FRAUD EXAMINATION 6TH EDITION ALBRECHT
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ Perpetrators use trickery, confidence, and deception to commit
fraud.
Answer: True
◉ One of the most common responses to fraud is disbelief by those
around the fraud.
Answer: True
◉ Manufacturing companies with a profit margin of 10 percent must
usually generate about 10 times as much revenue as the dollar
amount of the fraud in order to restore net income to its pre-fraud
level.
Answer: True
◉ Fraud involves using physical force to take something from
someone
Answer: False
◉ Identity theft is an example of employee embezzlement.
,Answer: False
◉ When perpetrators are criminally convicted of fraud, they often
serve jail sentences and/or pay fines.
Answer: True
◉ Management fraud is deception perpetrated by an organization's
top management.
Answer: True
◉ A Ponzi scheme is considered to be a type of investment scam.
Answer: True
◉ Most people agree that fraud-related careers will be in demand in
the future.
Answer: True
◉ In civil cases, fraud experts are rarely used as expert witnesses.
Answer: False
◉ Many companies try to hide their losses from fraud rather than
make them public.
Answer: True
,◉ The only group/business that must report employee
embezzlement is the federal government
Answer: False
◉ Advances in technology have had no effect either on the size or
frequency of fraud or on the detection or investigation of fraud.
Answer: False
◉ Fraud losses generally reduce a firm's income on a dollar-for-
dollar basis.
Answer: True
◉ The single most critical element for a fraud to be successful is
opportunity.
Answer: False
◉ Fraud perpetrators are often those who are least suspected and
most trusted
Answer: True
◉ Unintentional errors in financial statements are a form of fraud.
Answer: False
, ◉ Occupational fraud is fraud committed on behalf of an
organization.
Answer: False
◉ Companies that commit financial statement fraud are often
experiencing net losses or have profits that are significantly lower
than expectations.
Answer: True
◉ Indirect fraud occurs when a company's assets go directly into the
perpetrator's pockets without the involvement of third parties
Answer: False
◉ In vendor fraud, customers don't pay for goods purchased.
Answer: False
◉ A negative outcome in a civil lawsuit usually results in jail time for
the perpetrator.
Answer: False
◉ When fraud is committed, criminal prosecution usually proceeds
before civil litigation.
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ Perpetrators use trickery, confidence, and deception to commit
fraud.
Answer: True
◉ One of the most common responses to fraud is disbelief by those
around the fraud.
Answer: True
◉ Manufacturing companies with a profit margin of 10 percent must
usually generate about 10 times as much revenue as the dollar
amount of the fraud in order to restore net income to its pre-fraud
level.
Answer: True
◉ Fraud involves using physical force to take something from
someone
Answer: False
◉ Identity theft is an example of employee embezzlement.
,Answer: False
◉ When perpetrators are criminally convicted of fraud, they often
serve jail sentences and/or pay fines.
Answer: True
◉ Management fraud is deception perpetrated by an organization's
top management.
Answer: True
◉ A Ponzi scheme is considered to be a type of investment scam.
Answer: True
◉ Most people agree that fraud-related careers will be in demand in
the future.
Answer: True
◉ In civil cases, fraud experts are rarely used as expert witnesses.
Answer: False
◉ Many companies try to hide their losses from fraud rather than
make them public.
Answer: True
,◉ The only group/business that must report employee
embezzlement is the federal government
Answer: False
◉ Advances in technology have had no effect either on the size or
frequency of fraud or on the detection or investigation of fraud.
Answer: False
◉ Fraud losses generally reduce a firm's income on a dollar-for-
dollar basis.
Answer: True
◉ The single most critical element for a fraud to be successful is
opportunity.
Answer: False
◉ Fraud perpetrators are often those who are least suspected and
most trusted
Answer: True
◉ Unintentional errors in financial statements are a form of fraud.
Answer: False
, ◉ Occupational fraud is fraud committed on behalf of an
organization.
Answer: False
◉ Companies that commit financial statement fraud are often
experiencing net losses or have profits that are significantly lower
than expectations.
Answer: True
◉ Indirect fraud occurs when a company's assets go directly into the
perpetrator's pockets without the involvement of third parties
Answer: False
◉ In vendor fraud, customers don't pay for goods purchased.
Answer: False
◉ A negative outcome in a civil lawsuit usually results in jail time for
the perpetrator.
Answer: False
◉ When fraud is committed, criminal prosecution usually proceeds
before civil litigation.
