Chapter 7 Expense Reimbursement Schemes
1. Because they leave a solid audit trail, expense reimbursement schemes are generally
easier to detect than other types of fraud schemes.
2. Expense reimbursement schemes include which of the follo
Chapter 11 Accounting Principles and Fraud
1. According to COSOs study, Fraudulent Financial Reporting: 1998-2007, which of
the following is the most likely to commit financial statement fraud?
a. Organized criminals
b. Mid-level employees
c. The chief ex
Chapter 15 Interviewing Witnesses
1. Which of the following question types will generally not be asked during an
information-gathering interview of a neutral witness?
2. While conducting an intervi
Chapter 4 Billing Schemes
1. Categories of billing schemes include which of the following?
a. Shell company schemes
b. Larceny billing schemes
c. Fictitious disbursements schemes
d. All of the above
2. When a billing scheme is occurring, the companys expe
Chapter 6 Payroll Schemes
1. A _ is an individual on the payroll who does not actually work for
a. Falsified employee
b. Phantom employee
c. Ghost employee
d. Shell employee
2. Which of the following is not a type of payroll scheme?
Chapter 5Check Tampering
1. Check tampering is unique from other fraudulent disbursement schemes because in a
check tampering scheme:
a. The perpetrator physically prepares the fraudulent check.
b. The perpetrator must have access to a signature stamp in
Chapter 12 Fraudulent Financial Statement Schemes
1. Which of the following is not an example of financial statement fraud?
a. Falsification of material financial records, supporting documents, or business
b. Unintentional misapplication of a
Chapter 3 Cash Larceny Schemes
1. Cash misappropriations are divided into two broad groups: fraudulent disbursements
schemes and cash receipts schemes.
2. The two categories of cash receipts schemes are:
a. Lapping and skimming
Chapter 2 Skimming
1. _ is the theft of cash from a victim entity prior to its entry
in an accounting system.
a. A fictitious disbursement
2. To a fraudster, the principle advantage of skimming is the difficulty with w
Chapter 1 Introduction
1. Which of the following best describes the objective of a fraud examination?
a. To make recommendations to management about how to prevent fraud
b. To determine whether financial statements are free of misstatements due to fraud
Chapter 14 Conducting Investigations and Report Writing
1. A company may need to undertake an internal investigation into alleged employee
fraud for which of the following reasons?
a. To mitigate the companys vicarious liability for the wrongful conduct
Chapter 16 Occupational Fraud and Abuse: The Big Picture
1. The terms deterrence and prevention mean the same thing and can be used
2. Fraud prevention involves removing the root cause of fraudulent behavior, such as
Chapter 9 Non-Cash Assets
1. Borrowing a company asset for personal use without permission, even if it is returned
unharmed, is a form of non-cash asset misappropriation.
2. Which of the following is not a red flag in a fraudulent shipmen
Chapter 8 Register Disbursement Schemes
1. Register disbursement schemes are different from skimming and larceny at the
register in that they:
a. Are on-book schemes, where as skimming and larceny are off-book schemes
b. Require the use of an accomplice
Chapter 10 Corruption
1. Which of the following is not a type of corruption scheme?
b. Conflict of interest
c. Illegal gratuities
d. Concealed payments
2. _ is the offering, giving, receiving, or soliciting of something
of value as a reward for
Chapter 13 Fraud Risk Assessment
1. Factors that influence the level of fraud risk faced by an organization include which
of the following?
a. The nature of the business
b. The effectiveness of the organizations internal control
c. The ethics and values o