ACCT 450 CHAPTERS 1 -4...100% QUESTIONS AND ANSWERS...
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Course
ACCT 450
Institution
ACCT 450
Chapter 1 – Introduction
1. Which of the following best describes the objective of a fraud examination?
a. To make recommendations to management about how to prevent fraud
b. To determine whether financial statements are free of misstatements due to fraud
c. To express an opinion on the gui...
report to the nations on occupational fraud and abuse
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ACCT 450 CHAPTERS 1 -4
Chapter 1 –
Introduction
1. Which of the following best describes the objective
of a fraud examination?
a. To make recommendations to management about
how to prevent fraud
b. To determine whether financial statements are free of misstatements due to fraud
c. To express an opinion on the guilt or innocence of a suspect
d. To determine whether a crime has been committed, and if so, who is responsible
2. Which of the following is not a part of the fraud theory approach?
a. Analyze available data.
b. Develop “what-if” scenarios.
c. Identify who committed the fraud.
d. Refine the hypothesis.
3. Once sufficient predication has been established, what is the first step a fraud
examiner following the fraud theory approach should take?
a. Create a hypothesis.
b. Analyze data.
c. Interview witnesses.
d. Interview the suspect.
4. The discipline of fraud examination includes all of the following except:
a. Writing investigative reports
b. Determining the guilt of the suspect
c. Testifying to findings
d. Interviewing witnesses
5. Fraud examination differs from auditing in that fraud examination is:
a. Recurri
ng b.
Adversaria
l
c. General in scope
d. All of the above
6. Predication, although important, is not required in a fraud examination.
a. True
b. False
7. In a fraud examination, evidence is usually gathered in a manner that moves from
general to specific.
a. True
b. False
,8. Which of the following is the correct order for a fraud examiner to interview
witnesses?
a. Corroborative witnesses, neutral third-parties, co-conspirators, suspect
b. Suspect, co-conspirators, corroborative witnesses, neutral third-parties
c. Neutral third-parties, corroborative witnesses, co-conspirators, suspect
d. Suspect, corroborative witnesses, co-conspirators, neutral third-parties
9. In order to prove that fraud occurred, four elements must be present. Which of the
following is not one of those elements?
a. A material false statement
b. Knowledge that the statement was false
c. Reliance on the false statement by the victim
d. Intent to cause the victim damages
10. The basic tenet of Edwin Sutherland’s theory of differential association is that
crime is passed on genetically; that is, the offspring of criminals commit crimes
because their parents did.
a. True
b. False
11. Who developed the Fraud Scale?
a. Joseph T. Wells
b. W. Steve Albrecht
c. Richard C. Hollinger
d. Donald R. Cressey
12. Which of the following is not one of the legs of the Fraud Triangle?
a. Situational environment
b. Perceived non-sharable financial need
, c. Perceived opportunity
d. Rationalization
13. According to Cressey, the perceived opportunity to commit fraud consists of two
elements: general information and technical skill.
a. True
b. False
14. In a study by Steve Albrecht, Marshall Romney, and Keith Howe, participants
were asked to rank personal characteristics as motivating factors that contributed
to fraud. The highest ranked factor was:
a. Undue family or peer pressure
b. Lack of recognition of job performance
c. Living beyond one’s means
d. Lack of appreciation by management
15. In a study by Steve Albrecht, Marshall Romney, and Keith Howe, participants
were asked to rank characteristics of the organizational environment that
contributed to fraud. The highest ranked factor was:
a. Lack of clear lines of authority
b. Inadequate attention to detail
c. Lack of an internal audit function
d. Placing too much trust in key employees
16. Research in the Hollinger-Clark study suggests that the best way to deter employee
theft is by:
a. Increasing sanctions imposed on occupational fraudsters
b. Increasing the perception of detection
c. Strengthening internal controls
d. Communicating the organization’s fraud policies to employees
17. According to the results of the Hollinger-Clark study, employees steal primarily
because of:
a. Job dissatisfaction
b. Greed
c. Informal organizational structures
d. Economic pressures
18. In the 2012 Report to the Nations on Occupational Fraud and Abuse, the category
that committed the smallest percentage of occupational fraud was:
a. Managers
b. Employees
c. Owners/Executives
d. External parties
19. In the 2012 Report to the Nations on Occupational Fraud and Abuse, the median
loss in schemes committed by males was higher than the median loss in schemes
committed by females.
a. True
b. False
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