Questions from Fraud Examination


Q: Craig Ferguson, an internal auditor for HHG Online Booksellers, had

Craig Ferguson, an internal auditor for HHG Online Booksellers, had been investigating a case of embezzlement fraud for nearly two months. After searching personnel and company records, visiting with...

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Q: A group of fraud examiners is coordinating an investigation at a local

A group of fraud examiners is coordinating an investigation at a local law firm. Several lawyers at the firm are suspected of overbilling clients, possibly creating fake client accounts, and then char...

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Q: ABC Company has instituted good internal controls and has never, until

ABC Company has instituted good internal controls and has never, until last month, had a problem with fraud. But several weeks ago, someone with access to keys entered the controller's office and took...

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Q: It is always necessary to involve a federal law enforcement agent when

It is always necessary to involve a federal law enforcement agent when accessing federal databases.

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Q: Manufacturing companies with a profit margin of 10 percent must usually generate

Manufacturing companies with a profit margin of 10 percent must usually generate about 10 times as much revenue as the dollar amount of the fraud in order to restore net income to its pre-fraud level....

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Q: In the oil theft case discussed in this chapter, the fraud

In the oil theft case discussed in this chapter, the fraud investigators conducted a week-long invigilation. The results from this period were compared to the results taken during the weeks immediatel...

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Q: This chapter discussed techniques for conversion investigations that involve searching public records

This chapter discussed techniques for conversion investigations that involve searching public records to identify changes in lifestyle and the net worth of alleged fraud perpetrators. You recently bec...

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Q: Fred is a friend of yours and works with you at the

Fred is a friend of yours and works with you at the same company. He is a well-respected and trusted employee. He has two young children and is a leader in his community. You have discovered that Fred...

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Q: You work for a small manufacturing firm, where it is clearly

You work for a small manufacturing firm, where it is clearly too expensive 10 have proper segregation of duties. Because of this lack of control, management knows that opportunities exist to perpetrat...

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Q: During the past year, your company has discovered three major frauds

During the past year, your company has discovered three major frauds. The first was a $3.9 million theft of inventory that had been going on for six years. The second was a $2.8 million kickback schem...

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