If a search reveals that an employee and a vendor have the same telephone number, this result may indicate that: a. Vendors are overcharging for goods purchased. b. Employees may be establishing dummy vendors. c. Contractors are billing at the wrong rates. d. A vendor is receiving kickbacks or other favors. When conducting financial statement analysis, which ratio will be the most useful in determining whether a company has erroneously inflated accounts receivable? a. Current ratio. b. Profit margin. c. Accounts receivable turnover. d. Debt percentage. When trying to identify outliers, what is one of the best statistical approaches? a. A pie graph indicating the relative amounts. b. Stratification of cases by value. c. Time trending using the high-low slope method. d. The z-score calculation. An advantage of using ODBC to import data into a data warehouse is that: a. ODBC doesn't require the use of corporate database servers. b. ODBC compresses data when stored on a CD or DVD. c. ODBC automatically retrieves column names and types from the database. d. ODBC keeps the investigator from dealing with the difficult SQL language. The Soundex algorithm: a. Uses consonants but ignores vowels. b. Creates a numerical score representing how a word sounds. c. Is useful when fuzzy matching values. d. All of the above. Case 1 Boxer Incorporated has hired you as a consultant to implement a data-driven fraud detection program in the company. One of the owners. Priscilla Boxer, asks you to give a presentation to several executives on the data-driven approach. 1. What are the primary advantages or disadvantages of this approach? 2. How does this approach compare to the reactive approach to detecting fraud? A large manufacturing business has hired you as a detection specialist. The first day on the job your asks you the following questions: 1. What is Benford's Law? 2. In what situations is it appropriate to use Benford's and in what situations is Benford's Law