For each of the following, identify whether the evidence would be classified as testimonial evidence, documentary evidence, physical evidence, or personal observation. a. Surveillance b. Tire marks c. Honesty test d. Interview e. A computer hard drive f. A financial statement analysis g. A paper report h. Identification numbers on vehicles i. Audit of financial statements j. Check stubs k. Fingerprints I. Background checks
> What are the steps involved in collecting electronic evidence?
> How is physical evidence used to investigate fraud?
> What is invigilation?
> What is a surveillance log?
> How does a vulnerability chart help coordinate an investigation of suspected fraud?
> What factors should be considered when deciding whether or not to investigate a case of fraud?
> How are theft investigative methods used to investigate suspected fraud?
> How can fraud be detected by analyzing financial statements?
> A fraud may be perpetrated through an unintentional mistake.
> List and describe the steps of the data-driven fraud-detection approach.
> What is Benford's Law?
> What are the disadvantages of statistical analysis?
> What are the advantages of using statistical analysis to detect fraud?
> What are the advantages of using data analysis software to detect fraud in a data-driven approach?
> What are the risks of sampling when searching for fraud?
> What are the differences between errors and fraud?
> What are the benefits of using a two-stage import that utilizes a data warehouse?
> What are some of the difficulties in trying to correlate customers, vendors, or employees with known problem people?
> What is the significance of unexplained changes in financial statements in detecting fraud?
> Nearly all individuals and organizations are subject to real or perceived pressures and can rationalize.
> Why is it important to proactively detect fraud?
> What is conversion?
> What is the theft act of a fraud?
> How can tips and complaints help in detecting fraud?
> How can behavioral symptoms help in detecting fraud?
> How can lifestyle changes help in detecting fraud?
> What are analytical symptoms?
> What are accounting symptoms?
> Why do internal control weaknesses help detect fraud?
> In your own words describe a CFE.
> Fraud perpetrators often live beyond their means since their income does not support their lifestyle.
> In what ways is the Ponzi scam similar to other frauds?
> How does the Pygmalion effect relate to fraud prevention?
> How would you react in the following situations? a. You discover an internal control weakness in the company you are auditing. b. You notice your co-worker has recently been coming to work in a new car and wearing more expensive clothes and jewelry. c
> What is concealment?
> How do fraud symptoms help in detecting fraud?
> How does a response hotline for anonymous tips help to prevent fraud?
> In what ways can organizations conduct proactive fraud auditing?
> How can organizations monitor their employees?
> Why is it important to inform outside vendors of company policies concerning payments to buyers?
> In what ways can organizations discourage collusive fraud?
> Co-workers are usually in the best position to detect fraud.
> Why are good internal controls important?
> What is the purpose of adopting a code of ethics throughout a company?
> What are different ways in which companies can eliminate opportunities for fraud?
> What are some nonstandard ways of trying to detect dishonest employees in the employee hiring process?
> What is implied by the phrase "just about everyone can be dishonest"?
> How do organizations create a culture of honesty, openness, and assistance?
> What are some of the legal actions that can be taken after a fraud has occurred?
> How is the evidence square useful in thinking about fraud investigation?
> Describe the evidence square.
> New whistle-blowing laws have helped make tips and complaints more effective.
> Why is it important to conduct a thorough fraud investigation when fraud is suspected?
> Why is it important to detect fraud early?
> How does a company assess and mitigate the risk of fraud within an organization?
> How does building a culture of honesty and high ethics help to reduce the possibility of fraud?
> How is power used to influence another person to participate in an already existing fraud scheme?
> Why might management avoid taking legal action against fraud perpetrators? What are the perceived benefits of inaction? What are the costs?
> Why might pursuing civil remedies be ineffective against employee fraud? When might civil actions be more useful?
> Why is fraud prevention so important?
> What were Jim Bakker's pressures, opportunities, and rationalizations to commit fraud?
> How does rationalization contribute to fraud?
> Employee transfers, audits, and mandatory vacations are all ways to provide independent checks on employees.
> One common investigation procedure determines how perpetrators convert or spend their time.
> What are some common factors that provide opportunities for fraud?
> What are some of the internal controls that prevent and/or detect fraudulent behavior?
> What are some different types of pressures?
> What is the fraud scale, and how does it relate to pressure, opportunity, and integrity?
> What is the fraud triangle, and why is it important?
> What motivates people to commit fraud?
> What is power?
> In what ways did Dr. Sam Waksal rationalize his illegal and unethical actions?
> What types of people commit fraud?
> Do you think the demand for careers in fraud prevention and detection is increasing or decreasing? Why?
> Fraud perpetrators who manipulate accounting records to conceal embezzlements often attempt to balance the accounting equation nation by recording expenses.
> How do employee fraud and management fraud differ?
> What are some of the different types of fraud fighting careers?
> Why was Charles Ponzi so successful with his fraud scheme?
> For each of the following. indicate whether it is a characteristic of a civil or a criminal case: a. Jury may consist of fewer than 12 jurors. b. Verdict must be unanimous. c. Multiple claims may be joined in one action. d. "Beyond a reasonable doubt
> What is the difference between civil and criminal laws?
> List and describe the five different types of frauds.
> How does fraud affect individuals, consumers, and organizations?
> Why does it usually require trust for someone to be able to commit a fraud?
> Describe the relationship between fraud, net income, profit margin, and the revenue required to make up for fraud losses.
> Why are accurate fraud statistics hard to find?
> An increase in a person's net worth plus living expenses equals the person's total income.
> What is fraud?
> In your own words describe the purpose of the ACFE.
> Your best friend wants to know why "on earth" you are taking a fraud examination class. He is curious about what careers this class prepares you for. Go to the Internet and find information about two different careers that you could pursue in the field o
> Visit the Association of Certified Fraud Examiner's (ACFE's) Web site at www.acfe.com. Once you have logged on, explore the pages of the site and then answer the following questions: a. How many professionals make up the (ACFE)? b. What are the require
> Locate the Web site of the American Society of Questioned Document Examiners (ASQDE) at www .asqde.org. What is the ASQDE? What is its purpose?
> Today, many data analysis tools are available to provide assistance to fraud examiners when searching for possible fraudulent activities within a company. Visit the Association of Certified Fraud Examiners' Web site (www.acfe.com) and list some of the co
> Read the article entitled "Following Benford's Law, or Looking Out for No. 1" found at www.rexswain. com/benford.html. The article mentions that a statistics professor can easily discern if students nipped a coin 200 times or if they merely faked it. Of
> As long as a sample is selected randomly, it will always be representative of the population as a whole.
> Discovery sampling is probably the most difficult of all statistical sampling variations to understand.
> Concealment investigative methods sometimes involve the study of documents that have been manipulated.
> The net worth method cannot help in determining the extent of stolen funds.
> Evidence should be uniquely marked so it can be easily identified later.
> There is no difference between forensic document experts and graphologists.
> Photocopies are always preferable to original documents as evidence.
