QUESTION 36

____________ is the act of engaging in criminal activity as a structured group, and individuals in organized criminal organizations are often prosecuted for it under RICO.

	a.	Racketeering
	b.	Collusion
	c.	Predation
	d.	Organized crime

QUESTION 35

Because the activities of predators and organizational crimes are more deliberate from the outset than those of the situational fraudster, they are _______________, have more __________________, and are _________________

	a.	More collusive by definition; offshore banking activities; more difficult to investigate
	b.	Better organized; sophisticated concealment schemes; well-prepared to deal with auditors and other oversight mechanisms
	c.	More expensive; reach into the banking system; usually foreign entities
	d.	Harder to detect; offshore banking activities; complex in their internal structure

QUESTION 34

Many frauds such as the Worldcom fraud could have been detected earlier if investors had paid attention to:

	a.	free cash flows
	b.	net income
	c.	revenues
	d.	cash flows

QUESTION 32

Which of the following is NOT considered financial statement fraud?

	a.	Manipulation, falsification, or alteration of accounting records or supporting documents from which financial statements are prepared
	b.	Misrepresentation or intentional omission from, the financial statements of events, transactions, or other significant information
	c.	Intentional omissions of disclosures or presentation of inadequate disclosures.
	d.	All of the above are considered examples of financial statement fraud

2 points

QUESTION 33

Organizational avoidance of setting unachievable or unreasonable financial goals is an example of:

	a.	Reducing the pressure to commit financial statement fraud
	b.	Reducing the opportunity to commit financial statement fraud
	c.	Reducing the grounds for rationalizing financial statement fraud
	d.	Reducing the incentives for reaching performance targets