What can a fraud examiner conclude if his or her tests confirm that no instances of fraud are present in a sample taken from a population?

Select one:

a.There is virtually no risk that fraud exists in the population.

b.The population contains no fraud.

c.Only that no fraud is present in that particular sample.

d.The sample is most likely not representative of the population as a whole.

Which source could be used to access valuable financial information in a fraud investigation?

Select one:

a.Financial institutions.

b.Internet sites.

c.The former spouse of a suspected fraud perpetrator.

d.Trash.

e.All of the above.

A vulnerability chart:

Select one:

a.Forces investigators to explicitly consider all aspects of a fraud.

b.Shows the history of fraud in a company.

c.Identifies weaknesses in every aspect of a company's internal control.

d.Gives a detailed record of all the movements and activities of the suspect.

Inappropriately posting a journal entry to recognize an expense to conceal fraud is an example of what type of fraud symptom?

Select one:

a. Accounting anomaly

b. Internal control weakness

c. Analytical anomaly

d. Irregularity in source documents

e. Inaccuracy in ledgers

Benford's Law can help detect suspected fraud by:

Select one:

a. Explaining why fraud perpetrators exhibit unusual behavorial symptoms

b. Identifying unexplained changes in balances from prior year

c. Identifying potential attempts by fraud perpetrators to make fraudulent data look reasonable

d. Identifying internal control weaknesses that provide opportunities to commit fraud

e. Identifying accounting anomalies

You are setting up an interview room to conduct an interview for a fraud investigation. Which of the following is a best practice that you should implement?

Select one:

a. Ensure the room is located in a busy hallway near the lobby

b. Ensure the room has a locking door so that you won't be interrupted

c. Change the temperature to make the room uncomfortable, since the interviewee will be more likely to confess if he/she is uncomfortable

d. Ensure there is a large table between you and interviewee so that there is room to keep all of the documents you will use

e. None of the other responses are correct

A company wishes to minimize the risk of fraud in a cost-effective manner. Which of the following anti-fraud activities is the most cost-effective?

Select one:

a. Hire consultants and attorneys to prosecute fraud perpetrators.

b. Investigate all cases of suspected fraud.

c. Terminate all employees suspected of committing fraud.

d. Create accessible, anonymous and independent whistle blower hotline

e. None of the above. All fraud prevention and detection programs are inherently expensive.

______ means that a record must be kept of when a document is received and what has happened to it since its receipt.

Select one:

a. Organization of evidence

b. Mark of evidence

c. Coordination of evidence

d. Chain of custody

e. Document examination

To save money, the management of Frayed Knot Inc. terminated a contract with EAP Inc., a 3rd party company that managed Frayed Knot's whistle blower program. After the contract termination, calls and emails to the whistleblower hotline were handled by Frayed Knot's Human Resources (HR) department. HR also investigated any allegations of fraud reported using the hotline.

Frayed Knot employees used the whistleblower hotline 127 times in the new year prior to the contract termination. In the year after the contract termination, the HR department received 1 tip from the whistleblower hotline. The decrease in whistleblower reports is most likely due to:

Select one:

a. A coincidence. People phone whistleblower hotlines when they suspect fraud. That number can fluctuate from year-to-year.

b. Employees may be worried that whistleblower reports will not be kept anonymous.

c. Since the recession ended, there is no reason for employees to commit fraud due to financial pressure.

d. EAP Inc. over-reported the number of whistleblower hotline phone calls to try to convince Frayed Knot management to renew the contract.

e. There are not enough methods of reporting suspected fraud to management.