The starting point for the use of electronic data in the fraud or forensic accounting area, as a means of fraud prevention and deterrence is a/an _______________________.

Group of answer choices

Evaluation of the integrity of the data and their related systems

Robust antifraud training program focused on the IT infrastructure

Anti-virus, malware detection system running in the background of all company IT

Suitable software that can crunch big data sets (such as Excel or IDEA)

Flag this Question

Question 2

4pts

Many of the process controls applicable to paper-based information systems are analogous to the internal controls surrounding digital information systems. An information technology system (IT) audit consists of (1) planning, (2) test of controls, and (3) _____________.

Group of answer choices

Auditor training on specific systems with which the fraud examiner may be unfamiliar

Substantive tests

An audit plan whose scope limitations receive buy-in from the company

Establish a materiality threshold for IT errors that may be encountered

Flag this Question

Question 3

4pts

Batch controls are __________________ that ensure data integrity for groups of transactions as they move through the system.

Group of answer choices

System-generated criteria

Used to detect input errors by flagging those transactions that fall outside accepted ranges

Techniques to ensure that data relationships within a record make sense

Operator generated flags

Flag this Question

Question 4

4pts

Fraud professionals in the IT audit environment need to be cognizant of the possibility that ___________________________________________________.

Group of answer choices

IT personnel may not understand accounting standards and terminology

Sophisticated spear-phishing attacks may have altered the data in the system

One or more of the IT systems personnel may be colluding with others to commit or conceal fraud.

Ghost IT systems can exist within a company (much like shell companies) that can be almost impossible to detect

Flag this Question

Question 5

4pts

The IT professional may be in a unique position to commit and conceal a fraud, simply because ______________________________________.

Group of answer choices

They can make important data disappear while credibly explaining it was caused by malware or a hard drive crash

They sometimes have access to all of a company's financial transaction data

So few others understand IT and how data can be manipulated

They often know how to navigate the Dark Web undetected

Flag this Question

Question 6

4pts

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) _____________________________________.

Group of answer choices

Proper financial statement presentation and disclosure of the related notes

Certification of responsibility for the internal control environment

Formal attestation of any incidents of known fraud since prior audit

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

Flag this Question

Question 7

4pts

Electronic evidence refers to any evidence captured ___________________.

Group of answer choices

With the assistance of IT or MIS professionals working in collaboration with investigators

By examining the unused space on computer hard drives (assuming files have not been lost due to defragging)

Through the use of digital tools such as Road MASSter 3 and EnCase

By computers and electronic devices

Flag this Question

Question 8

4pts

Students (of forensic accounting and fraud examination) should understand that, with regard to digital evidence, only those with specialized training, experience, and appropriate professional certifications should _____________________.

Group of answer choices

Be involved in establishing materiality thresholds for IT audits

Use CAATTs to do "black box" or "white box" investigations

Initially handle digital evidence

Provide expert testimony

Flag this Question

Question 9

4pts

It may be possible to recover deleted emails if _______________________.

Group of answer choices

A program such as Privacy Guardian was used by the perpetrator

The service provider is named in the warrant (e.g., Google for gmail)

An MIS or IT professional uses the "Defrag" command while the computer is in safe mode

An email recovery tool is used prior to compaction/overwrite of data storage location

Flag this Question

Question 10

4pts

Fraud examiners and auditors use data analysis software as ___________________, detecting a potential fraud in situations for which manual examination would prove extremely difficult or impossible.

Group of answer choices

A substitute for paper and pencil computations for

An internal control useful for

The ultimate system of red flags

Supplements to analytical work in

Flag this Question

Question 11

4pts

The common fraudster is usually depicted with the following characteristics: first-time offender, middle-aged, male, well-educated, married with children, trusted employee, in a position of responsibility, and possibly considered a "good citizen" through works in the community or through a church organization. The terminology used to refer to such a person has gravitated over time from "accidental" to ____________ fraudster.

Group of answer choices

"Non-accidental"

"Intentional"

"Predator"

"Situational"

Flag this Question

Question 12

4pts

A repeat offender is not a ___________ fraudster; he or she is better described as a __________.

Group of answer choices

Situational; predator

Accidental; situational fraudster

Predator; white collar criminal

White collar criminal; situational fraudster

Flag this Question

Question 13

6pts

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 _________________

Group of answer choices

More collusive by definition; offshore banking activities; more difficult to investigate

Better organized; sophisticated concealment schemes; well-prepared to deal with auditors and other oversight mechanisms

More expensive; reach into the banking system; usually foreign entities

Harder to detect; offshore banking activities; complex in their internal structure

Flag this Question

Question 14

6pts

Research suggests that collusive fraud leaders are more likely to be ____________ with ___________________ and a/an _________________.

Group of answer choices

Highly educated; ego/entitlement problems; non-shareable financial problem

Younger males; close ties to customers or vendors; wheeler-dealer attitude

Flag this Question

Question 15

10pts

____________ 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.

Flag this Question

Question 16

10pts

______________ is one of the workhorses of federal white-collar prosecutions and is available, among other statutes, to investigate and prosecute complex frauds and financial crimes.

Flag this Question

Question 17

10pts

_________________ is, essentially, any activity designed to hide the nature, location, source, ownership, or control of proceeds used for, or derived from, criminal activity. Any time an examiner sees evidence consistent with this definition, a money laundering issue may exist.

Flag this Question

Question 18

10pts

_____________ internal controls include independent checks on performance and assurance of compliance with applicable laws and regulations.

The starting point for the use of electronic data in the fraud or forensic accounting area, as a means of fraud prevention and deterrence is a/an _______________________.

Group of answer choices

Evaluation of the integrity of the data and their related systems

Robust antifraud training program focused on the IT infrastructure

Anti-virus, malware detection system running in the background of all company IT

Suitable software that can crunch big data sets (such as Excel or IDEA)

Flag this Question

Question 2

4pts

Many of the process controls applicable to paper-based information systems are analogous to the internal controls surrounding digital information systems. An information technology system (IT) audit consists of (1) planning, (2) test of controls, and (3) _____________.

Group of answer choices

Auditor training on specific systems with which the fraud examiner may be unfamiliar

Substantive tests

An audit plan whose scope limitations receive buy-in from the company

Establish a materiality threshold for IT errors that may be encountered

Flag this Question

Question 3

4pts

Batch controls are __________________ that ensure data integrity for groups of transactions as they move through the system.

Group of answer choices

System-generated criteria

Used to detect input errors by flagging those transactions that fall outside accepted ranges

Techniques to ensure that data relationships within a record make sense

Operator generated flags

Flag this Question

Question 4

4pts

Fraud professionals in the IT audit environment need to be cognizant of the possibility that ___________________________________________________.

Group of answer choices

IT personnel may not understand accounting standards and terminology

Sophisticated spear-phishing attacks may have altered the data in the system

One or more of the IT systems personnel may be colluding with others to commit or conceal fraud.

Ghost IT systems can exist within a company (much like shell companies) that can be almost impossible to detect

Flag this Question

Question 5

4pts

The IT professional may be in a unique position to commit and conceal a fraud, simply because ______________________________________.

Group of answer choices

They can make important data disappear while credibly explaining it was caused by malware or a hard drive crash

They sometimes have access to all of a company's financial transaction data

So few others understand IT and how data can be manipulated

They often know how to navigate the Dark Web undetected

Flag this Question

Question 6

4pts

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) _____________________________________.

Group of answer choices

Proper financial statement presentation and disclosure of the related notes

Certification of responsibility for the internal control environment

Formal attestation of any incidents of known fraud since prior audit

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

Flag this Question

Question 7

4pts

Electronic evidence refers to any evidence captured ___________________.

Group of answer choices

With the assistance of IT or MIS professionals working in collaboration with investigators

By examining the unused space on computer hard drives (assuming files have not been lost due to defragging)

Through the use of digital tools such as Road MASSter 3 and EnCase

By computers and electronic devices

Flag this Question

Question 8

4pts

Students (of forensic accounting and fraud examination) should understand that, with regard to digital evidence, only those with specialized training, experience, and appropriate professional certifications should _____________________.

Group of answer choices

Be involved in establishing materiality thresholds for IT audits

Use CAATTs to do "black box" or "white box" investigations

Initially handle digital evidence

Provide expert testimony

Flag this Question

Question 9

4pts

It may be possible to recover deleted emails if _______________________.

Group of answer choices

A program such as Privacy Guardian was used by the perpetrator

The service provider is named in the warrant (e.g., Google for gmail)

An MIS or IT professional uses the "Defrag" command while the computer is in safe mode

An email recovery tool is used prior to compaction/overwrite of data storage location

Flag this Question

Question 10

4pts

Fraud examiners and auditors use data analysis software as ___________________, detecting a potential fraud in situations for which manual examination would prove extremely difficult or impossible.

Group of answer choices

A substitute for paper and pencil computations for

An internal control useful for

The ultimate system of red flags

Supplements to analytical work in

Flag this Question

Question 11

4pts

The common fraudster is usually depicted with the following characteristics: first-time offender, middle-aged, male, well-educated, married with children, trusted employee, in a position of responsibility, and possibly considered a "good citizen" through works in the community or through a church organization. The terminology used to refer to such a person has gravitated over time from "accidental" to ____________ fraudster.

Group of answer choices

"Non-accidental"

"Intentional"

"Predator"

"Situational"

Flag this Question

Question 12

4pts

A repeat offender is not a ___________ fraudster; he or she is better described as a __________.

Group of answer choices

Situational; predator

Accidental; situational fraudster

Predator; white collar criminal

White collar criminal; situational fraudster

Flag this Question

Question 13

6pts

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 _________________

Group of answer choices

More collusive by definition; offshore banking activities; more difficult to investigate

Better organized; sophisticated concealment schemes; well-prepared to deal with auditors and other oversight mechanisms

More expensive; reach into the banking system; usually foreign entities

Harder to detect; offshore banking activities; complex in their internal structure

Flag this Question

Question 14

6pts

Research suggests that collusive fraud leaders are more likely to be ____________ with ___________________ and a/an _________________.

Group of answer choices

Highly educated; ego/entitlement problems; non-shareable financial problem

Younger males; close ties to customers or vendors; wheeler-dealer attitude

Flag this Question

Question 15

10pts

____________ 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.

Flag this Question

Question 16

10pts

______________ is one of the workhorses of federal white-collar prosecutions and is available, among other statutes, to investigate and prosecute complex frauds and financial crimes.

Flag this Question

Question 17

10pts

_________________ is, essentially, any activity designed to hide the nature, location, source, ownership, or control of proceeds used for, or derived from, criminal activity. Any time an examiner sees evidence consistent with this definition, a money laundering issue may exist.

Flag this Question

Question 18

10pts

_____________ internal controls include independent checks on performance and assurance of compliance with applicable laws and regulations.