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A qualifier modifies the meaning of a sentence so that the subject can make a truthful statement while, at the same time, provide an exception that often represents the opportunity to commit fraud or is an excuse for the subject’s […]

There are typically more civil fraud convictions than criminal fraud convictions because criminal cases can require more effort on the part of the government due to the higher burden of proof that the government must bear in criminal cases (beyond […]

Tracing and vouching are opposite investigation techniques. Under the Daubert test, in order for a technique or theory to be called scientific, the technique or theory should have been published in peer-reviewed scientific journals. Data that is only logically deleted […]

How can a user fake their IP address? a.Through Spoofing. b.By using a packet sniffer. c.Through Spamming. d.All of the above. Describe the essential information contained in a signed confession Answer: While oral confessions are just as binding as are […]

For income tax purposes fraudulent losses may be classified as: a.Deductions. b.Offsets to reportable revenues. c.Reductions in retained earnings. d.Both A and B. Which of the following is a phase of an audit? a.The engagement letter. b.Meeting with the audit […]

When businesses or persons obtain mortgages for things other than real estate, these are called: a. Leins b. Chattel Mortgages c. Collateral Loans d. Uncollateralized Loans If a prosecutor and defense attorney are exchanging witness statements and other evidence, they […]

Explain some of the increased corporate responsibilities indicated in SOX. Who performs enforcement actions for insider trading? a.IRS. b.SEC. c.DHS. d.U.S. District Courts. Answer: b. Explain how a detection of fraud may not necessarily mean that fraud exists. Answer: The […]

In which way does the AICPA support Forensic Accountants? a.Through its Forensic Accountants division. b.Through its Business Valuation and Forensic & Litigation Services section. c.Through its credentialing of Forensic Accountants. d.The AICPA does not support Forensic Accountants. Define alternative dispute […]

When auditors are judging materiality, they are concerned with: a.Magnitude. b.Errors. c.Intentional omissions. d.All of the above. Which of the following would not be a part of the forensic accountants profile of a suspect? a.Length of time suspect has been […]

SOX dramatically increased sentences for violators of the law. Discuss some of these penalties. Describe the phishing process. Answer: Phishing is a billion-dollar-a-year Internet scam in which fraudsters trick victims into supplying personal information. In one form of Phishing, the […]

Provide at least 5 reasons that ADR has advantages over litigation: Answer: ADR costs less than litigation. Court battles can be very expensive. Lawyers love to battle with each other, and cases can drag on for years. Moreover, litigation can […]

Prior to trial, the prosecution or plaintiff may ask that the fraud be presented in _______ form. a.hierarchical b.linear c.laymen’s d.chronological What is the goal of labor racketeering? a.Control of labor health funds. b.Control of labor pension funds. c.Control of […]

A judge may request additional information involves consequential damages prior to ruling on the case. The SAP module approach is inherently better than the transaction cycle approach. Answer: FALSE In the majority of cases, an IRS enforcement action for FSF […]

The scheme involving recording fictitious sales and frequently includes falsified sales, inventory, and shipping records is called: a.Sham sales. b.Recognition of conditional sales. c.Improper cutoff of sales. d.Consignment sales. Why would a forensic accountant want to investigate all vendors listed […]

Fraudulent conveyances typically involved unqualified persons offering fee-based financial advice, credit counseling, and bankruptcy-filing services. Forensic Accounting is a part of Fraud investigation. Answer: FALSE No synergy is when the assets of a business are sold as a group but […]

If a decision from a U.S. District Court is to be appealed, it will be heard in the: a.U.S. Supreme Court. b.State Supreme Court. c.U.S. Circuit Courts of Appeal. d.State Circuit Courts of Appeal. The general plan of organization for […]

Which of the following is NOT part of the fraud triangle? a.pressure/incentive. b.opportunity. c.financial distress. d.rationalization/attitude. Why are there no published professional protocols available to guide fraud investigators in conducting investigations for each specific type of fraud scheme? Answer: One […]

How much money does organized crime suck from the world economy every year? a.One million dollars. b.One billion dollars. c.One trillion dollars. d.An immeasurable amount. The Bill of Rights are: a.The first 10 Amendments to the U.S. Constitution. b.The Declaration […]

The Public Company Accounting Oversight Board has the power to do what? a.Enforce internal controls within auditing firms. b.Audit the firms who perform audits. c.Impose sanctions against auditing firms that fail to fulfill their professional responsibilities when auditing public companies. […]

Describe the parameters set forth in Section 203 of SOX in regards to the Rotation of Auditing Partners. Describe the fraud detection process. Answer: The fraud detection process involves identifying indicators of fraud that suggest a need for further investigation. […]

Beyond publishing findings of internal controls, fraud and misstatements, auditors must also publish findings on: a.Compliance with certain contractual agreements or regulatory requirements. b.Compliance with other auditors findings. c.Adherence to industry ratio standards. d.All of the above. Outline the different […]

Typically, the primary difference between interviewing and interrogating a subject is: a.Miranda rights are read prior to interrogating. b.Miranda rights are read prior to interviewing. c.Interviewing always occurs with a lawyer present. d.Interrogating always takes place at a police station. […]

Describe what rule making bodies are and provide an example of at least one of them. The SOX grew out of which of the following situations? a.FASB Statements being too overbearing. b.GAAP becoming outdated. c.The SEC and accounting professionals agreeing […]

What are the four types of evidence; explain each one. Discuss the benefits and detriments of recording an interview Answer: The general sources of evidence in fraud investigations include physical evidence, document evidence, observations, and interviews. Physical and Document Evidence: […]

The effects of potentially bad financial statements being used by business stakeholders is called risk and is the fundamental reason why audits are performed. Tip and fraud hotlines only help catch fraud. Answer: TRUE Interviewing skills are of paramount importance […]

Which mediation style doesn’t the mediator express opinions with respect to the facts of the case or the reasonableness of the participants’ negotiating positions? a.Facilitative. b.Evaluative. c.Participative. d.Arbitrational. Under the Market approach, what are assets valued at? Answer: Under the […]