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8. We outlined three classes or categories of fraud in this course. Regardless of the fact that only fraud in group 1 can be studied,
8. We outlined three classes or categories of fraud in this course. Regardless of the fact that only fraud in group 1 can be studied, a generally accepted view of all fraud has arisen. A reason that we can be certain that researchers have accurately determined the true nature of group1 fraud is: a. that they have been studied many times by different researchers b. confessions of convicted fraudsters ratify the conclusions of fraud researchers c. experienced fraud auditors and investigators tend to concur with researchers conclusions d. a and c e. a and b 9. Many reasons exist to conduct a fraud investigation, but the specific objectives usually involve obtaining evidence for one or more of the following purposes: a. determine if fraud is occurring, support criminal or civil action against dishonest individuals, form a basis for terminating a dishonest employee. b. support an insurance claim, support defense of an accused employee. c. determine whether assets or income were hidden by a party to a legal proceeding. d. a, b, and c e. b and c 10. The client can significantly affect the desirability of accepting an engagement. Key considerations include the following: a. identification of the client ( as a fraud investigator is often hired by an attorney) and assessment of management motives b. whether the client pays a retainer to the fraud investigator. c. whether the client agrees to sign an engagement letter. d. whether the client may try to impose unreasonable time or fee constraints that could impair the investigators ability to perform adequate work. e. a and d
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