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Fraud Test #3
Terms in this set (74)
Concealment is the covering of tracks, obscuring of evidence, and removal of red flags to hide a perpetrator's fraud.
Traditional chain of custody evidence procedures are not appropriate when used with electronic evidence.
Photocopies are always preferable to original documents as evidence.
There is no difference between forensic document experts and Graphologists.
In a fraud investigation, documents:
Usually contain extremely valuable information
Chain of custody refers to:
A record of when a document is received and what has happened to it since its receipt
Documentary evidence such as private tax returns can usually be obtained only by:
All of the above (Subpoena, Search Warrant, Voluntary Consent)
Which of the following is NOT true regarding document experts?
All of the above are true statements
Which of the following is NOT a benefit of statistical sampling?
It allows auditors to be certain that fraud does not exist in a population.
Which of the following methods of gathering documents is based primarily on luck?
Documents provided by tipsters
Which of the following is true of graphologists?
They study handwriting as a way to interpret and identify personalities
Perpetrators usually save what they steal.
One common investigation procedure determines how perpetrators convert or spend their time.
Investigations of perpetrators net worth and life styles help investigators know what class of society the perpetrators are from.
The secretary of state maintains many types of records relating to business and uniform commercial Code (UCC) filings.
It is always necessary to involved a federal law enforcement agent when accessing federal databases.
Counties and other local agencies that contain records are usually not very useful in fraud investigation.
The net worth method is rarely, if ever, helpful in actual fraud investigations.
For various reasons, the net worth method tends to be a conservative estimate of amounts stolen.
The Gramm-Leach-Bliley act of 1999 made it more difficult for officials and private citizens to access information from financial institutions.
Although most perpetrators begin their thefts because of perceived critical need, they usually continue to embezzle in order to:
Improve their Lifestyle
Evidence gathered from public records can be useful in:
Obtaining a confession
The net worth method of analyzing financial information can help to determine:
The amount of embezzled funds
Which of the following organizations maintain public information that can be accessed in record searches?
All of the above (Local, State, and Federal)
How useful are local and county records in fraud investigations?
Which of the following laws regulates activities of credit, insurance, and employment investigations?
Fair Credit Reporting Act of 1971 and Fair and Accurate Credit Transactions Act of 2003.
The net worth method is effective:
All of the above (evidence in court, help to obtain a confession, conduct an interview of suspects)
Conversion investigations focus on how suspects:
Spent stolen money
Most conversion investigations involve searching public records and other sources to trace:
All of the above (Purchases of assets, payments of liabilities, changes in lifestyle, and Net Worth)
A database of criminal records maintained by the FBI is:
Both B and C (The III and NCIC)
Who among the following are usually some of the best and most helpful federal fraud investigators?
Which source could be used to access valuable financial information in a fraud investigation?
All of the above (Financial Institutions, internet sites, former spouse of a suspected fraud perpetrator, and Trash)
The formula to calculate funds from unknown sources is:
Assets - Liabilities - Prior Year's Net Worth + Living expenses - Funds from known sources
The Gramm-Leach-Bliley Act allows:
All of the above:
-Banks to sell customer information
-Financial institutions to share information
-Customers to "opt out" and ask that their information not be shared
Each of these agencies is correctly matched with the type of information the agency provides except:
State Attorney General: Maintains birth records and information about people's SSN
Each of these statements is true about the net worth method for determining embezzled amounts except:
Courts are generally suspicious of dollar amounts determined by the net worth method because courts realize that the next worth method can only provide approximations of the amount stolen.
Under the net worth method, a person who has an increase in net worth of $100,000, known expenses of $80,000, and a salary of $60,000 would have an unknown income of:
Known income subtracted from total income gives a reasonable estimate of:
According to the test, when conducting an interview of a friendly or neutral witness, the interviewer's demeanor should be:
As professional as possible
On Jan. 5, Jones, a certified fraud examiner and private consultant, contacted Ellis, a potential witness in a fraud examination, and requested a meeting to discuss Ellis's Knowledge of the events that had transpired.Ellis was hesitant at first, but then agreed to meet jones if jones would allow him "a few days" to review documents. What day would be the best choice for the interview
To be an effective interviewer, a certified fraud examiner must be:
All of the above (trustworthy, fair, professional)
In routine interview situations where the object is to gather info from neutral/corroborative witnesses, which of the following types of questions would NOT likely be asked?
Which of the following is NOT one of the five general types of questions?
The Word BLANK should be avoided during the interview process.
The interviewer should obtain a BLANK commitment of assistance from the respondent before the interview commences.
When using physical contact to make the witness believe that the interviewer is being open and friendly, the interviewer should NOT:
Sit within 3 feet of the witness
Related witnesses should be interviewed
During the introductory phase of an interview, a witness asks the examiner about the purpose of the interview. The examiner should:
Give the witness a very brief explanation
During the introductory phase of the interview, the interviewer should avoid terms such as:
The use of deception to obtain a confession does not necessarily tender the confession inadmissible in court. However, the interviewer may not use any deception likely to cause
An innocent person to confess
When interviewing a potentially volatile witness, the examiner generally should NOT:
Ask the questions in a predictable order
If an important witness becomes hostile and argumentative during the interview, the interviewer should generally:
Diffuse the witness's attitude and continue asking questions in a polite manner
Adams, a certified fraud examiner assigned to the Security Division of XYZ Corp., is conducting an interview of jones, a receiving clerk assigned to the warehouse. Jones becomes hostile and threatens to sue Adams and XYZ Corp. for invasion of privacy. Adams should:
Diffuse the threats made by Jones and continue the interview
During the interview of an argumentative witness, the examiner increases the chances of obtaining useful info if he assumes a BLANK demeanor
When conducting an interview of a potential volatile witness, it is proper procedure to:
Approach the witness without an appointment
Which of the following is generally indicative of a subject's truthful response to an accusation?
All of the above
The value of direct observation of behavior symptoms of individuals being interviewed can't be understated. Which of the following is a behavior symptom a fraud examiner would observe?
All of the above
1 reliable indicator of deception occurs when an untruthful person "sweats to God" or starts a sentence with "to tell you the truth ..." These expressions are called:
In evaluating deception, a BLANK response by the suspect to a critical question posed by the interviewer is considered a sign of lying
An untruthful individual is more likely than a truthful one to
Use fragmented sentences
The most effective technique to stop/interrupt denials is to
Use a delaying tactic
When preparing a written statement of a respondent's admission of guilt at the end of the interview, the statement should generally
contain only enough detail to validate the confession
When taking a signed statement from a suspect who has admitted guilt, the statement generally must be
Signed by the suspect
For a written statement to be legal and admissible in a court of law, the statement must be:
None of the above
Questions asked in order to get a benchmark admission are called BLANK questions
The objectives of the admission-seeking interview are to:
All of the above
Potential victims of a consumer fraud scheme might perceive that they have a problem, such as a lack of money or high personal debt, that requires a solution. This demonstrates which of the following elements of fraud?
A consumer who considers investing their money to increase their wealth as a means to pay off a debt is an example of:
The BLANK is the most common delivery method used in a consumer fraud scheme.
Why do some consumers become victims of consumer fraud?
Victims generally having a trusting nature
Which of the following can protect a consumer from falling victim to a franchise scheme?
Request a foreclosure statement from the franchisor
BLANK must provide a franchise disclosure document to potential investors before they make a legal commitment
Which of the following is an example of a work from home opportunity?
Assembly and crafts
Jacob was contacted by a telemarketer and told he won a prize. Before the prize could be released, however, he must first establish an account with the local gov't. taxing authority to deposit a taxation fee equal to 1% of the prize. The telemarketer offers to collect the tax for a fee. Which of the following is being perpetrated?
Advance-fee sweeps scheme
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