Question 1

Which of the following terms describes the act of stealing cash revenue after it has been recorded in the accounting system?

Accepted Answer

A)  cash larceny 
B)  register disbursement 
C)  less cash scheme 
D)  skimming 
A)  cash larceny 
B)  register disbursement 
C)  less cash scheme 
D)  skimming

Question 2

Which of the following is a difference between mediation and arbitration?

Accepted Answer

A)  Mediation is a nonbinding structured process, whereas arbitration is a binding process. 
B)  Mediation is done in front of a panel, whereas arbitration is facilitated by an independent third party. 
C)  Mediation is generally time-consuming, whereas arbitration takes significantly less time. 
D)  Mediation is completely flexible, whereas arbitration is comparatively rigid. 
A)  Mediation is a nonbinding structured process, whereas arbitration is a binding process. 
B)  Mediation is done in front of a panel, whereas arbitration is facilitated by an independent third party. 
C)  Mediation is generally time-consuming, whereas arbitration takes significantly less time. 
D)  Mediation is completely flexible, whereas arbitration is comparatively rigid.

Question 3

An artful plot or plan,usually to deceive others is called a

Accepted Answer

A)  fraud scheme. 
B)  fraud hypothesis. 
C)  fraud arbitration. 
D)  fraud mediation. 
A)  fraud scheme. 
B)  fraud hypothesis. 
C)  fraud arbitration. 
D)  fraud mediation.

Question 4

Which of the following enhances client understanding and acceptance through interim (phase)reporting?

Accepted Answer

A)  integrated approach 
B)  unit approach 
C)  incremental approach 
D)  phased approach 
A)  integrated approach 
B)  unit approach 
C)  incremental approach 
D)  phased approach

Question 5

What are the common characteristics of fraudulent journal entries outlined in SAS No.99?

Accepted Answer

As outlined in SAS No.99,fraudulent jour

Question 6

Under the periodic inventory method

Accepted Answer

A)  inventory account is used to record the changes in inventory. 
B)  cost of goods sold is recorded after each purchase. 
C)  beginning inventory remains unchanged during the period. 
D)  inventory account is adjusted only once in three accounting periods. 
A)  inventory account is used to record the changes in inventory. 
B)  cost of goods sold is recorded after each purchase. 
C)  beginning inventory remains unchanged during the period. 
D)  inventory account is adjusted only once in three accounting periods.

Question 7

Which of the following is true of arbitration?

Accepted Answer

A)  It is formal as compared to a trial. 
B)  It is focused on fact finding. 
C)  It is less expensive than mediation. 
D)  It is a nonbinding structured process. 
A)  It is formal as compared to a trial. 
B)  It is focused on fact finding. 
C)  It is less expensive than mediation. 
D)  It is a nonbinding structured process.

Question 8

Mediation is less expensive than arbitration.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements comparing alternative dispute resolution (ADR)with litigation is true?

Accepted Answer

A)  ADR is more expensive than litigation. 
B)  ADR is more time-consuming than litigation. 
C)  Litigation is public whereas ADR maintains privacy. 
D)  Litigation has complete flexibility whereas ADR has limited flexibility. 
A)  ADR is more expensive than litigation. 
B)  ADR is more time-consuming than litigation. 
C)  Litigation is public whereas ADR maintains privacy. 
D)  Litigation has complete flexibility whereas ADR has limited flexibility.

Question 10

A ________ is a payment back by a seller of a portion of the purchase price to a buyer to induce purchase or influence future purchases.

Accepted Answer

A)  false discount 
B)  expense reimbursement 
C)  kickback 
D)  check tampering 
A)  false discount 
B)  expense reimbursement 
C)  kickback 
D)  check tampering

Question 11

Which of the following terms describes a fraud scheme in which two conspiring companies exchange payments and services for the sole purpose of inflating revenues?

Accepted Answer

A)  billing scheme 
B)  kickback 
C)  switch contract 
D)  swap transaction 
A)  billing scheme 
B)  kickback 
C)  switch contract 
D)  swap transaction

Question 12

Dylan,the accountant of Skylar Constructions,is being suspected for altering entries in the books of accounts and transferring the difference to a separate account.Dylan has recently bought a luxury car.You are appointed to investigate the fraud.Which of the following is a good preliminary hypothesis for the case?

Accepted Answer

A)  Skylar uses perpetual inventory method which reduces the probability of detection of fraud. 
B)  Dylan shares a good rapport with the auditor of the company, enhancing the opportunity to commit fraud. 
C)  Dylan recently bought a luxury car, the sources of funds for which is yet to be determined. 
D)  The financial statements of the company are reported quarterly, increasing the probability of detection. 
A)  Skylar uses perpetual inventory method which reduces the probability of detection of fraud. 
B)  Dylan shares a good rapport with the auditor of the company, enhancing the opportunity to commit fraud. 
C)  Dylan recently bought a luxury car, the sources of funds for which is yet to be determined. 
D)  The financial statements of the company are reported quarterly, increasing the probability of detection.

Question 13

An arbitration panel should include at least three lawyers.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the objective of journal entry testing in a forensic accounting engagement?

Accepted Answer

A)  to create a preliminary hypothesis 
B)  to identify and assess any inappropriate or unusual activity 
C)  to confirm the reasonableness of the suspicions of fraud 
D)  to determine the reliability of the recorded journal entries 
A)  to create a preliminary hypothesis 
B)  to identify and assess any inappropriate or unusual activity 
C)  to confirm the reasonableness of the suspicions of fraud 
D)  to determine the reliability of the recorded journal entries

Question 15

Which of the following scenarios involves skimming?

Accepted Answer

A)  Ian deducted cash from check deposits of the company. 
B)  Keith removed cash from the safe after it had been entered into the cash book. 
C)  Natalie removed cash from the register before the entries were made into the books of accounts. 
D)  Olivia made false entries in a cash register to conceal the cash she removed without authorization. 
A)  Ian deducted cash from check deposits of the company. 
B)  Keith removed cash from the safe after it had been entered into the cash book. 
C)  Natalie removed cash from the register before the entries were made into the books of accounts. 
D)  Olivia made false entries in a cash register to conceal the cash she removed without authorization.

Which of the following terms describes the act of stealing cash revenue after it has been recorded in the accounting system?

Which of the following is a difference between mediation and arbitration?

An artful plot or plan,usually to deceive others is called a

Which of the following enhances client understanding and acceptance through interim (phase)reporting?

What are the common characteristics of fraudulent journal entries outlined in SAS No.99?

Under the periodic inventory method

Which of the following is true of arbitration?

Mediation is less expensive than arbitration.

Which of the following statements comparing alternative dispute resolution (ADR)with litigation is true?

A ________ is a payment back by a seller of a portion of the purchase price to a buyer to induce purchase or influence future purchases.

Which of the following terms describes a fraud scheme in which two conspiring companies exchange payments and services for the sole purpose of inflating revenues?

An arbitration panel should include at least three lawyers.

Which of the following is the objective of journal entry testing in a forensic accounting engagement?

Which of the following scenarios involves skimming?

Introduction to the World of Forensic Accounting

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Transforming Data Into Evidence

Transforming Data Into Evidence

Professional Responsibilities

Fundamentals of Business Valuation

Special Topics

Filters

Exam 7: Conducting a Fraud Investigation

Which of the following terms describes the act of stealing cash revenue after it has been recorded in the accounting system?

Which of the following is a difference between mediation and arbitration?

An artful plot or plan,usually to deceive others is called a

Which of the following enhances client understanding and acceptance through interim (phase)reporting?

What are the common characteristics of fraudulent journal entries outlined in SAS No.99?

Under the periodic inventory method

Which of the following is true of arbitration?

Mediation is less expensive than arbitration.

Which of the following statements comparing alternative dispute resolution (ADR)with litigation is true?

A ________ is a payment back by a seller of a portion of the purchase price to a buyer to induce purchase or influence future purchases.

Which of the following terms describes a fraud scheme in which two conspiring companies exchange payments and services for the sole purpose of inflating revenues?

An arbitration panel should include at least three lawyers.

Which of the following is the objective of journal entry testing in a forensic accounting engagement?

Which of the following scenarios involves skimming?

Introduction to the World of Forensic Accounting

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Transforming Data Into Evidence

Transforming Data Into Evidence

Professional Responsibilities

Fundamentals of Business Valuation

Special Topics

Filters