Questions from Fraud Examination

Q: Effective hiring policies that discriminate between marginal and highly ethical individuals contribute

Effective hiring policies that discriminate between marginal and highly ethical individuals contribute to an organization's success in preventing fraud.

Q: Expectations about punishment must be communicated randomly among work groups if fraud

Expectations about punishment must be communicated randomly among work groups if fraud is to be prevented.

Q: The net worth method is rarely, if ever, helpful in

The net worth method is rarely, if ever, helpful in actual fraud investigations.

Q: Frauds typically start large and get smaller as the perpetrator tries to

Frauds typically start large and get smaller as the perpetrator tries to conceal his dishonest acts.

Q: Fraud is difficult to detect because some fraud symptoms often cannot be

Fraud is difficult to detect because some fraud symptoms often cannot be differentiated from non-fraud factors that appear to be symptoms.

Q: The three elements of the fraud triangle by which the investigative techniques

The three elements of the fraud triangle by which the investigative techniques are often classified are 1. the theft act, 2. concealment efforts, and 3. conversion methods.

Q: Organizations often want to avoid embarrassment and expense, so they terminate

Organizations often want to avoid embarrassment and expense, so they terminate fraudulent employees without having them prosecuted further.

Q: Studies show that a positive and honest work culture in a company

Studies show that a positive and honest work culture in a company does little to prevent fraud

Q: Criminal conviction is much more difficult to achieve than a civil judgment

Criminal conviction is much more difficult to achieve than a civil judgment because there must be proof “beyond a reasonable doubt" that the perpetrator intentionally stole assets.

Q: In order to create a culture of honesty and confidentiality, persons

In order to create a culture of honesty and confidentiality, persons aware of fraudulent activity should be encouraged to tell only the CEO.