01 - Chapter 1 The Nature of Fraud MULTIPLE CHOICE 1. One...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1 The Nature of Fraud MULTIPLE CHOICE 1. One way that criminal law differs from civil law is that it: a. Provides remedies for violations of private rights. b. Must yield a unanimous verdict. c. Can have a jury of fewer than 12 persons. d. Allows for various claims in one action. ANS: B A: Incorrect - This is a characteristic of civil law; criminal law deals with crimes against the public. B: Correct - Criminal trials must result in an unanimous verdict. C: Incorrect - This is a characteristic of civil law; criminal trial juries must have 12 persons. D: Incorrect - Again, this is a characteristic of civil law; criminal law permits only one claim at a time. 2. Which of the following is not an element of a Ponzi scheme? a. Gaining other's confidence. b. Promising abnormally high returns. c. Invested money is invested in high-risk government bonds. d. Investment principle is partially used to make interest payments. ANS: C A: Incorrect, this is one of the most important elements of the 'con'. B: Incorrect, this is how fraudsters lure in investors. C: Correct, this is very unlikely D: Incorrect, the original principle is often used to make interest payments. 3. The following are all elements of Title 26, U.S. Code Section 7201 except: a. Not reporting bribe income may be grounds for being charged with tax evasion. b. Filing income tax that excludes income from fraud may be considered an improper tax fil- ing. c. Bribes may be deducted as legitimate business expenses. d. All of the above are elements of Title 26, U.S. Code Section 7201. ANS: C A: Incorrect. Not reporting bribe income may be grounds for being charged with tax evasion. B: Incorrect. Filing income tax that excludes income from fraud may be considered an improper tax filing. C: Correct. Bribes cannot be deducted as legitimate business expenses. D: Incorrect. Letter C is the correct answer. 4. Which one of the following is not a characteristic of a criminal proceeding? a. Offense against society b. More guilty than not guilty c. Jury of 12 individuals d. Only one claim may be heard at a time ANS: B A: A crime is considered as an offense against society as a whole. B: In a criminal proceeding, the jury must find evidence "beyond a reasonable doubt." In a civil pro- ceeding the threshold is more guilty than not guilty. C: A criminal jury consists of 12 jurors.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
D: Only one claim is heard at a time, whereas in a civil case many claims may be joined into one ac- tion. 5. Management fraud is typically perpetrated by: a. Stealing inventory b. Manipulating financial statements c. Overcharging for goods or services d. Charging for goods not delivered ANS: B A: Relevant to employee embezzlement B: When management fraud takes place, executives typically manipulate the financial statements. C: Relevant to vendor fraud
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/31/2011 for the course ACCT 345 taught by Professor N/a during the Spring '10 term at Mountain State.

Page1 / 13

01 - Chapter 1 The Nature of Fraud MULTIPLE CHOICE 1. One...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online