Question 1

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

Accepted Answer

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

Question 2

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 B

Question 3

Which of the following groups listed is most likely to perpetrate frauds against the organization?

Accepted Answer

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

Question 4

Which of the following defines Lapping?

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.

Question 5

Which of the following is NOT a form of corruption?

Accepted Answer

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

Question 6

Bid-rigging is a type of which of the following?

Accepted Answer

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

Question 7

​What has been verified as the most significant impact for companies who have antifraud controls in place?

Accepted Answer

A)  More ​employee fraud is prevented.
B)  ​Vicitm organizations have lower losses.
C)  ​More management fraud is prevented.
D)  ​Consumer loyalty is increased.

Question 8

What is known as dilution?

Accepted Answer

A)  The artificial difference between the net asset value (NAV)  and the fair value of the securities.
B)  An investment technique that involves short-term "in-and-out" trading of mutual fund shares.
C)  The loss resulting from "forward pricing" requirements.
D)  The harm caused by the transfer of wealth from long-term investors to market timers.

Question 9

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 which of the following?

Accepted Answer

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

Question 10

Which of the following is the most common target regarding asset misappropriation?

Accepted Answer

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

Question 11

The 2010 ACFE Report to the Nation on Occupational Fraud & Abuse covers three types of fraud against organizations: Which of the following is one of them?

Accepted Answer

A)  Corruption
B)  Bid-rigging
C)  Check tampering
D)  Lapping

Question 12

According to the ACFE study,which of the following is the most common form of occupational fraud?

Accepted Answer

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

Question 13

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.

Question 14

Which of the following is the most likely reason fraud within a company is detected?​

Accepted Answer

A)  ​Internal audits are conducted both routinely and unexpectedly.
B)  ​External auditors have become more knowledgeable in how to look for fraud.
C)  ​Internal controls have become more sophisticated.
D)  ​Employees who have suspicions about possible fraud report them.

Question 15

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

Question 16

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.

Question 17

Check tampering is a type of _____.

Accepted Answer

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

Question 18

According to the ACFE study,which of the following comprises the highest percentage of asset misappropriation?

Accepted Answer

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

Question 19

Which of the following is the least costly disbursement scheme?

Accepted Answer

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

Question 20

Which of the following is NOT a possible way to commit fraud by using a payroll scheme?

Accepted Answer

A)  overstating expenses.
B)  falsifying hours worked.
C)  creating ghost employees.
D)  producing false worker compensation claim.

Exam 14: Fraud Against Organizations