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 behavior.
If a witness’s testimony is damaged upon cross examination, the defense may ask for a
re-direct examination.
Corporate culture can help prevent employee fraud.
Major league sports prefer court or senate hearings to solve their labor disputes.
The Locard Exchange Principle says that “every contact leaves a trace.”
For self-employed individuals, a 25.3% self-employment tax is imposed on net
self-employment income.
The Supreme Court must hear every case of appeal sent from the Circuit Courts.
Single security standards, even when properly implemented, generally do not lead to
complete security assurances in terms of all assessment approaches and life-cycle
phases.
During an interview, acting angry is the same as being angry.
There are no standard setting boards for auditors as their trade is more of an art than a
specific science.
Some employers are afraid to stop fraud they know about because the consequences of
doing so may cost them even more money.
In the court system, obtaining forensic identification is often not enough to convict a
suspect.
It is possible to have multiple hypotheses’ that relate to the same fraud.
Nearly half of the audit reports indicate some type of anomaly, such as a change of
auditors, doubts about the company’s ability to continue as a going concern, a change in
accounting principles, or a litigation issue.
The arbitration process is in many ways like the process followed in traditional court
litigation.
The fraud scheme must answer the question “why” before charges can be filed.
Interest Arbitration involves resolving conflicting demands, typically in labor contract
negotiations.
Investigative services that may or may not lead to courtroom testimony.
Forensic Accountants have blanket authority to investigate crimes and do not need
specific permission from a DA or judge to look into crimes.
Search Warrants are the same as Affidavits.
The fraud triangle will often times involve blackmail for adultery.
If auditors work together on areas of a report, they must disclose this in the report.
The three elements of the Fraud Triangle are Pressure, Opportunity, and
Rationalization.
According to IRC 7201, any person who willfully attempts to evade or defeat any tax
imposed by the Internal Revenue Code will be guilty of a felony.
Arbitration clauses in contracts are generally unenforceable.
The most important U.S. Code to Forensic Accountants is Title 18.
Only a forensic accountant can present a search warrant for financial records to a
suspect.
The largest part of identity theft is caused by individuals on the internet stealing
information.
Research has shown that about 35%-45% of employees are fundamentally dishonest
and are likely to steal from the company if given a good opportunity.
The first and primary objective in a fraud investigation is to punish the fraudster.
The SEC created ISO 27002 to assist corporations with enhancing their Internal Control
Standards.
Which of the following do forensic scientists typically rely upon to solve crimes?
a.Physical evidence.
b.Witnesses.
c.Confessions.
d.All of the above.
You are attempting to get two parties to compromise on a situation. This means that you
are engaged in:
a.Litigation.
b.Mediation.
c.Plea Bargaining.
d.Grand Jury testimony.
Forensic science can be described as:
a.using technology to uncover criminals behaviors.
b.a unique industry of accountants who uncover corruption and fraud.
c.the application of science to legal matters.
d.all of the above.
How can UCC filings assist an investigator?
a.They can see what real estate a company purchased.
b.UCC filings will show when financial statements were submitted to the SEC.
c.UCC filings will only show international real estate transaction filings.
d.To determine whether mortgages on items other than real estate exist.
Evidence includes:
a. Physical objects
b. Documents
c. Observations
d. All of the above
Where do the La Cosa Nostra and Italian Organized Crime Groups have their roots?
a.New York City.
b.Chicago.
c.Greece.
d.19th Century Sicily.
Which of the following is a division of the IRS?
a.Wage and Investment.
b.Small Business/Self-Employed.
c.Large and Mid-sized Business.
d.All of the above.
During the fraud investigation process, it is important to remember:
a. To never exceed the amount of billable hours authorized under GAAP.
b. The fraud investigator is not law enforcement and cannot provide evidence in a trial.
c. The rights of the victim as well as the accused.
d. To limit the investigation to the U.S. Code that has been violated.
The fraud investigation process involves:
a. Quarterly gathering and reviewing evidence for the purpose of documenting the
presence or absence of fraud.
b. Annually gathering and reviewing evidence for the purpose of documenting the
presence or absence of fraud.
c. Periodically gathering and reviewing evidence for the purpose of documenting the
presence or absence of fraud.
d.Systematically gathering and reviewing evidence for the purpose of documenting the
presence or absence of fraud.
Where do forensic scientists typically work?
a.At crime scenes.
b.In a corporate office.
c.From their homes.
d.In a crime lab.
When implementing preventative or detective controls:
a.75% of the money should be invested in detective controls.
b.Half of all control funds should be spent on preventative controls.
c.The costs associated with them should be weighed against the benefits.
d.For every preventative or detective control, one corrective control should be
implemented.
A fraud hypothesis:
a. Can never be changed unless a new engagement letter is published.
b. Should be changed after conviction to match the crime involved.
c. Is simply a hypothesis and can be changed, or modified as more facts are discovered.
d. Is a standard of defense and should be proven wrong before the case is finalized.
When the physical evidence can be specifically and unequivocally linked to a particular
object or person, then the investigators have achieved:
a.a case that can bring charges.
b.guilt beyond a reasonable doubt.
c.criminal checks and balances.
d.forensic identification.
If you are chosen to serve on a Grand Jury, you will serve:
a.For one trial.
b.For a specific period of time.
c.Until you are released by the judge.
d.Until you are selected for a trial jury.
Which of the following would not be something a forensic accountant would collect
when gathering information about a business?
a.Business history.
b.Key employees.
c.Supply chain.
d.Key competitors.
What are some methods that identity thieves may use to get information?
a.Picking information out of dumpsters.
b.Looking over the shoulder of someone while they fill out applications.
c.Stealing mail.
d.All of the above.
Accidental discovery of fraud is typically found:
a.While business owners are attempting to figure out why they don”t have enough cash.
b. During a financial statement audit.
c.During the sale of a business.
d.By other employees through rumors.
An example of Loss Mitigation would be:
a.Filing for an injunction with a U.S. Circuit Court.
b.Confronting the employee(s) involved prior to the investigation.
c.Notifying the insurance company covering corporate losses due to theft or fraud.
d.The corporation taking immediate action to prevent additional loss to the company.
What is a consequence of financial fraud for managers?
a.They are immediately fired.
b.They must personally apologize to everyone effected.
c.They are exempt from consequences.
d.They are often named in civil suits.
Predication dictates that there must be:
a. A reasonable justification for each step in the evidence collection process.
b. A physical justification for each step in the evidence collection process.
c. A reasonable justification for each step in the interviewing process.
d.A reasonable justification for each step in the documentation process.
If you are experienced in the valuation field and want to become credentialed by the
National Association of Certified Valuation Analysts (NACVA), which credential would
you be issued?
a.Certified Valuation Analyst.
b.Accredited Valuation Analyst.
c.Certified Forensic Financial Analyst.
d.National Valuation Analyst.
Projected free cash flow to equity before debt payment is sometimes called:
a.Projected free cash flow available to equity.
b.Debt-free cash flow available to equity.
c.Equity-free cash flow available to debt.
d.Pre-debt cash flow available to equity.
If issued a Citation, a person must:
a.Report for incarceration.
b.Submit to the booking procedure within several days after the citation.
c.Sign a confession.
d.Provide evidence that they are not guilty.
Which two chapters are most frequently used by individuals?
a.Chapters 7 and 9.
b.Chapters 13 and 15.
c.Chapters 11 and 13.
d.Chapters 7 and 13.
Typical business insurance for occupational fraud includes coverage for which the
following items:
a. Proof of loss
b. Loss of valuable papers and records
c.Embezzled losses
d. All of the above.
Under IRC 7212(a), what does the government have to prove?
a.That the offender intimidated or impeded.
b.That the victim was intimidated or impeded.
c.That the offender intended upon impeding or intimidating.
d.All of the above.
The Institute of Business Appraisers (IBA) supports the valuating of which type of
businesses?
a.Public Corporations.
b.Private Corporations.
c.Closely-held Businesses.
d.Non-Profit Organizations.
The Sarbanes-Oxley (SOX) Act of 2002 provides detailed updates to and modernization
of:
a.The United States Code.
b.The United States Constitution.
c.The Federal Communications Commission.
d.The Securities and Exchange Act of 1934.
A forensic accountant can become involved in financial crimes investigation by being:
a.An in-house accountant.
b.External auditor.
c.External consultant.
d.All of the above.
Mediation and arbitration are conducted where and how are they disclosed?
a. In a U.S. District Court and do not enter into the public record.
b. In private and do not enter into the public record.
c. In a State Supreme Court and are entered into the public record.
d.In private and enter into the public record if there is an admission of guilt by the
fraudster.
Which of the following is not a step in the process of valuation?
a.Sell a sample of the assets to test market conditions.
b.Collect and analyze information about the business.
c.Research the industry in which the business operates.
d.Study and Analyze the business’s financial statements.
Once fraud within the financial statements is suspected, what are the next steps that the
audit team would take? Provide examples.
What are the five common types of analytical procedures?
What two conditions must be met in order to issue a qualified statement?
The ability to trace all transactions back to its original source document is called:
a.the audit trail.
b.a component of internal control.
c.the audit principle.
d.the fifth step in an ERM.
Why is it difficult to prosecute terrorists that are in other countries?
a.Their operations are difficult to detect.
b.Some countries do not have laws pertaining to terrorist activities.
c.Other countries do not like American law enforcement.
d.All of the above.
What are the three various synergistic possibilities? Describe each.
What is supposed to happen under information security incident management?
If the investigator is very familiar with evidence in his possession and can respond with
details so that subject believes interviewer has substantial evidence on subject, then
they are using which persuasive approach to interviewing?
a.Rapid questioning.
b.Indirect.
c.Everything is known.
d.Folder.
The Questioned Documents Unit examines what?
Events that can adversely affect the company, such as asset losses due to theft or
spoilage, accounting errors and their consequences, revenue losses, expense overruns,
business interruptions, fraud and embezzlement, fines and penalties, civil liabilities, and
losses of competitive advantage are called:
a.risk exposures.
b.loss exposures.
c.internal control areas.
d.audit exposures.
Explain the special controls needed for cash?
Why would a company choose to employ a software package such as “FraudPoint” or
Actimize Employee Fraud Solution?
The Certified Information Systems Security Professionals (CISSP) tests what?
a.Individuals.
b.Organizations.
c.Processes.
d.Systems.
When recording an interview, who’s permission must be gained?
a. U.S. District Court
b. The interviewee
c. District Attorney
d. Corporation paying for the investigation.
Internal controls specific to a simple job-order are part of internal controls in a:
a.production cycle.
b.purchasing cycle.
c.finance cycle.
d.expenditure cycle
How are internal control objectives and components different?
How does the IRS view unpaid payroll taxes as a result of embezzlement under the
Trust Fund Recovery Penalty (TFRP)?
What are the five divisions a crime lab it typically divided into?
a.Serology, unknown substances, trace evidence, ballistics and fingerprints.
b.Financial, arson, murder, rape and organized crime.
c.Corporate, organized crime, violent crime, white collar and blue collar.
d.Federal, State, County, Local and Special Victims.