Fraud Examination Exam 1 Questions and Answers Already Passed

Fraud Examination Exam 1 Questions and Answers Already Passed The ACFE does NOT include which of the major categories of occupational fraud listed below? a. asset missappropriations b. corruption c. fraudulent statements d. pension fraud Answer. D A company is a victim of a $414 million fraud. At the time its profit margin is 10%. How much additional revenue should the company generate in order t orecover the effect on net income? a. 414 million b. 41.4 million c. 41.1 billion d. 4.14 billion Answer. d Fraud in companies such as WorldCom, Enron, Waste management, etc. are examples of : a. vendor fraud b. customer fraud c. management fraud d. investment scams answer. D A compnay was the victim of several frauds that totaled approximately 10 million in one year. Wit ha prfoit margin of 10 percent, and assuming that the company's product sold for 1,000 per unit, how many additional units must the company sell to compensate for the fraud losses? c. 100,000 Reason: (10 million loss/ 0.1 = 100 million in revenues. 100 million/ 1,000 per unit= 100,000 units) Which legal code makes the bribing of public officials illegal? b. title 18, US Code Section 201 The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that US organizations lose _____ percent of their annual revenues to fraud. 7% Which of the following observations concerning occupational fraud is NOT true? a. it usually involves two or more employees b. it is committed for the purpose of direct or indirect financial benefit to the employee c. it costs the employing organization assets, revenues, or reserves d. it is clandestine Answer. a The Anti-Kickback Act of 1986 intends to prevent: a. the giving or receiving of anything of value by a subcontractor to a prime contractor in contracts b. any scheme by a contractor to gain the business of a global entity c. bribery, by punishing perpetrators with up to 15 years in prison d. the custom of lobbyists to give gifts to influence laws regarding business transactions Answer. a Which of the following in NOT a characteristic of management fraud? a. top managemetn deception b. kickbacks or bribes c. manipulation of financial statements d. pressure to earn year-end bonuses Answer: b Which of the following frauds is usually the most expensive? a. financial statement fraud b. vendor fraud c. occupational fraud d. customer fraud Answer. a Which of the following is the most common type of occupation fraud? a. employee embezzlement b. mail fraud