Forensic Accounting Midterm Exam
Questions and Accurate Answers
Edwin H Sutherland - ✔✔father of white collar crime
Theory of differential association - ✔✔Edwin Sutherland - crime is learned not genetic
Donald R Cressey - ✔✔developed the fraud triangle - studied embezzlers
SAS 99 - ✔✔fraud standard
3 components of fraud triangle - ✔✔pressure, perceived opportunity, rationalization
Steve Albrecht - ✔✔9 motivators of fraud
what position in organization usually fraudulent - ✔✔employees & mgrs (not usually owners)
education of fraudsters - ✔✔1/2 have high school & college - 9% have post grad
most common form of cash fraud - ✔✔skimming
order of costliness of the fraud tree - ✔✔fraudulent statements, corruption, asset
misappropriation
4 ways to conceal asset missapropriation - ✔✔1) false debits ** most often
2) omitted credits (for skimming)
, 3) out of balance conditions (good system will detect this)
4) forced balances
what is the most often used way to conceal asset misappropriation - ✔✔false debits
4 counter measures for SALES skimming - ✔✔1) surveillence of employees at POS
2) maintain secure area for employees to keep purses, coats, etc
3) look for coded markers near registers
4) investigate gaps in transaction sequences/ pre numbered receipts
2 types of sales skimming - ✔✔1) unrecorded sales
2) understated sales
what is lapping - ✔✔steal customer As pmt & apply it to customer Bs account - just continue
going (type of receivables skimming)
what is the most common concealment technique for asset misapropriation - ✔✔lapping
4 lapping countermeasures - ✔✔1) employees w/ a lot of after work hrs & weekends (lapping is
time intensive)
2) mandatory vacations
3) spot check daily deposits, verify name on check match postings
4) compare AR postings with date pmts were mailed by customer
5 skimming controls - ✔✔1) segregate all cash receipting functions
2) supervise all employees at cash collection points & who open mail
3) enforce mandatory vacations
Questions and Accurate Answers
Edwin H Sutherland - ✔✔father of white collar crime
Theory of differential association - ✔✔Edwin Sutherland - crime is learned not genetic
Donald R Cressey - ✔✔developed the fraud triangle - studied embezzlers
SAS 99 - ✔✔fraud standard
3 components of fraud triangle - ✔✔pressure, perceived opportunity, rationalization
Steve Albrecht - ✔✔9 motivators of fraud
what position in organization usually fraudulent - ✔✔employees & mgrs (not usually owners)
education of fraudsters - ✔✔1/2 have high school & college - 9% have post grad
most common form of cash fraud - ✔✔skimming
order of costliness of the fraud tree - ✔✔fraudulent statements, corruption, asset
misappropriation
4 ways to conceal asset missapropriation - ✔✔1) false debits ** most often
2) omitted credits (for skimming)
, 3) out of balance conditions (good system will detect this)
4) forced balances
what is the most often used way to conceal asset misappropriation - ✔✔false debits
4 counter measures for SALES skimming - ✔✔1) surveillence of employees at POS
2) maintain secure area for employees to keep purses, coats, etc
3) look for coded markers near registers
4) investigate gaps in transaction sequences/ pre numbered receipts
2 types of sales skimming - ✔✔1) unrecorded sales
2) understated sales
what is lapping - ✔✔steal customer As pmt & apply it to customer Bs account - just continue
going (type of receivables skimming)
what is the most common concealment technique for asset misapropriation - ✔✔lapping
4 lapping countermeasures - ✔✔1) employees w/ a lot of after work hrs & weekends (lapping is
time intensive)
2) mandatory vacations
3) spot check daily deposits, verify name on check match postings
4) compare AR postings with date pmts were mailed by customer
5 skimming controls - ✔✔1) segregate all cash receipting functions
2) supervise all employees at cash collection points & who open mail
3) enforce mandatory vacations
