TEST BANKQ
Fraud Examination7th Edition b
Q Q Q Q Q
y Albrecht All Chapters 1 to 18
Q Q Q Q Q Q
Page 1
Q
,TABLE OF CONTENTS Q Q
Part I: INTRODUCTION TO FRAUD.
Q Q Q Q
1. The Nature of Fraud.
Q Q Q
2. Who Commits Fraud and Why.
Q Q Q Q
3. Fighting Fraud: An Overview. Q Q Q Q
Part II: FRAUD PREVENTION.
Q Q Q
4. Preventing Fraud. Q
Part III: FRAUD DETECTION.
Q Q Q
5. Recognizing the Symptoms of Fraud. Q Q Q Q
6. Data-Driven Fraud Detection Q Q
Part IV: FRAUD INVESTIGATION.
Q Q Q
7. Investigating Theft Acts. Q Q
8. Investigating Concealment. Q
9. Conversion Investigation Methods. Q Q
10. Inquiry Methods and Fraud Reports.
Q Q Q Q
Part V: MANAGEMENT FRAUD.
Q Q Q
11. Financial Statement Fraud. Q Q
12. Revenue- and Inventory-Related Financial Statement Frauds.
Q Q Q Q Q
13. Liability, Asset, and Inadequate Disclosure Frauds.
Q Q Q Q Q
Part VI: OTHER TYPES OF FRAUD.
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14. Fraud Against Organizations.
Q Q
15. Consumer Fraud. Q
16. Bankruptcy, Divorce, and Tax Fraud. Q Q Q Q
17. e-Commerce Fraud. Q
Part VII: RESOLUTION OF FRAUD.
Q Q Q Q
18. Legal Follow-Up. Q
Page 2
Q
,Chapter 01 - The Nature of Fraud
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1. One way that criminal law differs from civil law is that it:
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a. provides remedies for violations of private rights.
Q Q Q Q Q Q
b. must yield a unanimous verdict.
Q Q Q Q
c. can have a jury of fewer than 12 persons.
Q Q Q Q Q Q Q Q
d. allows for various claims in one action.
Q Q Q Q Q Q
ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
Q Q Q Q Q Q Q Q Q Q Q Q Q
characteristic of civil law; criminal law deals with crimes against society as awhole.
Q Q Q Q Q Q Q Q Q Q Q Q
b. Correct. Criminal trials must result in a unanimous verdict.
Q Q Q Q Q Q Q Q
c. Incorrect. The requirement for a unanimous vote characteristic of civil law;
Q Q Q Q Q Q Q Q Q Q Q
criminal trial juries must have 12 persons. Q Q Q Q Q Q
d. Incorrect. In inclusion of various claims in one action is a characteristic of civillaw;
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
criminal law permits only one claim at a time. Q Q Q Q Q Q Q Q
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraud
Q Q Q Q Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Q Q Q Q Q Q Q Q Q Q
OTHER: Source: 6e revised Q Q
DATE CREATED:
Q 2/8/2024 7:10 AM Q Q
DATE MODIFIED:
Q 2/8/2024 7:14 AM Q Q
2. Which of the following is NOT an common element of a Ponzi scheme?
Q Q Q Q Q Q Q Q Q Q Q Q
a. Gaining other's confidence Q Q
b. Promising abnormally high returns Q Q Q
c. Investing collected money Q Q
d. Using part of the investment principle to pay previous investors
Q Q Q Q Q Q Q Q Q
ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
Q Q Q Q Q Q Q Q Q Q Q Q Q
“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
Q Q Q Q Q Q Q Q Q Q
c. Correct. Investing collected money is very unlikely.
Q Q Q Q Q Q
d. Incorrect. In Ponzi schemes, the original principle is often used to make interest
Q Q Q Q Q Q Q Q Q Q Q Q Q
payments.
POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud Q Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.3 - Understand Different Types of Fraud. Q Q Q Q Q Q
OTHER: Source: 6e , revised Q Q Q
DATE CREATED:
Q 2/9/2024 5:11 AM Q Q
DATE MODIFIED:
Q 2/9/2024 5:32 AM Q Q
Page 3
Q
, Chapter 01 - The Nature of Fraud
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3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
Q Q Q Q Q Q Q Q Q Q Q Q
a. not reporting bribe income may be grounds for being charged with tax evasion.
Q Q Q Q Q Q Q Q Q Q Q Q
b. a tax filing that excludes income from fraud may be considered a false return.
Q Q Q Q Q Q Q Q Q Q Q Q Q
c. bribes may be lawfully deducted as business expenses.
Q Q Q Q Q Q Q
d. failure to report income from fraud may be grounds for being charged with tax evasion.
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
Q Q Q Q Q Q Q Q Q Q Q Q Q
evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be consideredan
Q Q Q Q Q Q Q Q Q Q Q Q
improper tax filing. Q Q
c. Correct. Bribes cannot be deducted as legitimate business expenses.
Q Q Q Q Q Q Q Q
d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
Q Q Q Q Q Q Q Q Q Q Q Q Q
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Q Q Q Q Q Q Q Q Q Q
OTHER: Source: 6e revised Q Q
DATE CREATED:
Q 2/9/2024 5:38 AM Q Q
DATE MODIFIED:
Q 2/9/2024 5:40 AM Q Q
4. Which one of the following is NOT a characteristic of a criminal proceeding?
Q Q Q Q Q Q Q Q Q Q Q Q
a. Criminal proceedings deal with offenses against society.
Q Q Q Q Q Q
b. Consequences of criminal proceedings include restitution and damage payments.
Q Q Q Q Q Q Q Q
c. Criminal proceedings involve a jury of 12 individuals.
Q Q Q Q Q Q Q
d. In criminal proceedings, only one claim may be heard at a time.
Q Q Q Q Q Q Q Q Q Q Q
ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. Q Q Q Q Q Q Q Q Q
b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
Q Q Q Q Q Q Q Q Q Q
c. Incorrect. A criminal jury consists of 12 jurors. Q Q Q Q Q Q Q
d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsmay be j
Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
oined into a single case.
Q Q Q Q
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Q Q Q Q Q Q Q Q Q Q
OTHER: Source: 6e revised Q Q
DATE CREATED:
Q 2/9/2024 6:36 AM Q Q
DATE MODIFIED:
Q 2/9/2024 6:38 AM Q Q
Page 4
Q
Fraud Examination7th Edition b
Q Q Q Q Q
y Albrecht All Chapters 1 to 18
Q Q Q Q Q Q
Page 1
Q
,TABLE OF CONTENTS Q Q
Part I: INTRODUCTION TO FRAUD.
Q Q Q Q
1. The Nature of Fraud.
Q Q Q
2. Who Commits Fraud and Why.
Q Q Q Q
3. Fighting Fraud: An Overview. Q Q Q Q
Part II: FRAUD PREVENTION.
Q Q Q
4. Preventing Fraud. Q
Part III: FRAUD DETECTION.
Q Q Q
5. Recognizing the Symptoms of Fraud. Q Q Q Q
6. Data-Driven Fraud Detection Q Q
Part IV: FRAUD INVESTIGATION.
Q Q Q
7. Investigating Theft Acts. Q Q
8. Investigating Concealment. Q
9. Conversion Investigation Methods. Q Q
10. Inquiry Methods and Fraud Reports.
Q Q Q Q
Part V: MANAGEMENT FRAUD.
Q Q Q
11. Financial Statement Fraud. Q Q
12. Revenue- and Inventory-Related Financial Statement Frauds.
Q Q Q Q Q
13. Liability, Asset, and Inadequate Disclosure Frauds.
Q Q Q Q Q
Part VI: OTHER TYPES OF FRAUD.
Q Q Q Q Q
14. Fraud Against Organizations.
Q Q
15. Consumer Fraud. Q
16. Bankruptcy, Divorce, and Tax Fraud. Q Q Q Q
17. e-Commerce Fraud. Q
Part VII: RESOLUTION OF FRAUD.
Q Q Q Q
18. Legal Follow-Up. Q
Page 2
Q
,Chapter 01 - The Nature of Fraud
Q Q Q Q Q Q
1. One way that criminal law differs from civil law is that it:
Q Q Q Q Q Q Q Q Q Q Q
a. provides remedies for violations of private rights.
Q Q Q Q Q Q
b. must yield a unanimous verdict.
Q Q Q Q
c. can have a jury of fewer than 12 persons.
Q Q Q Q Q Q Q Q
d. allows for various claims in one action.
Q Q Q Q Q Q
ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
Q Q Q Q Q Q Q Q Q Q Q Q Q
characteristic of civil law; criminal law deals with crimes against society as awhole.
Q Q Q Q Q Q Q Q Q Q Q Q
b. Correct. Criminal trials must result in a unanimous verdict.
Q Q Q Q Q Q Q Q
c. Incorrect. The requirement for a unanimous vote characteristic of civil law;
Q Q Q Q Q Q Q Q Q Q Q
criminal trial juries must have 12 persons. Q Q Q Q Q Q
d. Incorrect. In inclusion of various claims in one action is a characteristic of civillaw;
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
criminal law permits only one claim at a time. Q Q Q Q Q Q Q Q
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraud
Q Q Q Q Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Q Q Q Q Q Q Q Q Q Q
OTHER: Source: 6e revised Q Q
DATE CREATED:
Q 2/8/2024 7:10 AM Q Q
DATE MODIFIED:
Q 2/8/2024 7:14 AM Q Q
2. Which of the following is NOT an common element of a Ponzi scheme?
Q Q Q Q Q Q Q Q Q Q Q Q
a. Gaining other's confidence Q Q
b. Promising abnormally high returns Q Q Q
c. Investing collected money Q Q
d. Using part of the investment principle to pay previous investors
Q Q Q Q Q Q Q Q Q
ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
Q Q Q Q Q Q Q Q Q Q Q Q Q
“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
Q Q Q Q Q Q Q Q Q Q
c. Correct. Investing collected money is very unlikely.
Q Q Q Q Q Q
d. Incorrect. In Ponzi schemes, the original principle is often used to make interest
Q Q Q Q Q Q Q Q Q Q Q Q Q
payments.
POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud Q Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.3 - Understand Different Types of Fraud. Q Q Q Q Q Q
OTHER: Source: 6e , revised Q Q Q
DATE CREATED:
Q 2/9/2024 5:11 AM Q Q
DATE MODIFIED:
Q 2/9/2024 5:32 AM Q Q
Page 3
Q
, Chapter 01 - The Nature of Fraud
Q Q Q Q Q Q
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
Q Q Q Q Q Q Q Q Q Q Q Q
a. not reporting bribe income may be grounds for being charged with tax evasion.
Q Q Q Q Q Q Q Q Q Q Q Q
b. a tax filing that excludes income from fraud may be considered a false return.
Q Q Q Q Q Q Q Q Q Q Q Q Q
c. bribes may be lawfully deducted as business expenses.
Q Q Q Q Q Q Q
d. failure to report income from fraud may be grounds for being charged with tax evasion.
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
Q Q Q Q Q Q Q Q Q Q Q Q Q
evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be consideredan
Q Q Q Q Q Q Q Q Q Q Q Q
improper tax filing. Q Q
c. Correct. Bribes cannot be deducted as legitimate business expenses.
Q Q Q Q Q Q Q Q
d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
Q Q Q Q Q Q Q Q Q Q Q Q Q
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Q Q Q Q Q Q Q Q Q Q
OTHER: Source: 6e revised Q Q
DATE CREATED:
Q 2/9/2024 5:38 AM Q Q
DATE MODIFIED:
Q 2/9/2024 5:40 AM Q Q
4. Which one of the following is NOT a characteristic of a criminal proceeding?
Q Q Q Q Q Q Q Q Q Q Q Q
a. Criminal proceedings deal with offenses against society.
Q Q Q Q Q Q
b. Consequences of criminal proceedings include restitution and damage payments.
Q Q Q Q Q Q Q Q
c. Criminal proceedings involve a jury of 12 individuals.
Q Q Q Q Q Q Q
d. In criminal proceedings, only one claim may be heard at a time.
Q Q Q Q Q Q Q Q Q Q Q
ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. Q Q Q Q Q Q Q Q Q
b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
Q Q Q Q Q Q Q Q Q Q
c. Incorrect. A criminal jury consists of 12 jurors. Q Q Q Q Q Q Q
d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsmay be j
Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
oined into a single case.
Q Q Q Q
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Q
QUESTION TYPE: Q Multiple Choice Q
HAS VARIABLES:
Q False
LEARNING OBJECTIVES: Q Q FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Q Q Q Q Q Q Q Q Q Q
OTHER: Source: 6e revised Q Q
DATE CREATED:
Q 2/9/2024 6:36 AM Q Q
DATE MODIFIED:
Q 2/9/2024 6:38 AM Q Q
Page 4
Q
