Question 1

One way to view the results of multiple indicators is to use a chart called a ____________ .

Accepted Answer

A) Soundex algorithm 
B) summarization chart 
C) pareto chart 
D) Matosas matrix 
A) Soundex algorithm 
B) summarization chart 
C) pareto chart 
D) Matosas matrix D

Question 2

Horizontal analysis is performed when:

Accepted Answer

A) total assets are set at 100% and all other balances are a percentage of total assets. 
B) the percentage change in the balance sheet and income statement numbers is computed for one period to the next. 
C) there is a need to calculate and compare key ratios from period to period. 
D) detecting fraud through financial statements demands calculation of key ratios and comparing them from period to period. 
A) total assets are set at 100% and all other balances are a percentage of total assets. 
B) the percentage change in the balance sheet and income statement numbers is computed for one period to the next. 
C) there is a need to calculate and compare key ratios from period to period. 
D) detecting fraud through financial statements demands calculation of key ratios and comparing them from period to period. B

Question 3

ACL stands for:

Accepted Answer

A) Account Coverage Level. 
B) Audit Command Language. 
C) Actuarial Confidence Level. 
D) Auditors' Common Language. 
A) Account Coverage Level. 
B) Audit Command Language. 
C) Actuarial Confidence Level. 
D) Auditors' Common Language. B

Question 4

According to Benford's law,5 will be the first digit of a random number set:

Accepted Answer

A) more often than 1. 
B) less often than 4. 
C) about the same as 6. 
D) more often than 3. 
A) more often than 1. 
B) less often than 4. 
C) about the same as 6. 
D) more often than 3.

Question 5

____ include statistical summaries of each column that include control totals,mean,maximum,minimum,standard deviation,number of zero values,number of empty records,etc

Accepted Answer

A) Captions 
B) Histograms 
C) Headings 
D) Descriptives 
A) Captions 
B) Histograms 
C) Headings 
D) Descriptives

Question 6

Identify the true statement about detecting fraud using financial statement reports.

Accepted Answer

A) Performing horizontal analysis requires converting the financial statement balances to percentages of total assets or gross sales. 
B) Vertical analysis is the most direct method of focusing on changes from period to period. 
C) Before performing a data-driven analysis that targets fraud and corruption in financial statements,all three types of financial statements need to be converted to change statements. 
D) Small frauds may not affect the summarized financial statements significantly to be detected. 
A) Performing horizontal analysis requires converting the financial statement balances to percentages of total assets or gross sales. 
B) Vertical analysis is the most direct method of focusing on changes from period to period. 
C) Before performing a data-driven analysis that targets fraud and corruption in financial statements,all three types of financial statements need to be converted to change statements. 
D) Small frauds may not affect the summarized financial statements significantly to be detected.

Question 7

While methods like high-low slope,average slope,handshaking,and Box-Jenkins exist,one of the most popular techniques for summarizing the slope of a graph is _______ .

Accepted Answer

A) summarization 
B) stratification 
C) statistical regression. 
D) arithmetic progression 
A) summarization 
B) stratification 
C) statistical regression. 
D) arithmetic progression

Question 8

Benford's law can help detect fraud by:

Accepted Answer

A) establishing weaknesses in the accounting control system. 
B) identifying accounting anomalies. 
C) focusing on unexplained changes. 
D) showing attempts by fraudsters to make stolen amounts look random. 
A) establishing weaknesses in the accounting control system. 
B) identifying accounting anomalies. 
C) focusing on unexplained changes. 
D) showing attempts by fraudsters to make stolen amounts look random.

Question 9

Which of the following statements is NOT true?

Accepted Answer

A) In recent years there have been many cases of financial statement fraud. 
B) Proactive fraud detection methods are in their infancy. 
C) Accounting anomalies represent fraud and normally result in legal action being taken. 
D) Fraud investigation involves determining who committed the fraud,the schemes used and how much money or assets were taken. 
A) In recent years there have been many cases of financial statement fraud. 
B) Proactive fraud detection methods are in their infancy. 
C) Accounting anomalies represent fraud and normally result in legal action being taken. 
D) Fraud investigation involves determining who committed the fraud,the schemes used and how much money or assets were taken.

Question 10

Which of the following is a commercial data-mining software?

Accepted Answer

A) ACL 
B) QuickBooks 
C) Peachtree 
D) Excel 
A) ACL 
B) QuickBooks 
C) Peachtree 
D) Excel

Question 11

Which approach converts financial statement numbers as percentage of total assets or gross sales?

Accepted Answer

A) Horizontal Analysis 
B) Vertical Analysis 
C) Ratio Analysis 
D) Variance Analysis 
A) Horizontal Analysis 
B) Vertical Analysis 
C) Ratio Analysis 
D) Variance Analysis

Question 12

Which of the following is similar to ACL and its primary competitor?

Accepted Answer

A) Picalo 
B) IDEA 
C) Microsoft Office + ActiveData 
D) Z-score 
A) Picalo 
B) IDEA 
C) Microsoft Office + ActiveData 
D) Z-score

Question 13

While using financial statement analysis,which ratio will be most useful in assessing the company's operational efficiency?

Accepted Answer

A) Current Ratio 
B) Quick ratio 
C) Cost of goods sold percentage 
D) Inventory turnover 
A) Current Ratio 
B) Quick ratio 
C) Cost of goods sold percentage 
D) Inventory turnover

Question 14

Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?

Accepted Answer

A) Calculating key ratios and comparing them from period to period 
B) Comparing account balances in the statements from one period to the next 
C) Performing a vertical analysis 
D) Performing a horizontal analysis 
A) Calculating key ratios and comparing them from period to period 
B) Comparing account balances in the statements from one period to the next 
C) Performing a vertical analysis 
D) Performing a horizontal analysis

Question 15

Kickbacks from vendors to buyers might generate one of the following symptoms.

Accepted Answer

A) Buyer doesn't relate well to other buyers and vendors 
B) Decreasing purchases from favored vendor 
C) Increasing purchases from other vendors 
D) Decreasing prices and increasing quality 
A) Buyer doesn't relate well to other buyers and vendors 
B) Decreasing purchases from favored vendor 
C) Increasing purchases from other vendors 
D) Decreasing prices and increasing quality

Question 16

Which of the following is true for accounting anomalies?

Accepted Answer

A) They are primarily caused by lack of training. 
B) They represent intentional sabotage of controls. 
C) They are problems caused by failures in systems,procedures,and policies. 
D) They represent fraud and normally result in legal action being taken. 
A) They are primarily caused by lack of training. 
B) They represent intentional sabotage of controls. 
C) They are problems caused by failures in systems,procedures,and policies. 
D) They represent fraud and normally result in legal action being taken.

Question 17

Benford's law:

Accepted Answer

A) applies to numbers that have built-in limits. 
B) is most effectively used with assigned numbers. 
C) applies best to numbers that occur naturally. 
D) uses ratios to detect fraud. 
A) applies to numbers that have built-in limits. 
B) is most effectively used with assigned numbers. 
C) applies best to numbers that occur naturally. 
D) uses ratios to detect fraud.

Question 18

While using n-grams,a match percentage of ________ or ________ generally indicates very similar values.

Accepted Answer

A) 10 percent,smaller 
B) 20 percent,greater 
C) 5 percent,smaller 
D) 40 percent,greater 
A) 10 percent,smaller 
B) 20 percent,greater 
C) 5 percent,smaller 
D) 40 percent,greater

Question 19

Which of the following is an analytical symptom of a kickback?

Accepted Answer

A) Decreasing purchases from other vendors 
B) Charging reasonable price for goods supplied 
C) Providing better quality goods 
D) Smaller purchase quantities 
A) Decreasing purchases from other vendors 
B) Charging reasonable price for goods supplied 
C) Providing better quality goods 
D) Smaller purchase quantities

Question 20

____ is the splitting of complex data sets into case-specific tables.

Accepted Answer

A) Deviation 
B) Stratification 
C) Data mining 
D) Soundex 
A) Deviation 
B) Stratification 
C) Data mining 
D) Soundex

One way to view the results of multiple indicators is to use a chart called a ____________ .

Horizontal analysis is performed when:

ACL stands for:

According to Benford's law,5 will be the first digit of a random number set:

____ include statistical summaries of each column that include control totals,mean,maximum,minimum,standard deviation,number of zero values,number of empty records,etc

Identify the true statement about detecting fraud using financial statement reports.

While methods like high-low slope,average slope,handshaking,and Box-Jenkins exist,one of the most popular techniques for summarizing the slope of a graph is _______ .

Benford's law can help detect fraud by:

Which of the following statements is NOT true?

Which of the following is a commercial data-mining software?

Which approach converts financial statement numbers as percentage of total assets or gross sales?

Which of the following is similar to ACL and its primary competitor?

While using financial statement analysis,which ratio will be most useful in assessing the company's operational efficiency?

Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?

Kickbacks from vendors to buyers might generate one of the following symptoms.

Which of the following is true for accounting anomalies?

Benford's law:

While using n-grams,a match percentage of or generally indicates very similar values.

Which of the following is an analytical symptom of a kickback?

____ is the splitting of complex data sets into case-specific tables.

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 6: Data-Driven Fraud Detection

One way to view the results of multiple indicators is to use a chart called a ____________ .

Horizontal analysis is performed when:

ACL stands for:

According to Benford's law,5 will be the first digit of a random number set:

____ include statistical summaries of each column that include control totals,mean,maximum,minimum,standard deviation,number of zero values,number of empty records,etc

Identify the true statement about detecting fraud using financial statement reports.

While methods like high-low slope,average slope,handshaking,and Box-Jenkins exist,one of the most popular techniques for summarizing the slope of a graph is _______ .

Benford's law can help detect fraud by:

Which of the following statements is NOT true?

Which of the following is a commercial data-mining software?

Which approach converts financial statement numbers as percentage of total assets or gross sales?

Which of the following is similar to ACL and its primary competitor?

While using financial statement analysis,which ratio will be most useful in assessing the company's operational efficiency?

Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?

Kickbacks from vendors to buyers might generate one of the following symptoms.

Which of the following is true for accounting anomalies?

Benford's law:

While using n-grams,a match percentage of ________ or ________ generally indicates very similar values.

Which of the following is an analytical symptom of a kickback?

____ is the splitting of complex data sets into case-specific tables.

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

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

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

While using n-grams,a match percentage of or generally indicates very similar values.