Questions from Fraud Examination

Q: Perpetrators usually save what they steal.

Perpetrators usually save what they steal.

Q: For various reasons, the net worth method tends to be a

For various reasons, the net worth method tends to be a conservative estimate of amounts stolen.

Q: An important factor in creating a culture of honesty, openness,

An important factor in creating a culture of honesty, openness, and assistance in the workplace is maintaining an employee assistance program.

Q: A good internal control system within a company can ensure the absence

A good internal control system within a company can ensure the absence of fraud.

Q: When fraud is committed, the problem is often not a lack

When fraud is committed, the problem is often not a lack of controls, but the overriding of existing controls by management and others.

Q: The two elements in creating a positive work environment are (1

The two elements in creating a positive work environment are (1) having an open-door policy and (2) having positive personnel and operating procedures.

Q: Not prosecuting fraud perpetrators is cost-effective both in the short

Not prosecuting fraud perpetrators is cost-effective both in the short run and the long run.

Q: Even a good system of internal controls will often not be completely

Even a good system of internal controls will often not be completely effective because of fallibilities of the people applying and enforcing the controls.

Q: The increasingly complex nature of business helps to decrease the number of

The increasingly complex nature of business helps to decrease the number of collusive frauds.

Q: Analytical anomalies are present in every fraud.

Analytical anomalies are present in every fraud.