What are accounting symptoms?
> 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?
> 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?
> 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?
> 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?
