1|Page
WGU D551 OBJECTIVE ASSESSMENT AND PRE ASSESSMENT
NEWEST 2026 TEST BANK| D551 FRAUD AND FORENSIC
ACCOUNTING OA & PA WITH COMPLETE ACTUAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/ ALREADY
GRADED A+ (BRAND NEW!!)
What instance recorded by the internal controls team of a company
indicates a fraudulent activity?
1. A warehouse employee ships products to a P.O. Box & then sells them
online.
2. An employee from the finance dept. recorded inventory at its net
present value, which was lower than its original cost, in the company's
balance sheet.
3. An accounts manager attends to personal business during work
hours.
4. An employee from the accounting dept. uses a work laptop to invest
in the stock market.
1. A warehouse employee ships products to a P.O. Box & then sells them
online.
A manufacturer is getting its financial records reviewed by an
accounting company, as it suspects financial misconduct by its
employees. Which observations made by the accounting company is
indicative of fraud?
,2|Page
1. The manufacturer transferred debts to a special purpose entity &
kept it off from its balance sheet w/o recording the transaction.
2. The manufacturer assigns different employees to work on the
reconciliation of financial transactions each month, which leads to
inconsistencies in the reconciliation reports.
3. The manufacturer fails to train its employees when there is a change
in the accounting processes or valuation methods.
4. The manufacturer's financial records show that some transactions are
dated incorrectly, but the amounts are recorded correctly.
1. The manufacturer transferred debts to a special purpose entity &
kept it off from its balance sheet w/o recording the transaction.
A company has 4 business units. Each business unit follows the steps
involved in the fraud examination methodology to avoid all possible
frauds & misrepresentations, but each uses a different strategy. Which
business unit's strategy correctly exemplifies the remediation process
described in the fraud examination methodology?
1-Business A initiates disciplinary action against a financial manager for
falsely inflating gross margins to become eligible for a bonus.
2-Business B starts a fraud examination after receiving an anonymous
tip from an ex-employee.
3- Business C sets up a process to check the validity of invoices before
an employee has an opportunity to pay unauthorized invoices.
4- Business D monitors bank deposits to avoid mismanagement &
misrepresentation of cash & cash equivalents.
,3|Page
1-Business A initiates disciplinary action against a financial manager for
falsely inflating gross margins to become eligible for a bonus.
A reputed financial manager with an excellent performance history has
recently accumulated a large debt. He is unwilling to share his troubles
with his peers, as that would diminish their view of him. To overcome
the situation, he embezzles the company funds to pay off the debts.
What motivated the financial manager to commit the crime according
to Cressey's Hypothesis?
1- Business reversal
2- Physical isolation
3- Status gaining
4-Violation of ascribed obligation
4-Violation of ascribed obligation
An accountant has been found guilty of fraud but has not served any
time in prison yet. The defending counsel appeals to the judge to
reduce the sentence to a penalty with no incarceration. Which type of
sentence is the counsel requesting?
Probation
, 4|Page
A police dept.'s forensic accounting investigator who is investigating a
company's CEO & CFO for fraud receives a tip that the CFO is attempting
to destroy evidence. Which approach should the forensic accounting
investigator take to secure the necessary evidence?
1-Request voluntary consent from the company's management.
2-Use a subpoena to obtain the required documents.
3-Request the judge to issue search & seizure warrants.
4-Wait for whistleblower to provide the necessary evidence.
3-Request the judge to issue search & seizure warrants.
A 3rd party sues an accounting firm for false representation. Before the
trial begins, the 2 parties agree to argue their case in front of a neutral
3rd party & to accept the decision made by that party as the final
decision. Which type of negotiated remedy have the parties agreed
upon?
1-Pretrial conference
2-Binding arbitration
3-Binding mediation
4-Summary judgement
2-Binding arbitration
WGU D551 OBJECTIVE ASSESSMENT AND PRE ASSESSMENT
NEWEST 2026 TEST BANK| D551 FRAUD AND FORENSIC
ACCOUNTING OA & PA WITH COMPLETE ACTUAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/ ALREADY
GRADED A+ (BRAND NEW!!)
What instance recorded by the internal controls team of a company
indicates a fraudulent activity?
1. A warehouse employee ships products to a P.O. Box & then sells them
online.
2. An employee from the finance dept. recorded inventory at its net
present value, which was lower than its original cost, in the company's
balance sheet.
3. An accounts manager attends to personal business during work
hours.
4. An employee from the accounting dept. uses a work laptop to invest
in the stock market.
1. A warehouse employee ships products to a P.O. Box & then sells them
online.
A manufacturer is getting its financial records reviewed by an
accounting company, as it suspects financial misconduct by its
employees. Which observations made by the accounting company is
indicative of fraud?
,2|Page
1. The manufacturer transferred debts to a special purpose entity &
kept it off from its balance sheet w/o recording the transaction.
2. The manufacturer assigns different employees to work on the
reconciliation of financial transactions each month, which leads to
inconsistencies in the reconciliation reports.
3. The manufacturer fails to train its employees when there is a change
in the accounting processes or valuation methods.
4. The manufacturer's financial records show that some transactions are
dated incorrectly, but the amounts are recorded correctly.
1. The manufacturer transferred debts to a special purpose entity &
kept it off from its balance sheet w/o recording the transaction.
A company has 4 business units. Each business unit follows the steps
involved in the fraud examination methodology to avoid all possible
frauds & misrepresentations, but each uses a different strategy. Which
business unit's strategy correctly exemplifies the remediation process
described in the fraud examination methodology?
1-Business A initiates disciplinary action against a financial manager for
falsely inflating gross margins to become eligible for a bonus.
2-Business B starts a fraud examination after receiving an anonymous
tip from an ex-employee.
3- Business C sets up a process to check the validity of invoices before
an employee has an opportunity to pay unauthorized invoices.
4- Business D monitors bank deposits to avoid mismanagement &
misrepresentation of cash & cash equivalents.
,3|Page
1-Business A initiates disciplinary action against a financial manager for
falsely inflating gross margins to become eligible for a bonus.
A reputed financial manager with an excellent performance history has
recently accumulated a large debt. He is unwilling to share his troubles
with his peers, as that would diminish their view of him. To overcome
the situation, he embezzles the company funds to pay off the debts.
What motivated the financial manager to commit the crime according
to Cressey's Hypothesis?
1- Business reversal
2- Physical isolation
3- Status gaining
4-Violation of ascribed obligation
4-Violation of ascribed obligation
An accountant has been found guilty of fraud but has not served any
time in prison yet. The defending counsel appeals to the judge to
reduce the sentence to a penalty with no incarceration. Which type of
sentence is the counsel requesting?
Probation
, 4|Page
A police dept.'s forensic accounting investigator who is investigating a
company's CEO & CFO for fraud receives a tip that the CFO is attempting
to destroy evidence. Which approach should the forensic accounting
investigator take to secure the necessary evidence?
1-Request voluntary consent from the company's management.
2-Use a subpoena to obtain the required documents.
3-Request the judge to issue search & seizure warrants.
4-Wait for whistleblower to provide the necessary evidence.
3-Request the judge to issue search & seizure warrants.
A 3rd party sues an accounting firm for false representation. Before the
trial begins, the 2 parties agree to argue their case in front of a neutral
3rd party & to accept the decision made by that party as the final
decision. Which type of negotiated remedy have the parties agreed
upon?
1-Pretrial conference
2-Binding arbitration
3-Binding mediation
4-Summary judgement
2-Binding arbitration
