WGU D551 - FRAUD & FORENSIC
ACCOUNTING COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Fraud Risk Factors.
Answer: MotivationalSituationalBehavioral
◍ sas 99 requires that auditors report any evidence found that fraud may exist
to what?.
Answer: inventory accounts, cash accounts, financial reports
◍ Conversion.
Answer: Tort, an unauthorized assumption and exercise of the right of
ownership over goods or personal chattels belonging to another, to the
alteration of their condition or the exclusion of the owner's rights. A person
commits this when he or she takes possession of property that does not
belong to him or her and, thereby, deprives the true owner of the property
for any length of time.
◍ What is a term that some business processes are called.
Answer: cycles
◍ suspicino f fraud probably affects what.
Answer: audit procedures selected by the auditor and amount of testing
◍ when should CFE's include an opinion of guilt in their fraud reports.
Answer: never
◍ Types of Compensatory Damages.
Answer: Economic LossReliance Loss
,◍ an accountant opens the mail and posts check to AR, what is the best way to
describe this internal control.
Answer: weak
◍ Punitive Loss.
Answer: Type of loss available for recovery awarded on top of other losses
◍ Commercial Bribery.
Answer: Similar to the traditional definition of bribery except that
something of value is offered to influence a business decision rather than an
official act of government.
◍ Tort.
Answer: Private or civil wrong or injury, other than breach of contract, for
which the law will provide a remedy in the form of an action for damages.
◍ Analytical Anomaly.
Answer: Identified through ratio analysis or financial trend analysis
◍ which of the following groups is the primary promulgator of financial
auditing standards for private companies.
Answer: PCAOB
◍ an objective of the review of physical and document evidence is to.
Answer: become as familiar with the business processes as possible
◍ SAS no. 99 requires auditors design financial audits in such a way to have a
reasonable chance to what.
Answer: have a reasonable chance of detecting misstatements in the
financial reports
◍ Predication.
Answer: The totality of circumstances that lead a reasonable, professionally
trained, and prudent individual to believe that a fraud has occurred, is
occurring, and/or will occur.
◍ Integration.
Answer: Third and final stage, is the attempt to convert the placed and
, layered money back into the hands of the perpetrator in a form that the
perpetrator can use without risk of prosecution for being associated with
dirty money
◍ Three Stages of Interviews.
Answer: IntroductionBodyClose
◍ Criminal Conspiracy.
Answer: Occurs when two or more people intend to commit an illegal act
and take some steps toward its implementation.
◍ fraud theory is similar to a fraud schem except with respect to what.
Answer: why?
◍ what happens in an arraignment.
Answer: defendant brought before judge, receives copy of charges,
defendant enters a plea of guilty or not guilty
◍ when properly implemented, internal controls.
Answer: minimize loss exposures
◍ Compensatory.
Answer: Make the victim whole
◍ Act.
Answer: Fraud, act, tort, breach of contract
◍ How many components of risk must an auditor consider.
Answer: 4, audit risk, inherent risk, control risk, detection risk
◍ Process Owner.
Answer: the person responsible for the end-to-end functioning of a business
process, a mid to senior level executive or manager
◍ acceptalbe detection risk depends on what?.
Answer: inherrent risk, control risk and acceptable audit risk
◍ what describes auditors.
Answer: facilitators of the movement of capital between investorsa and
ACCOUNTING COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Fraud Risk Factors.
Answer: MotivationalSituationalBehavioral
◍ sas 99 requires that auditors report any evidence found that fraud may exist
to what?.
Answer: inventory accounts, cash accounts, financial reports
◍ Conversion.
Answer: Tort, an unauthorized assumption and exercise of the right of
ownership over goods or personal chattels belonging to another, to the
alteration of their condition or the exclusion of the owner's rights. A person
commits this when he or she takes possession of property that does not
belong to him or her and, thereby, deprives the true owner of the property
for any length of time.
◍ What is a term that some business processes are called.
Answer: cycles
◍ suspicino f fraud probably affects what.
Answer: audit procedures selected by the auditor and amount of testing
◍ when should CFE's include an opinion of guilt in their fraud reports.
Answer: never
◍ Types of Compensatory Damages.
Answer: Economic LossReliance Loss
,◍ an accountant opens the mail and posts check to AR, what is the best way to
describe this internal control.
Answer: weak
◍ Punitive Loss.
Answer: Type of loss available for recovery awarded on top of other losses
◍ Commercial Bribery.
Answer: Similar to the traditional definition of bribery except that
something of value is offered to influence a business decision rather than an
official act of government.
◍ Tort.
Answer: Private or civil wrong or injury, other than breach of contract, for
which the law will provide a remedy in the form of an action for damages.
◍ Analytical Anomaly.
Answer: Identified through ratio analysis or financial trend analysis
◍ which of the following groups is the primary promulgator of financial
auditing standards for private companies.
Answer: PCAOB
◍ an objective of the review of physical and document evidence is to.
Answer: become as familiar with the business processes as possible
◍ SAS no. 99 requires auditors design financial audits in such a way to have a
reasonable chance to what.
Answer: have a reasonable chance of detecting misstatements in the
financial reports
◍ Predication.
Answer: The totality of circumstances that lead a reasonable, professionally
trained, and prudent individual to believe that a fraud has occurred, is
occurring, and/or will occur.
◍ Integration.
Answer: Third and final stage, is the attempt to convert the placed and
, layered money back into the hands of the perpetrator in a form that the
perpetrator can use without risk of prosecution for being associated with
dirty money
◍ Three Stages of Interviews.
Answer: IntroductionBodyClose
◍ Criminal Conspiracy.
Answer: Occurs when two or more people intend to commit an illegal act
and take some steps toward its implementation.
◍ fraud theory is similar to a fraud schem except with respect to what.
Answer: why?
◍ what happens in an arraignment.
Answer: defendant brought before judge, receives copy of charges,
defendant enters a plea of guilty or not guilty
◍ when properly implemented, internal controls.
Answer: minimize loss exposures
◍ Compensatory.
Answer: Make the victim whole
◍ Act.
Answer: Fraud, act, tort, breach of contract
◍ How many components of risk must an auditor consider.
Answer: 4, audit risk, inherent risk, control risk, detection risk
◍ Process Owner.
Answer: the person responsible for the end-to-end functioning of a business
process, a mid to senior level executive or manager
◍ acceptalbe detection risk depends on what?.
Answer: inherrent risk, control risk and acceptable audit risk
◍ what describes auditors.
Answer: facilitators of the movement of capital between investorsa and
