Question 1

A conflict of interest is corruption that can be defined as:

Accepted Answer

A)  Offering, giving, receiving or soliciting anything of value in order to influence an official act 
B)  Corrupt employees demand payments from vendors for deciding in the vendors' favor 
C)  Corrupt employees are rewarded for making favorable decisions 
D)  The employee has an undisclosed economic or personal stake in a transaction that adversely affects the company 
A)  Offering, giving, receiving or soliciting anything of value in order to influence an official act 
B)  Corrupt employees demand payments from vendors for deciding in the vendors' favor 
C)  Corrupt employees are rewarded for making favorable decisions 
D)  The employee has an undisclosed economic or personal stake in a transaction that adversely affects the company

Question 2

Which of the following fraud scheme will cause missing inventory?

Accepted Answer

A)  False refunds 
B)  Check tampering 
C)  Expense schemes 
D)  Cash skimming 
A)  False refunds 
B)  Check tampering 
C)  Expense schemes 
D)  Cash skimming

Question 3

Asset misappropriation is defined as theft that is committed by

Accepted Answer

A)  Offering, giving, receiving, or soliciting anything of value to influence an official act. 
B)  Demanding payment from a vendor in order to make or influence a decision in a vendor's favor. 
C)  Deceiving individuals into putting their money into a fake investment. 
D)  Stealing receipts, stealing assets on hand, or by committing any type of disbursement fraud. 
A)  Offering, giving, receiving, or soliciting anything of value to influence an official act. 
B)  Demanding payment from a vendor in order to make or influence a decision in a vendor's favor. 
C)  Deceiving individuals into putting their money into a fake investment. 
D)  Stealing receipts, stealing assets on hand, or by committing any type of disbursement fraud.

Question 4

When an employee demands payment from a vendor in order to conduct business with the vendor, he or she is committing a ________.

Accepted Answer

A)  Bribery scheme 
B)  Conflict of interest scheme 
C)  Economic extortion scheme 
D)  Illegal gratuity scheme 
A)  Bribery scheme 
B)  Conflict of interest scheme 
C)  Economic extortion scheme 
D)  Illegal gratuity scheme

Question 5

A recent study indicated that U.S. Organizations lose approximately ____ % of their annual revenues to fraud.

Accepted Answer

A)  5 
B)  10 
C)  17 
D)  25 
A)  5 
B)  10 
C)  17 
D)  25

Question 6

Which of the following is not one of the four types of corruption?

Accepted Answer

A)  Bribery 
B)  Larceny 
C)  Extortion 
D)  Illegal gratuities 
A)  Bribery 
B)  Larceny 
C)  Extortion 
D)  Illegal gratuities

Question 7

Identify the statement that does NOT represent one of the four types of corruption.

Accepted Answer

A)  Offering, giving, receiving, or soliciting anything of value in order to influence an official act. 
B)  False documents cause the victim company to unknowingly make a fraudulent disbursement. 
C)  Employees demand payments from vendors for deciding in the vendors' favor 
D)  An employee, manager, or executive has an undisclosed economic or personal interest in a transaction that adversely affects the company. 
E)  Corrupt employees are rewarded for favorable decisions after deals are approved. 
A)  Offering, giving, receiving, or soliciting anything of value in order to influence an official act. 
B)  False documents cause the victim company to unknowingly make a fraudulent disbursement. 
C)  Employees demand payments from vendors for deciding in the vendors' favor 
D)  An employee, manager, or executive has an undisclosed economic or personal interest in a transaction that adversely affects the company. 
E)  Corrupt employees are rewarded for favorable decisions after deals are approved.

Question 8

Fraudulent financial reporting and misappropriation of assets differ in that fraudulent financial reporting is committed by:

Accepted Answer

A)  Management, to deceive financial statement users while misappropriation of assets is committed against an entity, most often by employees. 
B)  Employees, to deceive financial statement users while misappropriation of assets is committed against an entity, most often by management. 
C)  Both A & B 
D)  None of the above 
A)  Management, to deceive financial statement users while misappropriation of assets is committed against an entity, most often by employees. 
B)  Employees, to deceive financial statement users while misappropriation of assets is committed against an entity, most often by management. 
C)  Both A & B 
D)  None of the above

Question 9

The following are all types of corruption except:

Accepted Answer

A)  Extortion 
B)  Conflicts of interest 
C)  Lapping 
D)  Bribery 
A)  Extortion 
B)  Conflicts of interest 
C)  Lapping 
D)  Bribery

Question 10

True of False: Bribery schemes usually benefit the employee who accepts the vendor bribe, but the company rarely suffers economic loss?

Accepted Answer

A) True 
 B)False

Question 11

According to the text, which of the following is the least costly of all disbursement schemes?

Accepted Answer

A)  Check tampering schemes 
B)  Personal expense schemes 
C)  Billing schemes 
D)  Payroll schemes 
A)  Check tampering schemes 
B)  Personal expense schemes 
C)  Billing schemes 
D)  Payroll schemes

Question 12

Which of the following frauds cannot be performed with collusion?

Accepted Answer

A)  Stealing Receipts 
B)  Stealing Assets on Hand 
C)  Stealing Through Disbursements 
D)  All of the above can be performed with collusion 
A)  Stealing Receipts 
B)  Stealing Assets on Hand 
C)  Stealing Through Disbursements 
D)  All of the above can be performed with collusion

Question 13

Which of the following is the best example of theft of cash through skimming?

Accepted Answer

A)  Preparing fraudulent checks 
B)  Understating sales by recording false or larger-than reality sales discounts 
C)  Setting up dummy companies 
D)  Stealing cash after it has already been recorded 
A)  Preparing fraudulent checks 
B)  Understating sales by recording false or larger-than reality sales discounts 
C)  Setting up dummy companies 
D)  Stealing cash after it has already been recorded

Question 14

Bribery involves offering, giving, receiving, or soliciting anything of value in order to influence a/an

Accepted Answer

A)  Decision of government agents 
B)  Official act 
C)  Decision of employees 
D)  All of the above 
A)  Decision of government agents 
B)  Official act 
C)  Decision of employees 
D)  All of the above

Question 15

Lapping is:

Accepted Answer

A)  Stealing one customer's payment and then crediting that customer's account with a subsequent customer's payment. 
B)  Stealing cash from an organization prior to the organization's accounting system recording the cash receipt. 
C)  Helping a vendor illegally obtain a contract that should have involved competitive bidding. 
D)  None of the above. 
A)  Stealing one customer's payment and then crediting that customer's account with a subsequent customer's payment. 
B)  Stealing cash from an organization prior to the organization's accounting system recording the cash receipt. 
C)  Helping a vendor illegally obtain a contract that should have involved competitive bidding. 
D)  None of the above.

Question 16

Check tampering is a form of

Accepted Answer

A)  Stealing receipts of cash 
B)  Stealing cash on hand 
C)  Committing disbursement fraud 
D)  Committing a corruption fraud 
A)  Stealing receipts of cash 
B)  Stealing cash on hand 
C)  Committing disbursement fraud 
D)  Committing a corruption fraud

Question 17

Skimming is easier to detect than larceny because

Accepted Answer

A)  Cash is stolen after it has been recorded in the company's accounting system 
B)  Cash is stolen before it has been recorded in the company's accounting system 
C)  Skimming involves fraudulent cash receipts 
D)  Skimming is not easier to detect than larceny 
A)  Cash is stolen after it has been recorded in the company's accounting system 
B)  Cash is stolen before it has been recorded in the company's accounting system 
C)  Skimming involves fraudulent cash receipts 
D)  Skimming is not easier to detect than larceny

Question 18

According to the text, skimming is a subset of which type of asset misappropriation?

Accepted Answer

A)  Theft of cash 
B)  Theft of inventory 
C)  Theft of receipts 
D)  Disbursement fraud 
A)  Theft of cash 
B)  Theft of inventory 
C)  Theft of receipts 
D)  Disbursement fraud

Question 19

Which of the following is not an example of a billing scheme?

Accepted Answer

A)  Submitting invoices to the victim organization for dummy companies 
B)  Altering a non-accomplice vendor's statements 
C)  Making a claim for reimbursement of a fictitious or inflated business expenses 
D)  Making personal purchases with company funds 
E)  All of the above are examples of billing schemes 
A)  Submitting invoices to the victim organization for dummy companies 
B)  Altering a non-accomplice vendor's statements 
C)  Making a claim for reimbursement of a fictitious or inflated business expenses 
D)  Making personal purchases with company funds 
E)  All of the above are examples of billing schemes

Question 20

Which of the following examples is NOT a billing scheme?

Accepted Answer

A)  Mark purchases a new laptop computer for his brother-in-law with company funds. 
B)  Mark submits a receipt of his cab fare for reimbursement, which includes an extra $10. 
C)  Mark double pays a vendor for the purchase of inventory and then pockets the second payment when it is returned. 
D)  All of the above are billing schemes 
A)  Mark purchases a new laptop computer for his brother-in-law with company funds. 
B)  Mark submits a receipt of his cab fare for reimbursement, which includes an extra $10. 
C)  Mark double pays a vendor for the purchase of inventory and then pockets the second payment when it is returned. 
D)  All of the above are billing schemes

A conflict of interest is corruption that can be defined as:

Which of the following fraud scheme will cause missing inventory?

Asset misappropriation is defined as theft that is committed by

When an employee demands payment from a vendor in order to conduct business with the vendor, he or she is committing a ________.

A recent study indicated that U.S. Organizations lose approximately ____ % of their annual revenues to fraud.

Which of the following is not one of the four types of corruption?

Identify the statement that does NOT represent one of the four types of corruption.

Fraudulent financial reporting and misappropriation of assets differ in that fraudulent financial reporting is committed by:

The following are all types of corruption except:

True of False: Bribery schemes usually benefit the employee who accepts the vendor bribe, but the company rarely suffers economic loss?

According to the text, which of the following is the least costly of all disbursement schemes?

Which of the following frauds cannot be performed with collusion?

Which of the following is the best example of theft of cash through skimming?

Bribery involves offering, giving, receiving, or soliciting anything of value in order to influence a/an

Lapping is:

Check tampering is a form of

Skimming is easier to detect than larceny because

According to the text, skimming is a subset of which type of asset misappropriation?

Which of the following is not an example of a billing scheme?

Which of the following examples is NOT a billing scheme?

The Nature of Fraud

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

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 14: Fraud Against Organizations

A conflict of interest is corruption that can be defined as:

Which of the following fraud scheme will cause missing inventory?

Asset misappropriation is defined as theft that is committed by

When an employee demands payment from a vendor in order to conduct business with the vendor, he or she is committing a ________.

A recent study indicated that U.S. Organizations lose approximately ____ % of their annual revenues to fraud.

Which of the following is not one of the four types of corruption?

Identify the statement that does NOT represent one of the four types of corruption.

Fraudulent financial reporting and misappropriation of assets differ in that fraudulent financial reporting is committed by:

The following are all types of corruption except:

True of False: Bribery schemes usually benefit the employee who accepts the vendor bribe, but the company rarely suffers economic loss?

According to the text, which of the following is the least costly of all disbursement schemes?

Which of the following frauds cannot be performed with collusion?

Which of the following is the best example of theft of cash through skimming?

Bribery involves offering, giving, receiving, or soliciting anything of value in order to influence a/an

Lapping is:

Check tampering is a form of

Skimming is easier to detect than larceny because

According to the text, skimming is a subset of which type of asset misappropriation?

Which of the following is not an example of a billing scheme?

Which of the following examples is NOT a billing scheme?

The Nature of Fraud

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

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters