CH 6--Data-Driven Fraud Detection Exam Questions and Answers Already Passed
Which of the following statements is not true?
a. In recent years there have been many cases of financial statement fraud.
b. Proactive fraud detection methods are in their infancy.
c. Accounting anomalies indicate fraud has or is occurring.
d. Fraud investigation involves determining who committed the fraud, the schemes used and how much
money or
assets were taken. - AnswersC. Accounting anomalies represent fraud and normally result in legal action
being taken.
A ______ is a financial statement that reflects account balances at a specific point in time like a
snapshot.
a. periodic statement
b. position statement
c. change statement
d. static statement - AnswersB. position statement
The proactive method of fraud detection is a six-step process. Which of the following is the correct
process sequence?
a. Identify possible frauds that could exist; catalog possible fraud symptoms; understand the business;
use
technology to gather data about symptoms; automotive detection procedures; analyze results; and
investigate
symptoms
b. Catalog possible fraud symptoms; understand the business; identify possible frauds that could exist;
analyze
results; use technology to gather data about symptoms; and investigate symptoms
c. Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms;
investigate
symptoms; use technology to gather data about symptoms; and analyze results
, d. Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms;
use
technology to gather data about symptoms; analyze results; and investigate symptoms - AnswersD.
Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; use
technology to gather data about symptoms; analyze results; and investigate symptoms
ACL stands for
a. Account Coverage Level.
b. Audit Command Language.
c. Actuarial Confidence Level.
d. Auditors' Common Language. - AnswersB. Audit Command Language.
Which of the following is true for accounting anomalies?
a. They are primarily caused by lack of training.
b. They represent intentional sabotage of controls.
c. They are problems caused by failures in systems, procedures, and policies.
d. They represent fraud. - AnswersC. They are problems caused by failures in systems, procedures, and
policies.
Which of the following is the most direct method of focusing on changes in the company's balance sheet
and income statement?
a. Calculating key ratios and comparing them from period to period
b. Comparing account balances in the statements from one period to the next
c. Performing a vertical analysis
d. Performing a horizontal analysis - AnswersD. Performing a horizontal analysis
While using n-grams, a match percentage of ________ or ________ generally indicates very similar
values.
a. 10 percent, smaller
b. 20 percent, greater
c. 5 percent, smaller
d. 40 percent, greater - AnswersB. 20 percent, greater
Which of the following statements is not true?
a. In recent years there have been many cases of financial statement fraud.
b. Proactive fraud detection methods are in their infancy.
c. Accounting anomalies indicate fraud has or is occurring.
d. Fraud investigation involves determining who committed the fraud, the schemes used and how much
money or
assets were taken. - AnswersC. Accounting anomalies represent fraud and normally result in legal action
being taken.
A ______ is a financial statement that reflects account balances at a specific point in time like a
snapshot.
a. periodic statement
b. position statement
c. change statement
d. static statement - AnswersB. position statement
The proactive method of fraud detection is a six-step process. Which of the following is the correct
process sequence?
a. Identify possible frauds that could exist; catalog possible fraud symptoms; understand the business;
use
technology to gather data about symptoms; automotive detection procedures; analyze results; and
investigate
symptoms
b. Catalog possible fraud symptoms; understand the business; identify possible frauds that could exist;
analyze
results; use technology to gather data about symptoms; and investigate symptoms
c. Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms;
investigate
symptoms; use technology to gather data about symptoms; and analyze results
, d. Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms;
use
technology to gather data about symptoms; analyze results; and investigate symptoms - AnswersD.
Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; use
technology to gather data about symptoms; analyze results; and investigate symptoms
ACL stands for
a. Account Coverage Level.
b. Audit Command Language.
c. Actuarial Confidence Level.
d. Auditors' Common Language. - AnswersB. Audit Command Language.
Which of the following is true for accounting anomalies?
a. They are primarily caused by lack of training.
b. They represent intentional sabotage of controls.
c. They are problems caused by failures in systems, procedures, and policies.
d. They represent fraud. - AnswersC. They are problems caused by failures in systems, procedures, and
policies.
Which of the following is the most direct method of focusing on changes in the company's balance sheet
and income statement?
a. Calculating key ratios and comparing them from period to period
b. Comparing account balances in the statements from one period to the next
c. Performing a vertical analysis
d. Performing a horizontal analysis - AnswersD. Performing a horizontal analysis
While using n-grams, a match percentage of ________ or ________ generally indicates very similar
values.
a. 10 percent, smaller
b. 20 percent, greater
c. 5 percent, smaller
d. 40 percent, greater - AnswersB. 20 percent, greater
