Fraud Examination Test 1-Solved 100%

_______ is the set of circumstances that would lead a prudent and reasonable person to believe that a fraud has occurred, is occurring, or will occur. a. Suspicion b. Guilt c. Predication d. Predilection e. Premonition - ANSWER-Predication In a typical fraud examination, which of the following should be interviewed last? a. Co-conspirators. b. The accused person. c. Neutral third-party witnesses. d. Corroborative witnesses. - ANSWER-The accused person The purpose of ______ is to gather evidence in order to form an opinion about whether financial statements are presented fairly. a. Fraud examination b. Forensic accounting c. Auditing d. Accounting - ANSWER-Auditing Once sufficient predication has been established, what is the first step a fraud examiner should take? a. Create a hypothesis. b. Analyze available information and documents. c. Interview witnesses. d. Interview the suspect. - ANSWER-Analyze available information and documents Joel Baker, a customer of ABC Electronics, stole a box containing computer games while the sales associate waited on another customer. Which of the following could Joel be charged with? a. Larceny b. Embezzlement c. Fraud d. All of the above - ANSWER-Larceny In the ACFE Report to the Nations on Occupational Fraud and Abuse, the category that committed the largest percentage of occupational fraud was: a. Managers b. Employees c. Owners/Executives d. Other (external parties) - ANSWER-Employees