WGU D551 PRE-ASSESSMENT: FRAUD AND
FORENSIC ACCOUNTING PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Basic (accounting) bookkeeping involves the recording, classifying, and
summarizing of economic events in a logical manner for the purpose of
providing these three types of information for decision-making:.
Answer: - Accounting- Financial- Nonfinancial
◍ The legal standard for the tort of negligence does not include the following
element:.
Answer: Intent
◍ Integration.
Answer: Third and final stage, is the attempt to convert the placed and
layered money back into the hands of the perpetrator in a form that the
perpetrator can use without risk of prosecution for being associated with
dirty money
◍ Forensic Accounting.
Answer: Intersection of accounting and legal principles.
◍ larceny point of sale controls.
Answer: Segregation of dutiesIndependent employee verify ash count in
each register at end of shiftDiscrepancies between sales records and cash on
handRun reports showing number of discounts, returns, adjustments
◍ A number of theories about why the vast majority of people do not commit a
crime have been set forth over time. Which of the following is not one of the
reasons cited in the text?.
, Answer: Social conditioning/parental upbringing
◍ Organized Crime.
Answer: Complex, involving many individuals, organizations, and shell
companies, and often cross jurisdictional borders.
◍ Understated sales.
Answer: Transaction posted to books, but for lower amount than was
collectedMight record sale of fewer items than actually sold
◍ A common complaint among those who investigate fraud is that
organizations and law enforcement _____________..
Answer: Do not do enough to punish fraud and other white-collar offenses
◍ Hypothesis-Evidence Matrix.
Answer: Tool for analyzing competing fraud hypotheses.
◍ Evidence is anything legally presented at trial to:.
Answer: - Convince a jury- Prove a contention
◍ Bribery Schemes fall into two broad categories.
Answer: KickbacksBid-Rigging Schemes
◍ Hypothesis Evidence Matrix.
Answer: Tool provides a means of testing alternative hypotheses in an
organized, summary manner. o= No diagnostic value for the hypothesis -=
Does not support the hypothesis+= Supports the hypothesis
◍ Fraud Examination Methodology.
Answer: Uniform legal approach to resolving fraud cases.
◍ Chain of Custody.
Answer: Tracking possession and handling of evidence.
◍ There are three tools available to fraud examiners, regardless of the nature
of the fraud examination or forensic accounting investigation:.
Answer: - Observation (behavior, displays of wealth, specific offenses)-
Interviewing skills- Skill in examining financial statements, books and
records, and supporting documents
,◍ Characteristics typical of a fraud perpetrator:.
Answer: - Male- Middle-aged to retired- With the company for five or more
years- Never charged or convicted of a criminal offense- Well education-
Accountant- Upper management or executive- acts alone
◍ Money laundering.
Answer: organized criminals take money from illegal sources and process it
so that it appears as if it came from legitimate business sources
◍ Fraud prevention.
Answer: Creating and maintaining environments in which the risk of a
particular fraudulent activity is minimal and opportunity is eliminated.
◍ Occupational fraud and abuse.
Answer: the use of ones occupation for personal enrichment through the
deliberate misuse or misapplication of the employing organizations
resources or assets
◍ After-hours sales.
Answer: Conduct business during non hours without employer knowledge
◍ Larceny.
Answer: A felonious stealing, taking and carrying, leading, riding, or driving
away with another's property, with the intent to convert it or deprive the
owner thereof.
◍ Bribery.
Answer: The offering, giving, receiving, or soliciting anything of value to
influence an official act.
◍ Fraud Triangle in Court.
Answer: Not used due to unreliability in legal settings.
◍ Cash larceny from the deposit.
Answer: Normally someone tabulates receipts. Lists form of payment,
prepare deposit slip then another employee takes the cash and deposits to
bank
, ◍ If the accounting duties associated with accounts receivable are properly
________ so that there are independent checks of all transactions, skimming
payments is very difficult to commit and very easy to detect..
Answer: Separated
◍ fake sale.
Answer: Accomplice of employee "buys" merchandise but the employee
does not ring up the sale, and the accomplice takes the merchandise without
making any payment
◍ PCAOB.
Answer: Oversee public company audits, setting audit standards,
investigating acts of noncomplianceAppointed and overseen by the
SECPublic accounting firms must register with PCAOBConduct regular
inspections on accounting firmsInvestigate public accounting firms and
issue sanctions for violations
◍ One of the interesting aspects of the characteristics of fraud perpetrators is
that they do not typically have _________..
Answer: A criminal background
◍ Organizational fraud tree categories:.
Answer: - Asset misappropriation- Corruption- Financial statement fraud
◍ Bid-Rigging Schemes.
Answer: Occur when an employee fraudulently assists a vendor in winning a
contract through the competitive bidding process
◍ Nonfinancial data.
Answer: Data from any source outside of the financial reporting system that
can be used to generate an alternative view of the business operation.
◍ AICPA.
Answer: Auditing standards for nonpublic companiesCompilation and
review standardsOther attestation standardsConsulting standardsCode of
professional conduct
FORENSIC ACCOUNTING PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Basic (accounting) bookkeeping involves the recording, classifying, and
summarizing of economic events in a logical manner for the purpose of
providing these three types of information for decision-making:.
Answer: - Accounting- Financial- Nonfinancial
◍ The legal standard for the tort of negligence does not include the following
element:.
Answer: Intent
◍ Integration.
Answer: Third and final stage, is the attempt to convert the placed and
layered money back into the hands of the perpetrator in a form that the
perpetrator can use without risk of prosecution for being associated with
dirty money
◍ Forensic Accounting.
Answer: Intersection of accounting and legal principles.
◍ larceny point of sale controls.
Answer: Segregation of dutiesIndependent employee verify ash count in
each register at end of shiftDiscrepancies between sales records and cash on
handRun reports showing number of discounts, returns, adjustments
◍ A number of theories about why the vast majority of people do not commit a
crime have been set forth over time. Which of the following is not one of the
reasons cited in the text?.
, Answer: Social conditioning/parental upbringing
◍ Organized Crime.
Answer: Complex, involving many individuals, organizations, and shell
companies, and often cross jurisdictional borders.
◍ Understated sales.
Answer: Transaction posted to books, but for lower amount than was
collectedMight record sale of fewer items than actually sold
◍ A common complaint among those who investigate fraud is that
organizations and law enforcement _____________..
Answer: Do not do enough to punish fraud and other white-collar offenses
◍ Hypothesis-Evidence Matrix.
Answer: Tool for analyzing competing fraud hypotheses.
◍ Evidence is anything legally presented at trial to:.
Answer: - Convince a jury- Prove a contention
◍ Bribery Schemes fall into two broad categories.
Answer: KickbacksBid-Rigging Schemes
◍ Hypothesis Evidence Matrix.
Answer: Tool provides a means of testing alternative hypotheses in an
organized, summary manner. o= No diagnostic value for the hypothesis -=
Does not support the hypothesis+= Supports the hypothesis
◍ Fraud Examination Methodology.
Answer: Uniform legal approach to resolving fraud cases.
◍ Chain of Custody.
Answer: Tracking possession and handling of evidence.
◍ There are three tools available to fraud examiners, regardless of the nature
of the fraud examination or forensic accounting investigation:.
Answer: - Observation (behavior, displays of wealth, specific offenses)-
Interviewing skills- Skill in examining financial statements, books and
records, and supporting documents
,◍ Characteristics typical of a fraud perpetrator:.
Answer: - Male- Middle-aged to retired- With the company for five or more
years- Never charged or convicted of a criminal offense- Well education-
Accountant- Upper management or executive- acts alone
◍ Money laundering.
Answer: organized criminals take money from illegal sources and process it
so that it appears as if it came from legitimate business sources
◍ Fraud prevention.
Answer: Creating and maintaining environments in which the risk of a
particular fraudulent activity is minimal and opportunity is eliminated.
◍ Occupational fraud and abuse.
Answer: the use of ones occupation for personal enrichment through the
deliberate misuse or misapplication of the employing organizations
resources or assets
◍ After-hours sales.
Answer: Conduct business during non hours without employer knowledge
◍ Larceny.
Answer: A felonious stealing, taking and carrying, leading, riding, or driving
away with another's property, with the intent to convert it or deprive the
owner thereof.
◍ Bribery.
Answer: The offering, giving, receiving, or soliciting anything of value to
influence an official act.
◍ Fraud Triangle in Court.
Answer: Not used due to unreliability in legal settings.
◍ Cash larceny from the deposit.
Answer: Normally someone tabulates receipts. Lists form of payment,
prepare deposit slip then another employee takes the cash and deposits to
bank
, ◍ If the accounting duties associated with accounts receivable are properly
________ so that there are independent checks of all transactions, skimming
payments is very difficult to commit and very easy to detect..
Answer: Separated
◍ fake sale.
Answer: Accomplice of employee "buys" merchandise but the employee
does not ring up the sale, and the accomplice takes the merchandise without
making any payment
◍ PCAOB.
Answer: Oversee public company audits, setting audit standards,
investigating acts of noncomplianceAppointed and overseen by the
SECPublic accounting firms must register with PCAOBConduct regular
inspections on accounting firmsInvestigate public accounting firms and
issue sanctions for violations
◍ One of the interesting aspects of the characteristics of fraud perpetrators is
that they do not typically have _________..
Answer: A criminal background
◍ Organizational fraud tree categories:.
Answer: - Asset misappropriation- Corruption- Financial statement fraud
◍ Bid-Rigging Schemes.
Answer: Occur when an employee fraudulently assists a vendor in winning a
contract through the competitive bidding process
◍ Nonfinancial data.
Answer: Data from any source outside of the financial reporting system that
can be used to generate an alternative view of the business operation.
◍ AICPA.
Answer: Auditing standards for nonpublic companiesCompilation and
review standardsOther attestation standardsConsulting standardsCode of
professional conduct
