Questions from Fraud Examination

Q: Private credit records are maintained on both individuals and organizations by various

Private credit records are maintained on both individuals and organizations by various credit-reporting companies.

Q: Once fraud has been committed, there are no winners.

Once fraud has been committed, there are no winners.

Q: Physical evidence includes evidence gathered from paper, computers, and other

Physical evidence includes evidence gathered from paper, computers, and other written documents.

Q: Legal action taken by an organization can affect the probability of whether

Legal action taken by an organization can affect the probability of whether fraud will recur.

Q: Investigating fraud is the most cost-effective way to reduce losses

Investigating fraud is the most cost-effective way to reduce losses from fraud.

Q: Fraud prevention includes taking steps to create and maintain a culture of

Fraud prevention includes taking steps to create and maintain a culture of honesty and high ethics.

Q: Fraud prevention involves two fundamental activities: 1. a hotline

Fraud prevention involves two fundamental activities: 1. a hotline for tips and 2. assessing the risk of fraud and developing concrete responses to mitigate the risks and eliminate opportunities for...

Q: Developing a positive work environment is of little importance when creating a

Developing a positive work environment is of little importance when creating a culture of honesty.

Q: No matter how well an organization has developed a culture of honesty

No matter how well an organization has developed a culture of honesty and high ethics, most organizations will still have some fraud.

Q: Research has shown that it is employees and managers, not auditors

Research has shown that it is employees and managers, not auditors, who detect most frauds.