,Chapter 01 - The Nature of Fraud
1. One way that criminal law differs from civil law is that it:
a. provides remedies for violations of private
rights.
b. must yield a unanimous verdict.
c. can have a jury of fewer than 12 persons.
d. allows for various claims in one action.
ANSWER: b
FEEDBACK: a.Incorrect. The requirement to provide remedies for violations of private
rights is a characteristic of civil law; criminal law deals with crimes
against society as a whole.
b Correct. Criminal trials must result in a unanimous verdict.
.
c.Incorrect. The requirement for a unanimous vote characteristic of civil
law; criminal trial juries must have 12 persons.
d Incorrect. In inclusion of various claims in one action is a characteristic
. of civil law; criminal law permits only one claim at a time.
POINTS: 1
DIFFICULTY: easy
REFERENCES Criminal and Civil Prosecution of Fraud
:
QUESTION TY Multiple Choice
PE:
HAS VARIABL False
ES:
LEARNING O FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil
BJECTIVES: fraud laws.
OTHER: Source: 6e revised
DATE CREAT 2/8/2024 7:10 AM
ED:
DATE MODIFI 2/8/2024 7:14 AM
ED:
2. Which of the following is NOT an common element of a Ponzi scheme?
a. Gaining other's confidence
b. Promising abnormally high returns
c. Investing collected money
d. Using part of the investment principle to pay previous
investors
ANSWER: c
FEEDBACK: a.Incorrect. Gaining other’s confidence is one of the most
important elements of the “con.”
b. Incorrect. Promising abnormally high returns is how fraudsters
lure in investors.
c. Correct. Investing collected money is very unlikely.
d. Incorrect. In Ponzi schemes, the original principle is often used to
make interest payments.
POINTS: 1
,Chapter 01 - The Nature of Fraud
DIFFICULTY: moderate
REFERENCES: Types of Fraud
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJEC FRAU.ALBR.25.1.3 - Understand Different Types of Fraud.
TIVES:
OTHER: Source: 6e , revised
DATE CREATED: 2/9/2024 5:11 AM
DATE MODIFIED: 2/9/2024 5:32 AM
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
a. not reporting bribe income may be grounds for being charged with tax evasion.
b. a tax filing that excludes income from fraud may be considered a false return.
c. bribes may be lawfully deducted as business expenses.
d. failure to report income from fraud may be grounds for being charged with tax
evasion.
ANSWER: c
FEEDBACK: a.Incorrect. Not reporting bribe income may be grounds for being
charged with tax evasion.
b. Incorrect. Filing income tax that excludes income from fraud may
be considered an improper tax filing.
c. Correct. Bribes cannot be deducted as legitimate business
expenses.
d. Incorrect. Failure to report income from fraud or bribes may be
prosecuted as tax evasion.
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJE FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil
CTIVES: fraud laws.
OTHER: Source: 6e revised
DATE CREATED: 2/9/2024 5:38 AM
DATE MODIFIED 2/9/2024 5:40 AM
:
4. Which one of the following is NOT a characteristic of a criminal proceeding?
a. Criminal proceedings deal with offenses against society.
b. Consequences of criminal proceedings include restitution and damage
payments.
c. Criminal proceedings involve a jury of 12 individuals.
d. In criminal proceedings, only one claim may be heard at a time.
ANSWER: b
FEEDBACK: a.Incorrect. A crime is considered an offense against society.
, Chapter 01 - The Nature of Fraud
b. Correct. In a criminal proceeding, the consequences are jail and/or
fines.
c. Incorrect. A criminal jury consists of 12 jurors.
d. Incorrect. Only one claim is heard at a time, whereas in a civil case
many claims may be joined into a single case.
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law
QUESTION TYP Multiple Choice
E:
HAS VARIABLES False
:
LEARNING OBJ FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil
ECTIVES: fraud laws.
OTHER: Source: 6e revised
DATE CREATED 2/9/2024 6:36 AM
:
DATE MODIFIE 2/9/2024 6:38 AM
D:
5. Management fraud is often referred to as:
a. stockholder fraud.
b. financial statement
fraud.
c. employee fraud.
d. investment fraud.
ANSWER: b
FEEDBACK: a.Incorrect. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
b. Correct. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
c. Incorrect. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
d. Incorrect. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
POINTS: 1
DIFFICULTY: easy
REFERENCES: Management Fraud
QUESTION TY Multiple Choice
PE:
HAS VARIABL False
ES:
LEARNING OB FRAU.ALBR.25.1.3 - Understand Different Types of Fraud.
JECTIVES:
OTHER: Source: 6e revised
DATE CREATE 2/9/2024 6:39 AM
1. One way that criminal law differs from civil law is that it:
a. provides remedies for violations of private
rights.
b. must yield a unanimous verdict.
c. can have a jury of fewer than 12 persons.
d. allows for various claims in one action.
ANSWER: b
FEEDBACK: a.Incorrect. The requirement to provide remedies for violations of private
rights is a characteristic of civil law; criminal law deals with crimes
against society as a whole.
b Correct. Criminal trials must result in a unanimous verdict.
.
c.Incorrect. The requirement for a unanimous vote characteristic of civil
law; criminal trial juries must have 12 persons.
d Incorrect. In inclusion of various claims in one action is a characteristic
. of civil law; criminal law permits only one claim at a time.
POINTS: 1
DIFFICULTY: easy
REFERENCES Criminal and Civil Prosecution of Fraud
:
QUESTION TY Multiple Choice
PE:
HAS VARIABL False
ES:
LEARNING O FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil
BJECTIVES: fraud laws.
OTHER: Source: 6e revised
DATE CREAT 2/8/2024 7:10 AM
ED:
DATE MODIFI 2/8/2024 7:14 AM
ED:
2. Which of the following is NOT an common element of a Ponzi scheme?
a. Gaining other's confidence
b. Promising abnormally high returns
c. Investing collected money
d. Using part of the investment principle to pay previous
investors
ANSWER: c
FEEDBACK: a.Incorrect. Gaining other’s confidence is one of the most
important elements of the “con.”
b. Incorrect. Promising abnormally high returns is how fraudsters
lure in investors.
c. Correct. Investing collected money is very unlikely.
d. Incorrect. In Ponzi schemes, the original principle is often used to
make interest payments.
POINTS: 1
,Chapter 01 - The Nature of Fraud
DIFFICULTY: moderate
REFERENCES: Types of Fraud
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJEC FRAU.ALBR.25.1.3 - Understand Different Types of Fraud.
TIVES:
OTHER: Source: 6e , revised
DATE CREATED: 2/9/2024 5:11 AM
DATE MODIFIED: 2/9/2024 5:32 AM
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
a. not reporting bribe income may be grounds for being charged with tax evasion.
b. a tax filing that excludes income from fraud may be considered a false return.
c. bribes may be lawfully deducted as business expenses.
d. failure to report income from fraud may be grounds for being charged with tax
evasion.
ANSWER: c
FEEDBACK: a.Incorrect. Not reporting bribe income may be grounds for being
charged with tax evasion.
b. Incorrect. Filing income tax that excludes income from fraud may
be considered an improper tax filing.
c. Correct. Bribes cannot be deducted as legitimate business
expenses.
d. Incorrect. Failure to report income from fraud or bribes may be
prosecuted as tax evasion.
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJE FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil
CTIVES: fraud laws.
OTHER: Source: 6e revised
DATE CREATED: 2/9/2024 5:38 AM
DATE MODIFIED 2/9/2024 5:40 AM
:
4. Which one of the following is NOT a characteristic of a criminal proceeding?
a. Criminal proceedings deal with offenses against society.
b. Consequences of criminal proceedings include restitution and damage
payments.
c. Criminal proceedings involve a jury of 12 individuals.
d. In criminal proceedings, only one claim may be heard at a time.
ANSWER: b
FEEDBACK: a.Incorrect. A crime is considered an offense against society.
, Chapter 01 - The Nature of Fraud
b. Correct. In a criminal proceeding, the consequences are jail and/or
fines.
c. Incorrect. A criminal jury consists of 12 jurors.
d. Incorrect. Only one claim is heard at a time, whereas in a civil case
many claims may be joined into a single case.
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law
QUESTION TYP Multiple Choice
E:
HAS VARIABLES False
:
LEARNING OBJ FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil
ECTIVES: fraud laws.
OTHER: Source: 6e revised
DATE CREATED 2/9/2024 6:36 AM
:
DATE MODIFIE 2/9/2024 6:38 AM
D:
5. Management fraud is often referred to as:
a. stockholder fraud.
b. financial statement
fraud.
c. employee fraud.
d. investment fraud.
ANSWER: b
FEEDBACK: a.Incorrect. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
b. Correct. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
c. Incorrect. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
d. Incorrect. In its most common form, management fraud involves top
management's deceptive manipulation of financial statements.
POINTS: 1
DIFFICULTY: easy
REFERENCES: Management Fraud
QUESTION TY Multiple Choice
PE:
HAS VARIABL False
ES:
LEARNING OB FRAU.ALBR.25.1.3 - Understand Different Types of Fraud.
JECTIVES:
OTHER: Source: 6e revised
DATE CREATE 2/9/2024 6:39 AM
