If all financial statement amounts are presented appropriately, could financial statement fraud still be occurring?
> Why are the elderly and/or uneducated so susceptible to fraud?
> How does consumer fraud affect the economies of entire countries?
> What is the difference between a fraudulent multilevel marketing organization and a legitimate multilevel marketing organization?
> What is a Nigerian money offer?
> What are some examples of foreign advance-fee scams?
> What are some proactive steps that consumers can take to minimize their risk to identity theft?
> What are some methods perpetrators use to steal a person's identity?
> What is identity theft?
> ABC Company manufactures and sells software packages to small businesses. The company has enjoyed great success since it began business in 1998. Last year, the firm doubled its revenues, and its management is now looking closely at going public by making
> Why are theft of cash through larceny schemes easier to detect than skimming schemes?
> What are the four types of corruption?
> What are the six kinds of fraudulent disbursements?
> When does a conflict of interest occur? Give an example.
> After working out at the gym, you notice that your car has been broken into and your wallet has been stolen. What should you do?
> While consumer fraud often affects individual people directly, in what ways does consumer fraud affect everyone?
> How does the expression "If it sounds too good to be true, it probably is" relate to consumer fraud?
> What are investment scams?
> Why is it important to study consumer fraud?
> How do executives illegally loot their companies to receive large financial benefits?
> After Enron, WorldCom, and other major corporate scandals that rocked America in the recent past, it seemed that nothing would surprise investors or regulators. However, almost everyone was shocked by revelations that as many as 20 percent of all public
> What are expense fraud schemes?
> What is meant by a billing scheme?
> What is a register disbursement scheme?
> What is meant by check tampering?
> How does the ACFE categorize fraudulent disbursements?
> Describe what is meant by theft of cash through skimming.
> Describe what is meant by an organization's theft of cash through larceny.
> Briefly describe how the use of databases could help in detecting kickback fraud schemes.
> What is meant by the term "bribery"?
> What is meant by the term "corruption"?
> How can the data-driven fraud detection approach be used to detect e-business fraud? What data sources can be used to discover potential frauds?
> What are payroll disbursement fraud schemes?
> What are the three types of fraud against organizations that employees, vendors, and customers use to steal an organization's assets?
> Is cash an asset that is frequently overstated when committing financial statement fraud? Why or why not?
> Explain why improper capitalization of amounts spent could result in financial statement fraud and overstatement of assets.
> What are some documentary symptoms of contingent liabilities that should be recorded?
> If a contingent liability is only a possible liability, why might not disclosing contingent liabilities constitute financial statement fraud?
> What is the difference between unearned revenue and earned revenue?
> Why might liabilities be understated if proper adjusting entries are not made at the end of an accounting period?
> Explain what is meant by "cutoff problems" as they relate to accounts payable.
> List the four methods used to perform analytical analyses to search for fmancial statement fraud symptoms. Give an example of each method as it applies to searching for symptoms related to underreporting of liabilities.
> How has the Internet changed your day-to-day life? What security precautions do you take each time you use the Internet?
> 1. A request for confession asks the opposing party to admit designated facts relevant to litigation. 2. The parties in a civil case may negotiate a settlement during any stage of litigation. 3. If responses to interrogatories are not given in a timely
> What is norming or calibrating?
> What is the purpose of assessment questions?
> What is an interview?
> What are the three different categories into which disclosure frauds can be categorized?
> If you were to compare two companies in the same industry and found that one company had $100 of fixed assets for every $1 of sales while the other had $200 of fixed assets for every $1 of sales. what would be a possible explanation for the difference?
> What are the four kinds of analysis that can be used in searching for analytical fraud symptoms?
> ln what ways could financial statement fraud result from a merger?
> Why is understatement of liability fraud difficult to discover?
> What is the effect on net income of overstating ending inventory?
> 1. Segregation of duties is an important control in preventing e-business fraud. 2. Digital signatures use human features to create secure access controls. 3. Biometrics is a form of authorization control. 4. It is often easier to analyze e-business
> What is the effect on net income of not recording sales returns?
> Why do you suspect that revenue-related financial statement fraud schemes are most common and inventory-related fraud schemes are next most common?
> What are common-size financial statements?
> What are some of the ways to proactively search for inventory-related financial statement fraud schemes?
> What are some of the most common inventory related financial statement fraud schemes?
> Why is it important to follow up on revenue related fraud symptoms?
> What are some possible ways to proactively search for revenue-related financial statement fraud schemes?
> When looking for financial statement fraud, why is it important to analyze the relationship between a company and its auditors?
> Why must relationships with others be examined when searching for financial statement fraud exposures?
> Why must members of management and the board of directors be examined when searching for financial statement fraud exposures?
> 1. Fraud risks are higher when the entity with which you are transacting business can't be seen. 2. Data theft is a bigger problem in e-business transactions than money theft. 3. Sniffing changes e-mail headers or IP addresses. 4. Falsified identit
> What are some of the ways that financial statement fraud exposures can be identified?
> How can comparing financial statement amounts with actual assets they are supposed to represent help determine if fraud is present?
> What are some common revenue-related financial statement fraud schemes?
> What are some common motivations of financial statement fraud?
> How can an active audit committee help to deter financial statement fraud in an organization?
> What are common ways in which financial statement frauds are concealed?
> Why are CEOs the most frequent perpetrators of financial statement fraud?
> Who usually commits financial statement fraud?
> What is financial statement fraud?
> Why are financial statements important to the effective operation of capital markets?
> 1. The purpose of civil laws is to "right a wrong” or send someone to jail or have them pay fines, whereas the purpose of criminal laws is to seek monetary remedies or recover stolen funds. 2. The retention of a fraud investigator in a bankruptcy case
> The chapter identifies nine factors that Jed to the "perfect fraud storm." Explain how these factors helped create and foster the ethical compromises that occurred between 2000 and 2002.
> What are the four different exposure areas that must be examined while detecting financial statement fraud?
> What were some of the most notable abuses that occurred between 2000 and 2002?
> What is a volatile interview?
> What are informational questions?
> What are facilitators of communication?
> What is an inhibitor of communication?
> What are some of the different elements of communication?
> What are the five general types of questions that an interviewer can ask?
> What are the five reactions of interviewees?
> 1. Civil bankruptcy cases are usually investigated by the FBI and other law enforcement agencies. 2. A person acting as an officer in a bankruptcy case is prohibited from purchasing any property of the debtor's estate. 3. Fraudulent transfers can occ
> What are the three types of honesty testing?
> How is money laundering related to other illegal activities or fraud?
> What is money laundering?
> During deposition, what posture should an expert witness display?
> What types of fraud-related things can an expert witness testify about?
> What are some of the dos and don'ts of being an expert witness?
> What is the purpose of having a fraud investigator or another expert witness provide testimony in a trial?
> How are fraud examiners used as expert witnesses?
> What is discovery?
> What steps are involved in the criminal litigation process?
> 1. Once an identity theft victim has reported a fraud to the FTC, the FTC will help a victim contact the FBI, Secret Service, and local police to coordinate an investigation. 2. The National Processing Company was given authority by the FTC to preregis
> Visit the IRS's bankruptcy site at www.irs.gov and answer the following questions: a. What percentage of bankruptcy petitions does the IRS estimate contain some kind of fraud? b. What are the major goals of the Cl division's bankruptcy fraud program?
> Visit the Association of Certified Fraud Examiners Web site and read a short introduction on Joseph T. Wells (www.acfe.com). (Hint: He was not only the founder but is listed as an instructor too.) a. What was Wells's background before becoming chairman
> Enron founder and former Chairman and CEO Kenneth Lay was indicted in July 2004 for his role in the Enron scandals. The SEC's complaint against Lay, ironically, seemed to corroborate Lay's protests that he had nothing to do with the manipulation of Enron
