FORENSIC ACCOUNTING AND FRAUD
EXAMINATION UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE FULL SOLUTION
●● By arranging interviews in order of probable culpability, the fraud
examiner is in a position to
Answer: Have as much information as possible by the time the prime
target is interviewed
●● Of all the attributes necessary for an investigation to be successful,
which of the following characteristics should the professional be most
concerned?
Answer: Credibility
●● Generally, truthful behavior includes direct answers that give the
impression that the interviewee has nothing to hide, spontaneous
answers that indicate that the interviewee has nothing to think about, a
perception by the interviewee of attentiveness and interest in the
interview outcomes, an orientation toward the interviewer, and
Answer: Behavioral consistency between verbal and nonverbal cues.
●● Generally speaking, revenue is recognized when it is realized or
realizable and _____________
,Answer: Earned
●● One of the main challenges for examiners in complex fraud and
financial crimes investigations is to
________________________________.
Answer: Isolate the illicit activities from the legitimate activities.
●● Many times, shell company schemes involve the purchase of services
rather than goods such as "consulting services." Why is this?
Answer: Because services have no fixed market price, it is harder to
compare value.
●● _______________ is the totality of circumstances that lead a
reasonable, professionally trained, and prudent individual to believe that
a fraud has occurred, is occurring, and/or will occur. All fraud
examinations must be based on it.
Answer: Predication.
●● How much money did Rita Crundwell embezzle from the city of
Dixon?
Answer: Approximately $54 million
●● What is the primary purpose of practice aids in forensic accounting
and valuation services?
, Answer: Provide useful information and guidance to practicing
professionals.
●● Internal fraud committed by one or more employees of an
organization is more commonly referred to as
Answer: Occupational fraud and abuse.
●● Financial statement frauds can be broken down into five distinct
categories: concealed liabilities and expenses, _______________,
improper asset valuations, improper disclosures, and timing differences.
Answer: Fictitious revenues.
●● When considering antifraud measures within an organization, the
axiom that "fraud deterrence begins in the employee's mind" most
closely means that there has to be a _________________
Answer: Perception of detection.
●● Senior managers and business owners may "cook the books" for any
of several reasons: to conceal true business performance, to preserve
personal status/control, and to __________________________.
Answer: Maintain personal income/wealth.
●● Financial statement fraud schemes are most often perpetrated against
_________________ financial statements by management.
EXAMINATION UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE FULL SOLUTION
●● By arranging interviews in order of probable culpability, the fraud
examiner is in a position to
Answer: Have as much information as possible by the time the prime
target is interviewed
●● Of all the attributes necessary for an investigation to be successful,
which of the following characteristics should the professional be most
concerned?
Answer: Credibility
●● Generally, truthful behavior includes direct answers that give the
impression that the interviewee has nothing to hide, spontaneous
answers that indicate that the interviewee has nothing to think about, a
perception by the interviewee of attentiveness and interest in the
interview outcomes, an orientation toward the interviewer, and
Answer: Behavioral consistency between verbal and nonverbal cues.
●● Generally speaking, revenue is recognized when it is realized or
realizable and _____________
,Answer: Earned
●● One of the main challenges for examiners in complex fraud and
financial crimes investigations is to
________________________________.
Answer: Isolate the illicit activities from the legitimate activities.
●● Many times, shell company schemes involve the purchase of services
rather than goods such as "consulting services." Why is this?
Answer: Because services have no fixed market price, it is harder to
compare value.
●● _______________ is the totality of circumstances that lead a
reasonable, professionally trained, and prudent individual to believe that
a fraud has occurred, is occurring, and/or will occur. All fraud
examinations must be based on it.
Answer: Predication.
●● How much money did Rita Crundwell embezzle from the city of
Dixon?
Answer: Approximately $54 million
●● What is the primary purpose of practice aids in forensic accounting
and valuation services?
, Answer: Provide useful information and guidance to practicing
professionals.
●● Internal fraud committed by one or more employees of an
organization is more commonly referred to as
Answer: Occupational fraud and abuse.
●● Financial statement frauds can be broken down into five distinct
categories: concealed liabilities and expenses, _______________,
improper asset valuations, improper disclosures, and timing differences.
Answer: Fictitious revenues.
●● When considering antifraud measures within an organization, the
axiom that "fraud deterrence begins in the employee's mind" most
closely means that there has to be a _________________
Answer: Perception of detection.
●● Senior managers and business owners may "cook the books" for any
of several reasons: to conceal true business performance, to preserve
personal status/control, and to __________________________.
Answer: Maintain personal income/wealth.
●● Financial statement fraud schemes are most often perpetrated against
_________________ financial statements by management.
