are elements of Title 26, U.S. Code Section 7201.

Question 5

Fraud statistics come from the all of the following sources except:

Accepted Answer

A)  Government agencies 
B)  Researchers 
C)  Insurance Companies 
D)  Victims 
E)  All of the above are sources for statistics 
A)  Government agencies 
B)  Researchers 
C)  Insurance Companies 
D)  Victims 
E)  All of the above are sources for statistics

Question 6

Management fraud is typically perpetrated by:

Accepted Answer

A)  Stealing inventory 
B)  Manipulating financial statements 
C)  Overcharging for goods or services 
D)  Charging for goods not delivered 
A)  Stealing inventory 
B)  Manipulating financial statements 
C)  Overcharging for goods or services 
D)  Charging for goods not delivered

Question 7

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 8

According to the text, the largest group of fraud perpetrators are:

Accepted Answer

A)  Between age 25 and 32 
B)  Between age 36 and 45 
C)  Between age 53 and 65 
D)  All age groups are equal groups of perpetrators 
A)  Between age 25 and 32 
B)  Between age 36 and 45 
C)  Between age 53 and 65 
D)  All age groups are equal groups of perpetrators

Question 9

Which of the following does not include one of the six types of fraud classification schemes as described in chapter 1?

Accepted Answer

A)  Employee embezzlement 
B)  Government fraud 
C)  Investment scams 
D)  Customer fraud 
A)  Employee embezzlement 
B)  Government fraud 
C)  Investment scams 
D)  Customer fraud

Question 10

What type of fraud was the ZZZZ Best fraud?

Accepted Answer

A)  Employee Embezzlement 
B)  Investment Scams 
C)  Vendor Fraud 
D)  Management fraud 
A)  Employee Embezzlement 
B)  Investment Scams 
C)  Vendor Fraud 
D)  Management fraud

Question 11

Which of the following is not a key activity in occupational fraud?

Accepted Answer

A)  The activity is clandestine. 
B)  The activity is committed for the purpose of direct or indirect financial benefit to the employee. 
C)  The activity always involves two or more employees. 
D)  The activity costs the employing organization assets, revenues, or reserves. 
A)  The activity is clandestine. 
B)  The activity is committed for the purpose of direct or indirect financial benefit to the employee. 
C)  The activity always involves two or more employees. 
D)  The activity costs the employing organization assets, revenues, or reserves.

Question 12

A man walks into a bank and convinces the bank manager to give him a $400,000 cashiers check even though he only has $10,000 in his account. The man then uses the cashiers check to purchase diamonds and flees the country. Which of the following is true with respect to this fraud?

Accepted Answer

A)  The fraud is a criminal offense 
B)  The fraud is a civil offense 
C)  This fraud can be classified as "customer fraud" 
D)  All of the above are correct. 
A)  The fraud is a criminal offense 
B)  The fraud is a civil offense 
C)  This fraud can be classified as "customer fraud" 
D)  All of the above are correct.

Question 13

Investment scams consist of:

Accepted Answer

A)  Selling of worthless partnership interests 
B)  Advertising above average returns 
C)  Promising no transaction fees but taking a percentage of growth 
D)  Stealing money from your employer 
A)  Selling of worthless partnership interests 
B)  Advertising above average returns 
C)  Promising no transaction fees but taking a percentage of growth 
D)  Stealing money from your employer

Question 14

Vendor fraud usually results in all of the following except:

Accepted Answer

A)  An overcharge for purchased goods 
B)  The shipment of inferior goods 
C)  Non-payment of goods by customers 
D)  Non-shipment of goods even though payment has been made. 
A)  An overcharge for purchased goods 
B)  The shipment of inferior goods 
C)  Non-payment of goods by customers 
D)  Non-shipment of goods even though payment has been made.

Question 15

Who are the primary victims of financial statement fraud?

Accepted Answer

A)  Employees and middle management. 
B)  Organizations that buy goods or services. 
C)  Analysts and pundits. 
D)  All Stockholders 
A)  Employees and middle management. 
B)  Organizations that buy goods or services. 
C)  Analysts and pundits. 
D)  All Stockholders

Question 16

Which of the following is an example of vendor fraud?

Accepted Answer

A)  You were overcharged for a hotdog that you bought on the street 
B)  The "new book" you ordered just arrived and contains writing on the inside cover 
C)  You never received a book you ordered and paid for online 
D)  All of the above 
A)  You were overcharged for a hotdog that you bought on the street 
B)  The "new book" you ordered just arrived and contains writing on the inside cover 
C)  You never received a book you ordered and paid for online 
D)  All of the above

Question 17

Which legal code makes the bribing of public officials illegal?

Accepted Answer

A)  Title 18, US Code Section 201 
B)  Title 41, US Code Section 51 to 58 
C)  Title 18, U.S. Code Section 1341 
D)  18, U.S. Code Section 1344 
A)  Title 18, US Code Section 201 
B)  Title 41, US Code Section 51 to 58 
C)  Title 18, U.S. Code Section 1341 
D)  18, U.S. Code Section 1344

Question 18

Company X's management team convinces Company Y to give them 100 shares of Company Y's stock. The management team claimed that the Company owes them the stock from a pre-existing agreement (such an agreement never existed). Upon receiving the stock, the management team splits the stock up amongst themselves to sell on the open market. This is an example of what type of fraud?

Accepted Answer

A)  Occupational Fraud 
B)  Management Fraud 
C)  Investment Scams 
D)  Customer Fraud 
A)  Occupational Fraud 
B)  Management Fraud 
C)  Investment Scams 
D)  Customer Fraud

Question 19

Convicted criminals in a _____ case will likely be required to pay restitution and damage payments.

Accepted Answer

A)  Civil 
B)  Criminal 
A)  Civil 
B)  Criminal

Question 20

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 per share 
E)  All of the above 
A)  Revenues 
B)  Net income 
C)  Profit margin 
D)  Stock price per share 
E)  All of the above

The Anti-Kickback Act of 1986 intends to prevent:

An example of a vendor committing fraud by itself is:

Which one of the following is not a characteristic of a criminal proceeding?

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

Fraud statistics come from the all of the following sources except:

Management fraud is typically perpetrated by:

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

According to the text, the largest group of fraud perpetrators are:

Which of the following does not include one of the six types of fraud classification schemes as described in chapter 1?

What type of fraud was the ZZZZ Best fraud?

Which of the following is not a key activity in occupational fraud?

A man walks into a bank and convinces the bank manager to give him a $400,000 cashiers check even though he only has $10,000 in his account. The man then uses the cashiers check to purchase diamonds and flees the country. Which of the following is true with respect to this fraud?

Investment scams consist of:

Vendor fraud usually results in all of the following except:

Who are the primary victims of financial statement fraud?

Which of the following is an example of vendor fraud?

Which legal code makes the bribing of public officials illegal?

Convicted criminals in a _____ case will likely be required to pay restitution and damage payments.

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

Why People Commit Fraud

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

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 1: The Nature of Fraud

The Anti-Kickback Act of 1986 intends to prevent:

An example of a vendor committing fraud by itself is:

Which one of the following is not a characteristic of a criminal proceeding?

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

Fraud statistics come from the all of the following sources except:

Management fraud is typically perpetrated by:

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

According to the text, the largest group of fraud perpetrators are:

Which of the following does not include one of the six types of fraud classification schemes as described in chapter 1?

What type of fraud was the ZZZZ Best fraud?

Which of the following is not a key activity in occupational fraud?

A man walks into a bank and convinces the bank manager to give him a $400,000 cashiers check even though he only has $10,000 in his account. The man then uses the cashiers check to purchase diamonds and flees the country. Which of the following is true with respect to this fraud?

Investment scams consist of:

Vendor fraud usually results in all of the following except:

Who are the primary victims of financial statement fraud?

Which of the following is an example of vendor fraud?

Which legal code makes the bribing of public officials illegal?

Convicted criminals in a _____ case will likely be required to pay restitution and damage payments.

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

Why People Commit Fraud

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

Fraud in E-Commerce

Legal Follow-Up

Filters