Question 1

Which racial group is most likely to commit fraud?

Accepted Answer

A)   Caucasian
B)   African American
C)   Asian
D)   Hispanic
E)   People of every race commit fraud

Question 2

Control Factors are -

Accepted Answer

A)   An effective control environment
B)   An ethical Accounting System
C)   Internal control activities
D)   Anything that prevents or detects fraud

Question 3

Which of the following is not a true statement?

Accepted Answer

A)   Almost every fraud involves rationalization.
B)   All frauds involve financial or vice-related pressures.
C)   Perceived opportunity diminishes when fraud perpetrators are prosecuted. B

Question 4

Which of the following is an example of a non-control factor of fraud?

Accepted Answer

A)   An employee inflates an expense report
B)   An auto shop uses sub-standard parts and charges for premium transmission parts
C)   Internal controls are overridden so a manager can steal cash
D)   An investment opportunity is run by someone previously convicted of fraud

Question 5

What is the strongest factor in deterring future fraud activity?

Accepted Answer

A)   Legal prosecution.
B)   Sanctions.
C)   Termination.
D)   Counseling. A

Question 6

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?

Accepted Answer

A)   Income statement.
B)   Balance sheet.
C)   Statement of cash flows.
D)   Both B and C are correct.

Question 7

Every fraud is comprised of all the following elements except:

Accepted Answer

A)   The theft act
B)   Concealment
C)   Conversion
D)   All of the above are elements of fraud.

Question 8

Which of the following is true about fraud perpetrators compared to property offenders:

Accepted Answer

A)   Fraud perpetrators are more likely to be caught
B)   Fraud perpetrators are more educated
C)   Fraud perpetrators are more likely to be convicted
D)   Fraud perpetrators are much younger

Question 9

The following are all types of power except:

Accepted Answer

A)   Persuasive power
B)   Referent power
C)   Legitimate power
D)   Coercive power

Question 10

Who do criminologists compare fraudsters to in relation to repeat offenses and why?

Accepted Answer

A)   Rapist. They repeat their crimes because they are not severely punished.
B)   Shoplifters. They steal goods frequently and in small quantities until they are confronted.
C)   Bank Robbers. They steal a lot of money from wealthy sources.
D)   Bank Tellers. They have access to a large amount of resources and they are perceived to be trustworthy people.

Question 11

All of the following functions should be set up as segregated duties except:

Accepted Answer

A)   Writing checks
B)   Making bank deposits
C)   Reconciling bank statements
D)   All of the above should be set up as segregated duties D

Question 12

Which of the following factors creates an opportunity for fraud?

Accepted Answer

A)   Greed
B)   Living beyond one's means
C)   Lack of an audit trail
D)   The organization owes it to me

Question 13

Failure to discipline a fraud perpetrator generally leads to all of the following except:

Accepted Answer

A)   Helping the perpetrator build a solid resume
B)   An increase of "perceived opportunity" within an organization
C)   Frauds of greater magnitude by the same perpetrator
D)   All of the above

Question 14

Teaching and Training are examples of

Accepted Answer

A)   Modeling
B)   Labeling
C)   Physical Safeguards
D)   Independent Checks

Question 15

Studies show that in advanced countries, levels of honesty are:

Accepted Answer

A)   Generally stable
B)   Increasing
C)   Decreasing

Question 16

Most fraud perpetrators:

Accepted Answer

A)   Have little education
B)   Have a criminal record.
C)   Are new to the company
D)   None of the above

Question 17

An effective accounting system is designed to provide which of the following to help discover fraud?

Accepted Answer

A)   An audit trail
B)   Matching of expenses to revenues
C)   Set of controls
D)   Set of accounting procedures

Question 18

People who commit fraud are most similar to which of the following groups?

Accepted Answer

A)   Burglars
B)   College students
C)   Convicted murderers
D)   Police officers

Question 19

Which of the following statements about accounting systems is incorrect?

Accepted Answer

A)   An effective accounting system provides an audit trail that allows frauds to be discovered.
B)   An effective accounting system makes concealment difficult.
C)   An effective accounting system can almost always effectively prevent "kickbacks."
D)   Without a good accounting system, it is often difficult to distinguish between actual fraud and unintentional error

Question 20

The ACFE estimates that employee fraud costs small companies an average of:

Accepted Answer

A)   $60,000 per incident
B)   $120,000 per incident
C)   $240,000 per incident
D)   $480,000 per incident

Exam 2: Why People Commit Fraud

Which racial group is most likely to commit fraud?

Correct AnswerverifiedShow Answer

Control Factors are -

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedB

Which of the following is an example of a non-control factor of fraud?

Correct AnswerverifiedShow Answer

What is the strongest factor in deterring future fraud activity?

Correct AnswerverifiedA

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?

Correct AnswerverifiedShow Answer

Every fraud is comprised of all the following elements except:

Correct AnswerverifiedShow Answer

Which of the following is true about fraud perpetrators compared to property offenders:

Correct AnswerverifiedShow Answer

The following are all types of power except:

Correct AnswerverifiedShow Answer

Who do criminologists compare fraudsters to in relation to repeat offenses and why?

Correct AnswerverifiedShow Answer

All of the following functions should be set up as segregated duties except:

Correct AnswerverifiedD

Which of the following factors creates an opportunity for fraud?

Correct AnswerverifiedShow Answer

Failure to discipline a fraud perpetrator generally leads to all of the following except:

Correct AnswerverifiedShow Answer

Teaching and Training are examples of

Correct AnswerverifiedShow Answer

Studies show that in advanced countries, levels of honesty are:

Correct AnswerverifiedShow Answer

Most fraud perpetrators:

Correct AnswerverifiedShow Answer

An effective accounting system is designed to provide which of the following to help discover fraud?

Correct AnswerverifiedShow Answer

People who commit fraud are most similar to which of the following groups?

Correct AnswerverifiedShow Answer

Which of the following statements about accounting systems is incorrect?

Correct AnswerverifiedShow Answer

The ACFE estimates that employee fraud costs small companies an average of:

Correct AnswerverifiedShow Answer

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A

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D

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