TEST BANK v$
Fraud Examination 7th Edition b
v$ v$ v$ v$v$
y Albrecht All Chapters 1 to 18
v$ v$ v$ v$ v$ v$
Pagev$1
,TABLE OF CONTENTS v$ v$
Part I: INTRODUCTION TO FRAUD.
v$ v$ v$ v$
1. The Nature of Fraud.
v$ v$ v$
2. Who Commits Fraud and Why.
v$ v$ v$ v$
3. Fighting Fraud: An Overview v$ v$ v$
. Part II: FRAUD PREVENTION.
v$ v$ v$ v$
4. Preventing Fraud. v$
Part III: FRAUD DETECTION.
v$ v$ v$
5. Recognizing the Symptoms of Fraud. v$ v$ v$ v$
6. Data-Driven Fraud Detection v$ v$
Part IV: FRAUD INVESTIGATION.
v$ v$ v$
7. Investigating Theft Acts. v$ v$
8. Investigating Concealment. v$
9. Conversion Investigation Methods. v$ v$
10. Inquiry Methods and Fraud Reports.
v$ v$ v$ v$
Part V: MANAGEMENT FRAUD.
v$ v$ v$
11. Financial Statement Fraud. v$ v$
12. Revenue- and Inventory-Related Financial Statement Frauds.
v$ v$ v$ v$ v$
13. Liability, Asset, and Inadequate Disclosure Frauds.
v$ v$ v$ v$ v$
Part VI: OTHER TYPES OF FRAUD.
v$ v$ v$ v$ v$
14. Fraud Against Organizations.
v$ v$
15. Consumer Fraud. v$
16. Bankruptcy, Divorce, and Tax Fraud. v$ v$ v$ v$
17. e-Commerce Fraud. v$
Part VII: RESOLUTION OF FRAUD.
v$ v$ v$ v$
18. Legal Follow-Up. v$
Pagev$2
,Chapter 01 - v$ v$
The Nature of Fraud
v$ v$ v$ v$
1. One way that criminal law differs from civil law is that it:
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. provides remedies for violations of private rights.
v$ v$ v$ v$ v$ v$
b. must yield a unanimous verdict.
v$ v$ v$ v$
c. can have a jury of fewer than 12 persons.
v$ v$ v$ v$ v$ v$ v$ v$
d. allows for various claims in one action.
v$ v$ v$ v$ v$ v$
ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
characteristic of civil law; criminal law deals with crimes against society as awhole.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
b. Correct. Criminal trials must result in a unanimous verdict.
v$ v$ v$ v$ v$ v$ v$ v$
c. Incorrect. The requirement for a unanimous vote characteristic of civil la
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
w; criminal trial juries must have 12 persons.
v $ v$ v$ v$ v$ v$ v$
d. Incorrect. In inclusion of various claims in one action is a characteristic of civil
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
law; criminal law permits only one claim at a time.
v $ v$ v$ v$ v$ v$ v$ v$ v$
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraudv$ v$ v$ v$ v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ v $FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e revised v$ v$
DATE CREATED:
v$ 2/8/2024 7:10 AM v$ v$
DATE MODIFIED:
v$ 2/8/2024 7:14 AM v$ v$
2. Which of the following is NOT an common element of a Ponzi scheme?
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. Gaining other's confidence v$ v$
b. Promising abnormally high returns v$ v$ v$
c. Investing collected money v$ v$
d. Using part of the investment principle to pay previous investors
v$ v$ v$ v$ v$ v$ v$ v$ v$
ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
c. Correct. Investing collected money is very unlikely.
v$ v$ v$ v$ v$ v$
d. Incorrect. In Ponzi schemes, the original principle is often used to make inter
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
est payments. v $
POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud v$ v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ FRAU.ALBR.25.1.3 - Understand Different Types of Fraud.
v $ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e , revised v$ v$ v$
DATE CREATED:
v$ 2/9/2024 5:11 AM v$ v$
DATE MODIFIED:
v$ 2/9/2024 5:32 AM v$ v$
Pagev$3
, Chapter 01 - v$ v$
The Nature of Fraud
v$ v$ v$ v$
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. not reporting bribe income may be grounds for being charged with tax evasion.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
b. a tax filing that excludes income from fraud may be considered a false return.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
c. bribes may be lawfully deducted as business expenses.
v$ v$ v$ v$ v$ v$ v$
d. failure to report income from fraud may be grounds for being charged with tax evasion.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be considered
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
an improper tax filing.
v $ v$ v$
c. Correct. Bribes cannot be deducted as legitimate business expenses.
v$ v$ v$ v$ v$ v$ v$ v$
d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ v $FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e revised v$ v$
DATE CREATED:
v$ 2/9/2024 5:38 AM v$ v$
DATE MODIFIED:
v$ 2/9/2024 5:40 AM v$ v$
4. Which one of the following is NOT a characteristic of a criminal proceeding?
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. Criminal proceedings deal with offenses against society.
v$ v$ v$ v$ v$ v$
b. Consequences of criminal proceedings include restitution and damage payments.
v$ v$ v$ v$ v$ v$ v$ v$
c. Criminal proceedings involve a jury of 12 individuals.
v$ v$ v$ v$ v$ v$ v$
d. In criminal proceedings, only one claim may be heard at a time.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. v$ v$ v$ v$ v$ v$ v$ v$ v$
b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
c. Incorrect. A criminal jury consists of 12 jurors.v$ v$ v$ v$ v$ v$ v$
d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsma
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
y be joined into a single case.
v$ v $ v$ v$ v$ v$
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ v $FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e revised v$ v$
DATE CREATED:
v$ 2/9/2024 6:36 AM v$ v$
DATE MODIFIED:
v$ 2/9/2024 6:38 AM v$ v$
Pagev$4
Fraud Examination 7th Edition b
v$ v$ v$ v$v$
y Albrecht All Chapters 1 to 18
v$ v$ v$ v$ v$ v$
Pagev$1
,TABLE OF CONTENTS v$ v$
Part I: INTRODUCTION TO FRAUD.
v$ v$ v$ v$
1. The Nature of Fraud.
v$ v$ v$
2. Who Commits Fraud and Why.
v$ v$ v$ v$
3. Fighting Fraud: An Overview v$ v$ v$
. Part II: FRAUD PREVENTION.
v$ v$ v$ v$
4. Preventing Fraud. v$
Part III: FRAUD DETECTION.
v$ v$ v$
5. Recognizing the Symptoms of Fraud. v$ v$ v$ v$
6. Data-Driven Fraud Detection v$ v$
Part IV: FRAUD INVESTIGATION.
v$ v$ v$
7. Investigating Theft Acts. v$ v$
8. Investigating Concealment. v$
9. Conversion Investigation Methods. v$ v$
10. Inquiry Methods and Fraud Reports.
v$ v$ v$ v$
Part V: MANAGEMENT FRAUD.
v$ v$ v$
11. Financial Statement Fraud. v$ v$
12. Revenue- and Inventory-Related Financial Statement Frauds.
v$ v$ v$ v$ v$
13. Liability, Asset, and Inadequate Disclosure Frauds.
v$ v$ v$ v$ v$
Part VI: OTHER TYPES OF FRAUD.
v$ v$ v$ v$ v$
14. Fraud Against Organizations.
v$ v$
15. Consumer Fraud. v$
16. Bankruptcy, Divorce, and Tax Fraud. v$ v$ v$ v$
17. e-Commerce Fraud. v$
Part VII: RESOLUTION OF FRAUD.
v$ v$ v$ v$
18. Legal Follow-Up. v$
Pagev$2
,Chapter 01 - v$ v$
The Nature of Fraud
v$ v$ v$ v$
1. One way that criminal law differs from civil law is that it:
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. provides remedies for violations of private rights.
v$ v$ v$ v$ v$ v$
b. must yield a unanimous verdict.
v$ v$ v$ v$
c. can have a jury of fewer than 12 persons.
v$ v$ v$ v$ v$ v$ v$ v$
d. allows for various claims in one action.
v$ v$ v$ v$ v$ v$
ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
characteristic of civil law; criminal law deals with crimes against society as awhole.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
b. Correct. Criminal trials must result in a unanimous verdict.
v$ v$ v$ v$ v$ v$ v$ v$
c. Incorrect. The requirement for a unanimous vote characteristic of civil la
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
w; criminal trial juries must have 12 persons.
v $ v$ v$ v$ v$ v$ v$
d. Incorrect. In inclusion of various claims in one action is a characteristic of civil
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
law; criminal law permits only one claim at a time.
v $ v$ v$ v$ v$ v$ v$ v$ v$
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraudv$ v$ v$ v$ v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ v $FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e revised v$ v$
DATE CREATED:
v$ 2/8/2024 7:10 AM v$ v$
DATE MODIFIED:
v$ 2/8/2024 7:14 AM v$ v$
2. Which of the following is NOT an common element of a Ponzi scheme?
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. Gaining other's confidence v$ v$
b. Promising abnormally high returns v$ v$ v$
c. Investing collected money v$ v$
d. Using part of the investment principle to pay previous investors
v$ v$ v$ v$ v$ v$ v$ v$ v$
ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
c. Correct. Investing collected money is very unlikely.
v$ v$ v$ v$ v$ v$
d. Incorrect. In Ponzi schemes, the original principle is often used to make inter
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
est payments. v $
POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud v$ v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ FRAU.ALBR.25.1.3 - Understand Different Types of Fraud.
v $ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e , revised v$ v$ v$
DATE CREATED:
v$ 2/9/2024 5:11 AM v$ v$
DATE MODIFIED:
v$ 2/9/2024 5:32 AM v$ v$
Pagev$3
, Chapter 01 - v$ v$
The Nature of Fraud
v$ v$ v$ v$
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. not reporting bribe income may be grounds for being charged with tax evasion.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
b. a tax filing that excludes income from fraud may be considered a false return.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
c. bribes may be lawfully deducted as business expenses.
v$ v$ v$ v$ v$ v$ v$
d. failure to report income from fraud may be grounds for being charged with tax evasion.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be considered
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
an improper tax filing.
v $ v$ v$
c. Correct. Bribes cannot be deducted as legitimate business expenses.
v$ v$ v$ v$ v$ v$ v$ v$
d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ v $FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e revised v$ v$
DATE CREATED:
v$ 2/9/2024 5:38 AM v$ v$
DATE MODIFIED:
v$ 2/9/2024 5:40 AM v$ v$
4. Which one of the following is NOT a characteristic of a criminal proceeding?
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
a. Criminal proceedings deal with offenses against society.
v$ v$ v$ v$ v$ v$
b. Consequences of criminal proceedings include restitution and damage payments.
v$ v$ v$ v$ v$ v$ v$ v$
c. Criminal proceedings involve a jury of 12 individuals.
v$ v$ v$ v$ v$ v$ v$
d. In criminal proceedings, only one claim may be heard at a time.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. v$ v$ v$ v$ v$ v$ v$ v$ v$
b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
c. Incorrect. A criminal jury consists of 12 jurors.v$ v$ v$ v$ v$ v$ v$
d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsma
v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
y be joined into a single case.
v$ v $ v$ v$ v$ v$
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law v$
QUESTION TYPE: v$ Multiple Choice v$
HAS VARIABLES:
v$ False
LEARNING OBJECTIVES: v$ v $FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. v$ v$ v$ v$ v$ v$ v$ v$ v$ v$
OTHER: Source: 6e revised v$ v$
DATE CREATED:
v$ 2/9/2024 6:36 AM v$ v$
DATE MODIFIED:
v$ 2/9/2024 6:38 AM v$ v$
Pagev$4
