(Multiple choice)
1. Which of the following aspects of fraud usually results in the largest savings?
a. Fraud prevention.
b. Fraud detection.
c. Fraud investigation.
d. It is impossible to tell.

2. Which of the following is usually the most effective tool in preventing and detecting fraud?
a. Discouraging collusion between employees and customers or vendors.
b. Effective investigations of fraud symptoms.
c. Having a good system of internal controls.
d. Creating an expectation of punishment in the company.

3. Which of the following is the typical fraud model that describes most firms?
a. Fraud incident, assessing risk, investigation, reporting.
b. Fraud incident, investigation, action, resolution.
c. Assessing risk, fraud incident, investigation, resolution.
d. Assessing risk, investigation, implementing a fraud program, reporting.

4. The “tone at the top” is an important element in fighting fraud which involves:
a. Doing a good job of integrity risk assessment.
b. Having a positive organization where effective fraud teaching and training is conducted.
c. Setting a proper example or modeling appropriate management behavior.
d. Both b and c.

5. Which of the following is not a recognized method of eliminating fraud opportunities?
a. Having good internal controls.
b. Monitoring employees.
c. Creating an expectation of punishment.
d. Engendering employee goodwill by having lax rules.

6. Which of the following is not a reason identified by Deloitte why whistle-blowing systems fail?
a. Lack of anonymity.
b. Pressure to comply.
c. Culture.
d. Lack of awareness.

7. Alerting vendors and contractors to company policies often results in:
a. Loss of interest in the organization by vendors.
b. Discovery of current frauds and the prevention of future frauds.
c. Strained vendor/purchaser relationships.
d. Heightened incidence of recurrent reverse vendor fraud.