FRAUD EXAMINATION EXAM 1 09/21/2026
Fraud Examination Exam 1 latest 2027/2026 |
VERIFIED QUESTIONS & CORRECT ANSWERS,
GRADED A+
___________________ is the theft of cash from a victim entity prior to its entry in an accounting system.
A. fictitious disbursement
B. Skimming
C. Larceny
D. Conversion
Which of the following best describes the objective of a fraud examination?
a. To make recommendations to management about how to prevent fraud
b. To determine whether financial statements are free of misstatements due to fraud
c. To express an opinion on the guilt or innocence of a suspect
d. To determine whether a crime has been committed, and if so, who is responsible
Which of the following is not a part of the fraud theory approach?
a. Analyze available data.
b. Develop "what-if" scenarios.
c. Identify who committed the fraud.
9/21/2026
d. Refine the hypothesis.
1
, FRAUD EXAMINATION EXAM 1 09/21/2026
Once sufficient predication has been established, what is the first step a fraud examiner following the
fraud theory approach should take?
a. Create a hypothesis.
b. Analyze data.
c. Interview witnesses.
d. Interview the suspect.
The discipline of fraud examination includes all of the following except:
a. Writing investigative reports
b. Determining the guilt of the suspect
c. Testifying to findings
d. Interviewing witnesses
Fraud examination differs from auditing in that fraud examination is:
a. Recurring
b. Adversarial
c. General in scope
d. All of the above
Predication, although important, is not required in a fraud examination.
True
9/21/2026
False
2
, FRAUD EXAMINATION EXAM 1 09/21/2026
In a fraud examination, evidence is usually gathered in a manner that moves from general to specific.
True
False
Which of the following is the correct order for a fraud examiner to interview witnesses?
a. Corroborative witnesses, neutral third-parties, co-conspirators, suspect
b. Suspect, co-conspirators, corroborative witnesses, neutral third-parties
c. Neutral third-parties, corroborative witnesses, co-conspirators, suspect
d. Suspect, corroborative witnesses, co-conspirators, neutral third-parties
In order to prove that fraud occurred, four elements must be present. Which of the following is not one
of those elements?
a. A material false statement
b. Knowledge that the statement was false
c. Reliance on the false statement by the victim
d. Intent to cause the victim damages
The basic tenet of Edwin Sutherland's theory of differential association is that crime is passed on
genetically; that is, the offspring of criminals commit crimes because their parents did.
True
False
9/21/2026
3
, FRAUD EXAMINATION EXAM 1 09/21/2026
Who developed the Fraud Scale?
a. Joseph T. Wells
b. W. Steve Albrecht
c. Richard C. Hollinger
d. Donald R. Cressey
Which of the following is not one of the legs of the Fraud Triangle?
a. Situational environment
b. Perceived non-sharable financial need
c. Perceived opportunity
d. Rationalization
According to Cressey, the perceived opportunity to commit fraud consists of two elements: general
information and technical skill.
True
False
In a study by Steve Albrecht, Marshall Romney, and Keith Howe, participants were asked to rank
personal characteristics as motivating factors that contributed to fraud. The highest ranked factor was:
a. Undue family or peer pressure
b. Lack of recognition of job performance
9/21/2026
c. Living beyond one's means
d. Lack of appreciation by management
4
Fraud Examination Exam 1 latest 2027/2026 |
VERIFIED QUESTIONS & CORRECT ANSWERS,
GRADED A+
___________________ is the theft of cash from a victim entity prior to its entry in an accounting system.
A. fictitious disbursement
B. Skimming
C. Larceny
D. Conversion
Which of the following best describes the objective of a fraud examination?
a. To make recommendations to management about how to prevent fraud
b. To determine whether financial statements are free of misstatements due to fraud
c. To express an opinion on the guilt or innocence of a suspect
d. To determine whether a crime has been committed, and if so, who is responsible
Which of the following is not a part of the fraud theory approach?
a. Analyze available data.
b. Develop "what-if" scenarios.
c. Identify who committed the fraud.
9/21/2026
d. Refine the hypothesis.
1
, FRAUD EXAMINATION EXAM 1 09/21/2026
Once sufficient predication has been established, what is the first step a fraud examiner following the
fraud theory approach should take?
a. Create a hypothesis.
b. Analyze data.
c. Interview witnesses.
d. Interview the suspect.
The discipline of fraud examination includes all of the following except:
a. Writing investigative reports
b. Determining the guilt of the suspect
c. Testifying to findings
d. Interviewing witnesses
Fraud examination differs from auditing in that fraud examination is:
a. Recurring
b. Adversarial
c. General in scope
d. All of the above
Predication, although important, is not required in a fraud examination.
True
9/21/2026
False
2
, FRAUD EXAMINATION EXAM 1 09/21/2026
In a fraud examination, evidence is usually gathered in a manner that moves from general to specific.
True
False
Which of the following is the correct order for a fraud examiner to interview witnesses?
a. Corroborative witnesses, neutral third-parties, co-conspirators, suspect
b. Suspect, co-conspirators, corroborative witnesses, neutral third-parties
c. Neutral third-parties, corroborative witnesses, co-conspirators, suspect
d. Suspect, corroborative witnesses, co-conspirators, neutral third-parties
In order to prove that fraud occurred, four elements must be present. Which of the following is not one
of those elements?
a. A material false statement
b. Knowledge that the statement was false
c. Reliance on the false statement by the victim
d. Intent to cause the victim damages
The basic tenet of Edwin Sutherland's theory of differential association is that crime is passed on
genetically; that is, the offspring of criminals commit crimes because their parents did.
True
False
9/21/2026
3
, FRAUD EXAMINATION EXAM 1 09/21/2026
Who developed the Fraud Scale?
a. Joseph T. Wells
b. W. Steve Albrecht
c. Richard C. Hollinger
d. Donald R. Cressey
Which of the following is not one of the legs of the Fraud Triangle?
a. Situational environment
b. Perceived non-sharable financial need
c. Perceived opportunity
d. Rationalization
According to Cressey, the perceived opportunity to commit fraud consists of two elements: general
information and technical skill.
True
False
In a study by Steve Albrecht, Marshall Romney, and Keith Howe, participants were asked to rank
personal characteristics as motivating factors that contributed to fraud. The highest ranked factor was:
a. Undue family or peer pressure
b. Lack of recognition of job performance
9/21/2026
c. Living beyond one's means
d. Lack of appreciation by management
4
