20. What is not especially helpful for spotting kiting?

a. Confirming accounts receivables.

b. Look for frequent deposits and checks in the same amount.

c. Check for large deposits on Fridays.

d. Look for short time lag between deposits and withdrawals.

e. None of the above.

28. What should an organization avoid when a fraud is discovered?

a. Hiring an external fraud investigator.

b. Check the target's personal computer.

c. Discuss with as few people as possible.

d. Remove access to computers and serves.

e. None of the above.

32. Which risk factor should be considered an incentive or pressure per SAS No. 99 (AD 316)?

a. Significant related party transactions.

b. Unstable organizational structure.

c. High turnover of senior executives.

d. Ineffective communication.

e. Recurring negative cash flow.

34. Which factor would not be an opportunity for misappropriation of assets?

a. Personal financial obligation (e.g. wife is sick).

b. Inventory items are small in size and valuable.

c. Inadequate physical safeguards of assets.

d. Lack of mandatory vacation policy for employees.

e. None of the above.

62. The FBI estimates that fraud in the United States is annually what amount?

a. $652 Billion

b. $1 trillion

c. $300 billion

d. $400 billion

e. Some other amount

63. What was the major fraud scheme used by the Baptist Foundation of Arizona?

a. Ponzi scheme

b. Created many fake purchase orders.

c. Improperly capitalized a number of expenses

d. Bill and hold strategy

e. None of the above.

64. A(n) ______________ can be used to show the flow of funds from bank-to-bank, to entity-to-entity.

a. Link analysis

b. Tracing schedule

c. Time-line analysis

d. Invigilation

e. Genogram

65. In the 2014 PwC Global Economic Crime Survey, what was the average percentage of fraud for internal versus external fraudsters?

a. 31%; 69%

b. 49%; 51%

c. 56%; 40%

d. 41%; 57%

e. 57%; 40%

66. Who is the Bernie Madoff of governmental fraud?

a. Lela west

b. Barry Minkow.

c. Allen Stanford.

d. Rita Crundwell.

e. Some other person.

67. In the 2014 PwC Global Economic Crime Survey, which is the most likely action against internal fraudsters?

a. Civil actions/recoveries

b. Dismissal

c. Law enforcement informed.

d. Warning/reprimand.

e. Transfer of person.

68. Who coined the phrase "white collar crime?"

a. Robert O'Block

b. Edwin Sutherland

c. Michael Corner

d. D.R. Cressey

e. James McCleland

69. Which would not fall under corruption?

a. Conflict of interest

b. Bribery

c. Falsifying performance

d. Extortion

e. All of the above fall under corruption

70. Which statement is false?

a. Women are more likely than men to report fraudulent activity.

b. Older employees are more likely to report fraudulent activities than younger employees.

c. For each $1 of compliance spending an organization saves about $7.21.

d. Theft of asset fraud is increasing.

e. Expense account abuse is increasing.

71. Which statement is false?

a. In terms of actual numbers of events, women commit more fraud than men.

b. Fraudsters act alone about 70 percent of the time.

c. Employees are the largest number of tipsters.

d. It is physically impossible to conduct a generic fraud investigation of a large business.

e. Maybe 20 to 40 percent of employees are honest.

72. What would be the worst strategy to catch ghost employees?

a. Ensure segregation of payroll preparation, disbursement, and distribution functions.

b. Check for inflated invoices.

c. Examine payroll checks that have dual endorsements.

d. Use direct deposit.

e. Hand delivers paychecks to employees occasionally.

73. What is not proactive approach to forensic accounting?

a. Investigating complaints

b. Effective internal controls

c. Logging of exceptions

d. Reviewing variances

e. Financial audits

74. The best approach for a fraud risk assessment is the:

a. Chessboard method.

b. COSO comprehensive approach

c. Swimming lane approach

d. Staggered box method

e. The eye-ball approach

75. The measure most helpful in preventing fraud is:

a. Anonymous hot line

b. Fraud training

c. Established fraud policy

d. Willingness for company to prosecute

e. Strong internal controls

76. _____________ refers to the basis for undertaking a fraud investigation.

a. Alter ego

b. Predication

c. Wildcatting

d. Invigilation

e. Shenanigan

77. ______________ is a pictorial display of personal relationship among related or unrelated parties.

a. Timeline

b. Entity charts

c. Genogram

d. Graphology

e. Full-inclusion

78. ___________________________ refers to software continuously analyzing every business transaction to detect improper activities.

a. Double play

b. Game theory

c. Continuous motoring

d. Timeline analysis

e. None of the above

79. _____________________________ shows associations between people data.

a. Link analysis

b. Game theory

c. Timeline analysis

d. Tracing theory

e. Invigilation analysis