Fraud Examination (5th Edition) - Chapter 5
Multiple Choice
Which of the following is true regarding fraud?
a. It is easily identified.
b. It is seldom observed.
c. When a fraud occurs, there is no question whether or not a crime has been committed.
d. Many witnesses are usually available when fraud occurs.
b. It is seldom observed.
Which of the following is not a fraud symptom related to source documents?
a. Duplicate payments.
b. Missing documents.
c. A tip from an employee.
d. Photocopied documents.
c. A tip from an employee.
Which of the following is a fraud symptom related to an internal control weakness?
a. Lack of proper authorization.
b. Lack of independent checks.
c. Inadequate accounting system.
d. Lack of physical safeguards.
e. All of the above.
e. All of the above
In the three elements of fraud (theft act, concealment, conversion), who is usually in the best position to detect the fraud?
a. Coworkers and managers.
b. Customers.
c. Owners.
d. Vendors.
a. Coworkers and managers.
When a person commits a crime:
a. He or she usually becomes engulfed by emotions of fear and guilt.
b. He or she will experience no changes in behavior.
c. He or she usually becomes friendly and nice.
d. He or she experiences a lower stress level.
a. He or she usually becomes engulfed by emotions of fear and guilt.
Most people who commit fraud:
a. Use the embezzled funds to build a savings account.
b. Give the embezzled funds to charity.
c. Experience no change in their lifestyle.
d. Use the embezzled funds to improve their lifestyle.
d. Use the embezzled funds to improve their lifestyle.
Multiple Choice
Which of the following is true regarding fraud?
a. It is easily identified.
b. It is seldom observed.
c. When a fraud occurs, there is no question whether or not a crime has been committed.
d. Many witnesses are usually available when fraud occurs.
b. It is seldom observed.
Which of the following is not a fraud symptom related to source documents?
a. Duplicate payments.
b. Missing documents.
c. A tip from an employee.
d. Photocopied documents.
c. A tip from an employee.
Which of the following is a fraud symptom related to an internal control weakness?
a. Lack of proper authorization.
b. Lack of independent checks.
c. Inadequate accounting system.
d. Lack of physical safeguards.
e. All of the above.
e. All of the above
In the three elements of fraud (theft act, concealment, conversion), who is usually in the best position to detect the fraud?
a. Coworkers and managers.
b. Customers.
c. Owners.
d. Vendors.
a. Coworkers and managers.
When a person commits a crime:
a. He or she usually becomes engulfed by emotions of fear and guilt.
b. He or she will experience no changes in behavior.
c. He or she usually becomes friendly and nice.
d. He or she experiences a lower stress level.
a. He or she usually becomes engulfed by emotions of fear and guilt.
Most people who commit fraud:
a. Use the embezzled funds to build a savings account.
b. Give the embezzled funds to charity.
c. Experience no change in their lifestyle.
d. Use the embezzled funds to improve their lifestyle.
d. Use the embezzled funds to improve their lifestyle.
