1) What is a fiduciary duty and give examples.
2) How can financial statement fraud be deterred?
3) If changes are made to a document by the fraud investigator, the evidence is said to
be circumstantial.
4) ________ or ________ is the process of observing behavior before critical questions
are asked, as opposed to doing so during questioning.
E.Gauging, detecting
F.Norming, calibrating
G.Surveying, discovering
H.Spying, viewing
5) The difference between abuse and fraud may be the difference in consequences being
reprimanded or being fired by the company and prosecuted by the justice system.
6) What constitutes good cause in the discharge of an employee?
7) FASB 2 defines materiality as the magnitude of an omission or misstatement of
accounting information that, in the light of surrounding circumstances, makes it
probable that the judgment of a reasonable person relying on the information would
have been changed or influenced by the omission or misstatement.
8) An employee intercepts a blank check and forges the treasurers signature to conceal
that the check is payable to the employee. This is an example of a forged maker.