38.________________, went into effect on October 28, 2004. This Act effectively allows the first bank to touch a check to image the front and back of the check and then shred the original. Fraud examiners will have access to the electronic images that can serve as evidence.

a.Check Clearing for the 21st Century Act

b.The USA Patriot Act

c.The Bank Secrecy Act

d.The Know Your Customer Act (KYC)

39.______________ is the process by which criminals use a legitimate trade to disguise their criminal proceeds from their unscrupulous sources.

a.Informal Value Transfer System (IVTS)

b.Attempts to avoid OFAC (Office of Foreign Assets Control)

c.Trade-Based Money Laundering (TBML)

d.Using prepaid Access Devices

40.The assertions of management related to financial statements include

(1) the existence of assets and transactions,

(2) the completeness of the transactions reflected in the financial statements and related notes,

(3) proper disclosure of all rights and obligations associated with assets and liabilities,

(4) the reasonableness of the valuation of transactions and balances reflected in the financial statements, and

(5) _____________________________________.

a.Proper financial statement presentation and disclosure of the related notes

b.Certification of responsibility for the internal control environment

c.Formal attestation of any incidents of known fraud since prior audit

d.Internal auditor statement that they have not been coerced into overriding controls

41.The primary distinction in whether an individual has committed tax fraud or simply committed an error is ______________________________________.

a.The intent of the individual

b.Whether the return was mailed or filed electronically

c.The knowledge (accountant) of the person filing it

d.Documentation

42.Typically, a few _______________ are not in themselves sufficient as a basis for a fraud examination.

a.Red flags

b.Instances of missing cash or other assets

c.Tips with some corroborating evidence

d.Falsified financial reports

43.The process of using data for a forensic accounting investigation has 4 stages, the stage of verifying quality data is ______________________________________. a.Preservation and Collection

b.Assessment

c.Preparation

d.Analysis and Reporting

44.The following is NOT a Red Flag that you may be investing in a Ponzi Scheme

a.Small-scale or lesser-known auditing firm used to perform audits of the investment firms books and records. Preparation

b.Investment manager is unknown, unregulated

c.Lack of investment statements.

d.Investment company is managed or owned by a large organization with several managers.