WGU D550 EXAM STUDY GUIDE BUNDLED
EXAMS PRACTICE SOLUTION 2026 VIEW
AHEAD EXAM.
◍ Fraud in the FS, the misappropriation of assets (theft) and
subsequent cover up, and disclosure fraud.Answer:What are the
different forms of fraud?
◍ Asset Misappropriatiion Schemes.Answer:when an employee steals
or misuses resources, such as charging personal expenses to the
company card while traveling on business trips
◍ Corruption Schemes.Answer:include misusing one's position or
influence in an organization for personal gain
◍ a tip (43% reported).Answer:What was the most common detection
method reported in 2016 ACFE survey?
◍ termination (66%).Answer:What was the most common
disciplinary method taken in occupational fraud cases was?
◍ - living beyond means (42%)
- financial difficulties (26%)
- unusually close association with vendor/customer
,- control issues, unwillingness to share duties
- no behavioral red flags
- "wheeler-dealer" attitude
- irritability, suspiciousness, or defensiveness
- divorce/family problems
- addiction problems
- complained about inadequate pay
- excessve pressure from within the org
- refusal to take vacations
- past employment-related problems
- social isolation
- past legal problems
- complained about lack of authority
- excessive family/peer pressure for success
- other
- instability in life circumstances.Answer:Fraud red flags include:
◍ ACFE Study.Answer:found that payroll schemes accounted for 9%
of the asset misappropriations, had a median cost of $62,000, and
lasted a median of 2 years before being detected
◍ - poor tone at the top
- dominating and intimidating personalities
- mistrust
,- excessive team loyalty
- management doesnt want to hear about problems
- a lack of sound policies and procedures
- the perception that wrongdoing will not be addressed if misconduct
is reported.Answer:Factors that discourage the reporting of fraud
according to report from anit-fraud collaboration include:
◍ - fear of the unknown
- fear that the report will not be handled anonymously or
confidentially
- fear that the reporters identity will be revealed to other in the
organization
- concern that the person perpetrating the misconduct will not be held
responsible.Answer:Factors that discourage employees from coming
forward include:
◍ - retaliation by coworkers
- termination
- future reputation
- impact on others
- results of investigation determine that the misconduct unsustainable
- emotional cost.Answer:What are the potential consequences for
reporting suspected fraud?
, ◍ FS Fraud.Answer:occurs when an employee, typically a member of
top management, causes a misstatement or omission of material in the
organization's financial reports
◍ recording ficticious revenues, understating reported expenses,
artificially inflating reported assets, failing to accrue expenses at the
end of the year, and accelerating the recording of revenue into an
earlier period (timing differences).Answer:What are some examples
of FS fraud?
◍ situational pressure, perceived opportunity, and
rationalization.Answer:What are the elements of the fraud triangle
that explain why FS fraud occurs?
◍ "how we do things around here".Answer:What does the
organizations culture represent?
◍ "how we do things around here in relation to ethics and ethical
behavior in the organization".Answer:What does the ethical culture
represent?
◍ Ethical Collapse (according to Marianne Jennings).Answer:"occurs
when any organization has drifted from the basic principles of right
and wrong"
◍ Marianne Jennings.Answer:Who wrote "The 7 signs of Ethical
Collapse"?
EXAMS PRACTICE SOLUTION 2026 VIEW
AHEAD EXAM.
◍ Fraud in the FS, the misappropriation of assets (theft) and
subsequent cover up, and disclosure fraud.Answer:What are the
different forms of fraud?
◍ Asset Misappropriatiion Schemes.Answer:when an employee steals
or misuses resources, such as charging personal expenses to the
company card while traveling on business trips
◍ Corruption Schemes.Answer:include misusing one's position or
influence in an organization for personal gain
◍ a tip (43% reported).Answer:What was the most common detection
method reported in 2016 ACFE survey?
◍ termination (66%).Answer:What was the most common
disciplinary method taken in occupational fraud cases was?
◍ - living beyond means (42%)
- financial difficulties (26%)
- unusually close association with vendor/customer
,- control issues, unwillingness to share duties
- no behavioral red flags
- "wheeler-dealer" attitude
- irritability, suspiciousness, or defensiveness
- divorce/family problems
- addiction problems
- complained about inadequate pay
- excessve pressure from within the org
- refusal to take vacations
- past employment-related problems
- social isolation
- past legal problems
- complained about lack of authority
- excessive family/peer pressure for success
- other
- instability in life circumstances.Answer:Fraud red flags include:
◍ ACFE Study.Answer:found that payroll schemes accounted for 9%
of the asset misappropriations, had a median cost of $62,000, and
lasted a median of 2 years before being detected
◍ - poor tone at the top
- dominating and intimidating personalities
- mistrust
,- excessive team loyalty
- management doesnt want to hear about problems
- a lack of sound policies and procedures
- the perception that wrongdoing will not be addressed if misconduct
is reported.Answer:Factors that discourage the reporting of fraud
according to report from anit-fraud collaboration include:
◍ - fear of the unknown
- fear that the report will not be handled anonymously or
confidentially
- fear that the reporters identity will be revealed to other in the
organization
- concern that the person perpetrating the misconduct will not be held
responsible.Answer:Factors that discourage employees from coming
forward include:
◍ - retaliation by coworkers
- termination
- future reputation
- impact on others
- results of investigation determine that the misconduct unsustainable
- emotional cost.Answer:What are the potential consequences for
reporting suspected fraud?
, ◍ FS Fraud.Answer:occurs when an employee, typically a member of
top management, causes a misstatement or omission of material in the
organization's financial reports
◍ recording ficticious revenues, understating reported expenses,
artificially inflating reported assets, failing to accrue expenses at the
end of the year, and accelerating the recording of revenue into an
earlier period (timing differences).Answer:What are some examples
of FS fraud?
◍ situational pressure, perceived opportunity, and
rationalization.Answer:What are the elements of the fraud triangle
that explain why FS fraud occurs?
◍ "how we do things around here".Answer:What does the
organizations culture represent?
◍ "how we do things around here in relation to ethics and ethical
behavior in the organization".Answer:What does the ethical culture
represent?
◍ Ethical Collapse (according to Marianne Jennings).Answer:"occurs
when any organization has drifted from the basic principles of right
and wrong"
◍ Marianne Jennings.Answer:Who wrote "The 7 signs of Ethical
Collapse"?
