Module 6 Fraud Review Questions with
verified answers already passed
According to the ACFE's Report to the Nations, what percentage of their revenues
do organizations lose to fraud? Based on the 2015 World GDP, approximately how
much is that in dollars? - correct answer ✔✔organizations lose 5% of revenues to
fraud, which translates to roughly $3.7 trillion
What is the definition of fraud? - correct answer ✔✔misstatements arising from
fraudulent financial reporting and misstatement arising from misappropriation of
assets
According the AICPA, by what three ways can fraudulent financial reporting be
accomplished? - correct answer ✔✔creating fictitious documents, intentionally
omitting documents, or misapplying accounting principles
According to the ACFE, what four elements characterize an act of occupational
fraud? - correct answer ✔✔1) is clandestine (secretive and suspicious)
2) Violates the perpetrators fiduciary duties to the victim organization
3) Is committed for the purpose of direct or indirect financial benefit to the
prepatrator
4) costs the employing organization assets, revenues, or reserves
What are the three elements that may be called the "root cause of fraud" (that is,
they are always present no matter the type of fraud? - correct answer
✔✔motivation/pressure, opportunity, rationalization
verified answers already passed
According to the ACFE's Report to the Nations, what percentage of their revenues
do organizations lose to fraud? Based on the 2015 World GDP, approximately how
much is that in dollars? - correct answer ✔✔organizations lose 5% of revenues to
fraud, which translates to roughly $3.7 trillion
What is the definition of fraud? - correct answer ✔✔misstatements arising from
fraudulent financial reporting and misstatement arising from misappropriation of
assets
According the AICPA, by what three ways can fraudulent financial reporting be
accomplished? - correct answer ✔✔creating fictitious documents, intentionally
omitting documents, or misapplying accounting principles
According to the ACFE, what four elements characterize an act of occupational
fraud? - correct answer ✔✔1) is clandestine (secretive and suspicious)
2) Violates the perpetrators fiduciary duties to the victim organization
3) Is committed for the purpose of direct or indirect financial benefit to the
prepatrator
4) costs the employing organization assets, revenues, or reserves
What are the three elements that may be called the "root cause of fraud" (that is,
they are always present no matter the type of fraud? - correct answer
✔✔motivation/pressure, opportunity, rationalization
