TEST BANK Ri
Fraud Examination 7th Edition b
Ri Ri Ri RiRi
y Albrecht All Chapters 1 to 18
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PageRi1
,TABLE OF CONTENTS Ri Ri
Part I: INTRODUCTION TO FRAUD.
Ri Ri Ri Ri
1. The Nature of Fraud.
Ri Ri Ri
2. Who Commits Fraud and Why.
Ri Ri Ri Ri
3. Fighting Fraud: An Overview. Ri Ri Ri
Ri Part II: FRAUD PREVENTION.
Ri Ri Ri
4. Preventing Fraud. Ri
Part III: FRAUD DETECTION.
Ri Ri Ri
5. Recognizing the Symptoms of Fraud. Ri Ri Ri Ri
6. Data-Driven Fraud Detection Ri Ri
Part IV: FRAUD INVESTIGATION.
Ri Ri Ri
7. Investigating Theft Acts. Ri Ri
8. Investigating Concealment. Ri
9. Conversion Investigation Methods. Ri Ri
10. Inquiry Methods and Fraud Reports. Ri Ri Ri Ri
Part V: MANAGEMENT FRAUD.
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11. Financial Statement Fraud. Ri Ri
12. Revenue- and Inventory-Related Financial Statement Frauds.
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13. Liability, Asset, and Inadequate Disclosure Frauds.
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Part VI: OTHER TYPES OF FRAUD.
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14. Fraud Against Organizations. Ri Ri
15. Consumer Fraud. Ri
16. Bankruptcy, Divorce, and Tax Fraud. Ri Ri Ri Ri
17. e-Commerce Fraud. Ri
Part VII: RESOLUTION OF FRAUD.
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18. Legal Follow-Up. Ri
PageRi2
,Chapter 01 - Ri Ri
The Nature of Fraud
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1. One way that criminal law differs from civil law is that it:
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a. provides remedies for violations of private rights.
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b. must yield a unanimous verdict.
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c. can have a jury of fewer than 12 persons.
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d. allows for various claims in one action.
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ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
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characteristic of civil law; criminal law deals with crimes against society as awhole.
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b. Correct. Criminal trials must result in a unanimous verdict.
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c. Incorrect. The requirement for a unanimous vote characteristic of civil la
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
w;
criminal trial juries must have 12 persons.
R i Ri Ri Ri Ri Ri Ri
d. Incorrect. In inclusion of various claims in one action is a characteristic of civill
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
aw; criminal law permits only one claim at a time.
R i Ri Ri Ri Ri Ri Ri Ri Ri
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraud
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QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws.Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e revised Ri Ri
DATE CREATED:
Ri 2/8/2024 7:10 AM Ri Ri
DATE MODIFIED:
Ri 2/8/2024 7:14 AM Ri Ri
2. Which of the following is NOT an common element of a Ponzi scheme?
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a. Gaining other's confidence Ri Ri
b. Promising abnormally high returns Ri Ri Ri
c. Investing collected money Ri Ri
d. Using part of the investment principle to pay previous investors
Ri Ri Ri Ri Ri Ri Ri Ri Ri
ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
c. Correct. Investing collected money is very unlikely.
Ri Ri Ri Ri Ri Ri
d. Incorrect. In Ponzi schemes, the original principle is often used to make inter
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
est payments. R i
POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud Ri Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.3 - Understand Different Types of Fraud. Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e , revised Ri Ri Ri
DATE CREATED:
Ri 2/9/2024 5:11 AM Ri Ri
DATE MODIFIED:
Ri 2/9/2024 5:32 AM Ri Ri
PageRi3
, Chapter 01 - Ri Ri
The Nature of Fraud
Ri Ri Ri Ri
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
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a. not reporting bribe income may be grounds for being charged with tax evasion.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
b. a tax filing that excludes income from fraud may be considered a false return.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
c. bribes may be lawfully deducted as business expenses.
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d. failure to report income from fraud may be grounds for being charged with tax evasion.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be considered
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
an improper tax filing.
R i Ri Ri
c. Correct. Bribes cannot be deducted as legitimate business expenses.
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d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
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POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e revised Ri Ri
DATE CREATED:
Ri 2/9/2024 5:38 AM Ri Ri
DATE MODIFIED:
Ri 2/9/2024 5:40 AM Ri Ri
4. Which one of the following is NOT a characteristic of a criminal proceeding?
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a. Criminal proceedings deal with offenses against society.
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b. Consequences of criminal proceedings include restitution and damage payments.
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c. Criminal proceedings involve a jury of 12 individuals.
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d. In criminal proceedings, only one claim may be heard at a time.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. Ri Ri Ri Ri Ri Ri Ri Ri Ri
b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
c. Incorrect. A criminal jury consists of 12 jurors. Ri Ri Ri Ri Ri Ri Ri
d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsmay
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
Ri be joined into a single case.
R i Ri Ri Ri Ri
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e revised Ri Ri
DATE CREATED:
Ri 2/9/2024 6:36 AM Ri Ri
DATE MODIFIED:
Ri 2/9/2024 6:38 AM Ri Ri
PageRi4
Fraud Examination 7th Edition b
Ri Ri Ri RiRi
y Albrecht All Chapters 1 to 18
Ri Ri Ri Ri Ri Ri
PageRi1
,TABLE OF CONTENTS Ri Ri
Part I: INTRODUCTION TO FRAUD.
Ri Ri Ri Ri
1. The Nature of Fraud.
Ri Ri Ri
2. Who Commits Fraud and Why.
Ri Ri Ri Ri
3. Fighting Fraud: An Overview. Ri Ri Ri
Ri Part II: FRAUD PREVENTION.
Ri Ri Ri
4. Preventing Fraud. Ri
Part III: FRAUD DETECTION.
Ri Ri Ri
5. Recognizing the Symptoms of Fraud. Ri Ri Ri Ri
6. Data-Driven Fraud Detection Ri Ri
Part IV: FRAUD INVESTIGATION.
Ri Ri Ri
7. Investigating Theft Acts. Ri Ri
8. Investigating Concealment. Ri
9. Conversion Investigation Methods. Ri Ri
10. Inquiry Methods and Fraud Reports. Ri Ri Ri Ri
Part V: MANAGEMENT FRAUD.
Ri Ri Ri
11. Financial Statement Fraud. Ri Ri
12. Revenue- and Inventory-Related Financial Statement Frauds.
Ri Ri Ri Ri Ri
13. Liability, Asset, and Inadequate Disclosure Frauds.
Ri Ri Ri Ri Ri
Part VI: OTHER TYPES OF FRAUD.
Ri Ri Ri Ri Ri
14. Fraud Against Organizations. Ri Ri
15. Consumer Fraud. Ri
16. Bankruptcy, Divorce, and Tax Fraud. Ri Ri Ri Ri
17. e-Commerce Fraud. Ri
Part VII: RESOLUTION OF FRAUD.
Ri Ri Ri Ri
18. Legal Follow-Up. Ri
PageRi2
,Chapter 01 - Ri Ri
The Nature of Fraud
Ri Ri Ri Ri
1. One way that criminal law differs from civil law is that it:
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
a. provides remedies for violations of private rights.
Ri Ri Ri Ri Ri Ri
b. must yield a unanimous verdict.
Ri Ri Ri Ri
c. can have a jury of fewer than 12 persons.
Ri Ri Ri Ri Ri Ri Ri Ri
d. allows for various claims in one action.
Ri Ri Ri Ri Ri Ri
ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
characteristic of civil law; criminal law deals with crimes against society as awhole.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
b. Correct. Criminal trials must result in a unanimous verdict.
Ri Ri Ri Ri Ri Ri Ri Ri
c. Incorrect. The requirement for a unanimous vote characteristic of civil la
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
w;
criminal trial juries must have 12 persons.
R i Ri Ri Ri Ri Ri Ri
d. Incorrect. In inclusion of various claims in one action is a characteristic of civill
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
aw; criminal law permits only one claim at a time.
R i Ri Ri Ri Ri Ri Ri Ri Ri
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraud
Ri Ri Ri Ri Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws.Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e revised Ri Ri
DATE CREATED:
Ri 2/8/2024 7:10 AM Ri Ri
DATE MODIFIED:
Ri 2/8/2024 7:14 AM Ri Ri
2. Which of the following is NOT an common element of a Ponzi scheme?
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
a. Gaining other's confidence Ri Ri
b. Promising abnormally high returns Ri Ri Ri
c. Investing collected money Ri Ri
d. Using part of the investment principle to pay previous investors
Ri Ri Ri Ri Ri Ri Ri Ri Ri
ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
c. Correct. Investing collected money is very unlikely.
Ri Ri Ri Ri Ri Ri
d. Incorrect. In Ponzi schemes, the original principle is often used to make inter
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
est payments. R i
POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud Ri Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.3 - Understand Different Types of Fraud. Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e , revised Ri Ri Ri
DATE CREATED:
Ri 2/9/2024 5:11 AM Ri Ri
DATE MODIFIED:
Ri 2/9/2024 5:32 AM Ri Ri
PageRi3
, Chapter 01 - Ri Ri
The Nature of Fraud
Ri Ri Ri Ri
3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
a. not reporting bribe income may be grounds for being charged with tax evasion.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
b. a tax filing that excludes income from fraud may be considered a false return.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
c. bribes may be lawfully deducted as business expenses.
Ri Ri Ri Ri Ri Ri Ri
d. failure to report income from fraud may be grounds for being charged with tax evasion.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be considered
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
an improper tax filing.
R i Ri Ri
c. Correct. Bribes cannot be deducted as legitimate business expenses.
Ri Ri Ri Ri Ri Ri Ri Ri
d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e revised Ri Ri
DATE CREATED:
Ri 2/9/2024 5:38 AM Ri Ri
DATE MODIFIED:
Ri 2/9/2024 5:40 AM Ri Ri
4. Which one of the following is NOT a characteristic of a criminal proceeding?
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
a. Criminal proceedings deal with offenses against society.
Ri Ri Ri Ri Ri Ri
b. Consequences of criminal proceedings include restitution and damage payments.
Ri Ri Ri Ri Ri Ri Ri Ri
c. Criminal proceedings involve a jury of 12 individuals.
Ri Ri Ri Ri Ri Ri Ri
d. In criminal proceedings, only one claim may be heard at a time.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. Ri Ri Ri Ri Ri Ri Ri Ri Ri
b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
c. Incorrect. A criminal jury consists of 12 jurors. Ri Ri Ri Ri Ri Ri Ri
d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsmay
Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
Ri be joined into a single case.
R i Ri Ri Ri Ri
POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law Ri
QUESTION TYPE: Ri Multiple Choice Ri
HAS VARIABLES:
Ri False
LEARNING OBJECTIVES: Ri R i FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. Ri Ri Ri Ri Ri Ri Ri Ri Ri Ri
OTHER: Source: 6e revised Ri Ri
DATE CREATED:
Ri 2/9/2024 6:36 AM Ri Ri
DATE MODIFIED:
Ri 2/9/2024 6:38 AM Ri Ri
PageRi4
