WGU D551 C254 FRAUD AND FORENSIC
ACCOUNTING PA AND OA 262 ACTUAL
QUESTIONS STUDY GUIDE 2026 CORRECT
ANSWERS GRADED A+
⩥ What are the major categories of fraud? Answer: Asset
Misappropriation, Corruption and Abuse, Financial Statement Fraud,
and Other Fraudulent Statements.
⩥ What are some common fraud schemes? Answer: Larceny, Skimming,
Fraudulent Disbursement, Bribery, Conflicts of Interest, and Fraudulent
Financial Statements.
⩥ What was the case of Crazy Eddie known for? Answer: Financial
Statement Fraud involving $74 million, disappearance to Israel,
attempted destruction of evidence, and a sentence of over 6 years in jail.
⩥ What is forensic accounting? Answer: A field that includes Litigation
Advisory Services and Investigative Services.
⩥ What are some non-fraud forensic accounting engagements? Answer:
Damage claims, workplace issues, asset and business valuations, costs
and lost profits, insurance claims, and divorce issues.
, ⩥ What skills are essential for a financial forensic professional? Answer:
Technical competency, investigative proficiency, and critical thinking.
⩥ What is the Fraud Triangle? Answer: A model that explains the three
elements that lead to fraud: opportunity, motivation, and rationalization.
⩥ What factors contribute to fraud perpetration according to the Fraud
Triangle? Answer: M = money, E = ego, I = ideology, C = coercion.
⩥ What is the estimated annual cost of fraud and litigation? Answer:
$3.7 trillion based on 2014 World GDP.
⩥ What is a trust violator? Answer: An individual who betrays the trust
placed in them, often leading to fraud.
⩥ What is the typical profile of a fraud perpetrator? Answer: Male, well-
educated, middle-aged to retired, often in accounting or upper
management, with the company for over 5 years, acts alone, and has no
prior criminal charges.
⩥ What are some red flags of potential fraud? Answer: Unexplained
accounting anomalies, exploited internal control weaknesses,
extravagant lifestyles, and unusual behaviors.
ACCOUNTING PA AND OA 262 ACTUAL
QUESTIONS STUDY GUIDE 2026 CORRECT
ANSWERS GRADED A+
⩥ What are the major categories of fraud? Answer: Asset
Misappropriation, Corruption and Abuse, Financial Statement Fraud,
and Other Fraudulent Statements.
⩥ What are some common fraud schemes? Answer: Larceny, Skimming,
Fraudulent Disbursement, Bribery, Conflicts of Interest, and Fraudulent
Financial Statements.
⩥ What was the case of Crazy Eddie known for? Answer: Financial
Statement Fraud involving $74 million, disappearance to Israel,
attempted destruction of evidence, and a sentence of over 6 years in jail.
⩥ What is forensic accounting? Answer: A field that includes Litigation
Advisory Services and Investigative Services.
⩥ What are some non-fraud forensic accounting engagements? Answer:
Damage claims, workplace issues, asset and business valuations, costs
and lost profits, insurance claims, and divorce issues.
, ⩥ What skills are essential for a financial forensic professional? Answer:
Technical competency, investigative proficiency, and critical thinking.
⩥ What is the Fraud Triangle? Answer: A model that explains the three
elements that lead to fraud: opportunity, motivation, and rationalization.
⩥ What factors contribute to fraud perpetration according to the Fraud
Triangle? Answer: M = money, E = ego, I = ideology, C = coercion.
⩥ What is the estimated annual cost of fraud and litigation? Answer:
$3.7 trillion based on 2014 World GDP.
⩥ What is a trust violator? Answer: An individual who betrays the trust
placed in them, often leading to fraud.
⩥ What is the typical profile of a fraud perpetrator? Answer: Male, well-
educated, middle-aged to retired, often in accounting or upper
management, with the company for over 5 years, acts alone, and has no
prior criminal charges.
⩥ What are some red flags of potential fraud? Answer: Unexplained
accounting anomalies, exploited internal control weaknesses,
extravagant lifestyles, and unusual behaviors.
