FORENSIC ACCOUNTING AND FRAUD
EXAMINATION EXAM PREP QUESTIONS
AND ANSWERS FULL SOLUTION PREMIUM
LEARNING RESOURCE
●● Which of the following is not an essential element of fraud?
A. A material false statement
B. Knowledge that the statement was false when it was spoken
C. Evidence that the statement was false
D. Damages resulting from the victim's reliance on the false statement
Answer: C. Evidence that the statement was false
●● Select from the following situations the one that should not be
defined as abuse:
A. A human resources employee surfs the Internet, including searching
for college friends on social media during working hours
B. A human resources employee calls in sick and then spends the day
getting a car repaired, going to the DMV and shopping at a local retail
outlet
C. A human resources employee surfs the Internet, including social
media during working hours for information on prospective employees
,D. A human resources employee takes their laptop home for the
weekend to search for college friends on social media
Answer: C. A human resources employee surfs the Internet, including
social media during working hours for information on prospective
employees
●● Which scenario is an example of larceny?
A. Brook borrowed a company computer and didn't intend to return it
B. Larry took cash from the register and replaced it with an IOU
C. Mary used a company vehicle without her supervisor's permission
D. Daniel accepted a new car from a vendor to influence his current
company to purchase additional merchandise from this vendor
Answer: A. Brook borrowed a company computer and didn't intend to
return it
●● The following evidence might be most helpful to antifraud
professionals to understand and possibly identify which of the following
fraud perpetrators?
A. The perpetrator who has stolen from and been fired by two previous
employers in the last four years
B. Two perpetrators who collude to steal hundred of thousands of dollars
and split the stolen cash
,C. A financially well-off perpetrator who has been stealing from his
House of Worship every week for the last 15 years
D. The perpetrator whose spouse is diagnosed with rare cancer that is
not covered by the employee's health insurance but whose treatment will
be very expensive and cost more than the employee earns and the
employee was the only one with access to bank accounts and accounting
records
Answer: D. The perpetrator whose spouse is diagnosed with rare cancer
that is not covered by the employee's health insurance but whose
treatment will be very expensive and cost more than the employee earns
and the employee was the only one with access to bank accounts and
accounting records
●● Which of the following is a true statement about fraud statistics?
A. Position tends to have only a minor impact on the frequency of fraud
but higher level personnel (e.g., managers) tend to steal lower dollar
amounts
B. Men tend to steal more frequently than women
C. Large corporations tend to be the biggest victims of fraudsters in
terms of frequency and dollar losses
D. Men and women tend to steal at the same frequency and at
approximately the same dollar values
Answer: B. Men tend to steal more frequently than women
, ●● Which of the following is a true statement about the detection of
fraud?
A. The combined frequency of tips and accidents in discovering fraud
exceeds the combined frequency of internal and external audits
B. Law enforcement plays a significant role in the detection of white
collar (economic) crimes
C. Internal controls when properly designed are almost bullet proof in
terms of preventing fraud
D. For the purposes of understanding how fraud is discovered,
whistleblower hotlines are the only method proven to detect fraud
Answer: A. The combined frequency of tips and accidents in discovering
fraud exceeds the combined frequency of internal and external audits
●● Which of the following would likely be characterized as a forensic
accounting investigation rather than a fraud examination?
A. An employee submits unsupported damage claims to his employer,
provides false documents and statements, and deposits the insurance
proceeds in his bank account
B. A husband submits altered bank account statements to his wife's
attorney during their divorce case
C. A plaintiff claims that a breach of contract by a vendor resulted in a
loss of business and ultimate bankruptcy
EXAMINATION EXAM PREP QUESTIONS
AND ANSWERS FULL SOLUTION PREMIUM
LEARNING RESOURCE
●● Which of the following is not an essential element of fraud?
A. A material false statement
B. Knowledge that the statement was false when it was spoken
C. Evidence that the statement was false
D. Damages resulting from the victim's reliance on the false statement
Answer: C. Evidence that the statement was false
●● Select from the following situations the one that should not be
defined as abuse:
A. A human resources employee surfs the Internet, including searching
for college friends on social media during working hours
B. A human resources employee calls in sick and then spends the day
getting a car repaired, going to the DMV and shopping at a local retail
outlet
C. A human resources employee surfs the Internet, including social
media during working hours for information on prospective employees
,D. A human resources employee takes their laptop home for the
weekend to search for college friends on social media
Answer: C. A human resources employee surfs the Internet, including
social media during working hours for information on prospective
employees
●● Which scenario is an example of larceny?
A. Brook borrowed a company computer and didn't intend to return it
B. Larry took cash from the register and replaced it with an IOU
C. Mary used a company vehicle without her supervisor's permission
D. Daniel accepted a new car from a vendor to influence his current
company to purchase additional merchandise from this vendor
Answer: A. Brook borrowed a company computer and didn't intend to
return it
●● The following evidence might be most helpful to antifraud
professionals to understand and possibly identify which of the following
fraud perpetrators?
A. The perpetrator who has stolen from and been fired by two previous
employers in the last four years
B. Two perpetrators who collude to steal hundred of thousands of dollars
and split the stolen cash
,C. A financially well-off perpetrator who has been stealing from his
House of Worship every week for the last 15 years
D. The perpetrator whose spouse is diagnosed with rare cancer that is
not covered by the employee's health insurance but whose treatment will
be very expensive and cost more than the employee earns and the
employee was the only one with access to bank accounts and accounting
records
Answer: D. The perpetrator whose spouse is diagnosed with rare cancer
that is not covered by the employee's health insurance but whose
treatment will be very expensive and cost more than the employee earns
and the employee was the only one with access to bank accounts and
accounting records
●● Which of the following is a true statement about fraud statistics?
A. Position tends to have only a minor impact on the frequency of fraud
but higher level personnel (e.g., managers) tend to steal lower dollar
amounts
B. Men tend to steal more frequently than women
C. Large corporations tend to be the biggest victims of fraudsters in
terms of frequency and dollar losses
D. Men and women tend to steal at the same frequency and at
approximately the same dollar values
Answer: B. Men tend to steal more frequently than women
, ●● Which of the following is a true statement about the detection of
fraud?
A. The combined frequency of tips and accidents in discovering fraud
exceeds the combined frequency of internal and external audits
B. Law enforcement plays a significant role in the detection of white
collar (economic) crimes
C. Internal controls when properly designed are almost bullet proof in
terms of preventing fraud
D. For the purposes of understanding how fraud is discovered,
whistleblower hotlines are the only method proven to detect fraud
Answer: A. The combined frequency of tips and accidents in discovering
fraud exceeds the combined frequency of internal and external audits
●● Which of the following would likely be characterized as a forensic
accounting investigation rather than a fraud examination?
A. An employee submits unsupported damage claims to his employer,
provides false documents and statements, and deposits the insurance
proceeds in his bank account
B. A husband submits altered bank account statements to his wife's
attorney during their divorce case
C. A plaintiff claims that a breach of contract by a vendor resulted in a
loss of business and ultimate bankruptcy
