Forensic Accounting Midterm Exam
Questions and Accurate Answers
CTRs must be filed by financial institutions when transactions include $_______________ or
more in currency in a single banking day. - ✔✔$10,000
What is the difference between fraud and attempted fraud? - ✔✔Financial loss
FinCen - ✔✔Financial Crimes Enforcement Network
RICO - ✔✔Racketeering Influence and Corrupt Organizations Act
Enacted in 1970, the same year as the Bank Secrecy Act, is closely aligned to money laundering
laws and regulations
Cyber Crimes - ✔✔An act where the computer hardware, software, or data is altered,
destroyed, manipulated, or compromised due to acts that are not intended
Cyber Fraud - ✔✔Any interaction with the intent to execute a fraudulent scheme or financial
criminal act
Form 8300 - ✔✔Requiring any business receiving a cash payment in excess of $10,000 to report
the transaction to FinCen using this IRS form
Quid Pro Quo - ✔✔Latin phrase for a favor for a favor
You scratch my back, I'll scratch yours
Tax Evasion / Income Tax Evasion - ✔✔Intentional wrongdoing to evade taxes believed to be
owed. Is fraud and implies bad faith, intentional wrongdoing, and a sinister motive
, ACFE - ✔✔Association of Certified Fraud Examiners
Asset Forfeiture - ✔✔Seizure of personal assets, used in or obtained from illegal activity, by
government
True or False: The amount you earn is the primary reason why people commit fraud - ✔✔False
Predication - ✔✔Totality of circumstances that lead a reasonable, professionally trained and
prudent individual to believe that a fraud has occurred, is occurring, and/or will occur
Collusion - ✔✔Two or more people ghat come together committing a crime or something
sinister (cover up a fraud)
Much tougher to uncover the crime when more than one person is involved
A lot of the times they won't be cooperative
One of the biggest threats to the U.S. and our allies - ✔✔Cyber Crimes
Money Laundering - ✔✔The process of making dirty money clean
SAR - ✔✔Suspicious Activity Report
Used by financial institutions to report any suspicious activity to the Financial Crimes
Enforcement Network (FinCen). If the suspected person is known and can be identified, the
threshold to file is $5,000.
www.ic3.gov - ✔✔Internet complaint center
Any scam can be put on here
Questions and Accurate Answers
CTRs must be filed by financial institutions when transactions include $_______________ or
more in currency in a single banking day. - ✔✔$10,000
What is the difference between fraud and attempted fraud? - ✔✔Financial loss
FinCen - ✔✔Financial Crimes Enforcement Network
RICO - ✔✔Racketeering Influence and Corrupt Organizations Act
Enacted in 1970, the same year as the Bank Secrecy Act, is closely aligned to money laundering
laws and regulations
Cyber Crimes - ✔✔An act where the computer hardware, software, or data is altered,
destroyed, manipulated, or compromised due to acts that are not intended
Cyber Fraud - ✔✔Any interaction with the intent to execute a fraudulent scheme or financial
criminal act
Form 8300 - ✔✔Requiring any business receiving a cash payment in excess of $10,000 to report
the transaction to FinCen using this IRS form
Quid Pro Quo - ✔✔Latin phrase for a favor for a favor
You scratch my back, I'll scratch yours
Tax Evasion / Income Tax Evasion - ✔✔Intentional wrongdoing to evade taxes believed to be
owed. Is fraud and implies bad faith, intentional wrongdoing, and a sinister motive
, ACFE - ✔✔Association of Certified Fraud Examiners
Asset Forfeiture - ✔✔Seizure of personal assets, used in or obtained from illegal activity, by
government
True or False: The amount you earn is the primary reason why people commit fraud - ✔✔False
Predication - ✔✔Totality of circumstances that lead a reasonable, professionally trained and
prudent individual to believe that a fraud has occurred, is occurring, and/or will occur
Collusion - ✔✔Two or more people ghat come together committing a crime or something
sinister (cover up a fraud)
Much tougher to uncover the crime when more than one person is involved
A lot of the times they won't be cooperative
One of the biggest threats to the U.S. and our allies - ✔✔Cyber Crimes
Money Laundering - ✔✔The process of making dirty money clean
SAR - ✔✔Suspicious Activity Report
Used by financial institutions to report any suspicious activity to the Financial Crimes
Enforcement Network (FinCen). If the suspected person is known and can be identified, the
threshold to file is $5,000.
www.ic3.gov - ✔✔Internet complaint center
Any scam can be put on here
