Exam 9: Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Once fraud within the financial statements is suspected, what are the next steps that the audit team would take? Provide examples.

Social networking sites such as Facebook® and MySpace® can be a source of evidence.

How does a Benford analysis work?

Investigation methods used to detect financial statement fraud are similar to those used to audit financial statements.

Through Net Worth Analysis, you are attempting to determine:

Provide at least three examples of both private and public databases.

If skimming has been in practice for years in a business, why might it be hard to detect using horizontal analysis?

Which of the types of filings would most likely indicate a financial need that might motivate financial statement fraud?

Chemical analysis is performed by means of infrared, fluorescence, and spectro-chromatography to establish the difference between inks appearing on the same paper in handwriting analysis.

Databases, court records and real estate records are all considered:

Explain some considerations for choosing the appropriate evidence-gathering technique. To choose the appropriate technique, the forensic accountant should consider the following factors: the type of fraud believed to have been perpetrated; whether the fraud is ongoing; the extent of the fraud; the extent to which the investigation can be kept secret; the condition of the financial records, other source documents, and physical evidence; the sophistication of the suspect and whether collusion exists; the cost of applying a given method; the psychological and organizational impact of applying the given method; and the objectives of the investigation.

Tracing and vouching are opposite investigation techniques.

What is a search warrant?

Which of the following type of records can typically only be access by law enforcement?

__________ are used when third parties (persons other than the client) have knowledge of some aspect of a financial or non-financial matter and can be asked to provide this information.

If the fraud investigator is not an employee of the IRS, or a member of a federal agency that can obtain tax records via subpoena, how much he obtain the information?

What are the five common types of analytical procedures?

The basis for net worth calculations is:

If evidence is tangible, it is said to be _______ evidence.

Which of the following would be a violation of the chain of custody?