ACCT 4235 MODULE 6 QUESTIONS & ANSWERS
In a fraud investigation, documents: - Answer -Usually contain extremely valuable
information
Chain of custody refers to: - Answer -A record of when a document is received and
what has happened to it since its receipt
Marking documentary evidence is important to ensure that: - Answer -Documents can
be identified later
Discovery sampling: - Answer -Deals with the probability of discovering at least one
error in a given sample size if the population error is a certain percentage
Documentary evidence such as private tax returns can usually be obtained only by: -
Answer --Subpoena
-Search warrant
-Voluntary consent
Which of the following is not true regarding document experts?
a) They can usually determine whether a document was written by the person whose
signature the document bears
b) They can usually determine whether a document has been forged
c) They can usually determine whether the date the document bears is the date the
document was written - Answer -All of the above are true statements
Which of the following is not a benefit of statistical sampling? - Answer -It allows
auditors to be certain that fraud does not exist in a population
Which of the following methods of gathering documents is based primarily on luck? -
Answer -Documents provided by tipsters
Which of the following is true of graphologists? - Answer -They study handwriting as a
way to interpret and identify personalities
What can a fraud examiner conclude if one or more instances of fraud are found in a
sample taken from a population? - Answer -The population contains fraud
What can a fraud examiner conclude if his or her tests confirm that no instances of fraud
are present in a sample taken from a population? - Answer -Only that no fraud is
present in that particular sample
How are most frauds concealed? - Answer -By creating fictitious documents or altering
source documents
, Which of the following is usually the best way to obtain documentary evidence? -
Answer -Computer-based queries of full population accounting and other databases
Programs like CaseMap, CaseCentral, ZANTAZ, Ringtail, and DatiCon are examples of:
- Answer -Software packages used to index and store evidence
Which of the following is NOT a category used in the fraud triangle plus inquiry
paradigm? - Answer -Action Investigative techniques
When beginning an investigation, fraud examiners should use techniques that will: -
Answer -Not arouse suspicion
When conducting interviews during an investigation, which of the following words should
usually be avoided? - Answer -Investigation
When beginning a fraud investigation, which of the following methods is most useful in
identifying possible suspects? - Answer -Preparing a vulnerability chart
Invigilation: - Answer -Provides evidence to help determine whether fraud is occurring
Which of the following is not a theft investigative method? - Answer -Honesty testing
When deciding whether or not to investigate, which of the following factors should an
organization not consider? - Answer --Possible cost of the investigation
-Perceived strength of the predication
-Possible public exposure resulting because of the investigation
Surveillance, when properly performed, is done: - Answer -Without the perpetrator's
knowledge
Which of the following is not included in a vulnerability chart? - Answer -Internal
controls that a company plans to institute in the future
A vulnerability chart: - Answer -Forces investigators to explicitly consider all aspects of
a fraud
Fixed-point, or stationary, observations can be conducted by: - Answer -Anyone
Surveillance logs should include all of the following except: - Answer -Cost of the
surveillance equipment used
Wiretapping, a form of electronic surveillance, can be used by:
a. Internal auditors
b. Company controllers
c. CPAs - Answer -None of the above
In a fraud investigation, documents: - Answer -Usually contain extremely valuable
information
Chain of custody refers to: - Answer -A record of when a document is received and
what has happened to it since its receipt
Marking documentary evidence is important to ensure that: - Answer -Documents can
be identified later
Discovery sampling: - Answer -Deals with the probability of discovering at least one
error in a given sample size if the population error is a certain percentage
Documentary evidence such as private tax returns can usually be obtained only by: -
Answer --Subpoena
-Search warrant
-Voluntary consent
Which of the following is not true regarding document experts?
a) They can usually determine whether a document was written by the person whose
signature the document bears
b) They can usually determine whether a document has been forged
c) They can usually determine whether the date the document bears is the date the
document was written - Answer -All of the above are true statements
Which of the following is not a benefit of statistical sampling? - Answer -It allows
auditors to be certain that fraud does not exist in a population
Which of the following methods of gathering documents is based primarily on luck? -
Answer -Documents provided by tipsters
Which of the following is true of graphologists? - Answer -They study handwriting as a
way to interpret and identify personalities
What can a fraud examiner conclude if one or more instances of fraud are found in a
sample taken from a population? - Answer -The population contains fraud
What can a fraud examiner conclude if his or her tests confirm that no instances of fraud
are present in a sample taken from a population? - Answer -Only that no fraud is
present in that particular sample
How are most frauds concealed? - Answer -By creating fictitious documents or altering
source documents
, Which of the following is usually the best way to obtain documentary evidence? -
Answer -Computer-based queries of full population accounting and other databases
Programs like CaseMap, CaseCentral, ZANTAZ, Ringtail, and DatiCon are examples of:
- Answer -Software packages used to index and store evidence
Which of the following is NOT a category used in the fraud triangle plus inquiry
paradigm? - Answer -Action Investigative techniques
When beginning an investigation, fraud examiners should use techniques that will: -
Answer -Not arouse suspicion
When conducting interviews during an investigation, which of the following words should
usually be avoided? - Answer -Investigation
When beginning a fraud investigation, which of the following methods is most useful in
identifying possible suspects? - Answer -Preparing a vulnerability chart
Invigilation: - Answer -Provides evidence to help determine whether fraud is occurring
Which of the following is not a theft investigative method? - Answer -Honesty testing
When deciding whether or not to investigate, which of the following factors should an
organization not consider? - Answer --Possible cost of the investigation
-Perceived strength of the predication
-Possible public exposure resulting because of the investigation
Surveillance, when properly performed, is done: - Answer -Without the perpetrator's
knowledge
Which of the following is not included in a vulnerability chart? - Answer -Internal
controls that a company plans to institute in the future
A vulnerability chart: - Answer -Forces investigators to explicitly consider all aspects of
a fraud
Fixed-point, or stationary, observations can be conducted by: - Answer -Anyone
Surveillance logs should include all of the following except: - Answer -Cost of the
surveillance equipment used
Wiretapping, a form of electronic surveillance, can be used by:
a. Internal auditors
b. Company controllers
c. CPAs - Answer -None of the above
