Question 1

According to the ACFE study,________ comprises by far the highest percentage of asset misappropriation.

Accepted Answer

A) larceny 
B) skimming 
C) delayed payment recognition 
D) fraudulent disbursement 
A) larceny 
B) skimming 
C) delayed payment recognition 
D) fraudulent disbursement

Question 2

Which of the following statements with reference to extortion is true?

Accepted Answer

A) It is a crime even if the extortion message is only sent but not received. 
B) It is a crime only if the extortion message has reached the recipient. 
C) It is a crime even if the extortion message is sent either unwillingly or without the knowledge of the sender. 
D) An extortionate threat made to another in jest is not extortion. 
A) It is a crime even if the extortion message is only sent but not received. 
B) It is a crime only if the extortion message has reached the recipient. 
C) It is a crime even if the extortion message is sent either unwillingly or without the knowledge of the sender. 
D) An extortionate threat made to another in jest is not extortion.

Question 3

Identify the unlawful trading schemes engaged in by mutual funds.

Accepted Answer

A) Leveraging and layering 
B) Commission fraud and speculative trading 
C) Market timing and late trading 
D) Circular trading and NAV manipulation 
A) Leveraging and layering 
B) Commission fraud and speculative trading 
C) Market timing and late trading 
D) Circular trading and NAV manipulation

Question 4

In asset misappropriation,the fraudsters most often target ______.

Accepted Answer

A) inventory 
B) cash 
C) equipment 
D) valuable information 
A) inventory 
B) cash 
C) equipment 
D) valuable information

Question 5

Of all payroll fraud schemes,______ schemes tend to generate the largest losses.

Accepted Answer

A) commission 
B) falsified hours and salary 
C) ghost employee 
D) false worker compensation 
A) commission 
B) falsified hours and salary 
C) ghost employee 
D) false worker compensation

Question 6

Which of the following is more likely to help detect occupational frauds?

Accepted Answer

A) An internal audit 
B) An external audit 
C) A tip 
D) Internal controls 
A) An internal audit 
B) An external audit 
C) A tip 
D) Internal controls

Question 7

The primary victim of a workers' compensation fraud is ______.

Accepted Answer

A) the government 
B) the employer 
C) the vendor 
D) the insurance carrier 
A) the government 
B) the employer 
C) the vendor 
D) the insurance carrier

Question 8

Which of the following is NOT an example of a commission-based payroll fraud?

Accepted Answer

A) Creating fictitious sales. 
B) Manipulating the number of hours worked and the rate of pay. 
C) Falsifying the value of sales made by altering prices listed on sales documents. 
D) Overstating sales by claiming sales made by another employee or in another period. 
A) Creating fictitious sales. 
B) Manipulating the number of hours worked and the rate of pay. 
C) Falsifying the value of sales made by altering prices listed on sales documents. 
D) Overstating sales by claiming sales made by another employee or in another period.

Question 9

For ghost-employee fraud schemes to work,four things must happen.Which of the following is NOT one among them?

Accepted Answer

A) The ghost must be added to the payroll. 
B) Timekeeping and wage rate information must be collected. 
C) A paycheck must be issued to the ghost. 
D) The payment must be made based on an employee's revenue output. 
A) The ghost must be added to the payroll. 
B) Timekeeping and wage rate information must be collected. 
C) A paycheck must be issued to the ghost. 
D) The payment must be made based on an employee's revenue output.

Question 10

Which department or group accounted for the maximum percentage of fraud incidents according to the study conducted by ACFE in 2010?

Accepted Answer

A) sales 
B) accounting 
C) human resources 
D) top management 
A) sales 
B) accounting 
C) human resources 
D) top management

Question 11

Which is the least common expense disbursement scheme?

Accepted Answer

A) Mischaracterizing expenses 
B) Submitting the same expenses multiple times 
C) Submitting fictitious expenses 
D) Overstating expenses 
A) Mischaracterizing expenses 
B) Submitting the same expenses multiple times 
C) Submitting fictitious expenses 
D) Overstating expenses

Question 12

________ occurs when an employee demands a payment from a vendor in order to make a decision in that vendor's favor.

Accepted Answer

A) Bribery 
B) Larceny 
C) Economic extortion 
D) Illegal gratuity 
A) Bribery 
B) Larceny 
C) Economic extortion 
D) Illegal gratuity

Question 13

Identify the two basic bribery schemes.

Accepted Answer

A) Larceny and skimming 
B) Kickbacks and bid-rigging 
C) Economic extortion and illegal gratuity 
D) Lapping and extortion 
A) Larceny and skimming 
B) Kickbacks and bid-rigging 
C) Economic extortion and illegal gratuity 
D) Lapping and extortion

Question 14

Bid-rigging is a type of _______ .

Accepted Answer

A) skimming 
B) bribery 
C) extortion 
D) illegal gratuity 
A) skimming 
B) bribery 
C) extortion 
D) illegal gratuity

Question 15

Check tampering is a type of _____.

Accepted Answer

A) larceny 
B) skimming 
C) fraudulent disbursement scheme 
D) fraudulent statement scheme 
A) larceny 
B) skimming 
C) fraudulent disbursement scheme 
D) fraudulent statement scheme

Question 16

A conflict of interest occurs when:

Accepted Answer

A) an employer knows of an employee's interest in a business deal or negotiation. 
B) an employee has an undisclosed economic or personal interest in a transaction that adversely affects the company. 
C) employees offer,give,receive or solicit anything of value in order to influence an official act. 
D) employees demand payments from vendors for deciding in the vendors' favor. 
A) an employer knows of an employee's interest in a business deal or negotiation. 
B) an employee has an undisclosed economic or personal interest in a transaction that adversely affects the company. 
C) employees offer,give,receive or solicit anything of value in order to influence an official act. 
D) employees demand payments from vendors for deciding in the vendors' favor.

Question 17

Asset misappropriation is defined as:

Accepted Answer

A) a scheme that involves offering,giving,receiving,or soliciting anything of value to influence an official act. 
B) demanding payment from a vendor in order to make or influence a decision in a vendor's favor. 
C) deceiving individuals in putting their money into a fake investment. 
D) any scheme that involves the theft or misuse of an organization's assets. 
A) a scheme that involves offering,giving,receiving,or soliciting anything of value to influence an official act. 
B) demanding payment from a vendor in order to make or influence a decision in a vendor's favor. 
C) deceiving individuals in putting their money into a fake investment. 
D) any scheme that involves the theft or misuse of an organization's assets.

Question 18

Larceny is easier to detect than skimming because:

Accepted Answer

A) larceny involves stealing cash after it has already been recorded in the company's accounting system. 
B) larceny involves fraudulent disbursements of cash,while skimming involves fraudulent receipts of cash. 
C) larceny involves stealing cash before it has been recorded in the company's accounting system. 
D) larcenies can take place in any circumstance in which an employee has access to cash. 
A) larceny involves stealing cash after it has already been recorded in the company's accounting system. 
B) larceny involves fraudulent disbursements of cash,while skimming involves fraudulent receipts of cash. 
C) larceny involves stealing cash before it has been recorded in the company's accounting system. 
D) larcenies can take place in any circumstance in which an employee has access to cash.

Question 19

Frauds against the organization are most likely to be perpetrated by _____.

Accepted Answer

A) customers 
B) vendors 
C) competitors 
D) employees 
A) customers 
B) vendors 
C) competitors 
D) employees

Question 20

Which of the following is NOT one of the most common types of billing schemes?

Accepted Answer

A) Setting up dummy companies (shell companies)to submit invoices to the victim organization. 
B) Altering or double-paying a nonaccomplice vendor's statements 
C) Overbilling the company for travel and other related business expenses,such as business lunches,hotel bills,and air travel. 
D) Making personal purchases with company funds. 
A) Setting up dummy companies (shell companies)to submit invoices to the victim organization. 
B) Altering or double-paying a nonaccomplice vendor's statements 
C) Overbilling the company for travel and other related business expenses,such as business lunches,hotel bills,and air travel. 
D) Making personal purchases with company funds.

According to the ACFE study,________ comprises by far the highest percentage of asset misappropriation.

Which of the following statements with reference to extortion is true?

Identify the unlawful trading schemes engaged in by mutual funds.

In asset misappropriation,the fraudsters most often target ______.

Of all payroll fraud schemes,______ schemes tend to generate the largest losses.

Which of the following is more likely to help detect occupational frauds?

The primary victim of a workers' compensation fraud is ______.

Which of the following is NOT an example of a commission-based payroll fraud?

For ghost-employee fraud schemes to work,four things must happen.Which of the following is NOT one among them?

Which department or group accounted for the maximum percentage of fraud incidents according to the study conducted by ACFE in 2010?

Which is the least common expense disbursement scheme?

________ occurs when an employee demands a payment from a vendor in order to make a decision in that vendor's favor.

Identify the two basic bribery schemes.

Bid-rigging is a type of _______ .

Check tampering is a type of _____.

A conflict of interest occurs when:

Asset misappropriation is defined as:

Larceny is easier to detect than skimming because:

Frauds against the organization are most likely to be perpetrated by _____.

Which of the following is NOT one of the most common types of billing schemes?

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

According to the ACFE study,________ comprises by far the highest percentage of asset misappropriation.

Which of the following statements with reference to extortion is true?

Identify the unlawful trading schemes engaged in by mutual funds.

In asset misappropriation,the fraudsters most often target ______.

Of all payroll fraud schemes,______ schemes tend to generate the largest losses.

Which of the following is more likely to help detect occupational frauds?

The primary victim of a workers' compensation fraud is ______.

Which of the following is NOT an example of a commission-based payroll fraud?

For ghost-employee fraud schemes to work,four things must happen.Which of the following is NOT one among them?

Which department or group accounted for the maximum percentage of fraud incidents according to the study conducted by ACFE in 2010?

Which is the least common expense disbursement scheme?

________ occurs when an employee demands a payment from a vendor in order to make a decision in that vendor's favor.

Identify the two basic bribery schemes.

Bid-rigging is a type of _______ .

Check tampering is a type of _____.

A conflict of interest occurs when:

Asset misappropriation is defined as:

Larceny is easier to detect than skimming because:

Frauds against the organization are most likely to be perpetrated by _____.

Which of the following is NOT one of the most common types of billing schemes?

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