CH 1 CORE FOUNDATION RELATED TO FORENSIC ACCOUNTING AND FRAUD INVESTIGATION QUESTIONS WITH CORRECT ANSWERS

An operating style that shows excessive risk-taking to strengthen the balance sheet, for example, is generally a red flag for fraud. T/F CORRECT ANSWER T The Institute for Fraud Prevention (IFP) fulfills the first of its two missions with member organizations supported research by selecting projects and providing funding, guidance, and data that will help us better understand fraud with a long-term goal of reducing its incidence and effects. T/F CORRECT ANSWER T Laws such as the RICO Act (racketeering influence and corrupt organizations), money laundering, false claims, bankruptcy fraud, tax evasion, conspiracy, and obstruction of justice require that "reasonable believe" is established prior to intrusive searches in order to comply with the regulatory rules of evidence. T/F CORRECT ANSWER F Under generally accepted auditing standards (GAAS) auditors are not currently responsible for planning and performing auditing procedures to detect immaterial misstatements, regardless of whether they are caused by error or fraud. T/F CORRECT ANSWER T