Questions from Fraud Examination

Q: Because complete fraud prevention is impossible because it requires changing actual human

Because complete fraud prevention is impossible because it requires changing actual human behavior, successful companies should forgo fraud prevention and instead focus on strong fraud detection progr...

Q: Because fraud prevention programs are so costly, despite being ethically superior

Because fraud prevention programs are so costly, despite being ethically superior, they almost always result in higher costs and thus lower net income than using only a strong system of fraud detectio...

Q: Most fraud perpetrators have a long history of dishonesty and deceit.

Most fraud perpetrators have a long history of dishonesty and deceit.

Q: 1. Which of the following methods of gathering documents is based

1. Which of the following methods of gathering documents is based primarily on luck? a. Documents discovered during audits. b. Hard-to-get private documents that are subpoenaed. c. Documents discov...

Q: 9. Embezzlement of assets reduces the left side of the accounting

9. Embezzlement of assets reduces the left side of the accounting equation. To conceal the theft, the embezzler must find a way to reduce the right side of the accounting equation. A perpetrator would...

Q: 1. The fraud triangle plus inquiry paradigm is an effective way

1. The fraud triangle plus inquiry paradigm is an effective way to understand the various types of fraud investigation methods. 2. One advantage of using a vulnerability chart is that it forces inve...

Q: 1. Tailing includes the use of video, e-mail

1. Tailing includes the use of video, e-mail, wiretapping. and access to PCs. 2. Invigilation is a theft act investigative technique that involves close supervision of suspects during an examination...

Q: 1. When detecting fraud, it is important that fraud investigators

1. When detecting fraud, it is important that fraud investigators: a. Remain objective and neutral b. Assume guilt. c. Assume innocence. d. None of the above. 2. Data-driven fraud detection: a....

Q: 1. When vertical analysis is performed: a. Ratios

1. When vertical analysis is performed: a. Ratios are used to detect fraud. b. Changes in significant balance totals are examined. c. Financial statement balances are converted to percentages. d....

Q: 1. Most investigators rely heavily on interviews to obtain the truth

1. Most investigators rely heavily on interviews to obtain the truth. 2. Physical evidence includes evidence gathered from paper, computers, and other written documents. 3. Legal action taken by a...