Fraud Examination 5th Edition W Steve Albrecht Chad O Albrecht Conan C Albrecht Mark F Zimbelman-Test bank

 

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Sample Test

Chapter 03   1. Research has shown that ______ detect most frauds.   a. Auditors   b. Customers   c. Vendors   d. Employees   ANSWER:   d FEEDBACK:     a. Incorrect. Auditors usually detect fraud when there are red flags in the financial statements. Usually by this time the fraud is large.   b. Incorrect. Customers can also detect fraud, but they are not the most effective resource.   c. Incorrect. Vendors can also detect fraud, but they are not the most effective resource.   d. Correct. Employees, managers, co-workers, and supervisors are in the best position to detect fraud. They are also the most effective fraud detectors. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

2. All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT:   a. Accurately identifying sources and measuring risks.   b. Implementing appropriate preventative and detective controls.   c. Creating widespread monitoring by employees.   d. Eliminating protections for whistle blowers.   ANSWER:   d FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Incorrect.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Rememberting

 

3. Audits, public record searches, and net worth calculations are used to gather what type of evidence in fraud investigation?   a. Testimonial   b. Forensic   c. Documentary   d. Observational   ANSWER:   c FEEDBACK:     a. Incorrect. Testimonial evidence is gathered from individuals.   b. Incorrect. Forensic evidence is physical evidence, such as fingerprints and other tangible evidence.   c. Correct. Documentary evidence is evidence that is gathered from paper, computers, etc. Audits, public record searches and net worth calculations are also examples of documentary evidence.   d. Incorrect. Observational evidence is collected by investigators and includes surveillance and invigilation. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

4. Which of the following is NOT a part of the evidence square?   a. Management evidence   b. Documentary evidence   c. Testimonial evidence   d. Physical evidence   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect. This is part of the evidence square.   c. Incorrect. This is part of the evidence square.   d. Incorrect. This is part of the evidence square. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

5. All of the following factors can be associated with high levels of fraud and detract from a positive work environment EXCEPT:   a. top management that does not pay attention to behavior of employees.   b. lack of recognition of job performance.   c. unrealistically low pay.   d. low turnover.   ANSWER:   d FEEDBACK:     a. Incorrect. Inappropriate tone from the top management often carries over in employees.   b. Incorrect. Underappreciated employees lack loyalty to the company.   c. Incorrect. Underpaid employees will rationalize stealing.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

6. Which of the following approaches is most useful in creating a culture of honesty and integrity in the workplace?   a. Hiring right kind of employees   b. Security cameras   c. Peer evaluations   d. Ergonomics   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

7. Which of the following is a component of the evidence square?   a. Rationalization   b. Perceived pressure   c. Personal observation   d. Perceived opportunity   ANSWER:   c FEEDBACK:     a. Incorrect. Rationalization is an element of the Fraud Triangle.   b. Incorrect. Perceived pressure is an element of the Fraud Triangle.   c. Correct. Personal observation is the fourth element of the Evidence Square.   d. Incorrect. Perceived opportunity is an element of the Fraud Triangle. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

8. Civil suits are usually quite rare in cases of employee fraud because:   a. there is usually not enough evidence to prosecute.   b. employee fraud is a victimless crime.   c. it is difficult for a jury to unanimously decide on a conviction.   d. perpetrators have usually spent the money.   ANSWER:   d FEEDBACK:     a. Incorrect. If fraud is found there is usually enough evidence.   b. Incorrect. The company is the victim of employee fraud.   c. Incorrect. Civil cases do not require a unanimous jury.   d. Correct. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-8 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

9. Which of the following key activities related to fraud, is the most important and cost-effective way to reduce losses from fraud?   a. Follow-up legal action   b. Early fraud detection   c. Fraud investigation   d. Fraud prevention   ANSWER:   d FEEDBACK:     a. Incorrect. Legal costs are expensive for the organization.   b. Incorrect. While early fraud detection helps limit the cost of the fraud, fraud prevention is the most cost effective tool to deter fraud.   c. Incorrect. Fraud investigations can be extremely expensive to the organization.   d. Correct. Fraud prevention programs are the most cost-efficient way to deter fraud. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

10. Which of the following elements listed is one of the three basic elements of the fraud motivation triangle?   a. Concealment   b. Theft Act   c. Opportunity   d. Conversion   ANSWER:   c FEEDBACK:     a. Incorrect. This is an element of fraud element triangle.   b. Incorrect. This is an element of fraud element triangle.   c. Correct. Theft, concealment and conversion are all elements of fraud triangle, but opportunity is part of the fraud motivation triangle.   d. Incorrect. This is an element of fraud element triangle. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-2 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

11. Communicating expectations about honesty and integrity throughout a company includes all of the following elements EXCEPT:   a. identifying appropriate values and ethics.   b. fraud awareness training.   c. consistent punishment for violators.   d. insisting that top management model appropriate behavior.   ANSWER:   d FEEDBACK:     a. Incorrect. This is, indeed, a way to communicate expectations.   b. Incorrect. This is, indeed, a way to communicate expectations.   c. Incorrect. This is, indeed, a way to communicate expectations.   d. Correct. This is a way to create a culture of integrity–not a subset of communicating expectations. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

12. In an organization, individuals who suspect fraud usually don’t come forward because they:   a. feel that perpetrator will get caught anyway.   b. do not want to accuse someone.   c. fear being branded as a whistle-blower.   d. will lose the friendship of the perpetrator.   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

13. Studies show that legal action against fraudsters is typically taken:   a. Less than 25 percent of the time.   b. Less than 50 percent of the time.   c. More than 75 percent of the time.   d. At least 50 percent of the time.   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct. Statistics show that known fraud perpetrators are prosecuted less than 50 percent of the time.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-8 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

14. Which of the following is NOT one of the ways in which a fraud investigation must be conducted?   a. Investigators should be experienced and objective professionals.   b. Investigators should closely guard all hypotheses regarding guilt or innocence of individuals being investigated.   c. Investigators should inform management of only the basics of the investigations in case they are involved.   d. Investigators must be sure to follow appropriate investigative techniques.   ANSWER:   c FEEDBACK:     a. Incorrect. This is one of the ways in which a fraud investigation must be conducted.   b. Incorrect. This is one of the ways in which a fraud investigation must be conducted.   c. Correct. Management should be aware of the investigation.   d. Incorrect. This is one of the ways in which a fraud investigation must be conducted. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

15. Stuart, a CFE, is investigating a possible management fraud. He found an email on an employee’s computer to use as evidence in the case. Under which category of evidence would an email message fall?   a. Testimonial evidence   b. Documentary evidence   c. Physical evidence   d. Personal observation   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct. Emails are an example of documentary evidence.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

16. Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:   a. help in training employees about appropriate behavior.   b. often prompt smaller frauds.   c. pay big dividends.   d. aid in punishing fraud perpetrators.   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

17. When perceived pressures and(or) opportunities are low, a person needs more ________ to commit fraud.   a. support from people at workplace   b. rationalization   c. courage   d. motivation   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

18. Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions, and there are four levels in it. Which of the following level is NOT one among them.   a. Personal ethical understanding   b. Corporate code of ethics   c. Application of ethics   d. Ethical courage   e. Ethical leadership   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct.   c. Incorrect.   d. Incorrect.   e. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

19. Recent research has shown that there is an ethical maturity model (EMM) that explains why people make unethical decisions. Which of the following represents the foundation of ethics according to this model?   a. Personal ethical understanding   b. Ethical courage   c. Ethical leadership   d. Application of ethics to business situations   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

20. A person may have very strong ethics in the way he or she treats family and friends, but not understand how failure to submit tax withholdings to the government affects peoples’ lives or constitutes unethical or fraudulent behavior. This is an ethical issue encountered in which level of the ethical maturity model?   a. Personal ethical understanding   b. Ethical courage   c. Ethical leadership   d. Application of ethics to business situations   ANSWER:   d FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Incorrect.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

21. Which level in the ethical maturity model can be summarized as “willingness to pay the price for ethics?”   a. Ethical positioning   b. Ethical courage   c. Personal ethical understanding   d. Application of ethics to business situations   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

22. Which is the highest level in the ethical maturity model?   a. Ethical leadership   b. Ethical courage   c. Personal ethical understanding   d. Application of ethics to business situations   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

23. Which of the following is the largest employee group in most organizations?   a. Employees who display ethical leadership   b. Group of employees who will always be honest   c. Group of employees who will be dishonest anytime it benefits them   d. Swing group of employees who could be honest or dishonest   ANSWER:   d FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Incorrect.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-4 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

24. Which of the following is true of the “swing group” of employees in organizations?   a. Individuals in this group have situational ethics.   b. Individuals in this group are dishonest most of the time.   c. Individuals in this group do not know how to translate their ethical values to the business world.   d. Individuals in this group lack ethical courage.   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-4 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

25. Research on honesty shows that individuals fall into three groups: (1) those who will almost always be honest, (2) those who are situationally honest, and (3) those who will always be dishonest. Which of these groups is (are) the biggest?   a. Group 1 (50%)   b. Group 2 (40%)   c. Group 3 (45%)   d. Groups 1 and 3 (35% each)   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-4 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

26. Which legislation makes it compulsory for every public company to have a code of conduct to convey expectations about what is and is not appropriate for its directors and officers?   a. Sherman Act   b. Glass-Steagall Act   c. Sarbanes Oxley Act   d. Gramm-Leach-Bliley Act   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

27. Which of the following statements is TRUE?   a. External auditors are usually specifically trained to detect fraud.   b. Audits of books and records rarely discover frauds.   c. Less than 5 percent of all frauds are detected by auditors.   d. The presence of auditors provides a major deterrent effect.   ANSWER:   d FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Incorrect.   d. Correct. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-5 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

28. In the ethical maturity model, instilling in others a desire to develop ethical awareness and courage is referred to as:   a. Personal codes of ethics.   b. Ethical motivation.   c. Ethical leadership.   d. Application of ethics to business situations.   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

29. In the past, most frauds were detected:   a. by surveillance and undercover operations.   b. by accident.   c. by providing ways for people to report suspicions of fraud.   d. by examining transaction records and documents to determine if there are anomalies that could represent fraud.   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

30. In recent years, organizations have implemented a number of initiatives to more proactively detect fraud. The first and most common proactive fraud detection approach has been to:   a. install reporting hotlines.   b. conduct undercover operations.   c. install surveilance cameras.   d. collect physical evidence.   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

31. Which of the following is an example of a whistle-blowing system?   a. Bulletin board service   b. Supervisor intervention   c. Removing middle management layer   d. Fraud reporting hotline   ANSWER:   d FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Incorrect.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-1 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

32. Which of the following is a prerequisite for a fraud investigation?   a. Predication   b. A specific allegation of fraud against another party   c. Consistent bottom-line improvement   d. Rationalization   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

33. Although there are multiple approaches to fraud investigation, most investigators tend to rely heavily on ______.   a. invigilation   b. surveillance   c. interviews   d. confrontation   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

34. Which type of evidence is gathered from individuals using investigative techniques such as interviewing, interrogation, and honesty tests?   a. Documentary evidence   b. Testimonial evidence   c. Physical evidence   d. Personal observation   ANSWER:   b FEEDBACK:     a. Incorrect.   b. Correct.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

35. What is the overall term for the investigative technique that includes gathering evidence through data mining, audits, computer searches, net worth calculations, and financial statement analysis?   a. Documentary evidence   b. Testimonial evidence   c. Physical evidence   d. Personal observation   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Remembering

 

36. Investigative techniques under which approach include invigilation, surveillance, and covert operations?   a. Documentary evidence   b. Testimonial evidence   c. Physical evidence   d. Personal observation   ANSWER:   d FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Incorrect.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

37. All of the following are part of the fraud element triangle EXCEPT:   a. Theft act   b. Concealment   c. Conversion   d. Rationalization   ANSWER:   d FEEDBACK:     a. Incorrect. This is a part of the fraud element triangle.   b. Incorrect. This is a part of the fraud element triangle.   c. Incorrect. This is a part of the fraud element triangle.   d. Correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

38. Investigative methods utilized to catch a fraud perpetrator while he/she is actually receiving a kickback fall under which of the following categories?   a. Theft act investigative methods   b. Concealment investigative methods   c. Conversion investigative methods   d. Collusion investigative methods   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

39. Which area of investigative method involves searching for ways in which perpetrators have spent or used their stolen assets?   a. Theft act   b. Concealment   c. Conversion   d. Collusion   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

40. The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.   a. Documentary evidence   b. Testimonial evidence   c. Physical evidence   d. Personal observation   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

41. The most effective way to involve employees in the monitoring process is to provide a protocol for which of the following?   a. communication   b. office etiquette   c. administrative action   d. management oversight   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-7 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

42. _______ refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has occurred, is occurring, or will incur.   a. Audit process   b. Surveillance   c. Predication   d. Investigation   ANSWER:   c FEEDBACK:     a. Incorrect.   b. Incorrect.   c. Correct.   d. Incorrect. POINTS:   1 DIFFICULTY:   Moderate LEARNING OBJECTIVES:   LO: 3-5 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding

 

43. Which of the following statements is NOT true?   a. It is much more difficult to get a criminal conviction than it is to get a judgment in a civil case.   b. A preponderance of the evidence (more than 50 percent) is necessary to win a civil case.   c. Criminal convictions are only successful if there is overwhelming, undeniable proof  that the perpetrator “intentionally” stole money or other assets.   d. Civil actions are quite rare in cases of employee fraud because perpetrators have usually spent the money they stole.   ANSWER:   c FEEDBACK:     a. Incorrect. The statement is correct.   b. Incorrect. The statement is correct.   c. Correct.   d. Incorrect. The statement is correct. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-8 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Remembering

 

44. Which one of the following was NOT discussed as a way to create a culture of honesty and integrity?   a. Offer rewards for honest behavior   b. Communicate expectations throughout the organization   c. Hire the right kinds of employees   d. Create a positive work environment   ANSWER:   a FEEDBACK:     a. Correct.   b. Incorrect.   c. Incorrect.   d. Incorrect. POINTS:   1 DIFFICULTY:   Easy LEARNING OBJECTIVES:   LO: 3-3 NATIONAL STANDARDS:   United States – BUSPROG: – Technology KEYWORDS:   Bloom’s: Understanding