Exam 5: Fraud Examination and Fraud Management

Discovery is a process in which opposing parties can require each other and relevant parties to produce out-of-court evidence

Type 1 errors occur when

Presented below is a list of terms relating to fraud schemes,followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once. ________ 1.Sales skimming ________ 2.Bid rigging frauds ________ 3.Payroll fraud ________ 4.Fraudulent cost-plus billing ________ 5.Swapping checks for cash ________ 6.Short shipments ________ 7.Shortchanging the customer ________ 8.Check washing ________ 9.Kickback frauds ________ 10.Robbing the cash register A.Involves removing cash from the cash register and replacing it with bogus checks B.Scheme that typically involves an employee pocketing cash but not recording its collection C.The involvement of using chemicals to remove a check's payment details and then adding new details for the payee,date,or amount of payment D.In situations where cash register receipts are not reconciled with sales receipts per each individual cash register,the employee is free to rob the cash register with impunity E.A dishonest purchasing agent might purchase from a friend or relative even though to do so is not in the best interest of the company F.A fraud scheme in which a cashier uses distraction or deception in order to pocket part of the change due to the customer G.Vendors bill customers for the vendor's costs plus a fictitious markup H.A dishonest purchasing agent might accept secret payments or favors in exchange for favoring a particular vendor I.Involves improper hiring,improper changes to employee personnel files and pay rates,and improper work-related reporting J.Vendors ship fewer than the ordered amount of goods but bill for the amount ordered

________ ________ may involve improper hiring,improper changes to employee personnel files and pay rates.

Expert qualifications include things such as race,gender,and social status.

Working with numbers in accounts and following them backward to the source document is known as

One of the major disadvantages to pulling the plug is that

Individuals who respond more to audio stimuli typically

In the United States,employee fraud represents a small percentage of loss for most organizations.

In many cases,the investigator will seek to find the ________ location associated with a computer device that is used to communicate over the Internet.

The three sides of the fraud triangle are: ________,________,and ________.

Total fraud costs are computed by adding

Information security management systems (ISMS)have which of the following objectives?

A search warrant is an order from a government agency or officer of a court that compels the recipient,under penalty,to produce physical evidence,documents,or testimony.

A well-known standard for information security management systems development is

You have been hired by your client to investigate an alleged fraud case.Due to the complex nature of your client's transactions,you determined that it is necessary for you to obtain expert opinions and analyses to aid your investigation. Required: a.Identify the qualifications that your expert will need to possess in order to serve as your expert consultant. b.Describe the conditions under which your expert will be permitted to testify based on Rule 702.

Which of the following is part of the fraud investigation process?

COBIT standard is based on 16 high-level objectives that are broken down into 318 detailed control objectives.

Roughly half of all financial statement frauds involve overstating ________.

Fraud prevention requires implementing control checklists that contain items such as firewalls and anti-virus software.