Fraud Examination Exam #1 questions
and answers already passed
What is the most common way to classify fraud? - correct answer ✔✔Those that are committed
against an organization, and those that are committed on behalf of organizations
Fraud committed against the organization, where the victim of the fraud is the employee's
organization. - correct answer ✔✔Employee fraud
Fraud committed on behalf of the organization, where its reported financial statements look
better than they actually are. - correct answer ✔✔Financial statement fraud
The use of one's occupation for personnel enrichment through the deliberate misuse or
misapplication of the employing organization's resources or assets. - correct answer
✔✔Occupational fraud
What are the three major categories of occupational fraud? - correct answer ✔✔1. Asset
misappropriations
2. Corruption
3. Fraudulent statements
Involves the theft or misuse of an organization's assets. - correct answer ✔✔Asset
misappropriations
Involves the wrongful use of the fraudsters influence in a business transaction in order to
procure some benefit for themselves or another person, contrary to their duty to their
employer or the rights of another. - correct answer ✔✔Corruption
,Involves the general falsification of an organization's financial statements. - correct answer
✔✔Fraudulent statements
Employees use their positions to take or divert assets belonging to their employer. - correct
answer ✔✔Employee embezzlement
The most common type of fraud. - correct answer ✔✔Employee embezzlement
Third parties either overkill or provide lower quality or fewer goods than agreed. - correct
answer ✔✔Vendor fraud
Consumers do not pay, pay too little, or get too much from the organization through deception.
- correct answer ✔✔Customer fraud
Higher level employees manipulate the financial statements to make the company look better
than it is. - correct answer ✔✔Management fraud
The most expensive type of fraud. - correct answer ✔✔Financial statement fraud
These types of frauds are committed on the Internet and in person and obtain the confidence of
individuals to get them to invest money in worthless schemes. - correct answer ✔✔Investment
scams and other consumer frauds
Anytime anyone takes advantage of the confidence of another person to deceive him or her. -
correct answer ✔✔Other (miscellaneous) types of fraud
Lure investment funds from victims and then pay those victims a premium or interest from
money that is paid by subsequent investors. - correct answer ✔✔Ponzi schemes
, Victims send money to people they do not know personally or give personal financial
information to unknown callers. - correct answer ✔✔Telemarketing fraud
Occurs when a potential victim receives an e-mail or other form of communication promising
the victim a large financial payout in exchange for help in transporting large sums of money
from one country to another. - correct answer ✔✔Nigerian letter or money scams
Occurs when someone assumes the identity of another person to purchase goods, engage in
criminal activity, or perpetrate fraud. - correct answer ✔✔Identity theft
Occurs when a victim pays an up-front cost for a good or service that is never delivered. -
correct answer ✔✔Advance fee scams
Perpetrators claim that the U.S. government controls certain bank accounts that can be
accessed by submitting paperwork with government officials. In order to gain access to this
paperwork, victims must buy expensive training kits that teach individuals how to access the
funds. When the victim is unable to access the government funds, the perpetrator will indicate
that the paperwork was not filled out correctly and will often charge additional fees for more
training. - correct answer ✔✔Redemption/strawman/bond fraud
Fraud perpetrators often create bogus letters or creed and then sell them to unsuspecting
victims. - correct answer ✔✔Letter of credit fraud
Perpetrators today will conduct online scams that are simply new versions of schemes that have
been perpetrated offline for years. - correct answer ✔✔Internet fraud
The branch of law that deals with offenses of a public nature. They generally deal with offenses
against society as a whole, and are prosecuted either federally or by a state for violating a
statute that prohibits some type of activity. - correct answer ✔✔Criminal law
and answers already passed
What is the most common way to classify fraud? - correct answer ✔✔Those that are committed
against an organization, and those that are committed on behalf of organizations
Fraud committed against the organization, where the victim of the fraud is the employee's
organization. - correct answer ✔✔Employee fraud
Fraud committed on behalf of the organization, where its reported financial statements look
better than they actually are. - correct answer ✔✔Financial statement fraud
The use of one's occupation for personnel enrichment through the deliberate misuse or
misapplication of the employing organization's resources or assets. - correct answer
✔✔Occupational fraud
What are the three major categories of occupational fraud? - correct answer ✔✔1. Asset
misappropriations
2. Corruption
3. Fraudulent statements
Involves the theft or misuse of an organization's assets. - correct answer ✔✔Asset
misappropriations
Involves the wrongful use of the fraudsters influence in a business transaction in order to
procure some benefit for themselves or another person, contrary to their duty to their
employer or the rights of another. - correct answer ✔✔Corruption
,Involves the general falsification of an organization's financial statements. - correct answer
✔✔Fraudulent statements
Employees use their positions to take or divert assets belonging to their employer. - correct
answer ✔✔Employee embezzlement
The most common type of fraud. - correct answer ✔✔Employee embezzlement
Third parties either overkill or provide lower quality or fewer goods than agreed. - correct
answer ✔✔Vendor fraud
Consumers do not pay, pay too little, or get too much from the organization through deception.
- correct answer ✔✔Customer fraud
Higher level employees manipulate the financial statements to make the company look better
than it is. - correct answer ✔✔Management fraud
The most expensive type of fraud. - correct answer ✔✔Financial statement fraud
These types of frauds are committed on the Internet and in person and obtain the confidence of
individuals to get them to invest money in worthless schemes. - correct answer ✔✔Investment
scams and other consumer frauds
Anytime anyone takes advantage of the confidence of another person to deceive him or her. -
correct answer ✔✔Other (miscellaneous) types of fraud
Lure investment funds from victims and then pay those victims a premium or interest from
money that is paid by subsequent investors. - correct answer ✔✔Ponzi schemes
, Victims send money to people they do not know personally or give personal financial
information to unknown callers. - correct answer ✔✔Telemarketing fraud
Occurs when a potential victim receives an e-mail or other form of communication promising
the victim a large financial payout in exchange for help in transporting large sums of money
from one country to another. - correct answer ✔✔Nigerian letter or money scams
Occurs when someone assumes the identity of another person to purchase goods, engage in
criminal activity, or perpetrate fraud. - correct answer ✔✔Identity theft
Occurs when a victim pays an up-front cost for a good or service that is never delivered. -
correct answer ✔✔Advance fee scams
Perpetrators claim that the U.S. government controls certain bank accounts that can be
accessed by submitting paperwork with government officials. In order to gain access to this
paperwork, victims must buy expensive training kits that teach individuals how to access the
funds. When the victim is unable to access the government funds, the perpetrator will indicate
that the paperwork was not filled out correctly and will often charge additional fees for more
training. - correct answer ✔✔Redemption/strawman/bond fraud
Fraud perpetrators often create bogus letters or creed and then sell them to unsuspecting
victims. - correct answer ✔✔Letter of credit fraud
Perpetrators today will conduct online scams that are simply new versions of schemes that have
been perpetrated offline for years. - correct answer ✔✔Internet fraud
The branch of law that deals with offenses of a public nature. They generally deal with offenses
against society as a whole, and are prosecuted either federally or by a state for violating a
statute that prohibits some type of activity. - correct answer ✔✔Criminal law
