ACCT 4235 - LAFLEUR – CH. 1 QUESTIONS
Why does fraud seem to be increasing at such an alarming rate?
a. Computers, the Internet, and technology make fraud easier to commit.
b. Most frauds today are detected, whereas in the past many were not.
c. A new law requires that fraud be reported within 24 hours.
d. People understand the consequences of fraud to organizations. - Answer -A
Which of the following is NOT an important element of fraud?
a. Confidence
b. Deception
c. Trickery
d. Intelligence - Answer -D
Fraud is considered to be:
a. A serious problem that continues to grow.
b. A problem that affects very few individuals.
c. A mild problem that most businesses need not worry about.
d. A problem under control. - Answer -A
People who commit fraud are usually:
a. New employees.
b. Not well groomed and have long hair and tattoos.
c. People with strong personalities.
d. Trusted individuals. - Answer -D
"The use of one's occupation for personal enrichment through the deliberate misuse of
misapplication of the employing organization's resources or assets" is the definition of
which of the following types of fraud?
a. Employee embezzlement or occupational fraud.
b. Investment scams.
c. Management fraud.
d. Vendor fraud. - Answer -A
Corporate employee fraud-fighters:
a. Work as postal inspectors and law enforcement officials.
b. Prevent, detect, and investigate fraud within a company.
c. Are lawyers who defend and/ or prosecute fraud cases.
d. None of the above. - Answer -B
Investment scams most often include:
a. An action by top management against employees.
b. Worthless investments or assets sold to unsuspecting investors.
c. An overcharge for purchased goods.
d. Nonpayment of invoices for goods purchased. - Answer -B
, Which of the following is NOT true of civil litigation?
a. It usually begins when one party files a complaint.
b. The purpose is to compensate for harm done to another.
c. It must be heard by 12 jurors.
d. Only the "preponderance of evidence" is needed for the plaintiff to be successful. -
Answer -C
Future careers in fraud will most likely be:
a. In low demand.
b. In moderate demand.
c. Low paying.
d. In high demand and financially rewarding. - Answer -D
Which of the following is the LEAST RELIABLE resource for fraud statistics?
a. FBI agencies.
b. Health agencies.
c. Insurance organizations.
d. Fraud perpetrators. - Answer -D
Which of the following statements is true?
a. On e per-incident basis, bank robberies are more costly than fraud.
b. Fraud is often labeled the fastest growing type of crime.
c. FBI agencies usually investigate frauds that occur within organizations.
d. None of the above statements are true. - Answer -B
Which of the following is NOT an element of fraud?
a. False representation.
b. Accidental behavior.
c. Damage to a victim.
d. Intentional or reckless behavior. - Answer -B
Studying fraud will help you:
a. Learn evidence-gathering skills.
b. Avoid high-risk and fraudulent activities.
c. Learn valuable interviewing skills.
d. All of the above. - Answer -D
What is the best way to minimize fraud expense within an organization?
a. Effective early detection of fraud.
b. Effective investigation of fraudulent behavior.
c. Effective prevention of fraud.
d. Effective research of fraud. - Answer -C
What is the most important element in successful fraud schemes?
a. Promised benefits.
Why does fraud seem to be increasing at such an alarming rate?
a. Computers, the Internet, and technology make fraud easier to commit.
b. Most frauds today are detected, whereas in the past many were not.
c. A new law requires that fraud be reported within 24 hours.
d. People understand the consequences of fraud to organizations. - Answer -A
Which of the following is NOT an important element of fraud?
a. Confidence
b. Deception
c. Trickery
d. Intelligence - Answer -D
Fraud is considered to be:
a. A serious problem that continues to grow.
b. A problem that affects very few individuals.
c. A mild problem that most businesses need not worry about.
d. A problem under control. - Answer -A
People who commit fraud are usually:
a. New employees.
b. Not well groomed and have long hair and tattoos.
c. People with strong personalities.
d. Trusted individuals. - Answer -D
"The use of one's occupation for personal enrichment through the deliberate misuse of
misapplication of the employing organization's resources or assets" is the definition of
which of the following types of fraud?
a. Employee embezzlement or occupational fraud.
b. Investment scams.
c. Management fraud.
d. Vendor fraud. - Answer -A
Corporate employee fraud-fighters:
a. Work as postal inspectors and law enforcement officials.
b. Prevent, detect, and investigate fraud within a company.
c. Are lawyers who defend and/ or prosecute fraud cases.
d. None of the above. - Answer -B
Investment scams most often include:
a. An action by top management against employees.
b. Worthless investments or assets sold to unsuspecting investors.
c. An overcharge for purchased goods.
d. Nonpayment of invoices for goods purchased. - Answer -B
, Which of the following is NOT true of civil litigation?
a. It usually begins when one party files a complaint.
b. The purpose is to compensate for harm done to another.
c. It must be heard by 12 jurors.
d. Only the "preponderance of evidence" is needed for the plaintiff to be successful. -
Answer -C
Future careers in fraud will most likely be:
a. In low demand.
b. In moderate demand.
c. Low paying.
d. In high demand and financially rewarding. - Answer -D
Which of the following is the LEAST RELIABLE resource for fraud statistics?
a. FBI agencies.
b. Health agencies.
c. Insurance organizations.
d. Fraud perpetrators. - Answer -D
Which of the following statements is true?
a. On e per-incident basis, bank robberies are more costly than fraud.
b. Fraud is often labeled the fastest growing type of crime.
c. FBI agencies usually investigate frauds that occur within organizations.
d. None of the above statements are true. - Answer -B
Which of the following is NOT an element of fraud?
a. False representation.
b. Accidental behavior.
c. Damage to a victim.
d. Intentional or reckless behavior. - Answer -B
Studying fraud will help you:
a. Learn evidence-gathering skills.
b. Avoid high-risk and fraudulent activities.
c. Learn valuable interviewing skills.
d. All of the above. - Answer -D
What is the best way to minimize fraud expense within an organization?
a. Effective early detection of fraud.
b. Effective investigation of fraudulent behavior.
c. Effective prevention of fraud.
d. Effective research of fraud. - Answer -C
What is the most important element in successful fraud schemes?
a. Promised benefits.
