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| Section | Objectives |
|---|---|
| Topic 1: Fraud Schemes | - Financial Statement Fraud
|
| Topic 2: Financial Crimes | - Banking and Payment Fraud
|
| Topic 3: Fraud Investigation and Analysis | - Evidence collection and documentation
|
1. Which of the following is NOT the reason why senior management will overstate business statements?
A) Meet personal performance criteria
B) Trigger performance-related compensation
C) Comply with debt covenants
D) Show a pattern of growth to support sale of a business
2. When expenses used to produce income-all of them-should be matched in a consistent manner against that income, this is referred to:
A) Expense
B) Financial record
C) Equity
D) Accrual basis accounting
3. Ron's vehicle is damaged by hail after a thunderstorm. Ron does not have full insurance coverage on his vehicle, so he contacts his agent to increase his coverage. Three weeks after his new coverage is in effect, Ron's city experiences another thunderstorm. Ron then files a claim for the hail damage that occurred during the first storm, but he claims that the damage occurred during the second storm. Ron has committed a fraudulent act known as:
A) Double dipping
B) Ditching
C) Past posting
D) Bait and wait
4. Another way to eliminate competition in the solicitation phase of the selection process is to:
A) Solicit bids from fictitious suppliers
B) Solicit bid-splitting from fictitious vendors
C) Solicit transactions from fictitious vendors
D) None of the above
5. _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.
A) Fraudulent statement
B) Asset misappropriations
C) Corruption
D) None of the above
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: A |
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