Question 1

How are the professional fees typically billed during an investigation?

Accepted Answer

A)   Weekly
B)   As a percentage of potential fraud prevented.
C)   When there has been an arrest.
D)   Monthly

Question 2

While considering legal issues prior to beginning a fraud examination, what are three considerations?

Accepted Answer

1. Rights of workers or other suspects u...

Question 3

There is a Constitutional Amendment that requires law enforcement to investigate all fraud allegations.

Accepted Answer

A) True 
 B)False

Question 4

Which is a consideration for reporting a loss to the insurance carrier of the corporation?

Accepted Answer

A)   Can the loss be absorbed into current net profits for the corporation?
B)   Can personal assets of the accused be sold to recover the loss?
C)   Has the corporation used all reasonable means to mitigate losses?
D)   All of the above are considerations.

Question 5

An initial decision must be made as to whether it is necessary to immediately intervene to prevent the perpetrator from continuing with the fraud scheme. What is this concept called and what are examples of ways to begin it?

Accepted Answer

Loss Mitigation. 1) immediately fire the...

Question 6

How many steps does the fraud engagement process involve?

Accepted Answer

A)   6
B)   8
C)   10
D)   6 to 12, depending upon law enforcements involvement

Question 7

Describe the Objectives and Scope of the Investigation that may be stated in an engagement letter.

Accepted Answer

An investigation of a treasury departmen...

Question 8

Which of the following is a step in the fraud-theory approach?

Accepted Answer

A)   Prove the hypotheses invalid.
B)   Refine and amend the hypotheses.
C)   Link the hypotheses to a GAAP.
D)   None of the above are a step in the fraud-theory approach.

Question 9

What are the two main reasons that independent investigator will not draw conclusions regarding guilt or innocence?

Accepted Answer

A)   Investigators are not deputized and have not earned a law degree.
B)   Guilt and innocence are generally a matter of opinion and opinion regarding guilt could open up the investigator to a law suit for defamation.
C)   Guilt and innocence are facts of matter and investigators will hand their findings over to law enforcement.
D)   None of the above are reasons.

Question 10

Mediation and arbitration are conducted where and how are they disclosed?

Accepted Answer

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.

Question 11

The investigator should never tell the fraudster to make restitution or she will report the fraudster to law enforcement.

Accepted Answer

A) True 
 B)False

Question 12

The fraud investigation engagement process is a series of steps that begins at the time of the investigator's first contact with the case and ends with a conviction or plea bargin.

Accepted Answer

A) True 
 B)False

Question 13

What are some other items that are acceptable to be billed as part of the investigation?

Accepted Answer

A)   All of the below are acceptable.
B)   Meals
C)   Travel
D)   Phone charges

Question 14

Outline the fraud engagement process.

Accepted Answer

the fraud investigation engagement proce...

Question 15

While considering reverse proof, what are four standards of defense that a fraudster may counter charges with?

Accepted Answer

1. Someone else did it.
2. It was done b...

Question 16

The scope of the investigation serves to:

Accepted Answer

A)   Place limits on the objectives of the investigation.
B)   Expand on the investigation if other fraud is found.
C)   Place limits on the breadth of the investigation.
D)   Contract the focus of the investigation.

Question 17

Reverse proof means that the investigator must consider the evidence for both sides.

Accepted Answer

A) True 
 B)False

Question 18

For all fraud investigations, it is essential that a(n)  ____________ be created.

Accepted Answer

A)   Affidavit of findings
B)   Unified case file
C)   Sworn statement file
D)   Working paper archive

Question 19

An investigator should always remain a part of the investigation, even if it means they will have to commit an illegal act.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT a method to be used in a fraud investigation?

Accepted Answer

A)   Covert surveillance of employees at home
B)   Reviews of documents
C)   Interviews with employees
D)   Surreptitious surveillance of employees

Exam 7: The Fraud Investigation and Engagement Processes

Which of the following is a step in the fraud-theory approach?

Correct AnswerverifiedShow Answer

An initial decision must be made as to whether it is necessary to immediately intervene to prevent the perpetrator from continuing with the fraud scheme. What is this concept called and what are examples of ways to begin it?

Correct AnswerverifiedLoss Mitigation. 1) immediately fire the...View AnswerShow Answer

The investigator should never tell the fraudster to make restitution or she will report the fraudster to law enforcement.

Correct AnswerverifiedShow Answer

What are the two main reasons that independent investigator will not draw conclusions regarding guilt or innocence?

Correct AnswerverifiedShow Answer

What are some other items that are acceptable to be billed as part of the investigation?

Correct AnswerverifiedShow Answer

The scope of the investigation serves to:

Correct AnswerverifiedShow Answer

How many steps does the fraud engagement process involve?

Correct AnswerverifiedShow Answer

For all fraud investigations, it is essential that a(n) ____________ be created.

Correct AnswerverifiedShow Answer

Outline the fraud engagement process.

Correct Answerverifiedthe fraud investigation engagement proce...View AnswerShow Answer

Which of the following is NOT a method to be used in a fraud investigation?

Correct AnswerverifiedShow Answer

Mediation and arbitration are conducted where and how are they disclosed?

Correct AnswerverifiedShow Answer

The fraud investigation engagement process is a series of steps that begins at the time of the investigator's first contact with the case and ends with a conviction or plea bargin.

Correct AnswerverifiedShow Answer

How are the professional fees typically billed during an investigation?

Correct AnswerverifiedShow Answer

While considering reverse proof, what are four standards of defense that a fraudster may counter charges with?

Correct Answerverified1. Someone else did it.2. It was done b...View AnswerShow Answer

While considering legal issues prior to beginning a fraud examination, what are three considerations?

Correct Answerverified1. Rights of workers or other suspects u...View AnswerShow Answer

Reverse proof means that the investigator must consider the evidence for both sides.

Correct AnswerverifiedShow Answer

There is a Constitutional Amendment that requires law enforcement to investigate all fraud allegations.

Correct AnswerverifiedShow Answer

Describe the Objectives and Scope of the Investigation that may be stated in an engagement letter.

Correct AnswerverifiedAn investigation of a treasury departmen...View AnswerShow Answer

Which is a consideration for reporting a loss to the insurance carrier of the corporation?

Correct AnswerverifiedShow Answer

An investigator should always remain a part of the investigation, even if it means they will have to commit an illegal act.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Loss Mitigation. 1) immediately fire the...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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the fraud investigation engagement proce...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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1. Someone else did it.
2. It was done b...
View Answer

Correct Answer
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1. Rights of workers or other suspects u...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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An investigation of a treasury departmen...
View Answer

Correct Answer
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Correct Answer
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