FORENSIC ACCOUNTING FINAL UPDATED FINAL
EXAM QUESTIONS AND ANSWERS SURE A+
✔✔Building up balances in bank accounts based upon floating checks drawn against
similar accounts in other banks is best called: - ✔✔Kiting
✔✔What audit step would be most appropriate for finding AR fraud - ✔✔Reviewing
customer complaints
✔✔Joseph wells believes that the most powerful audit technique is - ✔✔Diligent inquiry
✔✔What auditor is least interested in materiality concept - ✔✔Forensic
✔✔Forensic accountants should compare travel and expense vouchers to employment
records in order to find: - ✔✔Ghost employees
✔✔Which is a unique factor for solving a white-collar crime - ✔✔Tracing of assets
(follow the money)
✔✔A fraud investigation should not be commenced without proper - ✔✔Predication
✔✔Which industry has the highest instances of fraud - ✔✔Financial services
, ✔✔Skimming is an "off-book" technique to remove cash before a company records the
receipts (T/F) - ✔✔True
✔✔According to PWC surveys, which is the highest non-monetary damages from
fraud? - ✔✔Employee morale
✔✔Cash fraud, inventory fraud, fixed asset fraud, payables and disbursement fraud,
and payroll fraud are all examples of - ✔✔Missapropiation of assets
✔✔in a 2009 PWC survey, which was the top action taken against fraudsters by
companies? - ✔✔Dismissal
✔✔A fraudster may report restitution amounts as a deduction for AGI (T/F) - ✔✔False
✔✔Based upon KPMG studies as well as the ACFE 2024 report to the nations, what
factor is most likely to cause fruad? - ✔✔Lack of or poor internal controls
✔✔Which would be a preventative control - ✔✔segregation of duties
✔✔employee fraud can be discovered by considering: - ✔✔Behavioral habits, employee
stress factors, lifestyle of employee, assets owned by employees
✔✔Abusive earnings management is an intentional and material misrepresentation of
financial results according to SEC (T/F) - ✔✔True
✔✔Behavioral psychologists call rationalizing white collar crime "reframing" (T/F) -
✔✔True
✔✔An exact profile has been developed of a potential fraudster by several large CPA
firms - ✔✔False
✔✔An example of rationalization, an essential element of fraudulent activity (e.g. the
fraud triangle) would be: - ✔✔"borrowing" the petty cash fund on a temporary basis
✔✔Searching for the fraudster is a phase of fraud (T/F) - ✔✔False
✔✔Which level of criminal intent is most commonly required in prosecutions of white-
collar crime - ✔✔Knowingly & intentionally
✔✔Once a fraud is discovered, what is probably a likely action - ✔✔Pursue criminal
prosecution, bring civil action against the perpetrator, internal disciplinary action, pursue
an insurance claim.
EXAM QUESTIONS AND ANSWERS SURE A+
✔✔Building up balances in bank accounts based upon floating checks drawn against
similar accounts in other banks is best called: - ✔✔Kiting
✔✔What audit step would be most appropriate for finding AR fraud - ✔✔Reviewing
customer complaints
✔✔Joseph wells believes that the most powerful audit technique is - ✔✔Diligent inquiry
✔✔What auditor is least interested in materiality concept - ✔✔Forensic
✔✔Forensic accountants should compare travel and expense vouchers to employment
records in order to find: - ✔✔Ghost employees
✔✔Which is a unique factor for solving a white-collar crime - ✔✔Tracing of assets
(follow the money)
✔✔A fraud investigation should not be commenced without proper - ✔✔Predication
✔✔Which industry has the highest instances of fraud - ✔✔Financial services
, ✔✔Skimming is an "off-book" technique to remove cash before a company records the
receipts (T/F) - ✔✔True
✔✔According to PWC surveys, which is the highest non-monetary damages from
fraud? - ✔✔Employee morale
✔✔Cash fraud, inventory fraud, fixed asset fraud, payables and disbursement fraud,
and payroll fraud are all examples of - ✔✔Missapropiation of assets
✔✔in a 2009 PWC survey, which was the top action taken against fraudsters by
companies? - ✔✔Dismissal
✔✔A fraudster may report restitution amounts as a deduction for AGI (T/F) - ✔✔False
✔✔Based upon KPMG studies as well as the ACFE 2024 report to the nations, what
factor is most likely to cause fruad? - ✔✔Lack of or poor internal controls
✔✔Which would be a preventative control - ✔✔segregation of duties
✔✔employee fraud can be discovered by considering: - ✔✔Behavioral habits, employee
stress factors, lifestyle of employee, assets owned by employees
✔✔Abusive earnings management is an intentional and material misrepresentation of
financial results according to SEC (T/F) - ✔✔True
✔✔Behavioral psychologists call rationalizing white collar crime "reframing" (T/F) -
✔✔True
✔✔An exact profile has been developed of a potential fraudster by several large CPA
firms - ✔✔False
✔✔An example of rationalization, an essential element of fraudulent activity (e.g. the
fraud triangle) would be: - ✔✔"borrowing" the petty cash fund on a temporary basis
✔✔Searching for the fraudster is a phase of fraud (T/F) - ✔✔False
✔✔Which level of criminal intent is most commonly required in prosecutions of white-
collar crime - ✔✔Knowingly & intentionally
✔✔Once a fraud is discovered, what is probably a likely action - ✔✔Pursue criminal
prosecution, bring civil action against the perpetrator, internal disciplinary action, pursue
an insurance claim.
