Question 1

What is the primary drawback of the data-driven approach?

Accepted Answer

A) More expensive and time intensive than the traditional approach. 
B) Long wait time for tips or other indicators. 
C) Cannot highlight frauds while they are still small. 
D) The investigator loses control charge of the fraud investigation process. 
A) More expensive and time intensive than the traditional approach. 
B) Long wait time for tips or other indicators. 
C) Cannot highlight frauds while they are still small. 
D) The investigator loses control charge of the fraud investigation process.

Question 2

Specific implementations of delimited text are called TSV.What does TSV stands for?

Accepted Answer

A) toxicity screening value 
B) time segmented volume 
C) tab separated values 
D) tactical secure voice 
A) toxicity screening value 
B) time segmented volume 
C) tab separated values 
D) tactical secure voice

Question 3

______ are a two dimensional view with cases in one dimension and the calculations in the other.

Accepted Answer

A) N-grams 
B) Z-scores 
C) Pivot Tables 
D) Soundex algorithms 
A) N-grams 
B) Z-scores 
C) Pivot Tables 
D) Soundex algorithms

Question 4

Digital analysis is:

Accepted Answer

A) the art of analyzing the digits that make up numbers like invoice amounts,reported hours,and costs. 
B) a technique which calculates the average probability for each grouping of data. 
C) the searching for expected relationships between numbers. 
D) the use of numeric values for decision making. 
A) the art of analyzing the digits that make up numbers like invoice amounts,reported hours,and costs. 
B) a technique which calculates the average probability for each grouping of data. 
C) the searching for expected relationships between numbers. 
D) the use of numeric values for decision making.

Question 5

One of the disadvantages of Benford's law in detecting fraud is:

Accepted Answer

A) potential suspects are more likely to know you are trying to detect fraud than if you use such detection techniques. 
B) it is very expensive to implement and use. 
C) that those cases with the lowest probabilities do not match Benford's law and may need further investigation. 
D) it only broadly identifies the possible existence of fraud;it fails to narrow possibilities to a manageable field of promising leads. 
A) potential suspects are more likely to know you are trying to detect fraud than if you use such detection techniques. 
B) it is very expensive to implement and use. 
C) that those cases with the lowest probabilities do not match Benford's law and may need further investigation. 
D) it only broadly identifies the possible existence of fraud;it fails to narrow possibilities to a manageable field of promising leads.

Question 6

Which of the following is least effective while searching for anomalies?

Accepted Answer

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

Question 7

Which of the following statements is true about the characteristics of real-time analysis?

Accepted Answer

A) With real-time analysis in place,there is no need for continual improvement and updating of indicators. 
B) It is a distinct technique because it specifically analyzes each transaction for correctness rather than for fraud. 
C) It does not allow real-time modification and deletion of less-effective indicators. 
D) Indicators are hard-coded into the system. 
A) With real-time analysis in place,there is no need for continual improvement and updating of indicators. 
B) It is a distinct technique because it specifically analyzes each transaction for correctness rather than for fraud. 
C) It does not allow real-time modification and deletion of less-effective indicators. 
D) Indicators are hard-coded into the system.

Question 8

What is the primary advantage of the data-driven approach?

Accepted Answer

A) The investigator makes hypotheses and tests to see if each one holds true. 
B) It is less expensive and time intensive than the traditional approach. 
C) The investigator takes charge of the fraud investigation process. 
D) Data-driven fraud detection is proactive in nature. 
A) The investigator makes hypotheses and tests to see if each one holds true. 
B) It is less expensive and time intensive than the traditional approach. 
C) The investigator takes charge of the fraud investigation process. 
D) Data-driven fraud detection is proactive in nature.

Question 9

________ is an extension of stratification.

Accepted Answer

A) Matosas matrix 
B) A pivot table 
C) Summarization 
D) Soundex 
A) Matosas matrix 
B) A pivot table 
C) Summarization 
D) Soundex

Question 10

Which of the following proactive fraud detection methods use Benford's Law to detect fraud?

Accepted Answer

A) Vertical analysis 
B) Digital analysis 
C) Real-time analysis 
D) Time trend analysis. 
A) Vertical analysis 
B) Digital analysis 
C) Real-time analysis 
D) Time trend analysis.

Question 11

The proactive method of fraud detection is a six-step process.Which of the following is the correct process sequence?

Accepted Answer

A) Identify possible frauds that could exist;catalog possible fraud symptoms;understand the business;use technology to gather data about symptoms;automotive detection procedures;analyze results;and investigate symptoms 
B) Catalog possible fraud symptoms;understand the business;identify possible frauds that could exist;analyze results;use technology to gather data about symptoms;and investigate symptoms 
C) Understand the business;identify possible frauds that could exist;catalog possible fraud symptoms;investigate symptoms;use technology to gather data about symptoms;and analyze results 
D) Understand the business;identify possible frauds that could exist;catalog possible fraud symptoms;use technology to gather data about symptoms;analyze results;and investigate symptoms 
A) Identify possible frauds that could exist;catalog possible fraud symptoms;understand the business;use technology to gather data about symptoms;automotive detection procedures;analyze results;and investigate symptoms 
B) Catalog possible fraud symptoms;understand the business;identify possible frauds that could exist;analyze results;use technology to gather data about symptoms;and investigate symptoms 
C) Understand the business;identify possible frauds that could exist;catalog possible fraud symptoms;investigate symptoms;use technology to gather data about symptoms;and analyze results 
D) Understand the business;identify possible frauds that could exist;catalog possible fraud symptoms;use technology to gather data about symptoms;analyze results;and investigate symptoms

Question 12

The red-flag that is generally identified when vendors with invoices for the same amount on the same day are found is:

Accepted Answer

A) dummy vendors. 
B) employees purchasing goods for personal use. 
C) billing more than once for the same purchase. 
D) providing poor-quality goods. 
A) dummy vendors. 
B) employees purchasing goods for personal use. 
C) billing more than once for the same purchase. 
D) providing poor-quality goods.

Question 13

According to Benford's law,the first digit of random data sets will begin with a ______ more often than 2.

Accepted Answer

A) 7 
B) 1 
C) 3 
D) 4 
A) 7 
B) 1 
C) 3 
D) 4

Question 14

Which of the following ratios can be used to assess a company's solvency?

Accepted Answer

A) Current Ratio 
B) Return on assets 
C) Times-interest-earned 
D) Inventory turnover 
A) Current Ratio 
B) Return on assets 
C) Times-interest-earned 
D) Inventory turnover

Question 15

Identify the formula used to calculate z-score.

Accepted Answer

A) (Mean - Value)/Standard Deviation 
B) (Mean - Value)/(Mean + Value) 
C) (Value - Mean)/Standard Deviation 
D) (Value - Mean)/Median 
A) (Mean - Value)/Standard Deviation 
B) (Mean - Value)/(Mean + Value) 
C) (Value - Mean)/Standard Deviation 
D) (Value - Mean)/Median

Question 16

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:

Accepted Answer

A) inductive fraud detection. 
B) deductive fraud detection. 
C) Benford's law. 
D) horizontal analysis. 
A) inductive fraud detection. 
B) deductive fraud detection. 
C) Benford's law. 
D) horizontal analysis.

Question 17

Which of the following statements is true about ODBC?

Accepted Answer

A) It allows use of the powerful SQL language for searching and filtering of the data. 
B) It is generally slower and less robust than text files. 
C) IT departments are very comfortable in giving out ODBC connections. 
D) It is an application-level setting rather than a systemwide setting. 
A) It allows use of the powerful SQL language for searching and filtering of the data. 
B) It is generally slower and less robust than text files. 
C) IT departments are very comfortable in giving out ODBC connections. 
D) It is an application-level setting rather than a systemwide setting.

Question 18

A ______ is a financial statement that reflects account balances at a specific point in time like a snapshot.

Accepted Answer

A) periodic statement 
B) position statement 
C) change statement 
D) static statement 
A) periodic statement 
B) position statement 
C) change statement 
D) static statement

Question 19

One of the most common errors investigators make when analyzing time trends is:

Accepted Answer

A) incorrect data preparation. 
B) focusing only on one variable,time (the x-axis if graphed). 
C) not monitoring the time taken. 
D) not standardizing for time. 
A) incorrect data preparation. 
B) focusing only on one variable,time (the x-axis if graphed). 
C) not monitoring the time taken. 
D) not standardizing for time.

Question 20

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

Accepted Answer

A) N-grams 
B) Z-score 
C) Time-trend analysis 
D) Soundex algorithm 
A) N-grams 
B) Z-score 
C) Time-trend analysis 
D) Soundex algorithm

What is the primary drawback of the data-driven approach?

Specific implementations of delimited text are called TSV.What does TSV stands for?

______ are a two dimensional view with cases in one dimension and the calculations in the other.

Digital analysis is:

One of the disadvantages of Benford's law in detecting fraud is:

Which of the following is least effective while searching for anomalies?

Which of the following statements is true about the characteristics of real-time analysis?

What is the primary advantage of the data-driven approach?

________ is an extension of stratification.

Which of the following proactive fraud detection methods use Benford's Law to detect fraud?

The proactive method of fraud detection is a six-step process.Which of the following is the correct process sequence?

The red-flag that is generally identified when vendors with invoices for the same amount on the same day are found is:

According to Benford's law,the first digit of random data sets will begin with a ______ more often than 2.

Which of the following ratios can be used to assess a company's solvency?

Identify the formula used to calculate z-score.

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:

Which of the following statements is true about ODBC?

A ______ is a financial statement that reflects account balances at a specific point in time like a snapshot.

One of the most common errors investigators make when analyzing time trends is:

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

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

What is the primary drawback of the data-driven approach?

Specific implementations of delimited text are called TSV.What does TSV stands for?

______ are a two dimensional view with cases in one dimension and the calculations in the other.

Digital analysis is:

One of the disadvantages of Benford's law in detecting fraud is:

Which of the following is least effective while searching for anomalies?

Which of the following statements is true about the characteristics of real-time analysis?

What is the primary advantage of the data-driven approach?

________ is an extension of stratification.

Which of the following proactive fraud detection methods use Benford's Law to detect fraud?

The proactive method of fraud detection is a six-step process.Which of the following is the correct process sequence?

The red-flag that is generally identified when vendors with invoices for the same amount on the same day are found is:

According to Benford's law,the first digit of random data sets will begin with a ______ more often than 2.

Which of the following ratios can be used to assess a company's solvency?

Identify the formula used to calculate z-score.

A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:

Which of the following statements is true about ODBC?

A ______ is a financial statement that reflects account balances at a specific point in time like a snapshot.

One of the most common errors investigators make when analyzing time trends is:

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

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