Question 1

In lieu of acting honestly and facing negative consequences many people will do which of the following?

Accepted Answer

A)  Break down emotionally 
B)  Run away from the problem 
C)  Face the music 
D)  Act dishonestly 
A)  Break down emotionally 
B)  Run away from the problem 
C)  Face the music 
D)  Act dishonestly

Question 2

In recent years, corporations have used ________ to help detect fraud.

Accepted Answer

A)  Tip hotlines 
B)  Physical evidence 
C)  Chance 
D)  Honesty tests 
A)  Tip hotlines 
B)  Physical evidence 
C)  Chance 
D)  Honesty tests

Question 3

Most frauds begin in ________ increments and then he/she becomes greedy; as a result, most frauds will ________ over time.

Accepted Answer

A)  Small, increase slowly 
B)  Medium, increase slowly 
C)  Small, increase dramatically 
D)  Medium, increase dramatically 
A)  Small, increase slowly 
B)  Medium, increase slowly 
C)  Small, increase dramatically 
D)  Medium, increase dramatically

Question 4

Which of the following helps to maintain a culture of honesty and integrity?

Accepted Answer

A)  Train management about effective modeling 
B)  Pay salaries based upon the amount each person can prove they earned for the company in a year. 
C)  Reward "whistle-blowers" who help to find fraud with 25% of recovered assets. 
D)  Earn employee's trust by giving $100 gifts to the person in the department who was most efficient for the month. 
A)  Train management about effective modeling 
B)  Pay salaries based upon the amount each person can prove they earned for the company in a year. 
C)  Reward "whistle-blowers" who help to find fraud with 25% of recovered assets. 
D)  Earn employee's trust by giving $100 gifts to the person in the department who was most efficient for the month.

Question 5

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

Accepted Answer

A)  Usually not enough evidence to prosecute 
B)  Employee fraud is a victimless crime 
C)  Difficult for a jury to unanimously decide on a conviction 
D)  Perpetrators have usually spent the money 
A)  Usually not enough evidence to prosecute 
B)  Employee fraud is a victimless crime 
C)  Difficult for a jury to unanimously decide on a conviction 
D)  Perpetrators have usually spent the money

Question 6

Of the following groups, which would pursue civil action to the furthest extent against not just the perpetrator but all parties involved?

Accepted Answer

A)  Management 
B)  Stockholders and Creditors 
C)  Vendors 
D)  All of the above 
A)  Management 
B)  Stockholders and Creditors 
C)  Vendors 
D)  All of the above

Question 7

Which of the following are the most effective fraud detectors?

Accepted Answer

A)  Auditors 
B)  Customers 
C)  Vendors 
D)  Employees 
A)  Auditors 
B)  Customers 
C)  Vendors 
D)  Employees

Question 8

In order to create a culture of honesty and integrity, all of the following should prevail except

Accepted Answer

A)  Hire the right employees 
B)  Have an indulgent manager 
C)  Communicate expectations 
D)  Create a positive environment 
A)  Hire the right employees 
B)  Have an indulgent manager 
C)  Communicate expectations 
D)  Create a positive environment

Question 9

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 10

All of the following factors can be associated with high levels of fraud except:

Accepted Answer

A)  Top management that does not pay attention to appropriate behavior 
B)  Lack of recognition of job performance 
C)  Unrealistically low pay 
D)  Lack of understanding of different department functions 
A)  Top management that does not pay attention to appropriate behavior 
B)  Lack of recognition of job performance 
C)  Unrealistically low pay 
D)  Lack of understanding of different department functions

Question 11

Audits, public record searches, and net worth calculations are used to gather which type of evidence?

Accepted Answer

A)  Testimonial 
B)  Forensic 
C)  Documentary 
D)  Observational 
A)  Testimonial 
B)  Forensic 
C)  Documentary 
D)  Observational

Question 12

Auditors detect most frauds.

Accepted Answer

A) True 
 B)False

Question 13

An example of kickback fraud is:

Accepted Answer

A)  Fraud perpetrated by an employee and the vendor 
B)  Fraud perpetrated by two or more employees 
C)  Fraud that conceals cash shortages by transferring funds 
D)  None of the above 
A)  Fraud perpetrated by an employee and the vendor 
B)  Fraud perpetrated by two or more employees 
C)  Fraud that conceals cash shortages by transferring funds 
D)  None of the above

Question 14

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 15

Research has shown that __________ and __________ detect most frauds:

Accepted Answer

A)  Employees and managers 
B)  Security and police 
C)  IRS and FBI 
D)  Auditors and Board of Directors 
A)  Employees and managers 
B)  Security and police 
C)  IRS and FBI 
D)  Auditors and Board of Directors

Question 16

Which of the following is not one of the four types of evidence that can be collected in a fraud investigation?

Accepted Answer

A)  Testimonial evidence 
B)  Documentary evidence 
C)  Physical evidence 
D)  Personal observation 
E)  None of the above 
A)  Testimonial evidence 
B)  Documentary evidence 
C)  Physical evidence 
D)  Personal observation 
E)  None of the above

Question 17

Which is not a type of evidence collected in fraud investigations?

Accepted Answer

A)  Testimonial Evidence 
B)  Documentary Evidence 
C)  Electronic Evidence 
D)  Physical Evidence 
A)  Testimonial Evidence 
B)  Documentary Evidence 
C)  Electronic Evidence 
D)  Physical Evidence

Question 18

Which is one of the three basic elements of the fraud motivation triangle?

Accepted Answer

A)  Concealment 
B)  Theft 
C)  Opportunity 
D)  Conversion 
A)  Concealment 
B)  Theft 
C)  Opportunity 
D)  Conversion

Question 19

What groups of people detect the most frauds?

Accepted Answer

A)  Employees 
B)  External Auditors 
C)  Internal Auditors 
D)  IRS 
E)  All of the above detect fraud equally 
A)  Employees 
B)  External Auditors 
C)  Internal Auditors 
D)  IRS 
E)  All of the above detect fraud equally

Question 20

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)  Less than 75 percent of the time. 
D)  Almost always. 
A)  Less than 25 percent of the time. 
B)  Less than 50 percent of the time. 
C)  Less than 75 percent of the time. 
D)  Almost always.

In lieu of acting honestly and facing negative consequences many people will do which of the following?

In recent years, corporations have used ________ to help detect fraud.

Most frauds begin in increments and then he/she becomes greedy; as a result, most frauds will over time.

Which of the following helps to maintain a culture of honesty and integrity?

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

Of the following groups, which would pursue civil action to the furthest extent against not just the perpetrator but all parties involved?

Which of the following are the most effective fraud detectors?

In order to create a culture of honesty and integrity, all of the following should prevail except

Which of the following is a component of The Evidence Square:

All of the following factors can be associated with high levels of fraud except:

Audits, public record searches, and net worth calculations are used to gather which type of evidence?

Auditors detect most frauds.

An example of kickback fraud is:

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?

Research has shown that and detect most frauds:

Which of the following is not one of the four types of evidence that can be collected in a fraud investigation?

Which is not a type of evidence collected in fraud investigations?

Which is one of the three basic elements of the fraud motivation triangle?

What groups of people detect the most frauds?

Studies show that legal action against fraudsters is typically taken:

The Nature of Fraud

Why People Commit Fraud

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 3: Fighting Fraud: An Overview

In lieu of acting honestly and facing negative consequences many people will do which of the following?

In recent years, corporations have used ________ to help detect fraud.

Most frauds begin in ________ increments and then he/she becomes greedy; as a result, most frauds will ________ over time.

Which of the following helps to maintain a culture of honesty and integrity?

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

Of the following groups, which would pursue civil action to the furthest extent against not just the perpetrator but all parties involved?

Which of the following are the most effective fraud detectors?

In order to create a culture of honesty and integrity, all of the following should prevail except

Which of the following is a component of The Evidence Square:

All of the following factors can be associated with high levels of fraud except:

Audits, public record searches, and net worth calculations are used to gather which type of evidence?

Auditors detect most frauds.

An example of kickback fraud is:

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?

Research has shown that __________ and __________ detect most frauds:

Which of the following is not one of the four types of evidence that can be collected in a fraud investigation?

Which is not a type of evidence collected in fraud investigations?

Which is one of the three basic elements of the fraud motivation triangle?

What groups of people detect the most frauds?

Studies show that legal action against fraudsters is typically taken:

The Nature of Fraud

Why People Commit Fraud

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

Most frauds begin in increments and then he/she becomes greedy; as a result, most frauds will over time.

Research has shown that and detect most frauds: