Fraud Examination Exam 1 (Ch. 1-3)

Telemarketing fraud usually falls into this category: a. embezzlement b. management fraud c. investment scams d. vendor fraud - ANSWER-b. management fraud Given below are the profit margins and fraud-related losses of four economies. Which economy will have to generate the maximum dollar amount of additional revenues to recover the loss to aggregate income? Economy A: 10%, $225 million Economy B: 10%, $150 million Economy C: 5%, $100 million Economy D: 2%, $50 million Economy A Economy B Economy C Economy D - ANSWER-Economy D In fraud prosecution cases, _____ matter consists of the underlying data and all corroborating information available. a. supplemental b. remedial c. evidential d. elementary - ANSWER-c. evidential Fraud statistics come from all of the following sources except: a. governmental agencies b. fraud perpetrators c. insurance companies d. victims - ANSWER-b. fraud perpetrators Civil claims begin when one party files a complaint against another, usually for the purpose of: a. being awarded financial restitution b. sending the perpetrator to prision c. having a penalty imposed d. proving the perpetrator guilty - ANSWER-a. being awarded financial restitution Which of the following is the most common type of occupational fraud? a. employee embezzlement b. investment fraud c. management fraud d. mail fraud - ANSWER-a. employee embezzlement The victim is a company or organization in all of the following except: a. customer fraud b. employee embezzlement c. investment scams d. vendor fraud - ANSWER-c. investment scams The word "con," which means to deceive, comes from the word: a. contract b. conserve c. confidence d. confuse - ANSWER-c. confidence Which of the following is not one of the major types of fraud classification schemes? a. investment scams b. customer fraud c. government fraud d. employee embezzlement - ANSWER-c. government fraud The most common fraud committed on behalf of an organization is: a. employee embezzlement b. fraudulent financial reporting c. customer fraud d. vendor fraud - ANSWER-b. fraudulent financial reporting To be successful, plaintiffs in civil cases must prove their case by which of the following? a. by the preponderance of the evidence b. beyond a reasonable doubt c. to the standard of prima facie d. to a degree of reasonable mitigation - ANSWER-a. by the preponderance of the evidence Customer fraud includes all of the following except: