Question 1

False billing scheme states that:

Accepted Answer

A)  employees do not cause their company to purchase merchandise that the company does not need. 
B)  employees cause their company to sale merchandise that the company does not need. 
C)  employees do not cause their company to sale merchandise that the company does not need. 
D)  employees cause their company to purchase merchandise that the company does not need

Question 2

When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

Accepted Answer

A)  Presolicitation scheme 
B)  Need recognition scheme 
C)  False sole-source scheme 
D)  Submission scheme

Question 3

Employees with the authority to grant discounts in order to skim revenues may use which authority?

Accepted Answer

A)  False discounts 
B)  Recording a discount on sale procedure 
C)  Internal discount sales audits 
D)  None of the above

Question 4

The behavior profile of employees who are involved in bribery schemes may include:

Accepted Answer

A)  Gambling habit 
B)  Extravagant lifestyle 
C)  Drug and/or alcohol addiction 
D)  All of the above

Question 5

Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.

Accepted Answer

A)  Interest & Collusion 
B)  Inventory & Equipment 
C)  Inventory & Purchase 
D)  Sales & Equipment

Question 6

____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

Accepted Answer

A)  False shipping slip 
B)  False packing slip 
C)  Fraudulent inventory slip 
D)  False credit slip

Question 7

In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Accepted Answer

A)  Deliberate writing of vague specifications 
B)  Need recognition 
C)  False specification 
D)  Bid-splitting

Question 8

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

Accepted Answer

A)  Offering a payment 
B)  Corruption in payment 
C)  kickback payment 
D)  Overbilling in payment

Question 9

People commit financial statement fraud to:

Accepted Answer

A)  Conceal false business performances 
B)  Preserve personal status/control 
C)  Maintain personal income 
D)  Stand outside the accounting system

Question 10

Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:

Accepted Answer

A)  Fraudulent statement scheme 
B)  Asset misappropriation scheme 
C)  Larceny scheme 
D)  Register disbursement scheme

Question 11

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT the type of billing scheme?

Accepted Answer

A)  Invoicing via shell companies 
B)  Invoicing via non-accomplice companies 
C)  Invoicing via accomplice companies 
D)  Personal purchases with company funds

Question 13

__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

Accepted Answer

A)  Corruption 
B)  Diverting business to vendors 
C)  Bribery 
D)  Lacking approval authority

Question 14

Which of the following is not the skimming scheme?

Accepted Answer

A)  Unrecorded sales 
B)  Fraud & Cost 
C)  Theft of checks through the mail 
D)  Understand sales and receivables

Question 15

___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

Accepted Answer

A)  Equity 
B)  Balance sheet 
C)  Income statement 
D)  Financial record

Question 16

Skimming is:

Accepted Answer

A)  The removal of cash from a victim entity prior to its entry in an accounting system. 
B)  The addition of cash from a victim entity prior to its entry in an accounting system. 
C)  The removal of cash from a victim entity after its entry in an accounting system. 
D)  None of above

Question 17

A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

Accepted Answer

A)  Microline numbering 
B)  Holographic safety border 
C)  Embossed pearlescent numbering 
D)  None of the above

Question 18

A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

Accepted Answer

A)  Fiduciary Capacity 
B)  Embezzlement 
C)  Conversion 
D)  None of the above

Question 19

Most of the shell company schemes involve the purchase of goods rather than services.

Accepted Answer