2. Confrontational interviews should usually be conducted when a. police decide that the suspect is guilty b. the examiner is starting the investigation c. all other investigative procedures have been completed d. the investigation is taking too long e. none of the above 25. The most difficult aspect in the pursuit of hidden assets is a. asset recovery b. tracing c. securing cooperation of foreign governments d. b and c e. none of the above 26. One important initial goal in asset tracing for the professional is a. to establish a cooperative relationship with the foreign government involved b. to attach any assets hidden offshore c. to establish some paper trail that evidences communication, either initially or ongoing, with the holder of the assets d. a and b e. none of the above 27. One method of identifying the foreign holder of assets is a. by checking a persons Rolodex and/or calendar b. by checking with U.S. Customs c. by checking passport stamps d. by examining travel documents and not necessarily just the passport e. none of the above 33. Which of the following is not a method used to move funds offshore? a. wire transfers b. professional intermediaries c. personal checks d. all of the above e. none of the above 34. The difference between an offshore bank and a shell bank is that: a. the shell bank has a physical presence in the country in which it is licensed whereas the offshore bank does not b. the offshore bank specifically cannot carry on business in the jurisdiction in which it is licensed whereas such restrictions do not specifically affect shell banks c. only shell banks use correspondent services d. U.S. banks have more access to client account information in a shell bank than in an offshore bank e. none of the above 36. Creditors are not limited to asking questions or requesting documents from the debtor. They can also subpoena records and there is little the debtor can do to stop these attempts. Many times the most valuable source of information for a creditor is a. bank account statements b. telephone records unless a prepaid calling card has been used c. depositions of the debtor and his/her accountant d. written interrogatories sent to the debtor e. none of the above 37. The purpose of money laundering is to: a. take illegitimate funds and make them look like they were earned from legitimate business activities b. purposefully transfer restricted grant monies into discretionary accounts through confutation c. secretly take suitcases full of money from one country to another d. only a and b Questions 38 through 42 are based on the following information: John Sampson Computation of Unreported Taxable income Assets12-31-0212-31-0312-31-0412-31-05 Cash on hand 1,000.00 1,000.00 1,000.00 1,000.00 Cash in banks15,000.0015,000.0015,000.0015,000.00 Checking accts 2,556.79 167.56 356.06 264.57 Bonds91,897.58 122,770.04 123,001.00132,601.17 Stocks & Notes receivable 2,983.72 1,983.72 983.72 13,487.50 Real Estate10,386.92 10,386.92 10,386.92 61,886.92 Business Equip. 5,700.00 5,700.00 5,700.00 5,700.00 Autos10,428.49 5,950.00 7,854.70 9,554.70 Total Assets 139,953.50 162,958.24 164,282.40239,494.86 Liabilities Mortgages & Loans Payable 402.88 49.93-0-22,260.00 Taxes Payable7,059.11 5,105.90 4,089.00 6,040.85 Total Liabilities7,461.99 5,155.83 4,089.0028,300.85 Net Worth 132,491.51157,802.41 160,193.40211,194.01 03 04 05 Beginning Net Worth 132,491.51 157,802.41 160,193.40 John Sampsons living expenses were 12,646.61, 22,303.34, and 16,283.63 in 2003, 2004, and 2005, respectively. His tax deductions were 2,394.66, 2,461.99, and 3,738.75 for 2003, 2004, and 2005, respectively. His income tax exemptions were 2400, 2400, and 2400 for 2003, 2004, and 2005, respectively. Mr. Moose reported taxable incomes were 7,527.33, 18,765.49, and 9,610.33 for 2003, 2004, and 2005, respectively. 38. John Sampsons corrected taxable income for 2003 per the net worth method is a. $33,162.85 b. $ 7,851.95 c. $ 7,527.33 d. none of the above 7 39. John Sampsons unreported taxable income for 2003 is a. $ -0- b. $324.62 c. $25,635.52 D. It cannot be determined 40. John Sampsons unreported taxable income for 2005 is a. $61,145.49 b. $51,000.61 c. It cannot be determined d. $51,535.16 41. John Sampsons unreported taxable income for 2004 is a. $2,390.99 b. $18,765.49 c. -0- d. It cannot be determined e. None of the above 42. John Sampsons change in net worth for 2005 is a. $2,390.00 b. $51,000.61 c. $75,212.46 d. None of the above