Which of the following best describes the objective of a fraud examination? - To determine whether a
crime has been committed, and if so, who is responsible
Which of the following is not a part of the fraud theory approach? - Identify who committed the fraud
Once sufficient predication has been established, what is the first step a fraud examiner following the
fraud theory approach should take? - Analyze data
The discipline of fraud examination includes all of the following except: - Determining the guilt of the
suspect
Fraud examination differs from auditing in that fraud examination is: - Adversarial
Which of the following is the correct order for a fraud examiner to interview witnesses? - Neutral third
parties, corroborative witnesses, co-conspirators, suspect
In order to prove that fraud occurred, four elements must be present. Which of the following is not one
of those elements? - Intent to cause the victim harm
Which of the following is not one of the legs of the Fraud Triangle? - Situational environment
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: -
Living beyond one's means
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: - Placing to much trust in key employees
, Joel Baker, a customer of ABC Electronics, stole a box containing computer games while the sales
associate waited on another customer. Which of the following could Joel be charged with? - Larceny
When Jill Michaels, an assistant to the director of procurement, moved into her new home, she used the
company's flat bed truck to move her furnishings on an afternoon when her boss was out of town.
Which of the following best describes Michael's act? - Abuse
Alice Durant works in the accounts payable department for the BC Group. She recently found out that
Della Granger, another A/P clerk, received a bigger raise than she did, even though Durant has been
with the company longer and frequently has to correct Granger's errors. Which leg of the Fraud Triangle
best applies to Durant's situation? - Rationalization
Richard Moore is the controller for Ajax Company. Recently, he suffered several large losses at the race
track, causing him to incur enormous personal debts. Which type of non-sharable financial problem best
describes Richard's situation? - Violation of ascribed obligations
____________________ is the theft of cash from a victim entity prior to its entry in an accounting
system. - Skimming
In the Fraud Tree, asset misappropriations are broken down into cash and non-cash schemes. Which of
the following is not considered a misappropriation of cash? - Concealed Expenses
Methods of skimming sales include which of the following? - All of the above
Skimming can be either an on-book scheme or an off-book scheme, depending on whether cash or a
check is stolen. - False
Which of the following procedures would not be useful in preventing and detecting sales skimming
schemes? - Comparing register tapes to the cash drawer and investigating discrepancies
The customer service department at JNC, Inc. has been receiving phone calls from customers for whom
there is no record. This is a red flag of what type of scheme? - Unrecorded sales
The concealment of receivables skimming can be difficult because: - Incoming payments are expected
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