Question 1

Choose the answer that is NOT a common example of an analytical anomaly.

Accepted Answer

A)  Increased volume with increased cost per unit 
B)  Increased revenues with increased inventory 
C)  Increased revenues with decreased receivables 
D)  Increased inventory with decreased payables 
A)  Increased volume with increased cost per unit 
B)  Increased revenues with increased inventory 
C)  Increased revenues with decreased receivables 
D)  Increased inventory with decreased payables

Question 2

Who of the following would be most likely to provide a tip regarding the conversion of a fraud:

Accepted Answer

A)  Company accountants. 
B)  Auditors. 
C)  Friends. 
A)  Company accountants. 
B)  Auditors. 
C)  Friends.

Question 3

Accounting anomalies include all of the following except

Accepted Answer

A)  Irregularities in source documents 
B)  Lack of segregation of duties 
C)  Inaccuracies in ledgers 
D)  Faulty journal entries 
A)  Irregularities in source documents 
B)  Lack of segregation of duties 
C)  Inaccuracies in ledgers 
D)  Faulty journal entries

Question 4

The major difference between auditors and examiners who detect fraud and those who don't is that most auditors merely:

Accepted Answer

A)  Match documents to see whether support exists and is adequate 
B)  Find out whether the expenditures make sense 
C)  Determine whether all aspects of the documentation are in order 
D)  Check to see if documents are real or fraudulent 
A)  Match documents to see whether support exists and is adequate 
B)  Find out whether the expenditures make sense 
C)  Determine whether all aspects of the documentation are in order 
D)  Check to see if documents are real or fraudulent

Question 5

Common accounting anomalies involve problems with

Accepted Answer

A)  Faulty journal entries 
B)  Source documents 
C)  Both A & B 
D)  Neither A nor B 
A)  Faulty journal entries 
B)  Source documents 
C)  Both A & B 
D)  Neither A nor B

Question 6

Which of the following entries may indicate fraud except:

Accepted Answer

A)  Journal entries made near the end of an accounting period 
B)  Journal entries made without documentary support 
C)  Journal entries that do not balance 
D)  All of the above are frequently indicative of fraud 
A)  Journal entries made near the end of an accounting period 
B)  Journal entries made without documentary support 
C)  Journal entries that do not balance 
D)  All of the above are frequently indicative of fraud

Question 7

What do fraud perpetrators rarely do with the money they stole?

Accepted Answer

A)  Use the money to buy luxury items 
B)  Use the money to improve their lifestyle 
C)  Save the money in the bank 
D)  None of above 
A)  Use the money to buy luxury items 
B)  Use the money to improve their lifestyle 
C)  Save the money in the bank 
D)  None of above

Question 8

Duplicate payments, and excessive voids are red flags to watch in __________.

Accepted Answer

A)  Ledger problems 
B)  Source documents 
C)  Faulty journals 
D)  All of the above 
A)  Ledger problems 
B)  Source documents 
C)  Faulty journals 
D)  All of the above

Question 9

Which of the following is in the best position to detect fraud?

Accepted Answer

A)  auditors 
B)  stock market annalists 
C)  management and employees 
D)  investors 
A)  auditors 
B)  stock market annalists 
C)  management and employees 
D)  investors

Question 10

Auditors are better positioned than anyone to detect which element of fraud:

Accepted Answer

A)  Theft 
B)  Conversion 
C)  Concealment 
D)  None of the above 
A)  Theft 
B)  Conversion 
C)  Concealment 
D)  None of the above

Question 11

Which type of account would most likely be used to conceal fraud?

Accepted Answer

A)  Common Stock 
B)  Revenues 
C)  Liabilities 
D)  Expenses 
A)  Common Stock 
B)  Revenues 
C)  Liabilities 
D)  Expenses

Question 12

Which of the following is an accounting anomaly?

Accepted Answer

A)  Missing documents 
B)  Excess purchases 
C)  Too many debit or credit memos 
D)  Cash Shortages 
A)  Missing documents 
B)  Excess purchases 
C)  Too many debit or credit memos 
D)  Cash Shortages

Question 13

Overall, embezzlers are motivated by which of the following

Accepted Answer

A)  Immediate gratification and appearance of being successful 
B)  Financial support for expenses more than 2 years in the future (i.e. child's education) 
C)  Cover expenses required to live 
D)  Save for the future retirement 
A)  Immediate gratification and appearance of being successful 
B)  Financial support for expenses more than 2 years in the future (i.e. child's education) 
C)  Cover expenses required to live 
D)  Save for the future retirement

Question 14

Common examples of analytical anomalies include all of the following except:

Accepted Answer

A)  Irregularities in source documents 
B)  Unexplained inventory shortages or adjustments 
C)  Excess purchases 
D)  Excessive late charges 
A)  Irregularities in source documents 
B)  Unexplained inventory shortages or adjustments 
C)  Excess purchases 
D)  Excessive late charges

Question 15

Of the elements of fraud, which is usually least likely to be detected by auditors?

Accepted Answer

A)  Theft act 
B)  Concealment 
C)  Conversion 
D)  Personal pressures 
A)  Theft act 
B)  Concealment 
C)  Conversion 
D)  Personal pressures

Question 16

A fraud examiner can be sure that fraud has occurred when:

Accepted Answer

A)  All of the fraud symptoms are present 
B)  An anonymous caller states that he or she has seen a fraud take place 
C)  A poorly-paid employee shows up in an expensive car and fancy clothes 
D)  Two of the above 
E)  None of the above 
A)  All of the fraud symptoms are present 
B)  An anonymous caller states that he or she has seen a fraud take place 
C)  A poorly-paid employee shows up in an expensive car and fancy clothes 
D)  Two of the above 
E)  None of the above

Question 17

Which of the following is not an analytical fraud symptom?

Accepted Answer

A)  Increases in past due Accounts Receivable 
B)  Significant increases or decreases in account balances 
C)  Alterations on documents 
D)  Excessive voids or credits 
A)  Increases in past due Accounts Receivable 
B)  Significant increases or decreases in account balances 
C)  Alterations on documents 
D)  Excessive voids or credits

Question 18

Upon committing fraud, what do most people do with excess funds?

Accepted Answer

A)  Put them in savings 
B)  Spend them on extravagant items 
C)  Donate them to charities 
D)  Slowly give them back to the company 
A)  Put them in savings 
B)  Spend them on extravagant items 
C)  Donate them to charities 
D)  Slowly give them back to the company

Question 19

Which one of the following fraud elements does not belong with the other three?

Accepted Answer

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

Question 20

Which scenario is the least conducive to fraud?

Accepted Answer

A)  Outstanding bills at home 
B)  Mandatory vacation time 
C)  Economic downturns 
D)  Moral decay in upper management 
A)  Outstanding bills at home 
B)  Mandatory vacation time 
C)  Economic downturns 
D)  Moral decay in upper management

Choose the answer that is NOT a common example of an analytical anomaly.

Who of the following would be most likely to provide a tip regarding the conversion of a fraud:

Accounting anomalies include all of the following except

The major difference between auditors and examiners who detect fraud and those who don't is that most auditors merely:

Common accounting anomalies involve problems with

Which of the following entries may indicate fraud except:

What do fraud perpetrators rarely do with the money they stole?

Duplicate payments, and excessive voids are red flags to watch in __________.

Which of the following is in the best position to detect fraud?

Auditors are better positioned than anyone to detect which element of fraud:

Which type of account would most likely be used to conceal fraud?

Which of the following is an accounting anomaly?

Overall, embezzlers are motivated by which of the following

Common examples of analytical anomalies include all of the following except:

Of the elements of fraud, which is usually least likely to be detected by auditors?

A fraud examiner can be sure that fraud has occurred when:

Which of the following is not an analytical fraud symptom?

Upon committing fraud, what do most people do with excess funds?

Which one of the following fraud elements does not belong with the other three?

Which scenario is the least conducive to fraud?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing 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 5: Recognizing the Symptoms of Fraud

Choose the answer that is NOT a common example of an analytical anomaly.

Who of the following would be most likely to provide a tip regarding the conversion of a fraud:

Accounting anomalies include all of the following except

The major difference between auditors and examiners who detect fraud and those who don't is that most auditors merely:

Common accounting anomalies involve problems with

Which of the following entries may indicate fraud except:

What do fraud perpetrators rarely do with the money they stole?

Duplicate payments, and excessive voids are red flags to watch in __________.

Which of the following is in the best position to detect fraud?

Auditors are better positioned than anyone to detect which element of fraud:

Which type of account would most likely be used to conceal fraud?

Which of the following is an accounting anomaly?

Overall, embezzlers are motivated by which of the following

Common examples of analytical anomalies include all of the following except:

Of the elements of fraud, which is usually least likely to be detected by auditors?

A fraud examiner can be sure that fraud has occurred when:

Which of the following is not an analytical fraud symptom?

Upon committing fraud, what do most people do with excess funds?

Which one of the following fraud elements does not belong with the other three?

Which scenario is the least conducive to fraud?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing 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