Question 1

How might a company prevent cash or checks from being stolen that are delivered in the mail?

Accepted Answer

Companies should have a policy of not accepting cash in the mail. But some customers may send cash anyway, leaving open the possibility of cash theft in the mail room. This problem is best solved by having two employees open the mail together. The two employees should then prepare and forward to accounts receivable a cash remittance list. This procedure establishes an audit trail that can be used to locate the source of any missing cash or checks.

Question 2

Describe how the fraud schemes of basic sales skimming and advanced sales skimming work.

Accepted Answer

Basic Sales skimming. The employee doesn't record the sale and pockets the cash. Advanced Sales Skimming. With this form of skimming, the employee collects the money from the customer, fails to record the sale, and gives the customer a forged receipt.

Question 3

Many companies in the United States fail each year due to employee fraud.

Accepted Answer

A) True 
 B)False  True

Question 4

Whose responsibility is it to help assure that the audit trail is generated?

Accepted Answer

A)  External auditor. 
B)  CEO. 
C)  CFO. 
D)  Internal auditor. 
A)  External auditor. 
B)  CEO. 
C)  CFO. 
D)  Internal auditor.

Question 5

If a company has poor pay, high pressure to perform and a hostile work environment, they are said to have:

Accepted Answer

A)  Poor corporate culture. 
B)  Increased morale. 
C)  Motivational management. 
D)  all of the above. 
A)  Poor corporate culture. 
B)  Increased morale. 
C)  Motivational management. 
D)  all of the above.

Question 6

How is non-custodial theft of money best prevented?

Accepted Answer

A)  Through good internal controls. 
B)  Through good checks and balances. 
C)  Through good auditing practices. 
D)  Through good physical security. 
A)  Through good internal controls. 
B)  Through good checks and balances. 
C)  Through good auditing practices. 
D)  Through good physical security.

Question 7

Describe the process of lapping of accounts receivables and explain which principle of internal control is violated?

Accepted Answer

The lapping of accounts receivables frau

Question 8

Unauthorized purchases, misappropriation of petty cash and abuse of company credit cards are all examples of:

Accepted Answer

A)  Accounts receivable fraud. 
B)  Expenditure cycle fraud. 
C)  Custodial theft of money. 
D)  Lapping of accounts receivables. 
A)  Accounts receivable fraud. 
B)  Expenditure cycle fraud. 
C)  Custodial theft of money. 
D)  Lapping of accounts receivables.

Question 9

Describe at least two methods that vendors could use to fraud a company.

Accepted Answer

Short shipments. A company is susceptibl

Question 10

Which of the following is not part of the fraud triangle?

Accepted Answer

A)  Greed. 
B)  Pressure. 
C)  Opportunity. 
D)  Rationalization 
A)  Greed. 
B)  Pressure. 
C)  Opportunity. 
D)  Rationalization

Question 11

"Skilled" cashiers can confuse or distract customers while they intentionally give them the wrong change. This is an example of:

Accepted Answer

A)  advanced sales skimming. 
B)  robbing the till. 
C)  short-change sales. 
D)  cash stolen in transmission. 
A)  advanced sales skimming. 
B)  robbing the till. 
C)  short-change sales. 
D)  cash stolen in transmission.

Question 12

In terms of catching employee fraud, what is the most important concept and how can it assist in catching employees actions?

Accepted Answer

The audit trail is the most important co

Question 13

How does check washing occur?

Accepted Answer

A)  False checks are submitted to banks within large batches of good checks in hopes that they will not be detected. 
B)  The ink from a good check is chemically removed and then a new check can be written from that check. 
C)  A check from one customer is stolen and the next check is used to cover that amount and so on. 
D)  The check is altered or tampered. 
A)  False checks are submitted to banks within large batches of good checks in hopes that they will not be detected. 
B)  The ink from a good check is chemically removed and then a new check can be written from that check. 
C)  A check from one customer is stolen and the next check is used to cover that amount and so on. 
D)  The check is altered or tampered.

Question 14

Data theft is typically easier to:

Accepted Answer

A)  catch than prevent. 
B)  prevent than identify. 
C)  detect than prosecute. 
D)  prosecute than detect. 
A)  catch than prevent. 
B)  prevent than identify. 
C)  detect than prosecute. 
D)  prosecute than detect.

Question 15

Why should all accounting data files be encrypted?

Accepted Answer

A)  To prevent direct file alteration. 
B)  To prevent accidental invoices from being created. 
C)  To provide forensic accountants with an audit trail. 
D)  All of the above. 
A)  To prevent direct file alteration. 
B)  To prevent accidental invoices from being created. 
C)  To provide forensic accountants with an audit trail. 
D)  All of the above.

Question 16

How can a company prevent data theft?

Accepted Answer

A)  By restricting access to only employees that need the data.. 
B)  By limiting the e-mailing capabilities of employees to only certain file types. 
C)  Through effective management oversight of employee activity. 
D)  All of the above. 
A)  By restricting access to only employees that need the data.. 
B)  By limiting the e-mailing capabilities of employees to only certain file types. 
C)  Through effective management oversight of employee activity. 
D)  All of the above.

Question 17

When an employee does not ring in a sale and simply pockets the cash, this is an example of:

Accepted Answer

A)  advanced sales skimming. 
B)  basic sales skimming. 
C)  short-change sales. 
D)  cash stolen in transmission. 
A)  advanced sales skimming. 
B)  basic sales skimming. 
C)  short-change sales. 
D)  cash stolen in transmission.

Question 18

Hiring a relative that is untrained and paying them at a higher rate is an example of:

Accepted Answer

A)  Accounts receivable fraud. 
B)  Expenditure cycle fraud. 
C)  Payroll fraud. 
D)  Lapping of accounts receivables. 
A)  Accounts receivable fraud. 
B)  Expenditure cycle fraud. 
C)  Payroll fraud. 
D)  Lapping of accounts receivables.

Question 19

Corporate culture can help prevent employee fraud.

Accepted Answer

A) True 
 B)False

Question 20

What are some rationalizations for people to commit fraud or steal from a company?

Accepted Answer

A)  antisocial personality disorder. 
B)  dissocial personality disorder. 
C)  pressure to conform to a corporate environment. 
D)  all of the above. 
A)  antisocial personality disorder. 
B)  dissocial personality disorder. 
C)  pressure to conform to a corporate environment. 
D)  all of the above.

How might a company prevent cash or checks from being stolen that are delivered in the mail?

Describe how the fraud schemes of basic sales skimming and advanced sales skimming work.

Many companies in the United States fail each year due to employee fraud.

Whose responsibility is it to help assure that the audit trail is generated?

If a company has poor pay, high pressure to perform and a hostile work environment, they are said to have:

How is non-custodial theft of money best prevented?

Describe the process of lapping of accounts receivables and explain which principle of internal control is violated?

Unauthorized purchases, misappropriation of petty cash and abuse of company credit cards are all examples of:

Describe at least two methods that vendors could use to fraud a company.

Which of the following is not part of the fraud triangle?

"Skilled" cashiers can confuse or distract customers while they intentionally give them the wrong change. This is an example of:

In terms of catching employee fraud, what is the most important concept and how can it assist in catching employees actions?

How does check washing occur?

Data theft is typically easier to:

Why should all accounting data files be encrypted?

How can a company prevent data theft?

When an employee does not ring in a sale and simply pockets the cash, this is an example of:

Hiring a relative that is untrained and paying them at a higher rate is an example of:

Corporate culture can help prevent employee fraud.

What are some rationalizations for people to commit fraud or steal from a company?

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

Filters

Exam 13: Employee, Vendor, and Other Frauds Against the Organization

How might a company prevent cash or checks from being stolen that are delivered in the mail?

Describe how the fraud schemes of basic sales skimming and advanced sales skimming work.

Many companies in the United States fail each year due to employee fraud.

Whose responsibility is it to help assure that the audit trail is generated?

If a company has poor pay, high pressure to perform and a hostile work environment, they are said to have:

How is non-custodial theft of money best prevented?

Describe the process of lapping of accounts receivables and explain which principle of internal control is violated?

Unauthorized purchases, misappropriation of petty cash and abuse of company credit cards are all examples of:

Describe at least two methods that vendors could use to fraud a company.

Which of the following is not part of the fraud triangle?

"Skilled" cashiers can confuse or distract customers while they intentionally give them the wrong change. This is an example of:

In terms of catching employee fraud, what is the most important concept and how can it assist in catching employees actions?

How does check washing occur?

Data theft is typically easier to:

Why should all accounting data files be encrypted?

How can a company prevent data theft?

When an employee does not ring in a sale and simply pockets the cash, this is an example of:

Hiring a relative that is untrained and paying them at a higher rate is an example of:

Corporate culture can help prevent employee fraud.

What are some rationalizations for people to commit fraud or steal from a company?

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

Filters