(Multiple choice)
1. The retention of a fraud investigator in a bankruptcy proceeding must be approved by the bankruptcy judge unless:
a. The debtor’s estate pays the investigator.
b. The trustee pays the investigator.
c. The creditors’ committee pays the investigator.
d. An individual creditor or shareholder pays the investigator.

2. Which of the following is not an indicator of a possible bust-out?
a. An address that is a post office box.
b. New ownership of a company.
c. Slow buildup of inventory.
d. Dramatic increase in the size of credit orders.

3. Which of the following is an indicator of possible hiding of assets in a divorce?
a. Assets transferred to an off-site location.
b. Changing the title to assets.
c. Payments made to fictitious individuals.
d. All of the above are indicators of possible hiding of assets.

4. Which of the following is not a way that individuals can commit tax fraud?
a. Overstating the amount of deductions.
b. Keeping two sets of books.
c. Paying the least amount of taxes the individual owes.
d. Making false entries in books and records.

5. The Criminal Investigation Division’s chief responsibility is to:
a. Detect taxpayers who willfully and intentionally violate their known legal duty of voluntarily filing an income tax return.
b. Check the accuracy of tax returns.
c. Detect fraud in public corporations’ tax filings.
d. Detect fraud in U.S. citizens’ tax filings.

6. Which of the following is not an example of tax fraud?
a. Using a false SSN.
b. Keeping two sets of financial books.
c. Reporting information regarding passive income.
d. Claiming a blind spouse as a dependent when you are single.

7. If an audit reveals that an individual has underpaid his or her taxes, the auditor:
a. Can assess civil fines.
b. Can assess penalties.
c. Can refer the case to the CI Division.
d. An auditor can do all of the above.

8. To work as an entry-level CI special agent,
a. You must be a U.S. citizen.
b. You must not be older than 37 years of age.
c. You must have completed a four-year course of study or earned a bachelor’s degree.
d. You must meet all of the above conditions.