Forensic Accounting Midterm Review

Question 1

Which one of the following is NOT a characteristic of a criminal proceeding?

Accepted Answer

Consequences include restitution and damage payments., In criminal proceedings, only one claim may be heard at a time.

Question 2

Which general term refers to the gathering of electronic evidence?

Accepted Answer

Computer forensics

Question 3

Which of the following is NOT a practical control activity?

Accepted Answer

Supervisory review of each task completed by employees

Question 4

Which financial statements can be used to answer the question, "Where did the cash come from to pay dividends?"

Accepted Answer

Statement of Cash Flows

Question 5

Who in an organization is NOT in a good position to recognize fraud during the theft act?

Accepted Answer

Auditors

Question 6

Which of the following is the last step in an investigation?

Accepted Answer

Interview the suspect

Question 7

Which of the following statements regarding fraud symptoms is NOT accurate?

Accepted Answer

Fraud symptoms provide conclusive proof of fraud.

Question 8

Which aspect of documentary evidence ensures that the documents can be identified later and accessible for trial?

Accepted Answer

Marking of evidence

Question 9

Which of the following is needed to prompt a person to commit fraud when perceived pressures are low?

Accepted Answer

Rationalization

Question 10

Of the six elements in the model used by sound organizations to minimize fraud, which one is the most important?

Accepted Answer

Tone at the Top

Question 11

Well-known incidents of fraud in companies such as WorldCom, Enron, Waste Management, , and Parmalat are examples of:

Accepted Answer

management fraud.

Question 12

A traditional audit that includes discovery sampling is LEAST appropriate for which of the following types of evidence?

Accepted Answer

Accounting databases

Question 13

Which of the following factors creates an opportunity for fraud?

Accepted Answer

Lack of an audit trail

Question 14

Fraud is deception that includes all of the following EXCEPT:

Accepted Answer

the misrepresentation is known to the victim.

Question 15

Which of the following best describes an action that can cause a whistleblowing system in the organization to fail?

Accepted Answer

Management is slow to act on reports of suspected fraud.

Question 16

Which of the following is the most important step in data analysis?

Accepted Answer

Gathering the right data in the right format in the right time period.

Question 17

Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?

Accepted Answer

Z-score

Question 18

Which of the following is a form of surveillance that is usually only available to law enforcement?

Accepted Answer

Wiretapping

Question 19

Which of the following statements is NOT accurate?

Accepted Answer

The investigative process usually starts by approaching the suspect.

Question 20

Concealment investigative techniques do not work well in kickback situations. Why?

Accepted Answer

There is usually no direct documentary evidence.

Question 21

According to a study mentioned in the text, people who commit fraud are most similar to which of the following groups?

Accepted Answer

College students

Question 22

Which of the following is NOT mandatory for conducting a fraud investigation?

Accepted Answer

Hypotheses regarding whether someone has committed fraud

Question 23

Which of the following is a highly suspicious financial statement relationship?

Accepted Answer

Increased revenues with decreased receivables.

Question 24

The least reliable method of obtaining documentary evidence is:

Accepted Answer

by chance or a tip.

Question 25

Segregation of duties, as a preventative control, is most often used:

Accepted Answer

when cash is involved.

Forensic Accounting Midterm Review

Questions 25

Forensic Accounting Midterm Review

Questions 25