Questions from Fraud Examination


Q: Peter Jones, a senior accountant, and Mary Miller, a

Peter Jones, a senior accountant, and Mary Miller, a junior accountant, were the only accountants for XYZ Company, a medium-sized business. Peter had been with the company for over four years and was...

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Q: The chapter stressed that preventing fraud is the most cost-effective

The chapter stressed that preventing fraud is the most cost-effective way to reduce losses from fraud. Why is fraud prevention more cost effective than fraud detection or investigation?

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Q: Fraud detection is an important element of minimizing losses to fraud,

Fraud detection is an important element of minimizing losses to fraud, especially if frauds can be detected early. Explain why it is important that frauds be detected early.

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Q: Assume that you are the fraud expert for a large Fortune 500

Assume that you are the fraud expert for a large Fortune 500 company located in Miami, Florida. In a recent meeting with the executive committee, one of the officers explains that the fraud prevention...

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Q: You have recently graduated from college with an MBA. Upon graduation

You have recently graduated from college with an MBA. Upon graduation, you start working for Roosevelt Power Plant The boss, Mr. Jones, invites you into his office. Mr. Jones describes to you a large...

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Q: The text pointed out that it is important to hire employees who

The text pointed out that it is important to hire employees who are honest and have a well-defined personal code of ethics. Derek Bok, former law professor and president of Harvard University, has sug...

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Q: Predication refers to circumstances that would lead a reasonable professional to believe

Predication refers to circumstances that would lead a reasonable professional to believe that fraud has occurred. Why should you not conduct a fraud investigation without predication?

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Q: When a fraud has occurred within an organization, management must decide

When a fraud has occurred within an organization, management must decide what follow-up action to take. Briefly describe the three follow-up alternatives available to organizations.

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Q: The only group/business that must report employee embezzlement is the

The only group/business that must report employee embezzlement is the federal government.

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Q: In 2001 the country of Peru was thrown into political turmoil as

In 2001 the country of Peru was thrown into political turmoil as its president, Alberto Fujimori, was accused of conspiring with the head of the national army to accept bribes and steal money from the...

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