Studies have found that the most common internal control problem when frauds occur is having a lack of proper authorizations.
> 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.
> Traditional chain of custody evidence procedures are not appropriate when used with electronic evidence.
> Checks are excellent sources of physical evidence.
> The SHA -1 checksum method is more advanced and is considered more robust than the MDS method.
> It is impossible to retrieve the data from a file that has been deleted on a computer.
> The best way to obtain documentary evidence in a computer database is to use discovery sampling to find the appropriate records.
> Programs like IBM's i2 Analyst's Notebook and Xanalys Link Explorer perform link analysis.
> Bates numbers are identifying numbers used by attorneys involved in litigation to track all documents.
> Private financial institutions can usually sell confidential customer information.
> Using a computer to access records (data mining) can be a very effective approach for determining if fraud exists because the auditor can look at entire populations.
> Random number tables are ineffective and should not be used when selecting random samples from a population.
> A canceled check typically shows the account number of the person who presented the check, the teller who processed the check, and the sequence number of the transaction.
> Even if photocopies of original documents are allowed to be introduced as evidence in a court of law, they are still considered secondary evidence.
> Concealment is the covering of tracks, obscuring of evidence, and removal of red nags to hide a perpetrator's fraud.
> Investigation should only take place when predication of fraud has first been established.
> Not only are undercover operations both legal and valid, but also inexpensive.
> Surveillance logs should always be prepared before an investigation begins.
> During invigilation, no controls are imposed on any activities.
> Mobile surveillance is usually much more risky than stationary surveillance.
> When people convert stolen cash by entering into financial transactions, such as buying assets, they usually leave tracks that investigators can follow.
> Surveillance is a theft investigation technique that relies on the examination of documents
> Electronic surveillance can be of limited value in the investigation of employee fraud because of concerns regarding employees' privacy rights.
> One advantage of using a vulnerability chart is that it forces investigators to consider all aspects of a fraud
> Now that many companies are storing their data "in the cloud" it is easier to access the electronic data of suspected perpetrators.
> Seizing and searching computers is illegal because it infringes on the rights guaranteed by the Fourth Amendment to the Constitution.
> In determining which investigative method to use, it is most important that investigators focus on the costs of each possible method.
> To get an accurate reading. it is generally agreed that the invigilation period should be at least four days in length.
> Invigilation is a theft act investigative technique that involves close supervision of suspects during an examination period.
> Tailing includes the use of video, e-mail, wiretapping. and access to PCs.
> If possible, when using theft act investigation methods, interviewing the prime suspects should happen last.
> Federal agencies provide better records than state or county agencies for conversion investigations.
> The fraud triangle plus inquiry paradigm is an effective way to understand the various types of fraud investigation methods.
> Unexplained changes are common in financial statements.
> Data-driven fraud detection can pay large dividends and is an effective way to reduce the cost of fraud in any organization.
> Digital analysis using Benford's Law can be performed on databases of any size.
> Understanding the kinds of frauds that can occur is not important when using a data-driven detection method.
> When using Benford's Law, potential suspects are less likely to know you are trying to detect fraud than if you use more direct detection techniques.
> According to Benford's Law, the first digit of natural sets of numbers will begin with a 9 more often than with an 8.
> Data-driven analysis uses the company's database to search for normal relationships between numbers.
> ODBC is the best approach to import because it achieves a direct, rich connection to the source database.
> Before financial institutions can sell or disclose confidential customer information, they must provide customers with the opportunity to "opt out" from information sharing.
> Most people who commit fraud feel a perceived financial pressure.
> Because of the nature of fraud, auditors are often in the best position to detect its occurrence.
> Fraud is a crime that is seldom observed.
> A single symptom (red flag) is almost always enough information to identify the type of fraud scheme occurring.
> The z-score calculation is the best way to stratify data.
> Vertical analysis is a useful detection technique because percentages are easily understood.
> Vertical analysis is a more direct method than horizontal analysis in focusing on changes in financial statements from one period to another.
> Balance sheets must be converted to change statements before they can be used in detecting fraud.
> Unusual patterns always indicate the existence of fraud.
> First-time offenders usually exhibit no psychological changes.
> The Gramm-Leach-Bliley Act of 1999 made it more difficult for officials and private citizens to access information from financial institutions.
> As fraud perpetrators become more confident in their fraud schemes, they usually steal and spend increasingly larger amounts.
> Most people who commit fraud use the embezzled funds to save for retirement.
> Analytical fraud symptoms are the least effective way to detect fraud.
> The internal control system of an organization is comprised of the control environment, the accounting system, and control procedures (activities).
> Internal control weaknesses give employees opportunities to commit fraud.
> A check is an example of a source document.
> Recording an expense is a possible way to conceal the theft of cash.
> Some complaints and tips turn out to be unjustified.
> Auditors can best help detect fraud at the conversion stage.
> The three elements of a typical fraud consist of concealment, conversion, and completion.
> Conversion is the third element of the fraud investigation triangle.
> It is safe to assume that fraud has not occurred if one or more elements of the fraud triangle cannot be observed.
> Psychopaths feel no guilt because they have no conscience.
> Analytical anomalies are present in every fraud.
> The increasingly complex nature of business helps to decrease the number of collusive frauds.
> Even a good system of internal controls will often not be completely effective because of fallibilities of the people applying and enforcing the controls.
> Not prosecuting fraud perpetrators is cost-effective both in the short run and the long run.
> The two elements in creating a positive work environment are (1) having an open-door policy and (2) having positive personnel and operating procedures.
> When fraud is committed, the problem is often not a lack of controls, but the overriding of existing controls by management and others.
> A good internal control system within a company can ensure the absence of fraud.
> An important factor in creating a culture of honesty, openness, and assistance in the workplace is maintaining an employee assistance program.
> For various reasons, the net worth method tends to be a conservative estimate of amounts stolen.
> Perpetrators usually save what they steal.
> The ellipsoid 4x2 + 2y2 + z2 = 16 intersects the plane y = 2 in an ellipse. Find parametric equations for the tangent line to this ellipse at the point (1, 2, 2).
> The paraboloid z = 6 - x - x2 - 2y2 intersects the plane x = 1 in a parabola. Find parametric equations for the tangent line to this parabola at the point (1, 2, -4). Use a computer to graph the paraboloid, the parabola, and the tangent line on the same
> You are told that there is a function f whose partial derivatives are fx (x, y) = x + 4y and fy (x, y) = 3x - y. Should you believe it?
> A contour map is given for a function f. Use it to estimate fx (2, 1) and fy (2, 1). -3 6. -2 10 12 14. 2 16 3 18
> The following surfaces, labeled a, b, and c, are graphs of a function f and its partial derivatives fx and fy. Identify each surface and give reasons for your choices. 8 4 -4 a -8 -2 -3 -2 -1 0 1 2 y 2. 3. 4 -4 -3 -2 -1 0 1 3 y -4 -8- -2 -3 -2 -1 0
> The average energy E (in kcal) needed for a lizard to walk or run a distance of 1 km has been modeled by the equation where m is the body mass of the lizard (in grams) and v is its speed (in km/h). Calculate Em (400, 8) and Ev (400, 8) and interpret y
> A model for the surface area of a human body is given by the function S = f (w, h) = 0.1091w0.425h0.725 where w is the weight (in pounds), h is the height (in inches), and S is measured in square feet. Calculate and interpret the partial derivatives.
> Find the limit, if it exists, or show that the limit does not exist. ху lim (x y-0, 0) Vx2 + y?
> Let g (x, y) = cos (x + 2y). (a). Evaluate g (2, -1). (b). Find the domain of g. (c). Find the range of g.
> Find the limit, if it exists, or show that the limit does not exist. 5y cos?x lim (x, y)(0, 0) x + y* 4
> Find the limit, if it exists, or show that the limit does not exist. x* – 4y? lim (x, y (0, 0) x? + 2y?
> Find the limit, if it exists, or show that the limit does not exist. lim (x, y)- (3, 2) evzi-y
> Find the limit, if it exists, or show that the limit does not exist. lim (x, y)- (m, w/2) y sin(x – y)
> Use a table of numerical values of f (x, y) for (x, y) near the origin to make a conjecture about the value of the limit of f (x, y) as (x, y) → (0, 0). Then explain why your guess is correct. 2ху f(x, y) = x² + 2y²
> Use a table of numerical values of f (x, y) for (x, y) near the origin to make a conjecture about the value of the limit of f (x, y) as (x, y) → (0, 0). Then explain why your guess is correct. x*y* + x*y* ² – 5 2 f(x, y) = 2 - xy
> Explain why each function is continuous or discontinuous. (a). The outdoor temperature as a function of longitude, latitude, and time (b). Elevation (height above sea level) as a function of longitude, latitude, and time (c). The cost of a taxi ride as a
