WGU D551 C254 FRAUD AND FORENSIC
ACCOUNTING PA AND OA 2025 UPDATE
PRACTICE TEST BANK 2026 TESTED
QUESTIONS WITH ANSWERS GRADED A+
⩥ Criminal Law. Answer: laws that deal with offenses of a public nature
and are generally considered to be offenses against society
⩥ Customer Fraud. Answer: Definition: customers do not pay for goods
purchased, they pay too little, or they get something for nothing
Ex: six individuals sitting in a downtown Chicago hotel room pretended
to be representatives of large corporate customers, made three calls to a
Chicago bank, and had the bank transfer nearly $70 million to their
accounts in another financial institution in New Jersey. Once the money
was transferred to New Jersey, it was quickly transferred to Switzerland,
withdrawn, and used to purchase Russian diamonds
⩥ Vendor Fraud. Answer: Definition: an overcharge for purchased
goods, the shipment of inferior goods, or the non-shipment of goods
even though payment is made.
- typically comes in two forms: (1) fraud perpetrated by vendors acting
alone and (2) fraud perpetrated through collusion between buyers and
vendors. Vendor fraud usually results in either an overcharge for
purchased goods, the shipment of inferior goods, the non-shipment of
goods even though payment is made, or double or triple billing
, ⩥ Management Fraud. Answer: Definition: top management's deceptive
manipulation of financial statements
⩥ Investment Scams. Answer: fraudulent and usually worthless
investments are sold to unsuspecting investors
⩥ Elements of a Ponzi Scheme. Answer: Fraud, Greed, Deception, and
Confidence
- Ponzi's scam is extremely helpful in understanding fraud. Certainly, the
scheme involved deception. It also involved greed by the perpetrator
and—this is important—greed by the investors, who wanted higher-
than-sensible returns. Finally, Ponzi's scheme involved the element of
confidence.
⩥ What is fraud?. Answer: tricking someone out of their assets
⩥ What elements comprise fraud. Answer: 1. A representation
2. About a material point
3. That is false
4. And intentionally or recklessly so
5. That is believed
6. And acted upon by the victim
7. To the victim's damage
ACCOUNTING PA AND OA 2025 UPDATE
PRACTICE TEST BANK 2026 TESTED
QUESTIONS WITH ANSWERS GRADED A+
⩥ Criminal Law. Answer: laws that deal with offenses of a public nature
and are generally considered to be offenses against society
⩥ Customer Fraud. Answer: Definition: customers do not pay for goods
purchased, they pay too little, or they get something for nothing
Ex: six individuals sitting in a downtown Chicago hotel room pretended
to be representatives of large corporate customers, made three calls to a
Chicago bank, and had the bank transfer nearly $70 million to their
accounts in another financial institution in New Jersey. Once the money
was transferred to New Jersey, it was quickly transferred to Switzerland,
withdrawn, and used to purchase Russian diamonds
⩥ Vendor Fraud. Answer: Definition: an overcharge for purchased
goods, the shipment of inferior goods, or the non-shipment of goods
even though payment is made.
- typically comes in two forms: (1) fraud perpetrated by vendors acting
alone and (2) fraud perpetrated through collusion between buyers and
vendors. Vendor fraud usually results in either an overcharge for
purchased goods, the shipment of inferior goods, the non-shipment of
goods even though payment is made, or double or triple billing
, ⩥ Management Fraud. Answer: Definition: top management's deceptive
manipulation of financial statements
⩥ Investment Scams. Answer: fraudulent and usually worthless
investments are sold to unsuspecting investors
⩥ Elements of a Ponzi Scheme. Answer: Fraud, Greed, Deception, and
Confidence
- Ponzi's scam is extremely helpful in understanding fraud. Certainly, the
scheme involved deception. It also involved greed by the perpetrator
and—this is important—greed by the investors, who wanted higher-
than-sensible returns. Finally, Ponzi's scheme involved the element of
confidence.
⩥ What is fraud?. Answer: tricking someone out of their assets
⩥ What elements comprise fraud. Answer: 1. A representation
2. About a material point
3. That is false
4. And intentionally or recklessly so
5. That is believed
6. And acted upon by the victim
7. To the victim's damage
