Questions from Fraud Examination


Q: A single symptom (red flag) is almost always enough information

A single symptom (red flag) is almost always enough information to identify the type of fraud scheme occurring.

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Q: Fraud is a crime that is seldom observed.

Fraud is a crime that is seldom observed.

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Q: Because of the nature of fraud, auditors are often in the

Because of the nature of fraud, auditors are often in the best position to detect its occurrence.

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Q: Most people who commit fraud feel a perceived financial pressure.

Most people who commit fraud feel a perceived financial pressure.

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Q: Before financial institutions can sell or disclose confidential customer information, they

Before financial institutions can sell or disclose confidential customer information, they must provide customers with the opportunity to "opt out" from information sharing.

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Q: Studies have found that the most common internal control problem when frauds

Studies have found that the most common internal control problem when frauds occur is having a lack of proper authorizations.

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Q: ODBC is the best approach to import because it achieves a direct

ODBC is the best approach to import because it achieves a direct, rich connection to the source database.

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Q: Data-driven analysis uses the company's database to search for normal

Data-driven analysis uses the company's database to search for normal relationships between numbers.

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Q: According to Benford's Law, the first digit of natural sets of

According to Benford's Law, the first digit of natural sets of numbers will begin with a 9 more often than with an 8.

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Q: When using Benford's Law, potential suspects are less likely to know

When using Benford's Law, potential suspects are less likely to know you are trying to detect fraud than if you use more direct detection techniques.

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