FRAUD EXAMINATION 6TH EDITION ALBRECHT
COMPREHENSIVE SOLVED QUESTIONS AND
COMPLETE ANSWERS
◉ In vendor fraud, customers don't pay for goods purchased.
Answer: False
◉ A negative outcome in a civil lawsuit usually results in jail time for
the perpetrator.
Answer: False
◉ When fraud is committed, criminal prosecution usually proceeds
before civil litigation.
Answer: True
◉ A fraud may be perpetrated through an unintentional mistake.
Answer: False
◉ It is most often people who are not trusted that commit fraud.
Answer: False
,◉ Management fraud is when managers intentionally deceive their
employees about the potential of raises, vacations, and other perks.
Answer: True
◉ Despite intense measures meant to impede it, fraud appears to be
one of the fastest growing crimes in the United States.
Answer: True
◉ The ACFE is a nonprofit organization dedicated to the prevention
and dedication of fraud throughout the world.
Answer: True
◉ There is no difference between a Certified Fraud Examiner (CFE)
and a Certified Public Accountant (CPA)
Answer: False
◉ Why does fraud seem to be increasing at such an alarming rate?
a. Computers, the Internet, and technology make fraud easier to
commit.
b. Most frauds today are detected, whereas in the past many were
not.
c. A new law requires that fraud be reported within 24 hours.
d. People understand the consequences of fraud to organizations.
,Answer: A. Computers, the Internet, and technology make fraud
easier to commit.
◉ Which of the following is not an important element of fraud?
a. Confidence.
b. Deception.
c. Trickery.
d. Intelligence.
Answer: d. Intelligence.
◉ Fraud is considered to be:
a. A serious problem that continues to grow.
b. A problem that affects very few individuals
c. A mild problem that most businesses need not worry about.
d. A problem under control.
Answer: a. A serious problem that continues to grow.
◉ People who commit fraud are usually:
a. New employees.
b. Not well groomed and have long hair and tattoos.
c. People with strong personalities.
d. Trusted individuals.
, Answer: d. Trusted individuals.
◉ "The use of one's occupation for personal enrichment through the
deliberate misuse or misapplication of the employing organization's
resources or assets" is the definition of which of the following types
of fraud?
a. Employee embezzlement or occupational fraud.
b. Investment scams.
c. Management fraud.
d. Vendor fraud.
Answer: a. Employee embezzlement or occupational fraud.
◉ Corporate employee fraud-fighters:
a. Work as postal inspectors and law enforcement officials.
b. Prevent, detect, and investigate fraud within a company.
c. Are lawyers who defend and/or prosecute fraud cases.
d. None of the above.
Answer: b. Prevent, detect, and investigate fraud within a company.
◉ Investment scams most often include:
a. An action by top management against employees.
b. Worthless investments or assets sold to unsuspecting investors.
COMPREHENSIVE SOLVED QUESTIONS AND
COMPLETE ANSWERS
◉ In vendor fraud, customers don't pay for goods purchased.
Answer: False
◉ A negative outcome in a civil lawsuit usually results in jail time for
the perpetrator.
Answer: False
◉ When fraud is committed, criminal prosecution usually proceeds
before civil litigation.
Answer: True
◉ A fraud may be perpetrated through an unintentional mistake.
Answer: False
◉ It is most often people who are not trusted that commit fraud.
Answer: False
,◉ Management fraud is when managers intentionally deceive their
employees about the potential of raises, vacations, and other perks.
Answer: True
◉ Despite intense measures meant to impede it, fraud appears to be
one of the fastest growing crimes in the United States.
Answer: True
◉ The ACFE is a nonprofit organization dedicated to the prevention
and dedication of fraud throughout the world.
Answer: True
◉ There is no difference between a Certified Fraud Examiner (CFE)
and a Certified Public Accountant (CPA)
Answer: False
◉ Why does fraud seem to be increasing at such an alarming rate?
a. Computers, the Internet, and technology make fraud easier to
commit.
b. Most frauds today are detected, whereas in the past many were
not.
c. A new law requires that fraud be reported within 24 hours.
d. People understand the consequences of fraud to organizations.
,Answer: A. Computers, the Internet, and technology make fraud
easier to commit.
◉ Which of the following is not an important element of fraud?
a. Confidence.
b. Deception.
c. Trickery.
d. Intelligence.
Answer: d. Intelligence.
◉ Fraud is considered to be:
a. A serious problem that continues to grow.
b. A problem that affects very few individuals
c. A mild problem that most businesses need not worry about.
d. A problem under control.
Answer: a. A serious problem that continues to grow.
◉ People who commit fraud are usually:
a. New employees.
b. Not well groomed and have long hair and tattoos.
c. People with strong personalities.
d. Trusted individuals.
, Answer: d. Trusted individuals.
◉ "The use of one's occupation for personal enrichment through the
deliberate misuse or misapplication of the employing organization's
resources or assets" is the definition of which of the following types
of fraud?
a. Employee embezzlement or occupational fraud.
b. Investment scams.
c. Management fraud.
d. Vendor fraud.
Answer: a. Employee embezzlement or occupational fraud.
◉ Corporate employee fraud-fighters:
a. Work as postal inspectors and law enforcement officials.
b. Prevent, detect, and investigate fraud within a company.
c. Are lawyers who defend and/or prosecute fraud cases.
d. None of the above.
Answer: b. Prevent, detect, and investigate fraud within a company.
◉ Investment scams most often include:
a. An action by top management against employees.
b. Worthless investments or assets sold to unsuspecting investors.
