ACCS Review Exam with Accurate
Answers
____ refers to the circumstances, taken as a whole, that would lead a reasonable, prudent
professional to believe a fraud has occurred, is occurring, or will occur.
There must be some reasonable basis for concern that fraud may be occurring. -
✔✔Predication
T or F:
Fraud investigations should not be conducted without predication - ✔✔true
People generally perform according to a leader's expectations. If expectations are low, actual
performance will likely be substandard. If they are high, performance is usually high as well.
This is known as what phenomenon? - ✔✔Pygmalion Effect
Organizations fight fraud by implementing:
(4 fraud-fighters) - ✔✔1 Fraud prevention
2. early fraud detection
3. fraud investigation
4. follow-up legal action and/or resolution
What is the most cost-effective way to reduce losses from fraud? - ✔✔Preventing Fraud**
To prevent fraud, companies should create a ____ of honesty and high ethics, and eliminate
fraud _____ - ✔✔culture
opportunities
, To create a culture of honesty and high ethics, there should be 5 critical elements in the
company: - ✔✔1. top management model appropriate behavior
2. hire the right kind of employees
3. communicate expectations and require periodic written acceptance to the expectations
4. create a positive work environment
5. enforce policies for handling fraud (0 tolerance)
In order to eliminate fraud opportunities, companies should: (4) - ✔✔1. identify sources and
measure fraud risks
2. implement preventative and detective controls
3. create widespread monitoring by employees
4. have internal and external auditors
What are the 3 primary ways to detect fraud? - ✔✔by chance, by providing whistle blowing
systems, and by data mining (using software)
T or F:
In the past, most frauds were detected by accident. - ✔✔True
The first approach to fraud investigation is the evidence square. This square includes: - ✔✔1.
testimonial evidence (person speaks)
2. documentary evidence (paper evidence)
3. physical evidence (finger prints)
4. personal observation (watching someone)
The second approach to fraud investigation is to focus on the 2 different types of triangles.
What are these 2 triangles? - ✔✔fraud motivation triangle, fraud element triangle
Answers
____ refers to the circumstances, taken as a whole, that would lead a reasonable, prudent
professional to believe a fraud has occurred, is occurring, or will occur.
There must be some reasonable basis for concern that fraud may be occurring. -
✔✔Predication
T or F:
Fraud investigations should not be conducted without predication - ✔✔true
People generally perform according to a leader's expectations. If expectations are low, actual
performance will likely be substandard. If they are high, performance is usually high as well.
This is known as what phenomenon? - ✔✔Pygmalion Effect
Organizations fight fraud by implementing:
(4 fraud-fighters) - ✔✔1 Fraud prevention
2. early fraud detection
3. fraud investigation
4. follow-up legal action and/or resolution
What is the most cost-effective way to reduce losses from fraud? - ✔✔Preventing Fraud**
To prevent fraud, companies should create a ____ of honesty and high ethics, and eliminate
fraud _____ - ✔✔culture
opportunities
, To create a culture of honesty and high ethics, there should be 5 critical elements in the
company: - ✔✔1. top management model appropriate behavior
2. hire the right kind of employees
3. communicate expectations and require periodic written acceptance to the expectations
4. create a positive work environment
5. enforce policies for handling fraud (0 tolerance)
In order to eliminate fraud opportunities, companies should: (4) - ✔✔1. identify sources and
measure fraud risks
2. implement preventative and detective controls
3. create widespread monitoring by employees
4. have internal and external auditors
What are the 3 primary ways to detect fraud? - ✔✔by chance, by providing whistle blowing
systems, and by data mining (using software)
T or F:
In the past, most frauds were detected by accident. - ✔✔True
The first approach to fraud investigation is the evidence square. This square includes: - ✔✔1.
testimonial evidence (person speaks)
2. documentary evidence (paper evidence)
3. physical evidence (finger prints)
4. personal observation (watching someone)
The second approach to fraud investigation is to focus on the 2 different types of triangles.
What are these 2 triangles? - ✔✔fraud motivation triangle, fraud element triangle
