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 labor welfare funds.
d.All of the above.
The “who” of a fraud scheme are:
a. The possible locations of the fraud.
b. The general functional area or position.
c. The conditions present to commit the fraud.
d. The mechanisms of the fraud.
What is one of the restrictions on Public Company Accounting Oversight Board
(PCAOB)?
a.The Chairmen must be a practicing CPA.
b.Only two members are allowed to be, or have been a CPA.
c.Each member must be on the board of directors of a major corporation.
d.All board members must put their investment holdings into a blind trust account while
serving on the PCAOB.
What can the opposing party do to prevent expert testimony if they feel the expert is not
qualified?
a.File a batson petition.
b.File a motion for miss-trial.
c.File an appeal.
d.File a motion in limine.
What are financial institutions required to do for consumers when they are filing
negative information against them?
a.Nothing.
b.Provide them an opportunity to rebut the negative information prior to its submission.
c.Ask for their concurrence prior to submitting the report.
d.Notify them within 30 days of negative information submitted with items that
includes things like late, missed, or partial payments.
“Skilled” cashiers can confuse or distract customers while they intentionally give them
the wrong change. This is an example of:
a.advanced sales skimming.
b.robbing the till.
c.short-change sales.
d.cash stolen in transmission.
Which of the following is an information security deliverable?
a.Information-security-related processes.
b.Software and hardware products.
c.Security-related personnel.
d.All of the above.
Earnings management is:
a.Illegal as defined by SOX.
b.Illegal as defined by the IRS.
c.Illegal as defined by the SEC.
d.Legal, to a certain extent.
When can a search warrant be executed?
a.Between 6 a.m. and 10 p.m.
b.Anytime.
c.Only when the occupants are not home.
d.Only when the suspect is present.
A CEO talks the CFO into depreciating new assets for 10 years instead of the 7 years it
should be depreciated for. This is an example of:
a.Earnings manipulation.
b.Legitimate discretion.
c.Aggressive accounting techniques.
d.Ratio manipulation.
Rationalization/attitude typically relates to:
a. situations in which an employee has an unmet substantial financial need.
b.Opportunity, as without opportunity fraud can become possible.
c.The employee fabricating an internal moral excuse for the fraud.
d.Mafia or blackmail situations
Who has the sole discretion to bring charges in any case?
a.Investigator.
b.Circuit Court.
c.Judge.
d.District Attorney.
In cases of _______________________, each of the two disputing parties typically
selects one arbitrator, and these two selected arbitrators in turn select a third arbitrator.
a. administered arbitration
b. nonadministered arbitration
c. remediation
d. moderation
Auditors may be employed to audit:
a.Part of a financial statement.
b.Part of a balance sheet.
c.The internal controls of a company.
d.All of the above.
Interrogations are typically conducted by:
a. The forensic investigator
b. The District Attorney
c. Law Enforcement
d. The CEO or CFO of the company.
What is a problem with the free annual credit report web site?
a.Free reports are typically 12-18 months old.
b.Free reports only give you the credit rating, not if someone has used your identity to
get credit.
c.The web site requires you to subscribe to an annual subscription to a financial
magazine.
d.The web site has many impostors with similar names that actually take consumer
information and steal their identities.
Assessing risks involves:
a.Threat analysis.
b.Vulnerability analysis.
c.Risk analysis.
d.Both a and b.
Investigation risk is the risk of
a. The possibility of retaliation by the fraudster.
b. The additional loss that will not be mitigated by performing an investigation.
c. The loss of income through having to pay an investigator.
d.Making less-than-optimal decisions in deciding what evidence to collect.
After initial mediation, what might the mediator do?
a. Rule that the parties will never come to agreement and close the proceedings.
b. Bring an expert witness to provide recommendations for resolution.
c. Call a 7 day cooling off period.
d.Separate the two parties and continue mediation via written messages.
The type of analysis that is based on the expected receipt of cash by the entity against
which fraud is suspected is called:
a.Point of payment analysis.
b.Point of sales analysis.
c.Point of receipt analysis.
d.Point of credit analysis.
Sales and Use Taxes:
a.Are uniform across all states.
b.Are only applicable to luxury items.
c.Only apply to intrastate purchases.
d.Vary from state to state.
Customer payments received via mail should:
a.be held in the mail room until someone from the receivable s department retrieves
them.
b.be signed by the CFO or treasurer.
c.be opened by mailroom staff, bundled and then sent the inter office mail to the
receivables department.
d.be immediately endorsed restrictively “for deposit only” to the company’s account.
Application controls can be classified as:
a.general controls.
b.process controls.
c.transaction processing controls.
d.input, processing, and output controls.
Which of the following is NOT allowed when an employee is suspected of stealing
corporate data?
a.Personally confronting them with the situation.
b.Reviewing their corporate E-mail history.
c.Monitoring their access and behavior at work.
d.Seizing their home computer without a court order.
Which of the following is another auditing function?
a.Internal Auditing.
b.Operational Auditing.
c.Governmental Auditing.
d.All of the above.
Who is 1233.3 (a) of Title 12 (Banks and Banking) of the U.S. Electronic Code of
Federal Regulations applicable to?
a. All businesses
b. Federal and State Agencies
c. Regulated entities
d. Local and County Agencies
Two common approaches to using ratio analysis are:
a.Internal and external.
b.Horizontal and vertical.
c.Formal and informal.
d.Industry and general.
Once the fraud investigation is complete, the investigator will:
a.Provide a formal out brief.
b.Write a formal report.
c. Submit a final bill.
d. All of the above.
Auditing is the process of:
a.Developing internal controls.
b.Testing internal controls.
c.Gathering and evaluating evidence.
d.Proving standards of SOX 2002 are upheld.
Which of the following would not be a part of the forensic accountants’ profile of a
suspect?
a.Length of time suspect has been with the firm.
b.Suspect’s assets.
c.Suspect’s outstanding bills, including recent purchases such as cars and real estate.
d.Suspects children’s school grades.
The period from when fraud-related losses accrue to shareholders is between the date
the fraudulent information is published and the date that the corrected information is
published. What is this referred to?
a.Limbo.
b.Fraud-related investor portfolio loss period.
c.Fraud-created insider information period.
d.Potential investor portfolio loss period.
Explain the construction of the United States Constitution and specifically describe the
fourth article and the concepts it recognizes?
What does ISO 27002 focuses on?
Which of the following is not an element of enterprise risk management?
a.The Internal Environment.
b.Risk Assessment.
c.Risk Avoidance.
d.Risk Response.
According to the 2002 Report to the Nation on Occupational Fraud and Abuse, what
percentage of corporate revenues were lost in that year to fraud?
a.2%.
b.4%.
c.5%.
d.8%.
If an employer fires an employee for fraud, what might that employee do?
a. Continue their fraud from outside the company.
b.Sue for wrongful termination of employment, defamation, or discrimination.
c. Start a bad PR campaign in the news against the company.
d. Be hired by a competitor.
Explain how the Internal Revenue Code treats force and intimidation in regards to
interference with tax laws.
Describe the composition of the Security and Exchange Commission.
Explain what a Unified Case File is and its three main purposes.
What is the statute of limitations for tax fraud?
a.5 or 10 years, depending upon the type of fraud.
b.4 or 8 years, depending upon the type of fraud.
c.3 or 6 years, depending upon the type of fraud.
d.2 or 4 years, depending upon the type of fraud.
What are some of the special skills that a forensic accountant might use in their trade?
In seeking a confession, the interviewer can make confessing easier for the suspect by
helping him find a _________ acceptable reason for committing the fraud.
a. Morally
b. Mentally
c. Justifiably
d. Financially
By filing Form 3949-A with the IRS, what might this do for the owners of a company?
a. It can help delay interest and penalties on the taxes due.
b. It can help the IRS initiate proceedings against the fraudster
c. It can help bolster an argument that the owners and managers were victims.
d. All of the above
When an accounts receivable clerk is allowed to steal one customers payment and apply
the next one toward that payment and so on, this is a violation of:
a.segregation of duties.
b.management oversight.
c.checks and balances.
d.all of the above.
What does the U.S. Corporate Tax applicable to?
a.Dividends distributed.
b.Gross Income of the Corporation.
c.Gross Income of the management.
d.Retained Earnings of the Corporation.
If payroll taxes are embezzled, who does the IRS hold responsible?
a.The fraudster.
b.The owners and officers of the company.
c. The employees whose taxes were not paid.
d..The lost funds are forgiven by the IRS.
What are some other services that may be provided during a fraud investigation?
a. Advice on guilt or innocence.
b. Advice on improving business processes or controls.
c. Advice on informing insurance carriers.
d. Advice on new markets to explore.
The formal written disaster management and recovery plan should name one person
within the organization as what?
a.Emergency response director.
b.Data recovery officer.
c.Chief information officer.
d.Emergency recovery specialist.
How does truncation of identity numbers work?
a.Machines encode account numbers when transmitting them over the internet.
b.Machines can only print the last 5 digits of an account number on anything that is
printed for mailing.
c.Clerks and telephone operators are only allowed to verify identity by the last five
letters of a persons name.
d.Older machines that do manual imprinting of credit card numbers must be modified to
only copy the last five digits of the account numbers.
What does the IRS recognize as taxable individual income and how can it be adjusted?