FRAUD EXAMINATION 6TH EDITION ALBRECHT
UPDATED ACTUAL TEST SCRIPT WITH SOLVED
QUESTIONS
◉ Perpetrators use trickery, confidence, and deception to commit
fraud.
Answer: TRUE
◉ One of the most common responses to fraud is disbelief by those
around the fraud.
Answer: TRUE
◉ Manufacturing companies with a profit margin of 10% must
usually generate about 10 times as much revenue as the dollar
amount of the fraud in order to restore net income to its pre-fraud
level.
Answer: TRUE
◉ Fraud involves using physical force to take something from
someone.
Answer: FALSE.
Using physical force to take something from someone is robbery.
Fraud involves debit or trickery, not force.
,◉ When perpetrators are criminally convicted of fraud, they often
serve jail sentences and/or pay fines.
Answer: TRUE
◉ Identity theft is an example of employee embezzlement.
Answer: FALSE.
Identity theft is stealing someone's personal information so the thief
can pretend to be that person.
◉ Management fraud is deception perpetrated by an organization's
top management.
Answer: TRUE
◉ A Ponzi Scheme is considered to be a type of investment scam.
Answer: TRUE
◉ Most people agree that fraud-related careers will be in demand in
the future.
Answer: TRUE
◉ In civil cases, fraud experts are rarely used as expert witnesses.
Answer: FALSE.
,In civil cases, fraud experts often serve as expert witnesses.
◉ Many companies try to hide their losses from fraud rather than
make them public.
Answer: TRUE.
◉ The only group/business that must report employee
embezzlement is the federal government.
Answer: FALSE.
Banks are required to report their frauds to the government because
of their FDIC Insurance.
◉ Advances in technology have had no effect either on size or
frequency of fraud or on the detection or investigation of fraud.
Answer: FALSE.
Technology has tended to increase the size and frequency of frauds
committed.
◉ Fraud losses generally reduce a firm's income on a dollar-for-
dollar basis.
Answer: TRUE.
◉ The single most critical element for a fraud to be successful is
opportunity.
, Answer: FALSE.
Confidence is the single most critical element for a fraud to be
successful.
◉ Fraud perpetrators are often those who are least suspected and
most trusted.
Answer: TRUE.
◉ Unintentional errors in financial statement are a form of fraud.
Answer: FALSE.
Unintentional errors in the financial statements are not considered
fraud. There must always be "intent" for something to be fraud.
◉ Occupational fraud is fraud committed on behalf of an
organization.
Answer: FALSE.
Occupational fraud is usually committed against an organization.
◉ Companies that commit financial statement fraud are often
experiencing net losses or have profits that are significantly lower
than expectations.
Answer: TRUE.
UPDATED ACTUAL TEST SCRIPT WITH SOLVED
QUESTIONS
◉ Perpetrators use trickery, confidence, and deception to commit
fraud.
Answer: TRUE
◉ One of the most common responses to fraud is disbelief by those
around the fraud.
Answer: TRUE
◉ Manufacturing companies with a profit margin of 10% must
usually generate about 10 times as much revenue as the dollar
amount of the fraud in order to restore net income to its pre-fraud
level.
Answer: TRUE
◉ Fraud involves using physical force to take something from
someone.
Answer: FALSE.
Using physical force to take something from someone is robbery.
Fraud involves debit or trickery, not force.
,◉ When perpetrators are criminally convicted of fraud, they often
serve jail sentences and/or pay fines.
Answer: TRUE
◉ Identity theft is an example of employee embezzlement.
Answer: FALSE.
Identity theft is stealing someone's personal information so the thief
can pretend to be that person.
◉ Management fraud is deception perpetrated by an organization's
top management.
Answer: TRUE
◉ A Ponzi Scheme is considered to be a type of investment scam.
Answer: TRUE
◉ Most people agree that fraud-related careers will be in demand in
the future.
Answer: TRUE
◉ In civil cases, fraud experts are rarely used as expert witnesses.
Answer: FALSE.
,In civil cases, fraud experts often serve as expert witnesses.
◉ Many companies try to hide their losses from fraud rather than
make them public.
Answer: TRUE.
◉ The only group/business that must report employee
embezzlement is the federal government.
Answer: FALSE.
Banks are required to report their frauds to the government because
of their FDIC Insurance.
◉ Advances in technology have had no effect either on size or
frequency of fraud or on the detection or investigation of fraud.
Answer: FALSE.
Technology has tended to increase the size and frequency of frauds
committed.
◉ Fraud losses generally reduce a firm's income on a dollar-for-
dollar basis.
Answer: TRUE.
◉ The single most critical element for a fraud to be successful is
opportunity.
, Answer: FALSE.
Confidence is the single most critical element for a fraud to be
successful.
◉ Fraud perpetrators are often those who are least suspected and
most trusted.
Answer: TRUE.
◉ Unintentional errors in financial statement are a form of fraud.
Answer: FALSE.
Unintentional errors in the financial statements are not considered
fraud. There must always be "intent" for something to be fraud.
◉ Occupational fraud is fraud committed on behalf of an
organization.
Answer: FALSE.
Occupational fraud is usually committed against an organization.
◉ Companies that commit financial statement fraud are often
experiencing net losses or have profits that are significantly lower
than expectations.
Answer: TRUE.
