Question 1

What is known as the net asset value (NAV)?

Accepted Answer

A) The closing price of the securities that comprise a particular fund's portfolio plus the value of any uninvested cash that the fund manager maintains for the fund. 
B) A concept used in finance and economics,defined as a rational and unbiased estimate of the potential market price of a good,service,or asset. 
C) The value of an entity's assets plus the value of its liabilities at the end of the trading day. 
D) The difference between the replacement cost of a fixed asset and its book value appearing on the balance sheet. 
A) The closing price of the securities that comprise a particular fund's portfolio plus the value of any uninvested cash that the fund manager maintains for the fund. 
B) A concept used in finance and economics,defined as a rational and unbiased estimate of the potential market price of a good,service,or asset. 
C) The value of an entity's assets plus the value of its liabilities at the end of the trading day. 
D) The difference between the replacement cost of a fixed asset and its book value appearing on the balance sheet. A

Question 2

Lapping is:

Accepted Answer

A) embezzling one customer's payment and then crediting that customer's account when a subsequent customer pays. 
B) stealing cash from an organization before it is recorded on the organization's books and records. 
C) helping a vendor illegally obtain a contract that should have involved competitive bidding. 
D) demanding a payment from a vendor in order to make a decision in that vendor's favor. 
A) embezzling one customer's payment and then crediting that customer's account when a subsequent customer pays. 
B) stealing cash from an organization before it is recorded on the organization's books and records. 
C) helping a vendor illegally obtain a contract that should have involved competitive bidding. 
D) demanding a payment from a vendor in order to make a decision in that vendor's favor. A

Question 3

Identify the statement that does NOT represent one of the four types of corruption.

Accepted Answer

A) Offering,giving,receiving,or soliciting anything of value in order to influence an official act. 
B) Overbilling the company for travel and other related business expenses,such as business lunches,hotel bills,and air travel. 
C) The employee demands a payment from a vendor in order to make a decision in that vendor's favor. 
D) The exertion of an employee's influence to the detriment of his or her company. 
A) Offering,giving,receiving,or soliciting anything of value in order to influence an official act. 
B) Overbilling the company for travel and other related business expenses,such as business lunches,hotel bills,and air travel. 
C) The employee demands a payment from a vendor in order to make a decision in that vendor's favor. 
D) The exertion of an employee's influence to the detriment of his or her company. B

Question 4

Orders placed for buying shares of a mutual fund any time up to 4:00 p.m.are priced at that day's NAV,and orders placed after 4:01 p.m.are priced at the next day's NAV.What is this practice known as?

Accepted Answer

A) Forward pricing 
B) Late trading 
C) Price arbitrage 
D) Price dealing 
A) Forward pricing 
B) Late trading 
C) Price arbitrage 
D) Price dealing

Question 5

Claiming personal travel as a business expense,a personal lunch as a business lunch,altering a receipt to reflect a higher amount than was actually paid,or submitting fictitious receipt is an example of ________.

Accepted Answer

A) a billing scheme 
B) a payroll disbursement scheme 
C) a register disbursement scheme 
D) an expense reimbursement scheme 
A) a billing scheme 
B) a payroll disbursement scheme 
C) a register disbursement scheme 
D) an expense reimbursement scheme

Question 6

According to the ACFE study,the most common form of occupational fraud is:

Accepted Answer

A) bid-rigging. 
B) fraudulent statements. 
C) corruption. 
D) asset misappropriation. 
A) bid-rigging. 
B) fraudulent statements. 
C) corruption. 
D) asset misappropriation.

Question 7

Which of the following is the best example of theft of cash through skimming?

Accepted Answer

A) Preparing fraudulent checks. 
B) Understating sales by recording larger-than reality sales discounts. 
C) Setting up dummy companies. 
D) Stealing cash after it has already been recorded. 
A) Preparing fraudulent checks. 
B) Understating sales by recording larger-than reality sales discounts. 
C) Setting up dummy companies. 
D) Stealing cash after it has already been recorded.

Question 8

Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?

Accepted Answer

A) Larceny 
B) Disbursement 
C) Skimming 
D) Illegal gratuities 
A) Larceny 
B) Disbursement 
C) Skimming 
D) Illegal gratuities

Question 9

The following are different types of corruption EXCEPT:

Accepted Answer

A) extortion. 
B) conflict of interest. 
C) lapping. 
D) bribery. 
A) extortion. 
B) conflict of interest. 
C) lapping. 
D) bribery.

Question 10

Thefts of inventory are divided into two groups.Identify them.

Accepted Answer

A) Corruption and bribery 
B) Expense scheme and skimming 
C) Economic extortion and illegal gratuities 
D) Larceny and misuse 
A) Corruption and bribery 
B) Expense scheme and skimming 
C) Economic extortion and illegal gratuities 
D) Larceny and misuse

Question 11

The least costly disbursement scheme is:

Accepted Answer

A) check tampering. 
B) billing scheme. 
C) register disbursement scheme. 
D) expense scheme. 
A) check tampering. 
B) billing scheme. 
C) register disbursement scheme. 
D) expense scheme.

Question 12

Check tampering is unique among the disbursement frauds because:

Accepted Answer

A) the fraud perpetrator processes the transaction as if a customer were returning merchandise,even though there is no actual return. 
B) it is the one group of schemes in which the perpetrator physically prepares the fraudulent check. 
C) it is the one group of schemes in which the culprit generates a payment to himself or herself by submitting some false document to the victim company,such as an invoice or a timecard. 
D) the perpetrator does not have to undergo the risk of taking company cash or merchandise. 
A) the fraud perpetrator processes the transaction as if a customer were returning merchandise,even though there is no actual return. 
B) it is the one group of schemes in which the perpetrator physically prepares the fraudulent check. 
C) it is the one group of schemes in which the culprit generates a payment to himself or herself by submitting some false document to the victim company,such as an invoice or a timecard. 
D) the perpetrator does not have to undergo the risk of taking company cash or merchandise.

Question 13

Which of the following statements regarding larceny is NOT true?

Accepted Answer

A) Larceny is easier to detect than skimming and is less common. 
B) Larceny occurs when employees steal cash before the amounts have been recorded in the accounting system. 
C) Smaller occurrences of larceny are often written off as "shorts" or "miscounts." 
D) Perpetrators of larcenies must have direct access to inventory or other assets. 
A) Larceny is easier to detect than skimming and is less common. 
B) Larceny occurs when employees steal cash before the amounts have been recorded in the accounting system. 
C) Smaller occurrences of larceny are often written off as "shorts" or "miscounts." 
D) Perpetrators of larcenies must have direct access to inventory or other assets.

Question 14

_____ allowed selected investors to purchase mutual funds after 4:00 p.m. ,using that day's NAV,rather than the next day's NAV,as required under the law.

Accepted Answer

A) Forward pricing 
B) Late trading 
C) Backdating 
D) Circular trading 
A) Forward pricing 
B) Late trading 
C) Backdating 
D) Circular trading

Question 15

Which of the following examples is NOT a billing scheme?

Accepted Answer

A) Mary purchases a new laptop for her brother-in-law with company's funds. 
B) Mark submits a receipt of his cab fare for reimbursement,which includes an extra $10. 
C) Joven double pays a vendor for the purchase of inventory and then pockets the second payment when it is returned. 
D) Harry submits invoices in the name of the dummy company and collects the amount. 
A) Mary purchases a new laptop for her brother-in-law with company's funds. 
B) Mark submits a receipt of his cab fare for reimbursement,which includes an extra $10. 
C) Joven double pays a vendor for the purchase of inventory and then pockets the second payment when it is returned. 
D) Harry submits invoices in the name of the dummy company and collects the amount.

Question 16

The most common occupational frauds in small businesses involve employees doing all of the following EXCEPT:

Accepted Answer

A) skimming revenues. 
B) fraudulently writing company checks. 
C) processing fraudulent invoices. 
D) altering financial statement. 
A) skimming revenues. 
B) fraudulently writing company checks. 
C) processing fraudulent invoices. 
D) altering financial statement.

Question 17

Identify the most common conflict of interest schemes.

Accepted Answer

A) purchase schemes and sales schemes 
B) bid-rigging schemes and kickbacks 
C) ghost employees and commission schemes 
D) false refunds and false voids. 
A) purchase schemes and sales schemes 
B) bid-rigging schemes and kickbacks 
C) ghost employees and commission schemes 
D) false refunds and false voids.

Question 18

What is the point of difference between illegal gratuity and bribery scheme?

Accepted Answer

A) Compared to illegal gratuities,briberies occur relatively infrequently and are usually quite small. 
B) Illegal gratuities do not necessarily involve an intent to influence a business decision but rather to reward someone for making a favorable decision. 
C) Illegal gratuities always involves the use of actual or threatened force,fear,or economic duress. 
D) Illegal gratuities are made before deals are approved. 
A) Compared to illegal gratuities,briberies occur relatively infrequently and are usually quite small. 
B) Illegal gratuities do not necessarily involve an intent to influence a business decision but rather to reward someone for making a favorable decision. 
C) Illegal gratuities always involves the use of actual or threatened force,fear,or economic duress. 
D) Illegal gratuities are made before deals are approved.

Question 19

Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:

Accepted Answer

A) something of value is offered to influence a business decision 
B) payment is received by an employee with the employer's consent. 
C) the employee extorts money from a potential purchaser or supplier. 
D) something of value is offered to influence an official act of government. 
A) something of value is offered to influence a business decision 
B) payment is received by an employee with the employer's consent. 
C) the employee extorts money from a potential purchaser or supplier. 
D) something of value is offered to influence an official act of government.

Question 20

An ice cream store cashier sells two-scoop ice cream cones to customers and enters the sales as single-scoop sales,while keeping the difference for himself.Which fraud is being committed here?

Accepted Answer

A) Larceny 
B) Disbursement 
C) Skimming 
D) Illegal gratuities 
A) Larceny 
B) Disbursement 
C) Skimming 
D) Illegal gratuities

What is known as the net asset value (NAV)?

Lapping is:

Identify the statement that does NOT represent one of the four types of corruption.

Orders placed for buying shares of a mutual fund any time up to 4:00 p.m.are priced at that day's NAV,and orders placed after 4:01 p.m.are priced at the next day's NAV.What is this practice known as?

Claiming personal travel as a business expense,a personal lunch as a business lunch,altering a receipt to reflect a higher amount than was actually paid,or submitting fictitious receipt is an example of ________.

According to the ACFE study,the most common form of occupational fraud is:

Which of the following is the best example of theft of cash through skimming?

Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?

The following are different types of corruption EXCEPT:

Thefts of inventory are divided into two groups.Identify them.

The least costly disbursement scheme is:

Check tampering is unique among the disbursement frauds because:

Which of the following statements regarding larceny is NOT true?

_____ allowed selected investors to purchase mutual funds after 4:00 p.m. ,using that day's NAV,rather than the next day's NAV,as required under the law.

Which of the following examples is NOT a billing scheme?

The most common occupational frauds in small businesses involve employees doing all of the following EXCEPT:

Identify the most common conflict of interest schemes.

What is the point of difference between illegal gratuity and bribery scheme?

Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:

An ice cream store cashier sells two-scoop ice cream cones to customers and enters the sales as single-scoop sales,while keeping the difference for himself.Which fraud is being committed here?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

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

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 14: Fraud Against Organizations

What is known as the net asset value (NAV)?

Lapping is:

Identify the statement that does NOT represent one of the four types of corruption.

Orders placed for buying shares of a mutual fund any time up to 4:00 p.m.are priced at that day's NAV,and orders placed after 4:01 p.m.are priced at the next day's NAV.What is this practice known as?

Claiming personal travel as a business expense,a personal lunch as a business lunch,altering a receipt to reflect a higher amount than was actually paid,or submitting fictitious receipt is an example of ________.

According to the ACFE study,the most common form of occupational fraud is:

Which of the following is the best example of theft of cash through skimming?

Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?

The following are different types of corruption EXCEPT:

Thefts of inventory are divided into two groups.Identify them.

The least costly disbursement scheme is:

Check tampering is unique among the disbursement frauds because:

Which of the following statements regarding larceny is NOT true?

_____ allowed selected investors to purchase mutual funds after 4:00 p.m. ,using that day's NAV,rather than the next day's NAV,as required under the law.

Which of the following examples is NOT a billing scheme?

The most common occupational frauds in small businesses involve employees doing all of the following EXCEPT:

Identify the most common conflict of interest schemes.

What is the point of difference between illegal gratuity and bribery scheme?

Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:

An ice cream store cashier sells two-scoop ice cream cones to customers and enters the sales as single-scoop sales,while keeping the difference for himself.Which fraud is being committed here?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

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

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters