fraud chaps 7-8

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es2437
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264514
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fraud chaps 7-8
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2014-03-20 12:25:32
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Fraud 132
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fraud
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  1. Which of the following is not a category used in the fraud triangle plus inquiry paradigm?
    A. Theft investigative techniques.
    B. Action investigative techniques.
    C. Conversion investigative techniques.
    D. Concealment investigative techniques.
    B. Action investigative techniques.
    (this multiple choice question has been scrambled)
  2. When beginning an investigation, fraud examiners should use techniques that will:
    A. Not arouse suspicion.
    B. Identify the perpetrator.
    C. Determine the amount of the fraud.
    D. Identify when the fraud occurred.
    A. Not arouse suspicion.
    (this multiple choice question has been scrambled)
  3. When conducting interviews during an investigation, which of the following words should usually be avoided?
    A. Record examination.
    B. Investigation.
    C. Audit.
    D. Inquiry.
    B. Investigation.
    (this multiple choice question has been scrambled)
  4. When beginning a fraud investigation, which of the following methods is most useful in identifying possible suspects?
    A. Preparing an identification chart.
    B. Preparing a vulnerability chart.
    C. Preparing a surveillance log.
    d. None of the above.
    B. Preparing a vulnerability chart.
    (this multiple choice question has been scrambled)
  5. invigilation:
    A. Is most commonly associated with crimes such as robbery, murder, and property offenses.
    B. Can create tremendous amounts of documentary evidence.
    C. Provides evidence to help determine whether fraud is occurring.
    d. All of the above are true.
    C. Provides evidence to help determine whether fraud is occurring.
    (this multiple choice question has been scrambled)
  6. Which of the following is not a theft investigative method?
    A. Invigilation.
    B. Honesty testing.
    C. Surveillance and covert operations.
    D. Seizing and searching computers.
    C. Surveillance and covert operations.
    (this multiple choice question has been scrambled)
  7. When deciding whether or not to investigate, which of the following factors should an organization not consider?
    a. Possible cost of the investigation.
    b. Perceived strength of the predication.
    c. Possible public exposure resulting because of the investigation.
    d. All of the above should be considered.
    d. All of the above should be considered.
  8. Surveillance, when properly performed, is done:
    A. Only by law enforcement agents.
    B. Without the perpetrator’s knowledge.
    C. During nonworking hours.
    d. None of the above.
    B. Without the perpetrator’s knowledge.
    (this multiple choice question has been scrambled)
  9. Which of the following is not included in a vulnerability chart?
    A. Explanations of the fraud triangle in relation to suspects of fraud.
    B. Breakdowns in key internal controls that may have created fraud opportunities.
    C. Internal controls that a company plans to institute in the future.
    D. Theft investigation methods.
    C. Internal controls that a company plans to institute in the future.
    (this multiple choice question has been scrambled)
  10. A vulnerability chart:
    a. Forces investigators to explicitly consider all aspects of a fraud.
    b. Shows the history of fraud in a company. c. Identifies weaknesses in every aspect of a company’s internal control.
    d. Gives a detailed record of all the movements and activities of the suspect.
    a. Forces investigators to explicitly consider all aspects of a fraud.
  11. Fixed-point, or stationary, observations can be conducted by:
    A. Certified fraud examiners.
    B. Company personnel.
    C. Anyone.
    D. Private investigators.
    C. Anyone.
    (this multiple choice question has been scrambled)
  12. Surveillance logs should include all of the following except:
    A. Movements and activities of the suspect.
    B. Time the observation began and ended.
    C. Cost of the surveillance equipment used.
    D. Distance the observation was from the scene.
    C. Cost of the surveillance equipment used.
    (this multiple choice question has been scrambled)
  13. Wiretapping, a form of electronic surveillance, can be used by:
    a. Internal auditors.
    b. Company controllers.
    c. CPAs.
    d. All of the above.
    e. None of the above.
    e. None of the above.
  14. Which theft investigative method is most limited in value during employee fraud investigations because of concerns regarding employees’ privacy at work?
    A. Invigilation.
    B. Interviewing and interrogation.
    C. Electronic surveillance.
    D. Forensic accounting.
    C. Electronic surveillance.
    (this multiple choice question has been scrambled)
  15. Who should be consulted before any form of surveillance takes place?
    A. Legal counsel and human resources.
    B. All company executives.
    C. Public investors and the company’s board of directors.
    D. State attorney general.
    A. Legal counsel and human resources.
    (this multiple choice question has been scrambled)
  16. When seizing computers, a calculation (also called a hash) that ensures you have an exact clone and have not changed data is called a(n):
    A. CRC checksum number.
    B. NIST number.
    C. ODBC connection.
    D. Internet packet calculation.
    C. ODBC connection.
    (this multiple choice question has been scrambled)
  17. A snapshot of active memory should be done:
    A. After turning off the computer but before calculation of the checksum number.
    B. After calculation of the checksum number but before searching.
    C. Before seizure of the computer.
    D. After seizure of the computer but before turning off the computer.
    D. After seizure of the computer but before turning off the computer
    (this multiple choice question has been scrambled)
  18. ________ must be present before beginning an investigation.
    A. Invigilation
    B. Cross-examination
    C. Interrogation
    D. Predication
    D. Predication
    (this multiple choice question has been scrambled)
  19. Theft investigation methods include all of the following except:
    A. covert operations.
    B.surveillance.
    C. invigilation.
    D.seizing computers.
    E. searching public records.
    D. seizing computers.
    (this multiple choice question has been scrambled)
  20. A vulnerability chart:
    A.None of the choices pertain to vulnerability charts.
    B. coordinates the various elements of the possible fraud.
    C. proceeds from the generalities to the specifics.
    D. All of the choices pertain to vulnerability charts.
    E. moves in concentric circles outward from interviewing the suspect.
    B. coordinates the various elements of the possible fraud.
    (this multiple choice question has been scrambled)
  21. Types of surveillance include all of the following except:
    A. tailing.
    B. All of the choices are types of surveillance.e.None of the choices are types of surveillance.
    C. stationary.
    D. electronic.
    B. All of the choices are types of
    (this multiple choice question has been scrambled)
  22. Undercover operations:
    A. are most often used for small-scale frauds or crimes.
    B. None of the choices are true of undercover operations.
    C. All of the choices are true of undercover operations.
    D. may be used as fishing expeditions to obtain more information about possible fraud schemes.
    E. are illegal, unless conducted by law enforcement.
    B. None of the choices are true of undercover operations.
    (this multiple choice question has been scrambled)
  23. Invigilation:
    A.is generally an inexpensive technique to use.
    B. None of the choices are true of invigilation.
    C. can backfire.
    D. All of the choices are true of invigilation.
    E. should cover the entire business being investigated in order to cast as wide a net as possible.
    C. can backfire.
    (this multiple choice question has been scrambled)
  24. Which of the following answers presents the steps in the correct order used to seize electronic evidence?
    I. Clone the device.
    II. Secure the device.
    III. Search the device using automated searches.
    IV. Search the device manually.
    A. I, II, III, IV
    B. IV, III, I, II
    C. III, IV, II, I
    D. II, I, IV, III
    D. II, I, IV, III
    (this multiple choice question has been scrambled)
  25. When a file is "deleted" on a disk, the data is removed from the disk.
    True              
    False
    False
  26. Checksums:
    A. All of the choices are true of checksums.
    B. are generally not admissible in court to support data handling.
    C. should be calculated immediately upon seizing a computer drive.
    D. will change only marginally when the underlying data is changed.
    C. should be calculated immediately upon seizing a computer drive.
    (this multiple choice question has been scrambled)
  27. Email:
    A.in order to be considered during a fraud investigation, must be accessible from at least two different sources to ensure authenticity.
    B. All of the choices are true regarding email.
    C.is regarded by most people as a very insecure form of communication.
    D. exists in many places including the computer or electronic device of the sender and the servers involved in transmission.
    D. exists in many places including the computer or electronic device of the sender and the servers involved in transmission.
    (this multiple choice question has been scrambled)
  28. In a fraud investigation, documents:
    A. Are rarely used in court.
    B. Are only valuable in obtaining a confession
    C. Usually contain extremely valuable information.
    D. Are not reliable sources of information.
    C. Usually contain extremely valuable information.
    (this multiple choice question has been scrambled)
  29. Chain of custody refers to:
    A. A record of when a document is received and what has happened to it since its receipt.
    B. Databases used in trials to assist lawyers. d. The way in which courts are organized.
    C. Marking on a document so it can be identified later.
    A. A record of when a document is received and what has happened to it since its receipt
    (this multiple choice question has been scrambled)
  30. Marking documentary evidence is important to ensure that:
    A. Documents can be identified later.
    B. Marking documentary evidence is not important.
    C. Databases can be created with valuable information.
    D. Documents are legal.
    A. Documents can be identified later.
    (this multiple choice question has been scrambled)
  31. 4. Discovery sampling:
    A. Is one of the more difficult statistical sampling methods to understand.
    B. Deals with the probability of discovering at least one error in a given sample size if the population error is a certain percentage.
    C. Is never used in conducting a fraud examination.
    D. Is a type of variables sampling.
    B. Deals with the probability of discovering at least one error in a given sample size if the population error is a certain percentage.
    (this multiple choice question has been scrambled)
  32. Documentary evidence such as private tax returns can usually be obtained only by:
    a. Subpoena.
    b. Search warrant.
    c. Voluntary consent.
    d. All of the above.
    d. All of the above.
  33. Which of the following is not true regarding document experts?
    a. They can usually determine whether a document was written by the person whose signature the document bears.
    b. They can usually determine whether a document has been forged.
    c. They can usually determine whether the date the document bears is the date the document was written.
    d. All of the above are true statements.
    d. All of the above are true statements.
  34. Which of the following is not a benefit of statistical sampling?
    A. It allows quantification of risk.
    B. It is helpful when populations are large.
    C. It allows inference about a population.
    D. It allows auditors to be certain that fraud does not exist in a population.
    D. It allows auditors to be certain that fraud does not exist in a population.
    (this multiple choice question has been scrambled)
  35. Which of the following methods of gathering documents is based primarily on luck?
    A. Hard-to-get private documents that are subpoenaed.
    B. Documents discovered through searching public sources.
    C. Documents discovered during audits.
    D. Documents provided by tipsters.
    D. Documents provided by tipsters.
    (this multiple choice question has been scrambled)
  36. Which of the following is true of graphologists?
    A. They are required to be members of the ABFDE organization.
    B. They can only perform their work in laboratory settings.
    C. They perform the same type of work as forensic document experts.
    D. They study handwriting as a way to interpret and identify personalities.
    D. They study handwriting as a way to interpret and identify personalities.
    (this multiple choice question has been scrambled)
  37. What can a fraud examiner conclude if one or more instances of fraud are found in a sample taken from a population?
    A. The population contains fraud.
    B. There is a slight risk that fraud exists in the population.
    C. The sample may not have been randomly selected, and thus no conclusions can be drawn.
    D. The sample is most likely not representative of the population as a whole.
    A. The population contains fraud.
    (this multiple choice question has been scrambled)
  38. What can a fraud examiner conclude if his or her tests confirm that no instances of fraud are present in a sample taken from a population?
    A. The population contains no fraud.
    B. There is virtually no risk that fraud exists in the population.
    C. The sample is most likely not representative of the population as a whole.
    D. Only that no fraud is present in that particular sample.
    D. Only that no fraud is present in that particular sample.
    (this multiple choice question has been scrambled)
  39. How are most frauds concealed?
    A. By creating fictitious documents or altering source documents.
    B. By firing employees who will not go along with the fraud.
    C. By shredding source documents.
    D. By converting to a paperless office without paper transactions.
    A. By creating fictitious documents or altering source documents.
    (this multiple choice question has been scrambled)
  40. Which of the following is usually the best way to obtain documentary evidence?
    A. A statistically sound sampling approach like discovery sampling.
    B. Chance, accident, or tip discovery.
    C. Computer-based queries of full-population accounting and other databases.
    d. None of the above are effective methods of discovering evidence.
    C. Computer-based queries of full-population accounting and other databases.
    (this multiple choice question has been scrambled)
  41. Programs like CaseMap, Case Central, ZANTAZ, Ringtail, and DatiCon are examples of:
    A. Software packages used to index and store evidence.
    B. Forensic software used to investigate hard drives and other digital devices.
    C. Link analysis software.
    D. Software that implements discovery sampling techniques.
    A. Software packages used to index and store evidence.
    (this multiple choice question has been scrambled)
  42. Documents:
    A. often commit perjury.
    B. None of the choices are true of documents.
    C. All of the choices are true of documents.
    D. can frequently be cross-examined by opposing attorneys.
    E. may contain fingerprints.
    E. may contain fingerprints.
    (this multiple choice question has been scrambled)
  43. Information on the back of a check typically includes all of the following except:
    a. teller who processed the transaction.
    b. branch number where check was cashed. c. whether the check represented a payment or was deposited.
    d. All of the choices are true regarding checks.
    e. None of the choices are true regarding checks.
    b. branch number where check was cashed.
  44. Marking the evidence includes:
    A. All of the choices are true regarding marking the evidence.
    B. copying the document and storing the original in an envelope.
    C. assigning a Bates number to each document.
    D. digitizing the evidence.
    E. None of the choices are true regarding marking the evidence.
    B. copying the document and storing the original in an envelope.
    (this multiple choice question has been scrambled)
  45. Link analysis is used to:
    A. link each document to its original Bates number.
    B. calculate checksums that support the chain of evidence.
    C. associate people, places and events.
    D. organize documents by witness, chronology, or transaction.
    C. associate people, places and events.
    (this multiple choice question has been scrambled)
  46. Documentary evidence may be obtained in a variety of ways. Rank the following methods for acquiring documents from the most effective to the least effective.
    I. Traditional audits, including discovery sampling.
    II. Computer-based queries of full-population accounting and other databases.
    III. Tips, accidents, chance.
    A. II, I, III
    B. II, III, I
    C. I, II, III
    D. III, II, I
    A. II, I, III
    (this multiple choice question has been scrambled)
  47. Auditors perform a variety of tests, each of which yields a form of evidence. Which of the following are tests auditors perform?
    I. Establishment of chain of custody
    II. Tests of reasonableness
    III. Physical examinations
    IV. Recalculations
    A. I, II, III, and IV
    B. I, III, and IV only
    C. II, III, and IV only
    D. I and III only
    C. II, III, and IV only
    (this multiple choice question has been scrambled)
  48. Discovery sampling:
    a. allows an auditor to make inferences about a sample based on a study of the population. b. is only considered useful and efficient with relatively small populations.
    c. is among the most difficult forms of statistical sampling to understand and implement.
    d. All of the choices are true regarding discovery sampling.
    e. None of the choices are true regarding discovery sampling.
    e. None of the choices are true regarding discovery sampling.
  49. An auditor who is conducting a sampling test for fraud will be 100% certain fraud exists if one fictitious transaction is discovered.
    True
    False
    True
  50. Regarding sampling procedures, the more confident an auditor wants to be, the smaller the sample size that must be examined.
    True
    False
    False
  51. Sampling risk is:
    A. a significant risk that cannot be reduced.
    B. the risk that the sample is not representative of the population.
    C. All of the choices are true regarding sampling risk.
    D. the risk that findings will be misinterpreted; for example, not recognizing an error or mistake.
    B. the risk that the sample is not representative of the population.
    (this multiple choice question has been scrambled)

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