WGU D551 C254 FRAUD AND FORENSIC
ACCOUNTING PA AND OA ACTUAL TEST
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
⩥ What is embezzlement? Answer: The fraudulent appropriation of
money or property lawfully in one's possession for personal use.
⩥ What are common techniques used in cash and check schemes?
Answer: Larceny, skimming, theft of incoming checks, and kiting.
⩥ What is larceny of cash? Answer: Theft of cash that has already been
recorded on the books, such as from a cash register or petty cash.
⩥ How can cash larceny be prevented? Answer: By segregating duties,
ensuring one person does not handle all cash-related tasks, and
conducting unexpected cash counts.
⩥ What is skimming? Answer: An 'off-book' technique to remove cash
before it is recorded in the company's accounting system.
⩥ How can skimming be detected? Answer: By tracking sequentially
numbered receipts and monitoring for lost register tapes.
,⩥ What is kiting? Answer: A scheme that involves building up balances
in multiple bank accounts based on floating checks drawn against other
accounts.
⩥ How can kiting be caught? Answer: By looking for frequent deposits
and checks of the same amount, and conducting bank reconciliation
audits.
⩥ What are fictitious receivables? Answer: Covering a phony sale with
an equally phony receivable that may eventually be written off.
⩥ How can fictitious receivables be detected? Answer: By scrutinizing
accounts receivable confirmations and examining write-offs for
inconsistencies.
⩥ What is the impact of shoplifting on inventory fraud? Answer:
Employees often steal more than shoplifters, leading to significant
inventory loss.
⩥ How can businesses monitor for inventory theft? Answer: Using
remote and live video recording and Point-of-Sale (POS) monitoring to
analyze transaction patterns.
,⩥ What is accounts payable fraud? Answer: Fraud that occurs when
duplicate payments are made or errors exist in supplier invoices.
⩥ What percentage of total purchases can companies lose to duplicate
payments? Answer: Companies can lose as much as two percent of total
purchases due to duplicate payments.
⩥ What is one way to prevent fraud in cash handling? Answer:
Implementing mandatory vacations and requiring two employees to
open mail.
⩥ What is the role of forensic auditors in detecting fraud? Answer:
Forensic auditors examine evidence of accounts receivable and sales,
looking for discrepancies and red flags.
⩥ What is the significance of the collection ratio in fraud detection?
Answer: Fluctuations in the collection ratio can indicate fictitious
receivables or other forms of fraud.
⩥ What is the purpose of a bank reconciliation audit? Answer: To verify
the accuracy of bank statements and detect discrepancies related to
fraud.
, ⩥ What are some preventive measures against cash theft? Answer:
Segregation of duties, regular cash counts, and reconciling cash receipts
with register tapes.
⩥ How can analytical procedures help in fraud detection? Answer: They
evaluate changes in revenue trends and can reveal signs of skimming or
money laundering.
⩥ What is the impact of strong internal controls on fraud prevention?
Answer: Strong internal controls and separation of duties are vital in
preventing both skimming and cash larceny.
⩥ What is the relationship between employee theft and shoplifting?
Answer: Employees steal significantly more than shoplifters, making
internal theft a major concern for businesses.
⩥ What are some common fraud schemes in cash handling? Answer:
Larceny, skimming, and kiting are prevalent schemes used to
misappropriate cash.
⩥ How can businesses track cash flow to prevent fraud? Answer: By
using online account information to monitor daily balances and
transactions.
ACCOUNTING PA AND OA ACTUAL TEST
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
⩥ What is embezzlement? Answer: The fraudulent appropriation of
money or property lawfully in one's possession for personal use.
⩥ What are common techniques used in cash and check schemes?
Answer: Larceny, skimming, theft of incoming checks, and kiting.
⩥ What is larceny of cash? Answer: Theft of cash that has already been
recorded on the books, such as from a cash register or petty cash.
⩥ How can cash larceny be prevented? Answer: By segregating duties,
ensuring one person does not handle all cash-related tasks, and
conducting unexpected cash counts.
⩥ What is skimming? Answer: An 'off-book' technique to remove cash
before it is recorded in the company's accounting system.
⩥ How can skimming be detected? Answer: By tracking sequentially
numbered receipts and monitoring for lost register tapes.
,⩥ What is kiting? Answer: A scheme that involves building up balances
in multiple bank accounts based on floating checks drawn against other
accounts.
⩥ How can kiting be caught? Answer: By looking for frequent deposits
and checks of the same amount, and conducting bank reconciliation
audits.
⩥ What are fictitious receivables? Answer: Covering a phony sale with
an equally phony receivable that may eventually be written off.
⩥ How can fictitious receivables be detected? Answer: By scrutinizing
accounts receivable confirmations and examining write-offs for
inconsistencies.
⩥ What is the impact of shoplifting on inventory fraud? Answer:
Employees often steal more than shoplifters, leading to significant
inventory loss.
⩥ How can businesses monitor for inventory theft? Answer: Using
remote and live video recording and Point-of-Sale (POS) monitoring to
analyze transaction patterns.
,⩥ What is accounts payable fraud? Answer: Fraud that occurs when
duplicate payments are made or errors exist in supplier invoices.
⩥ What percentage of total purchases can companies lose to duplicate
payments? Answer: Companies can lose as much as two percent of total
purchases due to duplicate payments.
⩥ What is one way to prevent fraud in cash handling? Answer:
Implementing mandatory vacations and requiring two employees to
open mail.
⩥ What is the role of forensic auditors in detecting fraud? Answer:
Forensic auditors examine evidence of accounts receivable and sales,
looking for discrepancies and red flags.
⩥ What is the significance of the collection ratio in fraud detection?
Answer: Fluctuations in the collection ratio can indicate fictitious
receivables or other forms of fraud.
⩥ What is the purpose of a bank reconciliation audit? Answer: To verify
the accuracy of bank statements and detect discrepancies related to
fraud.
, ⩥ What are some preventive measures against cash theft? Answer:
Segregation of duties, regular cash counts, and reconciling cash receipts
with register tapes.
⩥ How can analytical procedures help in fraud detection? Answer: They
evaluate changes in revenue trends and can reveal signs of skimming or
money laundering.
⩥ What is the impact of strong internal controls on fraud prevention?
Answer: Strong internal controls and separation of duties are vital in
preventing both skimming and cash larceny.
⩥ What is the relationship between employee theft and shoplifting?
Answer: Employees steal significantly more than shoplifters, making
internal theft a major concern for businesses.
⩥ What are some common fraud schemes in cash handling? Answer:
Larceny, skimming, and kiting are prevalent schemes used to
misappropriate cash.
⩥ How can businesses track cash flow to prevent fraud? Answer: By
using online account information to monitor daily balances and
transactions.
