Midterm Fraud Examination Review ch1-6
Terms in this set (256)
One way that criminal law differs from civil law is that it:
B. must yield a unanimous verdict.
Which of the following is not an element of a Ponzi scheme?
C. Collected money is invested in government bonds.
The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
C. bribes may be deducted as legitimate business expenses.
Which one of the following is NOT a characteristic of a criminal proceeding?
B. Consequences include restitution and damage payments.
Management fraud is often referred to as:
B. financial statement fraud.
What is required to prove fraud, as opposed to negligence?
Which of the following is the most common type of occupational fraud?
D. Employee embezzlement
Which of the following is not a characteristic of management fraud
C. Kickbacks or bribes.
Customer fraud includes all of the following EXCEPT:
C. Fraud perpetrated through collusion between buyers and vendors.
Which of the following is a common example of vendor fraud?
A. Fraud perpetrated through collusion between buyers and vendors.
Government agencies such as the FBI, FDIC, IRS, or various health agencies publish fraud statistics from time to time. Which of the following observations concerning such statistics is true?
C. They provide only those statistics related to their jurisdiction.
Which legal code makes the bribing of public officials illegal?
A. Title 18, U.S. Code Section 201
Fraud has a direct dollar for dollar impact on a company's
B. Net income.
Which of the following is not a primary reason for increased size and number of frauds?
C. Increased centralization of businesses
Which among the following frauds is most likely to be a civil charge?
The elements of fraud include all of the following EXCEPT:
C. the misrepresentation is known to the victim.
The burden of proof in a criminal case must
A. be beyond a reasonable doubt
Which of the following statements about criminal and civil cases is correct
A. The purpose of a criminal case is "to right a wrong", the purpose of civil case is to obtain a remedy.
How is the confidence element established in a Ponzi scheme?
C. By paying returns to initial investors.
The most common fraud committed on behalf of an organization is:
C. Fraudulent financial reporting
A company is a victim of a $414 million fraud. At that time its profit margin is 10%. How much additional revenue should the company generate in order to recover the effect on net income?
C. $4.14 billion
Scammers often use their victim's ethnic identity to gain their trust and then steal their life savings. This is an example of:
B. affinity fraud.
The Anti-Kickback Act of 1986 intends to prevent:
C. the giving or receiving of any thing of value by a subcontractor to a prime contractor.
Who are the primary victims of financial statement fraud?
Generally applicants for CFE certification should have a minimum of a bachelor's degree or equivalent from an institution of higher learning. Alternatively if applicants do not have a bachelor's degree, they may substitute how many months of fraud-related professional experience for each year of academic study.
The ACFE includes three major categories of occupational fraud EXCEPT:
D. pension fraud.
What is the most cost-effective way to minimize the cost of fraud?
Fraud in companies such as WorldCom, Enron, Waste Management, Sunbeam, Rite-Aid, Phar-Mor, Parmalat, and ZZZZBest are examples of:
D. Management fraud.
Which of the following statements is true?
C. Fraud always involves deception, confidence and trickery.
To be successful, plaintiffs in civil cases must prove their case by which of the following?
A. Preponderance of evidence.
Which of the following is NOT an example of a fraud-fighting career?
C. Maintaining the security of public records.
Which of the following observations concerning occupational fraud is not true?
C. It always involves two or more employees.
Which of the following is not one of the major types of fraud classification schemes
B. Government fraud
Which of the following frauds is usually the most expensive
D. Financial statement fraud
Civil claims begin when one party files a complaint against another, usually for the purpose of:
D. financial restitution.
Employee embezzlement can be direct or indirect. Indirect fraud occurs when:
C. an employee receives a kickback from a vendor.
Telemarketing fraud usually falls into this category.
A. Investment scams
The word "con," which means to deceive, comes from the word:
In fraud prosecution cases, what matter consists of the underlying data and all corroborating information available.
Given below are the profit margins and fraud related losses of four economies. Which economy will have to generate the maximum dollar amount of additional revenues to recover the loss to aggregate income?
Economy A 10% $225 million
Economy B 10% $150 million
Economy C 5% $100 million
Economy D 2% $ 50 million
B. Economy D
The GDP in the economy of Ponziland was $5 billion in the year prior to the frauds (year 1). The economy were growing at 4 percent. Frauds during the year reduce aggregate income by $200 million. During the year, the economy has:
C. remained flat.
A company was the victim of several frauds that totaled approximately $10 million in one year. With a profit margin of 10 percent, and assuming that the company's product sold for $1,000 per unit, how many additional units must the company sell to compensate for the fraud losses?
Which of the following is not a common rationalization of fraud perpetrators?
D. I don't deserve more.
Which of the following is not a primary control procedure to minimize the occurrence of fraud?
C. Internal audit department
Each of the following is an example of an inadequate control environment EXCEPT:
D. The employees know who has responsibility for each business activity.
A fraud perpetrator uses the float time between banks to give the impression that he had money in his accounts. Which crime is he committing?
Which is following observations is TRUE?
C. Most fraud perpetrators have profiles that look like those of other honest people.
When management fraud occurs, companies usually:
A. overstate assets and net income.
Which of the following is not one of the key elements common to all frauds?
B. Perceived inequality
What is the most important element in a control environment?
B. Management's role and example
Which of the following statements about accounting systems is incorrect?
C. An effective accounting system can almost always effectively prevent "kickbacks."
Greed, living beyond one's means and high bills all describe what type of fraud-related pressure?
An effective accounting system is designed to provide which of the following to help discover fraud?
A. An audit trail
When fraud occurs, the most common reaction to those affected by the fraud is:
Which of the following is not an element of a good control environment?
Which of the following is not a possible control activity?
D. Supervisory review of each minute task completed by employees.
The fraud triangle includes all of the following EXCEPT:
Modeling and labeling are sub-components of which control structure component?
A. Control environment
Poor credit could become a what, that could lead to fraud.
A. Financial pressure
What requires every public company to have a code of ethics to help deter wrongdoing.
B. The Sarbanes-Oxley legislation
Financial statement fraud is typically committed by
B. Top management
An employee who has the responsibilities of both writing checks and making bank deposits would have
B. Perceived opportunity
Most fraud perpetrators have profiles that look like:
A. Those of other honest people
According to the Sarbanes-Oxley legislation, current changes to, or waivers of codes of ethics should be disclosed in:
C. Form 8-K.
What is the strongest factor in deterring future fraud activity?
A. Legal prosecution.
Which of the following is not a true statement?
B. All frauds involve financial or vice-related pressures.
A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?
A. Income statement.
Which of the following factors creates an opportunity for fraud?
C. Lack of an audit trail
Which of the following is not a common financial pressure associated with fraud?
D. Getting even with the employer
According to the study mentioned in the text, which of the following is true about fraud perpetrators compared to property offenders?
B. Fraud perpetrators are more educated than property offenders
Which of the following creates opportunities for fraud?
B. Inability to judge quality of performance
Which of the following people is most likely to have opportunities to commit fraud?
D. 62 year old Dave has loyally worked up his company's corporate ladder for the past 24 years
The theory behind what is that if people know their work or activities will be monitored by others, the opportunity to commit and conceal a fraud will be reduced.
D. independent checks
Which of the following is usually the most expensive of all control procedures?
B. Segregation of duties
Segregation of duties, as a control procedure, is most often used
D. when cash is involved.
Which of the following is an example of an authorization control procedure?
A. Password protection
A fraud perpetrator is able to convince a potential victim that he will receive a large bonus if he supports him in a fraud scheme. Which type of power is the fraud perpetrator using
D. Reward power
Individuals often participate in fraud because they believe that by not participating in the fraud scheme, they may lose their job. Which type of power is at play here?
C. Coercive power
Wilma participates in a fraud scheme by executing some derivative trades because she believed that a senior analyst knew more about complex derivative transactions than she did. These transactions were fraudulent in nature. Which type of power was employed to deceive Wilma?
A. Expert power
What is the ability of the perpetrator to relate to the potential co-conspirator.
C. Referent power
.Many individuals, when persuaded by a trusted friend to participate in fraud, will rationalize the actions as being justifiable. Which type of power is being employed in such situations?
A. Referent power
Research has shown that what detect most frauds.
All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT
D. Eliminating protections for whistle blowers
Audits, public record searches, and net worth calculations are used to gather what type of evidence in fraud investigation?
All of the following factors can be associated with high levels of fraud and detract from a positive work environment EXCEPT
D. low turnover
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
Which of the following is a component of the evidence square?
C. Personal observation
Civil suits are usually quite rare in cases of employee fraud because:
D. perpetrators have usually spent the money.
Which of the following key activities related to fraud, is the most important and cost-effective way to reduce losses from fraud?
D. Fraud prevention
Which of the following element is one of the three basic elements of fraud motivation triangle?
Communicating expectations about honesty and integrity throughout a company includes all of the following elements EXCEPT:
D. insisting that top management model appropriate behavior.
In an organization, individuals who suspect fraud usually don't come forward because they:
C. fear being branded as a whistle-blower.
Studies show that legal action against fraudsters is typically taken:
B. Less than 50 percent of the time.
Which of the following is not one of the ways in which a fraud investigation must be conducted?
C. Investigators should not keep management apprised of the investigations process.
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?
B. Documentary evidence
Organizations and individuals that have proactive fraud prevention measures usually find that their prevention efforts:
C. pay big dividends.
When perceived pressures and(or) opportunities are low, a person needs more what to commit fraud.
Recent research has shown that there is an ethical maturity model that explains why people make unethical decisions, and there are four levels in it. Which of the following level is not one among them.
B. Corporate code of ethics
Recent research has shown that there is an ethical maturity model that explains why people make unethical decisions. Which of the following represents the foundation of ethics according to this model?
A. Personal ethical understanding
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 with holdings 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?
D. Application of ethics to business situations
Which level in the ethical maturity model can be summarized as "willingness to pay the price for ethics?"
B. Ethical courage
Which is the highest level in the ethical maturity model?
A. Ethical leadership
In the past, most frauds were detected
B. by accident.
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.
Which of the following is an example of a whistle-blowing system?
D. Fraud reporting hotline
Which of the following is a prerequisite for a fraud investigation?
Although there are multiple approaches to fraud investigation, most investigators tend to rely heavily on what?
Which type of evidence is gathered from individuals using investigative techniques such as interviewing, interrogation, and honesty tests?
B. Testimonial evidence
Some of the most common investigative techniques for gathering this evidence include data mining, audits, computer searches, net worth calculations, and financial statement analysis
A. Documentary evidence
Investigative techniques under which approach include invigilation, surveillance, and covert operations?
D. Personal observation
All of the following are part of the fraud element triangle EXCEPT
Which investigative method would be used to catch a fraud perpetrator while he/she is actually receiving a kickback?
A. Theft act
Which investigative method involves searching for ways in which perpetrators have spent or used their stolen assets?
The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.
C. Physical evidence
The most effective way to involve employees in the monitoring process is to provide a protocol for:
What 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.
Which of the following statements is not true?
C. Criminal convictions are only successful if there is 100 percent proof that the perpetrator "intentionally" stole money or other assets.
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
Research in moral development strongly suggests that honesty can be best reinforced when:
D. a proper example is set by management.
Control activities can be grouped as preventive controls and detective controls. Which of the following is a detective control?
C. Independent checks
Which of the following would usually be an environment conducive to fraud?
B. Reactive rather than proactive management
One of the most important responsibilities of an employer is the hiring and retention of employees. Which situation below reflects the current market scenario?
B. High turnover, low loyalty
One way to create and communicate clear expectations about what is and is not acceptable in an organization is:
D. to have a clearly defined code of conduct in place
Preventive controls that provide early fraud detection opportunity include:
B. segregation of duties.
What is the most widely recognized way to deter fraud?
B. Implement a good system of controls.
Which of the following is NOT an indicator that a person with a salary of $50,000 per year is living above his or her lifestyle?
B. A person closely monitors his/her investments.
In order to detect fraud at the earliest, a manager should pay attention to:
A. present lifestyle.
Developing and promoting a well-defined corporate code of conduct is related to which element of the fraud-fighting model?
C. Tone at the top
An operating condition that can contribute to a higher risk of fraud is what?
A. management by crisis
A good internal control system includes:
C. segregation of duties
What is the last stage in the current (default) model that most organizations typically use for dealing with fraud?
Which of the following is a sign of a positive work environment?
D. Having positive personnel and operating procedures
An employee recently bought five new cars and remodeled his/her home. These facts would be considered as a:
A. lifestyle symptom.
Fraud is most commonly detected by
D. tips and complaints.
Which of the following environments will be LEAST conducive to fraud?
C. Proactive management
A good fraud auditing involves four steps. Which of the following is the correct sequence?
B. Identifying fraud risk exposures; identifying the fraud symptoms of each exposure; building audit programs to proactively look for symptoms and exposures; and investigating fraud symptoms identified.
What focuses more on creating a culture of openness than eliminating opportunities.
D. Creating a positive work environment
The last step of the fraud fighting model is follow-up. What is the likely outcome when a company allow perpetrators to go unprosecuted?
B. The perpetrator and others in the company will commit fraud again in the future.
Which of the following should be emphasized in an employee-reporting program?
I. Fraud, waste, and abuse occur in very few companies.
II. The company actively encourages employees with information to come forward.
III. The employee's name must be disclosed.
IV. The report need not be made to one's immediate supervisor.
II. The company actively encourages employees with information to come forward
IV. The report need not be made to one's immediate supervisor.
Which method will result in biggest savings?
A. Fraud prevention--including EAP plans.
The correct order of the six elements of the fraud fighting model is:
B. Tone at the Top; Education and Training; Integrity Risk and Controls; Reporting and Monitoring; Proactive Detection; Investigation and Follow-up.
A "right-to-audit" clause:
D. alerts vendors that the company reserves the right to audit the vendor's books at any time.
When only a very small amount of money has been embezzled:
C. the perpetrator should be prosecuted.
Jim was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting a thorough investigation, he went and gave all the details to a local newspaper agency. The next day Jim read his own story, with his own name, in the newspaper. Which of the following is correct?
C. Jim may have been misrepresented in the story by the newspaper agency and the company might face legal consequences.
Who has the primary responsibility for establishing and maintaining good internal controls?
B. Primary responsibility rests with management. Management both conveys acceptable culture and has the final say in how fraud cases are treated
What does the acronym "EAP" stand for?
B. Employee Assistance Program
What are the key attributes for a low-fraud environment?
C. Honesty, openness, and assistance.
Which of the following should employers always obtain from the applicant to obtain information from references?
B. A hold harmless agreement
Which of the following is a step that organizations should undertake while recruiting employees?
C. Require candidates to certify that all information on their résumé is accurate.
Recruitment interview questions that deal with an applicant's race, sex, age, religion, color, national origin, or disability:
D. are usually prohibited unless the criterion is a bona fide occupational qualification
Which of the following questions should be avoided during a job interview?
A. How old are you?
Which of the following explains the Pygmalion effect?
C. People generally perform according to a leader's expectations.
Which of the following allows managers and others to become aware of employees' pressures, problems, and rationalizations thus enabling them to take fraud prevention steps?
B. Open door policies
Identify a situation that could usually lead to a conflict of interest.
D. A purchase manager in a company runs an operation that produces the raw materials required by the company
Which of these help employees deal with substance abuse (alcohol and drugs), gambling, money management, and health, family, and personal problems?
A. Employee Assistance Programs
What is the overall tone of the organization that management establishes through its modeling and labeling, organization, communication, and other activities.
D. control environment
Which of the following is the foundation for all other components of internal control, providing discipline and structure?
B. Control environment
Which of the following observations is true?
B. No internal control structure can ever be completely effective, regardless of the care followed in its design and implementation.
An organization has a policy requiring the dual counting of all incoming cash receipts. Which control activity is being used here?
A. Segregation of duties
An organization requires that employees in its accounting department take mandatory two-week long continuous vacations once a year. It allows no exceptions to this rule. Which control activity is the company using?
D. Independent checks
Which of the following observations concerning collusive frauds is true?
A. They are usually slower to develop than frauds committed by one individual.
Identify a recent business trend that could be contributing to the increased number of collusive frauds.
C. Increasing frequency of supplier alliances, and closer relationships between buyers and suppliers.
Who in an organization is not in a good position to recognize fraud during the theft act?
In which stage do auditors have a good chance of detecting fraud, if the audit samples include altered documents and miscounts?
Implementing a system of independent checks is one of the most effective ways to deter fraud. Which one of the following is not a way of providing independent checks on employees?
D. Single endorsement on checks
Increased scrap, excessive purchases, physical abnormalities, etc. are all examples of:
C. analytical anomalies.
There are three simple procedures that small business owners should do on a timely basis to prevent fraud when they can't afford sufficient employees to guarantee effective segregation of duties. Which of the following is not one among them?
C. Allow one key employee to operate the bank account personally.
Recording an expense to conceal fraud involves making a fictitious journal entry. A faulty journal entry is an example of which fraud symptom?
A. Accounting anomaly
Fraud examiners must be able to recognize signals that a journal entry may have been manufactured to conceal a fraud. Which of the following is a common journal entry fraud symptom?
D. Journal entries made near the end of an accounting period
In most organizations, coworkers and others have knowledge or suspicions that fraud is occurring but do not come forward with their information. There are several major reasons for this hesitancy. Which of the following is not one among them?
B. They are least bothered if whatever is happening is not affecting their work.
Common accounting anomaly fraud symptom involve problems with various data and books of accounts. Which of the following is not one among them?
C. Rounding adjustments
How does a smart embezzler manipulate accounting records to conceal fraud?
D. By increasing expenses.
Inaccuracies in ledgers represent which type of fraud symptom?
C. Accounting anomalies
Which of the following is an example of accounting anomaly fraud symptom?
A. Missing documents
Research in psychology indicates that when people commit a crime, especially for the first time, they are initially overwhelmed by what
A. guilt, fear
. ______ fraud symptoms are procedures or relationships that are unusual or too unrealistic to be believable.
Which of the following is not an analytical fraud symptom?
B. Overriding of existing controls
Which of the following is an analytical fraud symptom
B. Significant increase or decrease in account balances
Fraud occurs when perceived pressure, perceived opportunity and rationalization combine. Which of the following is related to the problem of segregation of duties?
C. Steve records receivables and writes off bad debts.
An auditor noticed that company B had an exorbitant increase in sales and drastic decreases in its inventory and accounts receivables. The above statement symbolizes which fraud symptom?
C. Analytical anomaly
Transactions happening at odd times or places; being performed by people who would not normally participate; or including odd procedures are typically associated with which type of fraud symptom?
C. Analytical anomaly
Document symptoms to some extent can signal out that embezzlement is taking place. Which among the following usually do not point to some problem with the source documents?
B. Different names or addresses of payees or customers
A major difference between financial statement auditors and fraud examiners is that most financial statement auditors:
A. merely match documents to see whether support exists and is adequate.
Which of the following is a highly suspicious financial statement relationship?
A. Increased revenues with decreased inventory.
C. Increased inventory with decreased payables
Which of the following motivates embezzlers to indulge in a fraudulent activity
A. Pursuit of immediate gratification.
Which of the following fraud symptoms are often the easiest to detect?
D. Lifestyle changes
Which of the following scenarios is least conducive to fraud?
B. Mandatory vacation time
An employee decides to steal cash from his/her employer. What would be the best way to conceal such a fraud?
A. Record the stolen cash as an expense.
Which of the following is not a "strange" financial statement relationship?
C. Decreased inventory with decreased payables
What are relationships in financial or nonfinancial data that do not make sense, such as an unreasonable change in a volume, mix, or price.
A. Analytical anomalies
After committing fraud, an individual often exhibits unusual and recognizable behavior patterns to cope with the stress. Perpetrators experience this behavioral signals in a particular sequence. Identify it.
D. Guilt - Fear - Stress - Behavior changes
What does the following journal entry indicate?
Legal Expense $2,900
D. An attorney was paid $2,900 in cash.
All transactions related to specific accounts, such as cash or inventory, are summarized in a:
Which of the following is not a fraud symptom related to internal control weaknesses?
E. Excessive turnover of executives
Which name refers to people who commit a fraud or another crime once in a while and does not feel stress?
Blank involves the actual taking of cash, inventory, information, or other assets whereas blank involves selling stolen assets or transferring them into cash and then spending the cash
B. Theft, conversion
Generally, at the conversion stage, what are definitely not in the best position to detect fraud.
Lifestyle changes of fraud perpetrators are related to which of the following fraud elements?
Which of the following appears to be common to most embezzlers who are caught?
D. Spending on lifestyle improvements
Which of the following statements is not true?
C. Accounting anomalies represent fraud and normally result in legal action being taken.
A ______ is a financial statement that reflects account balances at a specific point in time like a snapshot.
B. position statement
The proactive method of fraud detection is a six-step process. Which of the following is the correct process sequence?
D. Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; use technology to gather data about symptoms; analyze results; and investigate symptoms
ACL stands for
B. Audit Command Language.
Which of the following is true for accounting anomalies?
C. They are problems caused by failures in systems, procedures, and policies.
Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?
D. Performing a horizontal analysis
While using n-grams, a match percentage of ________ or ________ generally indicates very similar values.
B. 20 percent, greater
Which of the following is a commercial data-mining software?
Which of the following proactive fraud detection methods use Benford's Law to detect fraud?
B. Digital analysis
Which of the following is an analytical symptom of a kickback?
A. Decreasing purchases from other vendors
What is the primary drawback of the data-driven approach?
A. More expensive and time intensive than the traditional approach.
Kickbacks from vendors to buyers might generate one of the following symptoms.
A. Buyer doesn't relate well to other buyers and vendors
According to Benford's law, the first digit of random data sets will begin with a ______ more often than 2.
From the information given below, calculate the quick ratio.
Particulars Amount (in $) Particulars Amount (in $)
Cash 20,000 Accounts payable 11,000
Bank 15,000 Salary o/s 5,000
Stock 5,000 Retained earnings 20,000
Investments 25,000 Creditors 8,000
B. 1.25 times
Which of the following is similar to ACL and its primary competitor?
Digital analysis is:
A. the art of analyzing the digits that make up numbers like invoice amounts, reported hours, and costs.
One of the disadvantages of Benford's law in detecting fraud is:
D. it only broadly identifies the possible existence of fraud; it fails to narrow possibilities to a manageable field of promising leads.
An appropriate red flag search to detect kickbacks or other fraud being committed by vendors would include:
D. price increases greater than 30% for four consecutive years.
________ is an extension of stratification.
The red-flag that is generally identified when vendors with invoices for the same amount on the same day are found is:
C. billing more than once for the same purchase.
____ include statistical summaries of each column that include control totals, mean, maximum, minimum, standard deviation, number of zero values, number of empty records, etc
Which of the following is least effective while searching for anomalies?
A. Comparing account balances in the statements from one period to the next.
According to Benford's law, 5 will be the first digit of a random number set:
B. less often than 4.
. ____ is the splitting of complex data sets into case-specific table
Identify the true statement about detecting fraud using financial statement reports
D. Small frauds may not affect the summarized financial statements significantly to be detected.
A mathematical algorithm that predicts the percentage of the time each digit will appear in a sequence of numbers is:
C. Benford's law
Which of the following statements is true about ODBC?
A. It allows use of the powerful SQL language for searching and filtering of the data.
Which of the following statements is true about the characteristics of real-time analysis?
D. Indicators are hard-coded into the system.
Which approach converts financial statement numbers as percentage of total assets or gross sales?
B. Vertical Analysis
Identify the formula used to calculate z-score.
C. (Value - Mean)/Standard Deviation
Benford's law can help detect fraud by:
D. showing attempts by fraudsters to make stolen amounts look random.
Horizontal analysis is performed when
B. the percentage change in the balance sheet and income statement numbers is computed for one period to the next.
One way to view the results of multiple indicators is to use a chart called a ____________
D. Matosas matrix
While using financial statement analysis, which ratio will be most useful in assessing the company's operational efficiency?
D. Inventory turnover
Which of the following ratios can be used to assess a company's solvency?
37. What is the primary advantage of the data-driven approach?
C. The investigator takes charge of the fraud investigation process
While methods like high-low slope, average slope, handshaking, and Box-Jenkins exist, one of the most popular techniques for summarizing the slope of a graph is _______
C. statistical regression.
Which statistical approach is one of the most powerful and yet simple methods for identifying outliers?
______ are a two dimensional view with cases in one dimension and the calculations in the other
C. Pivot Tables
One of the most common errors investigators make when analyzing time trends is:
D. not standardizing for time.
Specific implementations of delimited text are called TSV. What does TSV stands for?
C. tab separated values