How can fraud be detected by analyzing financial statements?
> What is the best time during an investigation to calculate the net worth method on your subject?
> What are the best methods of obtaining documentary evidence? Why?
> The Gramm–Leach–Bliley Act protects against the use of false pretenses. In what ways did this act have positive investigative consequences?
> Why are state and local sources of information generally more useful than federal sources of information?
> You own a local pizza delivery store. Cesar Rodriquez has been working for you as a manager for two years and has been a close friend of yours. Cesar has the reputation of being a hard worker and has not taken vacation for the entire time he has worked f
> You are an accounting student at the local university pursuing your master's degree. One of your friends has been intrigued by the numerous frauds that have been reported in the news. This friend knows you are going to pursue a job as an auditor with a l
> The ACFE is a nonprofit organization dedicated to the prevention and dedication of fraud throughout the world.
> Clever, Inc., is a car manufacturer. Its 2018 income statement is as follows: Alexander, Inc., is a car rental agency based in Florida. Its 2018 income statement is as follows: During 2018, both Clever, Inc., and Alexander, Inc., incurred a $1,000 frau
> You are a student at ABC University. You recently read in the school's daily newspaper about a terrific investment opportunity that promises to repay you a 44 percent annual return on your investment. Although you don't understand the complicated nature
> "But I intended to pay it all back, I really did," Joseph Swankie said as he talked to his manager. How did I ever get into this situation, he thought. Two years ago, Joe received the promotion for which he had been working so hard for. In addition, Joe'
> You are the owner of a privately owned, moderate sized company. The business was founded over 20 years ago and has experienced impressive growth and profitability. The only frustrating thing, however, is that you know the company's profits would be signi
> A bank manager's responsibility was making loans. Auditors discovered that several loans he made over a five-year period had not been repaid. A fraud investigation revealed that the manager had been receiving kickbacks from risky clients in exchange for
> After searching public records and other sources, you accumulate the following financial information for John Dough: Given the financial information, determine whether there is a likelihood of fraudulent income. If so, determine the amount. YEAR I YE
> Sarah Welch was hired 15 years ago by Produce-R-Us, an importer of rare and exotic fruits. Produce-R-Us was started by an immigrant family 20 years ago and has grown to a national company with sales of SIO million annually. Although the business has grow
> Tom works for ZYX Company and is suspected of embezzling funds from the company. By searching databases on the Internet, talking with his ex-wife, and searching through his trash, you gather the following information: 1. Use these data to figure out Tom
> Mr. I. M. Bezzle works in the purchasing department for Big Time, Inc. During the 12 years that he has worked there, he has been a trusted employee and has sole responsibility for the company's purchasing function. He started working for the company in 2
> The financial data for this case was collected during a fraud investigation: 1. Without calculating the amount of unknown income, indicate possible red flags or treads you notice in the numbers above. 2. Now calculate the amount of total income and unkn
> Despite intense measures meant to impede it, fraud appears to be one of the fastest -growing crimes in the United States.
> Using the net worth method, analyze the financial data at the bottom of this page for potential signs of fraud or embezzlement: 1. Do your results indicate that this person could be committing some type of fraud? If so, why do you think so? 2. What oth
> Janet Moody is one of XZY Company's most trusted employees. She never complains about her work and rarely misses work due to illness or vacation. The company has been successful over the years, but is now having cash flow problems. Because of the recent
> You manage a car dealership in a large city. Many of your sales employees are very successful and have purchased their own vehicles from your dealership. Your dealership finances the sale of some of these vehicles. One employee recently paid off the bala
> Bill James is being investigated for embezzling over $700,000 from ABC Capital Management, for whom Bill has worked for nearly 10 years. When co-workers noticed the new "toys" Bill was buying, they jokingly asked him to tell them his stock picks as they
> You receive an anonymous tip that your controller is embezzling assets from your company. You begin your investigation by interviewing several employees in the accounting department, who report no unusual behavior or sudden changes in the suspect's stand
> You are auditing a bank, and someone provides you with an anonymous tip that an employee is embezzling money from the bank. You decide to investigate the allegation. Your interviews with other bank employees confirm that the suspected embezzler has been
> Given the following information about a potential suspect, determine whether there is a likelihood of illegal income. If so, determine the amount of unknown income. FINANCIAL YEAR 1 YEAR 2 DATA YEAR 3 Assets: Residence $100,000 $100,000 $100,000 Base
> You are performing an audit of a small Internet start-up company that recently went public. During the audit, you frequently converse with the employees. with whom you have a comfortable relationship. ln one conversation, an employee mentions the strange
> What are different ways investigators can obtain hard-to-get documentary evidence?
> How can discovery sampling help in obtaining documentary evidence?
> Management fraud is when managers intentionally deceive their employees about the potential of raises, vacations, and other perks.
> Why is it important to obtain documentary evidence?
> What is the value of documents when conducting a fraud investigation?
> Why is it important to gather documentary evidence?
> What programs can help with evidence coordination?
> Why is it important to maintain a chain of custody for documentary evidence?
> What are the primary aspects of documentary evidence?
> What are the potential benefits and drawbacks of using open source, self-booting CDs for computer forensics?
> What four methods of investigation constitute the fraud triangle plus inquiry approach to investigations?
> What role does the Fourth Amendment to the Constitution play in cases of fraud investigation?
> What are the most common ways perpetrators conceal their frauds?
> It is most often people who are not trusted who commit fraud.
> Why is it important to consult legal counsel and human resources before any form of surveillance takes place?
> Why is it important to use investigation techniques that will not arouse suspicion among possible perpetrators?
> 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?
> 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?
> 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 dri
> 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?
