Fraud Detection Chapter 1 Test Bank Questions and Answers Already Passed
One way that criminal law differs from civil law is that it:
a. provides remedies for violations of private rights
b. must yield an unanimous verdict
c. can have a jury of fewer than 12 persons
d. allows for various claims - Answersb. Must yield a unanimous verdict
Which of the following is NOT an element of a Ponzi scheme?
a. Gaining other's confidence
b. Promising abnormally high returns
c. Collected money is invested
d. Investment principle is partially used to make payments to previous investors - AnswersC. Collected
money is invested
The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
a. not reporting bribe income may be grounds for being charged with tax evasion
b. filing income tax that excludes income from fraud may be considered an improper tax filing
c. bribes paid may be deducted as business expenses
d. failure to report income from fraud may be grounds for being charged with tax evasion - Answersc.
bribes paid may be deducted as business expenses
Which of the following is NOT a characteristic of criminal proceeding?
a. deals with offenses against society
b. consequences include restitution and damage payments
c. Jury of 12 individuald
d. only one claim may be heard at a time - Answersb. consequences include restitution and damage
payments
Management fraud is often referred to as:
a. stockholder fraud
b. financial statement fraud
, c. employee fraud
d. investment fraud - Answersb. financial statement fraud
What is required to prove fraud, as opposed to negligence?
a. gross error
b. intent
c. preponderance of the evidence
d. confession from the perpetrator - Answersb. intent
Which of the following is the most common type of occupational fraud?
a. financial statement fraud
b. mail fraud
c. investment fraud
d. employee embezzlement - Answersd. employee embezzlement
Which of the following is NOT a characteristic of management fraud?
a. top management deception
b. manipulation of financial statements
c. kickbacks or bribes
d. pressure to earn year-end business - Answersc. kickbacks or bribes
Customer fraud includes all of the following EXCEPT:
a. get something for nothing
b. do not pay for goods purchased
c. fraud perpetrated through collusion between buyers and vendors
d. decieve organization into giving them something should not - Answersc. fraud perpetrated through
collusion between buyers and vendors
Which of the following is a common example of vendor fraud?
a. fraud perpetrated through collusion between vendors and buyers
b. fraud perpetrated by upper management
One way that criminal law differs from civil law is that it:
a. provides remedies for violations of private rights
b. must yield an unanimous verdict
c. can have a jury of fewer than 12 persons
d. allows for various claims - Answersb. Must yield a unanimous verdict
Which of the following is NOT an element of a Ponzi scheme?
a. Gaining other's confidence
b. Promising abnormally high returns
c. Collected money is invested
d. Investment principle is partially used to make payments to previous investors - AnswersC. Collected
money is invested
The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
a. not reporting bribe income may be grounds for being charged with tax evasion
b. filing income tax that excludes income from fraud may be considered an improper tax filing
c. bribes paid may be deducted as business expenses
d. failure to report income from fraud may be grounds for being charged with tax evasion - Answersc.
bribes paid may be deducted as business expenses
Which of the following is NOT a characteristic of criminal proceeding?
a. deals with offenses against society
b. consequences include restitution and damage payments
c. Jury of 12 individuald
d. only one claim may be heard at a time - Answersb. consequences include restitution and damage
payments
Management fraud is often referred to as:
a. stockholder fraud
b. financial statement fraud
, c. employee fraud
d. investment fraud - Answersb. financial statement fraud
What is required to prove fraud, as opposed to negligence?
a. gross error
b. intent
c. preponderance of the evidence
d. confession from the perpetrator - Answersb. intent
Which of the following is the most common type of occupational fraud?
a. financial statement fraud
b. mail fraud
c. investment fraud
d. employee embezzlement - Answersd. employee embezzlement
Which of the following is NOT a characteristic of management fraud?
a. top management deception
b. manipulation of financial statements
c. kickbacks or bribes
d. pressure to earn year-end business - Answersc. kickbacks or bribes
Customer fraud includes all of the following EXCEPT:
a. get something for nothing
b. do not pay for goods purchased
c. fraud perpetrated through collusion between buyers and vendors
d. decieve organization into giving them something should not - Answersc. fraud perpetrated through
collusion between buyers and vendors
Which of the following is a common example of vendor fraud?
a. fraud perpetrated through collusion between vendors and buyers
b. fraud perpetrated by upper management
