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In investigating insurance fraud, an accounting fraud examiner would least likely use which of the following computer-assisted detection methods? Select one: a. An accounting fraud
In investigating insurance fraud, an accounting fraud examiner would least likely use which of the following computer-assisted detection methods? Select one: a. An accounting fraud examiner would use the computer to mail confirmation requests on delinquent premiums and change of address to verify that the insurance company's records agree with the policyholders' records. b. An accounting fraud examiner would use the computer to compare insurance policy issue files with disbursement files to determine whether funds that are used to place new policies fraudulently come from the equity of old policies. O c. An accounting fraud examiner would use the computer to compare administrative files with payroll files to determine whether the insurance company is distributing payrolls to people who have changed their insurance policies. O d. An accounting fraud examiner would use the computer to generate an exception report for all exceptions to normal insurance policy procedures. Which of the following is a correct statement concerning the difference between a ponzi fraud and an illegal pyramid fraud? Select one: O a. A ponzi fraud is an illegal business; whereas, a pyramid fraud can be a legal or illegal business. b. A ponzi fraud usually involves marketing of products and services; whereas, an illegal pyramid fraud usually involves marketing of financial instruments. O c. A ponzi fraud requires a steady supply of new investors; whereas an illegal pyramid fraud does not require a steady supply of new members. O d. A ponzi fraud is an illegal business in which new investors' money is used to make payments to earlier investors; whereas an illegal pyramid fraud is an illegal business in which new members are continually recruited to offer merchandise or services for sale, but only 70% of the business revenue comes from the sales whereas 30% of the business revenue comes from recruitment of new members
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