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Certified Fraud Examiner Exam
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Review
Question 1 of 100
1. Question
Which of the following factor is not indicate that a rent-a-patient scheme is occurring?
Correct
The following might indicate that a rent-a-patient scheme is occurring:
• A large influx of non-local patients to a particular clinic; including clusters of patients from a particular location.
• Several non-related procedures on a patient in a short period of time (e.g., a colonoscopy
• Numerous claims by a particular clinic for the following procedures: colonoscopies, septoplasties, circumcisions, and thoracoscopies with sympathectomy
• Parallel procedures on families (husbands, wives, and children) on the same day
• Extremely high staff salaries.
• Charging beyond the average market price for procedures, medical equipment, and devices.
Incorrect
The following might indicate that a rent-a-patient scheme is occurring:
• A large influx of non-local patients to a particular clinic; including clusters of patients from a particular location.
• Several non-related procedures on a patient in a short period of time (e.g., a colonoscopy
• Numerous claims by a particular clinic for the following procedures: colonoscopies, septoplasties, circumcisions, and thoracoscopies with sympathectomy
• Parallel procedures on families (husbands, wives, and children) on the same day
• Extremely high staff salaries.
• Charging beyond the average market price for procedures, medical equipment, and devices.
Question 2 of 100
2. Question
Which of the following factor is not correct about beneficiaries under health care program?
Correct
A fraud examiner should be aware of the following indicators of fraud by insured individuals and beneficiaries under health care programs:
• Pressure by a claimant to pay a claim quickly
• Individuals who hand-deliver claims and insist on picking up their payment in-person
• Threats of legal action if a claim is not paid quickly
• Anonymous telephone or email inquiries regarding the status of a pending claim
• Identical claims for the same patient in different months or years
• Dates of service just prior to termination of coverage or just after coverage begins
• Services billed that do not appear to agree with the medical records
• Billing for services or equipment that are clearly unsuitable for the patient’s needs
Incorrect
A fraud examiner should be aware of the following indicators of fraud by insured individuals and beneficiaries under health care programs:
• Pressure by a claimant to pay a claim quickly
• Individuals who hand-deliver claims and insist on picking up their payment in-person
• Threats of legal action if a claim is not paid quickly
• Anonymous telephone or email inquiries regarding the status of a pending claim
• Identical claims for the same patient in different months or years
• Dates of service just prior to termination of coverage or just after coverage begins
• Services billed that do not appear to agree with the medical records
• Billing for services or equipment that are clearly unsuitable for the patient’s needs
Question 3 of 100
3. Question
Which of the following might not indicate that a rent-a-patient scheme is occurring?
Correct
The following might indicate that a rent-a-patient scheme is occurring:
• Large influx of non-local patients to a particular clinic; including clusters of patients from a particular location
• Several non-related procedures on a patient in a short period of time (e.g., a colonoscopy and circumcision on one patient within a few days or even weeks)
• Numerous claims by a particular clinic for the following procedures: colonoscopies, endoscopies, septoplasties, circumcisions, and thoracoscopies with sympathectomy
• Parallel procedures on families (husbands, wives, and children) on the same day
• Extremely high staff salaries
• Charging beyond the average market price for procedures, medical equipment, and devices.
Incorrect
The following might indicate that a rent-a-patient scheme is occurring:
• Large influx of non-local patients to a particular clinic; including clusters of patients from a particular location
• Several non-related procedures on a patient in a short period of time (e.g., a colonoscopy and circumcision on one patient within a few days or even weeks)
• Numerous claims by a particular clinic for the following procedures: colonoscopies, endoscopies, septoplasties, circumcisions, and thoracoscopies with sympathectomy
• Parallel procedures on families (husbands, wives, and children) on the same day
• Extremely high staff salaries
• Charging beyond the average market price for procedures, medical equipment, and devices.
Question 4 of 100
4. Question
Which factor is not true about computer hacker?
Correct
Hacking refers to the use of technology to gain unauthorized access to sensitive information on a computer system. The desire to gain unauthorized access to computer systems can be prompted by several motives, from simple curiosity—as exemplified by many hackers—to computer sabotage or espionage. Intentional and unjustified access by a person not authorized by the owners or operators of a system might often constitute criminal behavior. Unauthorized access creates the opportunity to cause additional unintended damage to data, system crashes, or impediments to legitimate system users. Often, however, hacking is motivated by profit. There are several types of hackers. Black-hat hackers are malicious hackers who infiltrate computer systems for criminal purposes. Conversely, white-hat hackers are well-intentioned hackers who are hired to identify weaknesses in an organization’s network before they are exploited by malicious hackers. Hacktivists are politically motivated hackers; they commit cybercrimes, including data breaches, to gain publicity, earn public support, gather new members, embarrass their targets, and so on. Hackers use various ways to gain unauthorized access to computer systems. Often, unauthorized access is accomplished from a remote location using one of several means. The perpetrator might be able to take advantage of lax security measures to gain access or might find loopholes in existing security measures or system procedures. Frequently, attackers gain unauthorized access by impersonating legitimate system users; this is especially common in systems where users employ common passwords or maintenance passwords found in the system itself.
Incorrect
Hacking refers to the use of technology to gain unauthorized access to sensitive information on a computer system. The desire to gain unauthorized access to computer systems can be prompted by several motives, from simple curiosity—as exemplified by many hackers—to computer sabotage or espionage. Intentional and unjustified access by a person not authorized by the owners or operators of a system might often constitute criminal behavior. Unauthorized access creates the opportunity to cause additional unintended damage to data, system crashes, or impediments to legitimate system users. Often, however, hacking is motivated by profit. There are several types of hackers. Black-hat hackers are malicious hackers who infiltrate computer systems for criminal purposes. Conversely, white-hat hackers are well-intentioned hackers who are hired to identify weaknesses in an organization’s network before they are exploited by malicious hackers. Hacktivists are politically motivated hackers; they commit cybercrimes, including data breaches, to gain publicity, earn public support, gather new members, embarrass their targets, and so on. Hackers use various ways to gain unauthorized access to computer systems. Often, unauthorized access is accomplished from a remote location using one of several means. The perpetrator might be able to take advantage of lax security measures to gain access or might find loopholes in existing security measures or system procedures. Frequently, attackers gain unauthorized access by impersonating legitimate system users; this is especially common in systems where users employ common passwords or maintenance passwords found in the system itself.
Question 5 of 100
5. Question
Which of the following factor is not correct about Crimeware might result?
Correct
Crimeware is not a type of malware, but rather a classification of malware denoted by its intent to facilitate criminal behavior. Crimeware can be described as malware designed to simplify or automate online criminal activities, such as programs to fraudulently obtain financial gain from the affected user or other third parties. Crimeware might result in any of the following:
• Theft of private information
• Identity theft
• Financial losses through the theft of online passwords
• Financial losses through accessing online services
• Invasion of privacy
• Loss of productivity because of system slowdowns, system errors, and so on
• Unwanted advertising (e.g., spam or pop-ups)
Incorrect
Crimeware is not a type of malware, but rather a classification of malware denoted by its intent to facilitate criminal behavior. Crimeware can be described as malware designed to simplify or automate online criminal activities, such as programs to fraudulently obtain financial gain from the affected user or other third parties. Crimeware might result in any of the following:
• Theft of private information
• Identity theft
• Financial losses through the theft of online passwords
• Financial losses through accessing online services
• Invasion of privacy
• Loss of productivity because of system slowdowns, system errors, and so on
• Unwanted advertising (e.g., spam or pop-ups)
Question 6 of 100
6. Question
Which of the following statement is not true about an organization being held liable for the acts committed by its employee?
Correct
Corporations can be held responsible for corporate management offenses. The organization is responsible for an employee’s behavior unless the individual has behaved for the apparent purpose of helping the corporation. A company can not seek to avoid assistant responsibility by simply claiming it had not realized what was taking place for the actions of its workers.
Incorrect
Corporations can be held responsible for corporate management offenses. The organization is responsible for an employee’s behavior unless the individual has behaved for the apparent purpose of helping the corporation. A company can not seek to avoid assistant responsibility by simply claiming it had not realized what was taking place for the actions of its workers.
Question 7 of 100
7. Question
Which of the following statement is true about the principle provided by COSO for implementing a controlled environment?
Correct
COSO proposes five concepts to promote an effective control system in design and implementation:
-The dedication of workers at all rates of honesty and ethics is clear.
-The Management Committee is autonomous of the management and controls internal control growth and efficiency.
-Through board monitoring, management carries out the operational priorities in frameworks, control lines and qualified authority and duties.
-The company is dedicated to recruiting, cultivating and keeping professional people in line with its goals.
-The company pays for its internal control duties in fulfillment of targets
Incorrect
COSO proposes five concepts to promote an effective control system in design and implementation:
-The dedication of workers at all rates of honesty and ethics is clear.
-The Management Committee is autonomous of the management and controls internal control growth and efficiency.
-Through board monitoring, management carries out the operational priorities in frameworks, control lines and qualified authority and duties.
-The company is dedicated to recruiting, cultivating and keeping professional people in line with its goals.
-The company pays for its internal control duties in fulfillment of targets
Question 8 of 100
8. Question
Which of the following statement is not included in the responsibility of the audit committee?
Correct
The responsibilities of the audit committee include:
-Daily status updates of confirmed or suspected fraud are issued.
-About the defined threats of fraud and the measures taken to prevent and detect fraud, meetings with main domestic parties (such as the head of audit or other senior financial persons)
-Knowing how fraud danger is handled by internal and external audit approaches.
-To provide confirmation to the external auditors of the efficacy of the fraud risk management of the audit committee.
-To open discussions on proven and alleged wrongdoing with external auditors
Incorrect
The responsibilities of the audit committee include:
-Daily status updates of confirmed or suspected fraud are issued.
-About the defined threats of fraud and the measures taken to prevent and detect fraud, meetings with main domestic parties (such as the head of audit or other senior financial persons)
-Knowing how fraud danger is handled by internal and external audit approaches.
-To provide confirmation to the external auditors of the efficacy of the fraud risk management of the audit committee.
-To open discussions on proven and alleged wrongdoing with external auditors
Question 9 of 100
9. Question
What is the main purpose of a means-end analysis?
Correct
The means-end analysis measures how well an intervention, sometimes contrasted with a particular course of action, fulfills its intended purposes.
Incorrect
The means-end analysis measures how well an intervention, sometimes contrasted with a particular course of action, fulfills its intended purposes.
Question 10 of 100
10. Question
What are the two types of professional ethics?
Correct
In the work environment, two forms of ethics exist — general ethics (spirit) and technical ethics (rules).
Incorrect
In the work environment, two forms of ethics exist — general ethics (spirit) and technical ethics (rules).
Question 11 of 100
11. Question
According to the definition in White Collar Crime published by Edwin H. Sutherland who are the people most likely to commit a white-collar crime?
Correct
White-Collar Crimen, written by Sutherland, was an arguable, ambiguous interpretation of the term in a footnote: “Crime in the higher, white-collar community consisting of respectable business, and professional men, or at least respected men.”
Incorrect
White-Collar Crimen, written by Sutherland, was an arguable, ambiguous interpretation of the term in a footnote: “Crime in the higher, white-collar community consisting of respectable business, and professional men, or at least respected men.”
Question 12 of 100
12. Question
What was the median ratio of the asset to liabilities of the antitrusters?
Correct
The antitrusters had a median $200,000 (assest) to $40,000 (liabilities), and a median $57,500 (assets) for securities offenders in liabilities was $54,000.
Incorrect
Question 13 of 100
13. Question
What does an organization’s corporate governance structure provide?
Correct
The corporate governance structure of an organization provides accountability and reporting guidelines, defines relations with the parties involved and expectations and sets out the rules and practices which these parties should follow when fulfilling their responsibilities.
Incorrect
The corporate governance structure of an organization provides accountability and reporting guidelines, defines relations with the parties involved and expectations and sets out the rules and practices which these parties should follow when fulfilling their responsibilities.
Question 14 of 100
14. Question
What are the two most important functions of CEO duality?
Correct
CEO duality concentrates considerable power in one entity by allowing the CEO to carry on the two most important roles of management and oversight in corporate governance.
Incorrect
CEO duality concentrates considerable power in one entity by allowing the CEO to carry on the two most important roles of management and oversight in corporate governance.
Question 15 of 100
15. Question
What is a true-name signature by an individual who intends to deny that signature at a later time called?
Correct
An autoforgery is a true-name signature by an individual who intends to deny that signature at a later time. Generally, autoforgeries are prepared in a distorted or disguised fashion. This attempt at fraud has occurred in falsely reported traveler’s check theft cases, in cases involving disputed home mortgage and other loan documents, credit card frauds, and others.
Incorrect
An autoforgery is a true-name signature by an individual who intends to deny that signature at a later time. Generally, autoforgeries are prepared in a distorted or disguised fashion. This attempt at fraud has occurred in falsely reported traveler’s check theft cases, in cases involving disputed home mortgage and other loan documents, credit card frauds, and others.
Question 16 of 100
16. Question
What is the term referring to the paper copy of a document or other visual image?
Correct
A photocopy is a paper copy of a document or other visual image.
Incorrect
A photocopy is a paper copy of a document or other visual image.
Question 17 of 100
17. Question
Which of the following statements is most appropriate for the organization’s contact expectations?
Correct
It is found that the intent and objectives of the Fraud Risk Management System must be conveyed to staff at all levels throughout the company, both formally and informally. Employees who are asked to conduct a certain task will probably not understand the full impact of anti-fraud prevention unless they are trained on how this activity works to protect the company.
Besides, workers must be notified of their responsibility to report suspected fraud and be encouraged to do so without fear of retaliation with the means and trust.
The Fraud Risk Management Plan must include procedures designed specifically to track, detect and resolve violations of compliance as part of the company’s enforcement insurance objectives.
Incorrect
It is found that the intent and objectives of the Fraud Risk Management System must be conveyed to staff at all levels throughout the company, both formally and informally. Employees who are asked to conduct a certain task will probably not understand the full impact of anti-fraud prevention unless they are trained on how this activity works to protect the company.
Besides, workers must be notified of their responsibility to report suspected fraud and be encouraged to do so without fear of retaliation with the means and trust.
The Fraud Risk Management Plan must include procedures designed specifically to track, detect and resolve violations of compliance as part of the company’s enforcement insurance objectives.
Question 18 of 100
18. Question
Who is not appropriate for helping to oversee specific issues among the following board committees? Besides, which committee is not required to have the companies?
Correct
The board may assign representatives to focused subcommittees to assist in overseeing specific issues. The establishment of at least the following three board committees is considered a best practice for public companies: I: Audit Committee II: Compensation Committee III: Nominating Committee
The ad hoc committee is a type of committee that is set up for a limited period to deal with specific issues.
Incorrect
The board may assign representatives to focused subcommittees to assist in overseeing specific issues. The establishment of at least the following three board committees is considered a best practice for public companies: I: Audit Committee II: Compensation Committee III: Nominating Committee
The ad hoc committee is a type of committee that is set up for a limited period to deal with specific issues.
Question 19 of 100
19. Question
Which of the above is not applicable in high-risk areas of fraud?
Correct
An internal auditor investigative team within the company can use the results of the fraud risk assessment to identify high-risk practices or activities and suspicious transactions that might indicate fraud. This approach may also provide some reassurance when the subsequent search for fraud shows that fraud does not appear to exist then, despite the risk assessed. Management should remember, however, that just because there is no evidence that fraud is occurring in the present, the risk that it could occur in the future is not eliminated.
Incorrect
An internal auditor investigative team within the company can use the results of the fraud risk assessment to identify high-risk practices or activities and suspicious transactions that might indicate fraud. This approach may also provide some reassurance when the subsequent search for fraud shows that fraud does not appear to exist then, despite the risk assessed. Management should remember, however, that just because there is no evidence that fraud is occurring in the present, the risk that it could occur in the future is not eliminated.
Question 20 of 100
20. Question
Which statements are true of the following?
Correct
It should be noted that the auditor shall be based on a presumption that there are risks of fraud in revenue recognition when identifying and assessing the risks of material default due to fraud, assessing which types of revenue, revenue transactions or assertions give rise to such risks. Clear documentation is needed when the auditor determines that the rule is not valid in the circumstances of the undertaking and has therefore not established identification of revenue as a risk of material error due to fraud
Incorrect
It should be noted that the auditor shall be based on a presumption that there are risks of fraud in revenue recognition when identifying and assessing the risks of material default due to fraud, assessing which types of revenue, revenue transactions or assertions give rise to such risks. Clear documentation is needed when the auditor determines that the rule is not valid in the circumstances of the undertaking and has therefore not established identification of revenue as a risk of material error due to fraud
Question 21 of 100
21. Question
Which of the below is the most relevant for the disputes that arise in the organization?
Correct
An essential component of a system for fraud risk management requires a process for supervisors, employees, and contractors to report any possible or real conflicts of interest to the company.
All reports of possible or real conflicts of interest, as well as the decision of management about the case, should be recorded and submitted to legal counsel. Besides, all exemptions of conflict of interest policy requirements should be disclosed— and may need to be disclosed under certain securities regulations. Management should also consider the benefits of reporting to the public the code of conduct, anti-fraud policies and related statements of the company and any legal requirements.
Incorrect
An essential component of a system for fraud risk management requires a process for supervisors, employees, and contractors to report any possible or real conflicts of interest to the company.
All reports of possible or real conflicts of interest, as well as the decision of management about the case, should be recorded and submitted to legal counsel. Besides, all exemptions of conflict of interest policy requirements should be disclosed— and may need to be disclosed under certain securities regulations. Management should also consider the benefits of reporting to the public the code of conduct, anti-fraud policies and related statements of the company and any legal requirements.
Question 22 of 100
22. Question
Deciding whether there is a conflict or a community of interests depends on the facts of each situation; which of the following is the most suitable?
Correct
Deciding whether a conflict or a community of interests exists depends on the facts of each particular situation; however, some general rules on conflicts of interest are as follows: a company-employed fraud examiner should not engage in other jobs that create hardship or loss for the employer. A fraud examiner should not be a “double agent” employed by one company but retained by another company or person to infiltrate the employer and convey information within the company (unless, of course, the employing company agrees to the arrangement to apprehend other employed parties).
A fraud examiner should not accept both sides ‘ commitments to a dispute— just like lawyers
Incorrect
Deciding whether a conflict or a community of interests exists depends on the facts of each particular situation; however, some general rules on conflicts of interest are as follows: a company-employed fraud examiner should not engage in other jobs that create hardship or loss for the employer. A fraud examiner should not be a “double agent” employed by one company but retained by another company or person to infiltrate the employer and convey information within the company (unless, of course, the employing company agrees to the arrangement to apprehend other employed parties).
A fraud examiner should not accept both sides ‘ commitments to a dispute— just like lawyers
Question 23 of 100
23. Question
Which of the following is incorrect regarding the organizations’ ethical decisions?
Correct
One of the key elements of ethics is reflective preference. Reflective choice refers to the process whereby an individual identifies a decision problem, analyzes the situation— gathering information, considering behavioral rules, and considering the consequences of alternative actions— and taking action. In short, it reflects preferential decision making. Ethical problems involve almost always projecting yourself into a future where you have to live with your decisions. The function of ethical principles and rules is not to provide a simple and sure answer to all issues, but to guide individual decisions and actions.
Incorrect
One of the key elements of ethics is reflective preference. Reflective choice refers to the process whereby an individual identifies a decision problem, analyzes the situation— gathering information, considering behavioral rules, and considering the consequences of alternative actions— and taking action. In short, it reflects preferential decision making. Ethical problems involve almost always projecting yourself into a future where you have to live with your decisions. The function of ethical principles and rules is not to provide a simple and sure answer to all issues, but to guide individual decisions and actions.
Question 24 of 100
24. Question
Which of the following is not true of the Oversight Board of Public Interest?
Correct
The Public Interest Oversight Board (PIOB) is the international independent oversight body to strengthen the International Accountants Federation (IFAC) standards for auditing, training and ethics efficiency and public interest orientation. The PIOB aims to bring greater accountability and credibility to the international audit profession through its supervisory activities. The PIOB was created through a joint initiative of the international financial regulatory community working with the IFAC to ensure that auditing and assurance, ethics and academic standards of the accounting profession are established in a consistent manner. It was widely agreed that high-quality, open standard-setting processes with public and regulatory feedback, together with regulatory supervision and oversight of the public interest, are important to enhance the quality of organizations ‘ external audits.
Incorrect
The Public Interest Oversight Board (PIOB) is the international independent oversight body to strengthen the International Accountants Federation (IFAC) standards for auditing, training and ethics efficiency and public interest orientation. The PIOB aims to bring greater accountability and credibility to the international audit profession through its supervisory activities. The PIOB was created through a joint initiative of the international financial regulatory community working with the IFAC to ensure that auditing and assurance, ethics and academic standards of the accounting profession are established in a consistent manner. It was widely agreed that high-quality, open standard-setting processes with public and regulatory feedback, together with regulatory supervision and oversight of the public interest, are important to enhance the quality of organizations ‘ external audits.
Question 25 of 100
25. Question
Which of the following is not an economic crime contributing factor?
Correct
It should be noted that new information technology means that opportunities for wrongdoing are increasing, and many of the techniques are not widely understood by companies or individuals.
Incorrect
It should be noted that new information technology means that opportunities for wrongdoing are increasing, and many of the techniques are not widely understood by companies or individuals.
Question 26 of 100
26. Question
Which of the following relates to Standard 1210 concerning the responsibilities of the internal auditor to prevent, detect?
Correct
Internal auditors play a key role in helping organizations prevent and detect fraudulent activity. Because of their proximity to and understanding of the inner workings of the organization, internal auditors are in a unique position to uncover potential unscrupulous acts. Standard 1210—Proficiency
Internal auditors must possess the knowledge, skills, and other competencies needed to perform their responsibilities. The internal audit activity collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.
Incorrect
Internal auditors play a key role in helping organizations prevent and detect fraudulent activity. Because of their proximity to and understanding of the inner workings of the organization, internal auditors are in a unique position to uncover potential unscrupulous acts. Standard 1210—Proficiency
Internal auditors must possess the knowledge, skills, and other competencies needed to perform their responsibilities. The internal audit activity collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.
Question 27 of 100
27. Question
Which of the following items could not be statistically sampled?
Correct
Other elements that could be analyzed on a statistical basis include:
Receiving reports
Perpetual inventory records
Requests for raw materials
Shipping documents
Cost sheets
Incorrect
Other elements that could be analyzed on a statistical basis include:
Receiving reports
Perpetual inventory records
Requests for raw materials
Shipping documents
Cost sheets
Question 28 of 100
28. Question
If the company wants to assess the efficacy of a control system over time. Its dimension should include both ongoing, automated evaluations and normal, independent evaluations, which should be evaluated against predefined parameters. Which of the following is responsible for this?
Correct
Control is the process that time-wise tests the efficacy of a monitoring system. This dimension should include both ongoing, automated evaluations and separate periodic evaluations, the results of which should be evaluated against predefined parameters. The framework principles that underpin this component are:
1. The company selects, establishes, and performs ongoing and/or similar assessments to determine if the internal control mechanisms are present and working.
2. The company assesses internal control failures and communicates them to the parties responsible for prompt corrective action.
Incorrect
Control is the process that time-wise tests the efficacy of a monitoring system. This dimension should include both ongoing, automated evaluations and separate periodic evaluations, the results of which should be evaluated against predefined parameters. The framework principles that underpin this component are:
1. The company selects, establishes, and performs ongoing and/or similar assessments to determine if the internal control mechanisms are present and working.
2. The company assesses internal control failures and communicates them to the parties responsible for prompt corrective action.
Question 29 of 100
29. Question
Which of the following is true regarding the role of internal audit in fighting fraud?
Correct
An organization’s fight against fraud requires the combined efforts of many different departments including internal audit. Internal auditors assist in fraud prevention and detection by assessing the adequacy and effectiveness of internal controls, assisting management in establishing effective measures for fraud prevention, proactively auditing fraud and investigating suspected fraud.
Specifically, the Practice Guide notes that, in carrying out audit obligations, the internal auditor should: determine whether management is adequately responsible for managing the Fraud Risk Management Program, whether timely and effective corrective action has been taken concerning any recorded failures or deficiencies, and whether the program monitoring plan remains adequate for this purpose.
Incorrect
An organization’s fight against fraud requires the combined efforts of many different departments including internal audit. Internal auditors assist in fraud prevention and detection by assessing the adequacy and effectiveness of internal controls, assisting management in establishing effective measures for fraud prevention, proactively auditing fraud and investigating suspected fraud.
Specifically, the Practice Guide notes that, in carrying out audit obligations, the internal auditor should: determine whether management is adequately responsible for managing the Fraud Risk Management Program, whether timely and effective corrective action has been taken concerning any recorded failures or deficiencies, and whether the program monitoring plan remains adequate for this purpose.
Question 30 of 100
30. Question
Which of the following is related to the Culture Quotient function?
Correct
It is to be noted that The Culture Quotient is an assessment of how the organization and its people behave or are perceived to behave.
Incorrect
It is to be noted that The Culture Quotient is an assessment of how the organization and its people behave or are perceived to behave.
Question 31 of 100
31. Question
Which of the following statements is not accurate concerning risk mitigation?
Correct
Management can mitigate the risk by taking appropriate countermeasures, such as prevention and detection controls. The fraud risk assessment team must evaluate each countermeasure to decide whether it is cost-effective and appropriate, given the likelihood of occurrence and consequences of failure.
Incorrect
Management can mitigate the risk by taking appropriate countermeasures, such as prevention and detection controls. The fraud risk assessment team must evaluate each countermeasure to decide whether it is cost-effective and appropriate, given the likelihood of occurrence and consequences of failure.
Question 32 of 100
32. Question
Which of the following statements are proving to be incorrect about the board’s two-tier system?
Correct
The system includes two independent boards— an executive/management board and a supervisory board — with no permitted shared membership between the two. The board of directors comprises company executives and other non-independent directors; this board is responsible for daily business operations. In contrast, the monitoring function is performed by the supervisory board, which consists solely of independent directors; it oversees the performance and execution of company policy by the management.
Incorrect
The system includes two independent boards— an executive/management board and a supervisory board — with no permitted shared membership between the two. The board of directors comprises company executives and other non-independent directors; this board is responsible for daily business operations. In contrast, the monitoring function is performed by the supervisory board, which consists solely of independent directors; it oversees the performance and execution of company policy by the management.
Question 33 of 100
33. Question
Which of the following is true about the deterrence system to control crimes?
Correct
As a strategy to control crime, deterrence is designed to detect law violations, determine who is responsible, and penalize offenders for deterring future violations. Deterrence systems try to control the immediate behavior of individuals, not the long-term behaviors targeted by compliance systems.
Deterrence theory assumes that humans are rational in their behavior patterns. It assumes that an individual’s propensity toward lawbreaking is in inverse proportion to the perceived probability of negative consequences.
Incorrect
As a strategy to control crime, deterrence is designed to detect law violations, determine who is responsible, and penalize offenders for deterring future violations. Deterrence systems try to control the immediate behavior of individuals, not the long-term behaviors targeted by compliance systems.
Deterrence theory assumes that humans are rational in their behavior patterns. It assumes that an individual’s propensity toward lawbreaking is in inverse proportion to the perceived probability of negative consequences.
Question 34 of 100
34. Question
If a person who embezzles to get revenge on his employer for perceived unfair treatment uses financial means to solve what is essentially which of the following problem?
Correct
For example, a person who embezzles in order to get revenge on his employer for perceived unfair treatment uses financial means to solve what is essentially a nonfinancial problem.
Incorrect
For example, a person who embezzles in order to get revenge on his employer for perceived unfair treatment uses financial means to solve what is essentially a nonfinancial problem.
Question 35 of 100
35. Question
Which of the following is included in the Standard 2110—Governance?
Correct
Standard 2110—Governance
The internal audit activity must assess and make appropriate recommendations for
improving the governance process in its accomplishment of the following objectives:
I: Promoting appropriate ethics and values within the organization
II: Ensuring effective organizational performance management and accountability
III: Communicating risk and control information to appropriate areas of the organization
IV: Coordinating the activities of and communicating information among the board, external and internal auditors, and management
Incorrect
Standard 2110—Governance
The internal audit activity must assess and make appropriate recommendations for
improving the governance process in its accomplishment of the following objectives:
I: Promoting appropriate ethics and values within the organization
II: Ensuring effective organizational performance management and accountability
III: Communicating risk and control information to appropriate areas of the organization
IV: Coordinating the activities of and communicating information among the board, external and internal auditors, and management
Question 36 of 100
36. Question
Which of the following is true about the risks of fraud?
Correct
It is found that the risks of fraud that should be kept in mind is the mere aim of controlling these risks is to significantly reduce the inherent risk compared to the residual risk.
Incorrect
It is found that the risks of fraud that should be kept in mind is the mere aim of controlling these risks is to significantly reduce the inherent risk compared to the residual risk.
Question 37 of 100
37. Question
Which of the following about the sponsor should be remembered while choosing it?
Correct
Incorrect
Having the right sponsor for a fraud risk assessment is extremely important in ensuring its success and effectiveness. The sponsor must be senior enough in the organization to command the employees’ respect and elicit full cooperation in the process. The sponsor also must be someone who is committed to learning the truth about where the company’s fraud vulnerabilities are; he must be a truth seeker—not someone who is prone to rationalization or denial. In the ideal situation, the sponsor would be an independent board director or audit committee member; however, a chief executive officer or other internal senior leader can be equally as effective.
Question 38 of 100
38. Question
Following the deterrence system of controlling crimes, which of the following statement(s) is the most suitable?
Correct
It is found that the deterrence is structured as a crime control technique to identify violations of the law, assess who is responsible, and penalize criminals for dissuading further violations. Deterrence programs attempt to control individuals ‘ immediate behavior, not compliance-targeted long-term behavior.
The theory of deterrence assumes that people are rational in their patterns of behavior. It implies that the tendency of a person to violate laws is in inverse proportion to the perceived risk of negative consequences.
Incorrect
It is found that the deterrence is structured as a crime control technique to identify violations of the law, assess who is responsible, and penalize criminals for dissuading further violations. Deterrence programs attempt to control individuals ‘ immediate behavior, not compliance-targeted long-term behavior.
The theory of deterrence assumes that people are rational in their patterns of behavior. It implies that the tendency of a person to violate laws is in inverse proportion to the perceived risk of negative consequences.
Question 39 of 100
39. Question
Which of the following is the best example related to morality?
Correct
The section illustrates the moral, ethical, and legal issues facing fraud examiners. These issues involve principles of moral philosophy, rules of ethics, legal considerations, values, and—above all—the problem of distinguishing right from wrong. Morality refers to the underlying codes of right and wrong. But the difficulty with morality is that it is relative, not absolute. For example, although lying generally is wrong, Abel would likely argue that his deceptive acts are morally justified under the circumstances.
Incorrect
The section illustrates the moral, ethical, and legal issues facing fraud examiners. These issues involve principles of moral philosophy, rules of ethics, legal considerations, values, and—above all—the problem of distinguishing right from wrong. Morality refers to the underlying codes of right and wrong. But the difficulty with morality is that it is relative, not absolute. For example, although lying generally is wrong, Abel would likely argue that his deceptive acts are morally justified under the circumstances.
Question 40 of 100
40. Question
Which of the following is not a characteristic that differentiates professional fields from other vocations?
Correct
It is to be noted that people frequently refer to professions, professional men and women, and professional activities without defining the meaning of the concept “professionalism.” Some fraud examiners say, “I might not know how to define it, but I know it when I see it.”
Five principal characteristics help differentiate professional fields from other vocations. The five characteristics are as follows:
I: A body of specialized knowledge acquired by formal education
II: Admission to the profession governed by standards of professional qualifications
III: Recognition and acceptance by society of professional status, and concurrent recognition and acceptance of social responsibility by the professional
IV: Standards of conduct governing relationships of the professional with clients, colleagues, and the public
V: An organization devoted to the advancement of the obligations of the professional group
Incorrect
It is to be noted that people frequently refer to professions, professional men and women, and professional activities without defining the meaning of the concept “professionalism.” Some fraud examiners say, “I might not know how to define it, but I know it when I see it.”
Five principal characteristics help differentiate professional fields from other vocations. The five characteristics are as follows:
I: A body of specialized knowledge acquired by formal education
II: Admission to the profession governed by standards of professional qualifications
III: Recognition and acceptance by society of professional status, and concurrent recognition and acceptance of social responsibility by the professional
IV: Standards of conduct governing relationships of the professional with clients, colleagues, and the public
V: An organization devoted to the advancement of the obligations of the professional group
Question 41 of 100
41. Question
Which of the following is false about the general principles of the conduct of the auditors?
Correct
The conduct of auditors should be beyond reproach at all times and in all circumstances. Any deficiency in their professional conduct or any improper conduct in their personal life places the integrity of auditors, the SAI that they represent, and the quality and validity of their audit work in an unfavorable light, and may raise doubts about the reliability and competence of the SAI itself. The adoption and application of a code of ethics for auditors in the public sector promotes trust and confidence in the auditors and their work.
It is of fundamental importance that the SAI is looked upon with trust, confidence, and credibility. The auditor promotes this by adopting and applying the ethical requirements of the concepts embodied in the keywords integrity, independence, objectivity, confidentiality, and competence.
Incorrect
The conduct of auditors should be beyond reproach at all times and in all circumstances. Any deficiency in their professional conduct or any improper conduct in their personal life places the integrity of auditors, the SAI that they represent, and the quality and validity of their audit work in an unfavorable light, and may raise doubts about the reliability and competence of the SAI itself. The adoption and application of a code of ethics for auditors in the public sector promotes trust and confidence in the auditors and their work.
It is of fundamental importance that the SAI is looked upon with trust, confidence, and credibility. The auditor promotes this by adopting and applying the ethical requirements of the concepts embodied in the keywords integrity, independence, objectivity, confidentiality, and competence.
Question 42 of 100
42. Question
The management of the company are resistant to support the investment in fraud prevention measures for many reasons, which of the following contributes the most for it?
Correct
It is to be noted managers are understandably reluctant to believe in the possibility of fraud because of the secret essence of fraud. And, if an employee is caught committing fraud, management may too frequently believe that it is an isolated issue and that it is not worth further consideration. Management must recognize that it is too late to do anything about them when cases of fraud are identified.
Incorrect
It is to be noted managers are understandably reluctant to believe in the possibility of fraud because of the secret essence of fraud. And, if an employee is caught committing fraud, management may too frequently believe that it is an isolated issue and that it is not worth further consideration. Management must recognize that it is too late to do anything about them when cases of fraud are identified.
Question 43 of 100
43. Question
To uncover fraud using the analytical review techniques, which of the following is not suitable for the auditors to perform?
Correct
Some internal fraud is discovered as a result of analytical review procedures performed during a financial statement audit. To uncover fraud using such techniques, however, the scheme must materially impact the financial statements. Auditors should be especially mindful of the following trends:
I: Increasing expenses
II: Increasing cost of sales
III: Increasing receivables/decreasing cash
IV: Increasing inventories
V: Increasing sales/decreasing cash
VI: Increasing returns and allowances
VII: Increasing sales discounts
Incorrect
Some internal fraud is discovered as a result of analytical review procedures performed during a financial statement audit. To uncover fraud using such techniques, however, the scheme must materially impact the financial statements. Auditors should be especially mindful of the following trends:
I: Increasing expenses
II: Increasing cost of sales
III: Increasing receivables/decreasing cash
IV: Increasing inventories
V: Increasing sales/decreasing cash
VI: Increasing returns and allowances
VII: Increasing sales discounts
Question 44 of 100
44. Question
Which of the following is true about fair competition?
Correct
The company supports competition based on quality, service, and price. We will conduct our affairs honestly, directly, and fairly. To comply with the anti-trust laws and our policy of fair competition, employees must:
I: Never discuss with competitors any matter directly involved in competition between us and the competitor (e.g., sales price, marketing strategies, market shares, and sales policies)
II: Never agree with a competitor to restrict competition by fixing prices, allocating markets, or other means
III: Not arbitrarily refuse to deal with or purchase goods and services from others simply because they are competitors in other respects
IV: Not require others to buy from us before we buy from them
V: Not require customers to take from us a service they don’t want just so they can get one they do want
Incorrect
The company supports competition based on quality, service, and price. We will conduct our affairs honestly, directly, and fairly. To comply with the anti-trust laws and our policy of fair competition, employees must:
I: Never discuss with competitors any matter directly involved in competition between us and the competitor (e.g., sales price, marketing strategies, market shares, and sales policies)
II: Never agree with a competitor to restrict competition by fixing prices, allocating markets, or other means
III: Not arbitrarily refuse to deal with or purchase goods and services from others simply because they are competitors in other respects
IV: Not require others to buy from us before we buy from them
V: Not require customers to take from us a service they don’t want just so they can get one they do want
Question 45 of 100
45. Question
If a company has to find the disregard for internal control over misappropriation of assets by overriding existing controls or by failing to take appropriate remedial action on known deficiencies in internal control, this example refers to which of the following risk factors that relate to misstatements arising from misappropriation of assets?
Correct
If a company has to find the disregard of internal control over misappropriation of property by overriding established controls or failure to take sufficient remedial action to address identified shortcomings in internal control, the risk that is involved in this is attitudes and rationalization.
Incorrect
If a company has to find the disregard of internal control over misappropriation of property by overriding established controls or failure to take sufficient remedial action to address identified shortcomings in internal control, the risk that is involved in this is attitudes and rationalization.
Question 46 of 100
46. Question
Which of the following statement is false?
Correct
These Principles for Auditor Oversight note that auditor oversight should take place at several levels—within the audit firm, by professional associates, and through government regulation. However, the Principles for Auditor Oversight state that, within jurisdictions, audit firms should be subject to oversight by somebody that acts and is seen to act in the public interest. Further, this auditor oversight body should have in place a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures that address all significant aspects of auditing. The following is the full text of the Principles as released by IOSCO’s Technical Committee:
Independent auditors play a critical role in enhancing the reliability of financial information by certifying whether the financial statements prepared by management fairly present the public company’s financial position and past performance following accepted accounting standards.
Incorrect
These Principles for Auditor Oversight note that auditor oversight should take place at several levels—within the audit firm, by professional associates, and through government regulation. However, the Principles for Auditor Oversight state that, within jurisdictions, audit firms should be subject to oversight by somebody that acts and is seen to act in the public interest. Further, this auditor oversight body should have in place a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures that address all significant aspects of auditing. The following is the full text of the Principles as released by IOSCO’s Technical Committee:
Independent auditors play a critical role in enhancing the reliability of financial information by certifying whether the financial statements prepared by management fairly present the public company’s financial position and past performance following accepted accounting standards.
Question 47 of 100
47. Question
Which of the following is not true about the public interest oversight board?
Correct
The Public Interest Oversight Board (PIOB) is the international independent oversight body aimed at improving the performance and public interest orientation of the International Accountants Federation (IFAC) standards for auditing, training, and ethics.
The PIOB aims to bring greater accountability and credibility to the international audit profession through its supervisory activities, The creation of the PIOB resulted from a joint initiative by the international financial regulatory community collaborating with the IFAC to ensure that the accounting profession’s auditing and assurance, ethics, and academic standards are established in a consistent manner that represents the public interest. It was mutually recognized that high quality, transparent standard-setting processes with public and regulatory input, together with regulatory monitoring and public interest oversight, are necessary to enhance the quality of external audits of entities.
Incorrect
The Public Interest Oversight Board (PIOB) is the international independent oversight body aimed at improving the performance and public interest orientation of the International Accountants Federation (IFAC) standards for auditing, training, and ethics.
The PIOB aims to bring greater accountability and credibility to the international audit profession through its supervisory activities, The creation of the PIOB resulted from a joint initiative by the international financial regulatory community collaborating with the IFAC to ensure that the accounting profession’s auditing and assurance, ethics, and academic standards are established in a consistent manner that represents the public interest. It was mutually recognized that high quality, transparent standard-setting processes with public and regulatory input, together with regulatory monitoring and public interest oversight, are necessary to enhance the quality of external audits of entities.
Question 48 of 100
48. Question
According to the Albrecht study, smaller crimes/frauds are committed due to which of the following reasons
Correct
Under the Albrecht study, the perpetrators involved in smaller frauds were more likely to be the ones who had there pay inadequate. On the other hand, the perpetrators who committed larger frauds were the ones who had unrealistic goals, lack of segregation of responsibilities. The ones involved in beating the system were also said to commit larger crimes.
Incorrect
Under the Albrecht study, the perpetrators involved in smaller frauds were more likely to be the ones who had there pay inadequate. On the other hand, the perpetrators who committed larger frauds were the ones who had unrealistic goals, lack of segregation of responsibilities. The ones involved in beating the system were also said to commit larger crimes.
Question 49 of 100
49. Question
Which of the following is true about the supervisory board of directors?
Correct
It is to be noted that the board that is headed by the chairperson and composed of non-executive directors who are elected by the shareholders come under the category of supervisory board. On the other hand, the board that is headed by the company CEO and composed of company executives oversees the business day to day operations is the executive board. Moreover, independent/outside directors might be completely independent of the organization aside from their role on the board.
Incorrect
It is to be noted that the board that is headed by the chairperson and composed of non-executive directors who are elected by the shareholders come under the category of supervisory board. On the other hand, the board that is headed by the company CEO and composed of company executives oversees the business day to day operations is the executive board. Moreover, independent/outside directors might be completely independent of the organization aside from their role on the board.
Question 50 of 100
50. Question
Which of the following set of qualities best describe the roles of the CEO and the Board Chairman (CEO duality)?
Correct
Ideally, two qualified individuals (the CEO and the Board Chairman) with knowledge of the organization’s industry should serve in these roles independently. The advantages of separating these roles include:
I: Better alignment with corporate governance best practices
II: Improvement of the CEO’s accountability
III: Reduction in the CEO’s potential conflicts of interest
IV: More effective board oversight
Incorrect
Ideally, two qualified individuals (the CEO and the Board Chairman) with knowledge of the organization’s industry should serve in these roles independently. The advantages of separating these roles include:
I: Better alignment with corporate governance best practices
II: Improvement of the CEO’s accountability
III: Reduction in the CEO’s potential conflicts of interest
IV: More effective board oversight
Question 51 of 100
51. Question
Which of the following is false regarding shareholder meetings?
Correct
It should be noted that shareholders should be able to vote in person or absentia, and votes cast in person or absentia should have equal effect.
Incorrect
It should be noted that shareholders should be able to vote in person or absentia, and votes cast in person or absentia should have equal effect.
Question 52 of 100
52. Question
Which of the following statement regarding the role of stakeholders in corporate governance is false?
Correct
It is to be noted that the corporate governance structure must recognize stakeholder rights established by law or through mutual agreements and promote effective cooperation between companies and shareholders in creating wealth, employment, and financially sound business sustainability.
It should include,
I: The rights of stakeholders that are established by law or through mutual agreements are to be respected.
II: Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights.
III: Mechanisms for employee participation should be permitted to develop.
IV: Where stakeholders are involved in the process of corporate governance, they should have timely and regular access to appropriate, adequate, and reliable information.
Incorrect
It is to be noted that the corporate governance structure must recognize stakeholder rights established by law or through mutual agreements and promote effective cooperation between companies and shareholders in creating wealth, employment, and financially sound business sustainability.
It should include,
I: The rights of stakeholders that are established by law or through mutual agreements are to be respected.
II: Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights.
III: Mechanisms for employee participation should be permitted to develop.
IV: Where stakeholders are involved in the process of corporate governance, they should have timely and regular access to appropriate, adequate, and reliable information.
Question 53 of 100
53. Question
Which of the following is incorrect about compliance?
Correct
There are many theories about enforcement, sanctions, and punishments that are a part of controlling white-collar crime.
Enforcement strategies include two main theories: compliance and deterrence.
Compliance is designed to achieve conformity to the law without having to detect, process, or penalize violators. Compliance systems provide economic incentives for voluntary compliance with the laws and use administrative efforts to control violations before they occur. In a compliance system, an offense is often called a “technical violation.”
Incorrect
There are many theories about enforcement, sanctions, and punishments that are a part of controlling white-collar crime.
Enforcement strategies include two main theories: compliance and deterrence.
Compliance is designed to achieve conformity to the law without having to detect, process, or penalize violators. Compliance systems provide economic incentives for voluntary compliance with the laws and use administrative efforts to control violations before they occur. In a compliance system, an offense is often called a “technical violation.”
Question 54 of 100
54. Question
Which of the following statements is incorrect about occupational fraud
Correct
It is to be noted that, largely individuals or small groups of individuals in connection with their occupation commit occupational fraud.
Green further delineates occupational crime into four categories:
I: Crimes for the benefit of an employing organization (organizational occupational crime)
II: Crimes by officials through exercise of their government-based authority (government authority occupational crime)
III: Crimes by professionals in their capacity as professionals (professional occupational crime)
IV: Crimes by individuals as individuals.
Incorrect
It is to be noted that, largely individuals or small groups of individuals in connection with their occupation commit occupational fraud.
Green further delineates occupational crime into four categories:
I: Crimes for the benefit of an employing organization (organizational occupational crime)
II: Crimes by officials through exercise of their government-based authority (government authority occupational crime)
III: Crimes by professionals in their capacity as professionals (professional occupational crime)
IV: Crimes by individuals as individuals.
Question 55 of 100
55. Question
According to the Fraud Triangle model, which of the following statement is true
Correct
It is to be noted that in accordance with the Fraud Triangle Model, the presence of non-shareable financial problem alone will not lead an employee to commit fraud
Incorrect
It is to be noted that in accordance with the Fraud Triangle Model, the presence of non-shareable financial problem alone will not lead an employee to commit fraud
Question 56 of 100
56. Question
Which of the following is not the component of the Fraud Triangle?
Correct
The fraud triangle as three legs. One leg of the triangle represents a perceived non-shareable financial need. The second leg represents perceived opportunity, and the final leg stands for rationalization. On the contrary, general information is the further category that lies under the component of the second leg i.e. Perceived Opportunity.
Incorrect
The fraud triangle as three legs. One leg of the triangle represents a perceived non-shareable financial need. The second leg represents perceived opportunity, and the final leg stands for rationalization. On the contrary, general information is the further category that lies under the component of the second leg i.e. Perceived Opportunity.
Question 57 of 100
57. Question
The example of a church group used its daycare center to defraud the federal government of approximately $1 million. When after looking into the case, it was found that the teachers said they sometimes brought food to the center themselves because the children were not being fed properly. This example shows that,
Correct
It is found that the example of a church group that used its daycare center to defraud the federal government of approx. $1 million, it shows that A criminal’s position in an organization and his ability to organize the fraud have far more bearing on the crime than social status or class alone.
Incorrect
It is found that the example of a church group that used its daycare center to defraud the federal government of approx. $1 million, it shows that A criminal’s position in an organization and his ability to organize the fraud have far more bearing on the crime than social status or class alone.
Question 58 of 100
58. Question
Which of the following are the contrasts found between antitrust and securities
Correct
It is found that there are revealing contrasts when these two types of offenders are compared:
I: Almost 97% of antitrust offenders had been steadily employed in the years preceding their crime, while only about 60% of the securities offenders had continually held a job.
II: The antitrusters had a median ratio of assets to liabilities of $200,000 (assets) to $40,000 (liabilities); the securities offenders held a median $57,500 in assets with $54,000 in liabilities.
III: Antitrust violators were more likely to own their own home (73.5% vs. 58.2%) and to be married (95.7% vs. 80.7%) than securities offenders.
The fourth option is the contrast found among tax funds and bribery
Incorrect
It is found that there are revealing contrasts when these two types of offenders are compared:
I: Almost 97% of antitrust offenders had been steadily employed in the years preceding their crime, while only about 60% of the securities offenders had continually held a job.
II: The antitrusters had a median ratio of assets to liabilities of $200,000 (assets) to $40,000 (liabilities); the securities offenders held a median $57,500 in assets with $54,000 in liabilities.
III: Antitrust violators were more likely to own their own home (73.5% vs. 58.2%) and to be married (95.7% vs. 80.7%) than securities offenders.
The fourth option is the contrast found among tax funds and bribery
Question 59 of 100
59. Question
Out of all the white-collar defendants, which ones are most likely to insist on their day in court?
Correct
Of all white-collar defendants, securities offenders are the ones most likely to insist on their day in court.
Incorrect
Of all white-collar defendants, securities offenders are the ones most likely to insist on their day in court.
Question 60 of 100
60. Question
Which of the following is not a contributing factor in economic crime?
Correct
It is to be noted that new information technologies mean that the opportunity for wrongdoing is growing, and many of the techniques are not widely comprehended by businesses or individuals.
Incorrect
It is to be noted that new information technologies mean that the opportunity for wrongdoing is growing, and many of the techniques are not widely comprehended by businesses or individuals.
Question 61 of 100
61. Question
Which of the following is false about large corporations?
Correct
Large corporations have contributed significantly to industrial and commercial development throughout the world. Their size and resources enable them to organize and coordinate production and distribution. The capital resources of a large corporation provide it with the ability to develop, adopt, and alter technology on a large scale. At the same time, large corporations have the power to influence the manner in which laws are written and to commit acts that can inflict serious harm upon the population.
Incorrect
Large corporations have contributed significantly to industrial and commercial development throughout the world. Their size and resources enable them to organize and coordinate production and distribution. The capital resources of a large corporation provide it with the ability to develop, adopt, and alter technology on a large scale. At the same time, large corporations have the power to influence the manner in which laws are written and to commit acts that can inflict serious harm upon the population.
Question 62 of 100
62. Question
Which of the following is not correct about the fraud risk assessment tool?
Correct
It is to be noted that, The Fraud Risk Assessment Tool may reveal certain residual fraud risks that have not been adequately mitigated due to lack of, or noncompliance with, appropriate preventive and detective controls. The fraud professional should work with the client to develop mitigation strategies for any residual risks with an unacceptably high likelihood or significance of occurrence. Responses should be evaluated in terms of their costs versus benefits and light of the organization’s level of risk tolerance.
Incorrect
It is to be noted that, The Fraud Risk Assessment Tool may reveal certain residual fraud risks that have not been adequately mitigated due to lack of, or noncompliance with, appropriate preventive and detective controls. The fraud professional should work with the client to develop mitigation strategies for any residual risks with an unacceptably high likelihood or significance of occurrence. Responses should be evaluated in terms of their costs versus benefits and light of the organization’s level of risk tolerance.
Question 63 of 100
63. Question
Which of the following statements do not contribute to the objectives of effective fraud risk management?
Correct
In addition to financial benefits, effective fraud risk management:
I: Sends a clear message that fraudulent actions will be proactively sought out and will not be tolerated
II: Demonstrates a sound business strategy to employees and third parties
III: Enhances the organization’s public image and reputation
IV: Promotes goodwill with other organizations and the general public
V: Ensures compliance with certain laws and regulations
Incorrect
In addition to financial benefits, effective fraud risk management:
I: Sends a clear message that fraudulent actions will be proactively sought out and will not be tolerated
II: Demonstrates a sound business strategy to employees and third parties
III: Enhances the organization’s public image and reputation
IV: Promotes goodwill with other organizations and the general public
V: Ensures compliance with certain laws and regulations
Question 64 of 100
64. Question
Responding to suspected fraud occurrences include which of the following statements?
Correct
Responding to suspected fraud occurrences includes:
I: Investigating the allegation to determine the party or parties responsible, the means of the infraction, and the extent of the resulting damage
II: Punishing the perpetrator, whether through employment sanctions or legal action
III: Remediating the control weaknesses that allowed the fraud to be undertaken IV: Rebuilding stakeholders’ confidence in the organization
Incorrect
Responding to suspected fraud occurrences includes:
I: Investigating the allegation to determine the party or parties responsible, the means of the infraction, and the extent of the resulting damage
II: Punishing the perpetrator, whether through employment sanctions or legal action
III: Remediating the control weaknesses that allowed the fraud to be undertaken IV: Rebuilding stakeholders’ confidence in the organization
Question 65 of 100
65. Question
Which of the following is incorrect about the surveys?
Correct
Surveys can be anonymous or directly attributable to individuals. Sometimes people will share more openly when they feel protected behind a computer or paper questionnaire. In an organization where the culture is not one in which people open up and freely talk, an anonymous survey can be an effective way to get feedback. However, employees can be skeptical about the true anonymity of a survey, especially in organizations that use surveys to solicit feedback anonymously but send follow-up emails to individual delinquent respondents. If the assessor determines that an anonymous survey is an appropriate technique to use in the fraud risk assessment, he should clearly and explicitly explain to employees how anonymity will be maintained
Incorrect
Surveys can be anonymous or directly attributable to individuals. Sometimes people will share more openly when they feel protected behind a computer or paper questionnaire. In an organization where the culture is not one in which people open up and freely talk, an anonymous survey can be an effective way to get feedback. However, employees can be skeptical about the true anonymity of a survey, especially in organizations that use surveys to solicit feedback anonymously but send follow-up emails to individual delinquent respondents. If the assessor determines that an anonymous survey is an appropriate technique to use in the fraud risk assessment, he should clearly and explicitly explain to employees how anonymity will be maintained
Question 66 of 100
66. Question
Which of the following is not true about monitoring the key controls?
Correct
At the culmination of a fraud risk assessment, the organization should have a clear view of both the areas where the organization is susceptible to fraud and the controls that are designed and implemented to address those weak spots. To effectively manage the identified fraud risks, management should use the results of the fraud risk assessment to monitor the performance of critical internal controls. Such proactive attention will allow for the identification and correction of deficiencies in control design or operation as quickly as possible
Incorrect
At the culmination of a fraud risk assessment, the organization should have a clear view of both the areas where the organization is susceptible to fraud and the controls that are designed and implemented to address those weak spots. To effectively manage the identified fraud risks, management should use the results of the fraud risk assessment to monitor the performance of critical internal controls. Such proactive attention will allow for the identification and correction of deficiencies in control design or operation as quickly as possible
Question 67 of 100
67. Question
Which of the following is false about the general principles of the conduct of the auditors?
Correct
The conduct of auditors should be beyond reproach at all times and in all circumstances. Any deficiency in their professional conduct or any improper conduct in their personal life places the integrity of auditors, the SAI that they represent, and the quality and validity of their audit work in an unfavorable light, and may raise doubts about the reliability and competence of the SAI itself. The adoption and application of a code of ethics for auditors in the public sector promotes trust and confidence in the auditors and their work.
Incorrect
The conduct of auditors should be beyond reproach at all times and in all circumstances. Any deficiency in their professional conduct or any improper conduct in their personal life places the integrity of auditors, the SAI that they represent, and the quality and validity of their audit work in an unfavorable light, and may raise doubts about the reliability and competence of the SAI itself. The adoption and application of a code of ethics for auditors in the public sector promotes trust and confidence in the auditors and their work.
Question 68 of 100
68. Question
According to Skinner, which of the following is followed by conditioning?
Correct
Self-control is a behavior that is guided by conditioning in the same way any other action would be. “Self-control” as a behavior is shaped by “variables in the environment and the history of the individual.”
Understanding why people do certain things allows us to go beyond a simplistic insistence that criminals “control themselves.” We will instead have to consider how this control can be conditioned, preventing the behavior directly when possible, but ultimately relying on each individual having adequately absorbed the principles of self-control.
Incorrect
Question 69 of 100
69. Question
What was the result of study named Chicago Study?
Correct
The study did show that legitimacy is related to compliance. Participants who attributed greater legitimacy to authorities were more likely to obey the law, for instance. This does not prove a causal relationship, though. The results of the study were analyzed to account for demographic and sociological factors. This “regression analysis” suggests that legitimacy has a significant effect on compliance, regardless of the other factors.
Incorrect
The study did show that legitimacy is related to compliance. Participants who attributed greater legitimacy to authorities were more likely to obey the law, for instance. This does not prove a causal relationship, though. The results of the study were analyzed to account for demographic and sociological factors. This “regression analysis” suggests that legitimacy has a significant effect on compliance, regardless of the other factors.
Question 70 of 100
70. Question
Which of the following is not included in the background characteristics
Correct
People’s views on procedural fairness are affected by two factors: background characteristics and prior views. Race, education, income, sex, age, and political views are the most important background characteristics. Whereas, Prior views, formed perhaps from past experiences, carry more weight than background characteristics.
Incorrect
People’s views on procedural fairness are affected by two factors: background characteristics and prior views. Race, education, income, sex, age, and political views are the most important background characteristics. Whereas, Prior views, formed perhaps from past experiences, carry more weight than background characteristics.
Question 71 of 100
71. Question
Which statement clearly defines hardware write-blocking?
Correct
A hardware write-blocking tool prevents any automated processes or accidental processes that may be used to communicate with a piece of digital media by an operating system or fraud examiner. That is, such devices trick the operating system into thinking that the communication or interaction has occurred so that an error is not produced and the acquisition process is thwarted.
However, a software write-blocking device denies media access by banning certain media requests by filtering them out. When a software write-blocking device is in place, only requests for reading are accepted, and all requests for writing are denied. Software write blockers must operate at a separate level than a standard graphical user’s interface.
Incorrect
A hardware write-blocking tool prevents any automated processes or accidental processes that may be used to communicate with a piece of digital media by an operating system or fraud examiner. That is, such devices trick the operating system into thinking that the communication or interaction has occurred so that an error is not produced and the acquisition process is thwarted.
However, a software write-blocking device denies media access by banning certain media requests by filtering them out. When a software write-blocking device is in place, only requests for reading are accepted, and all requests for writing are denied. Software write blockers must operate at a separate level than a standard graphical user’s interface.
Question 72 of 100
72. Question
Which statement is true about deduplication filtering?
Correct
One problem faced in most investigations is that as part of the investigative process, multiple copies of various files will be obtained. Since it is expensive and time-consuming to review these duplicative materials the fraud examiner must recognize and remove duplicates in the data collected. This method is referred to as filtering deduplication, and it is important to help reduce the vast amounts of information gathered during a fraud investigation.
Incorrect
One problem faced in most investigations is that as part of the investigative process, multiple copies of various files will be obtained. Since it is expensive and time-consuming to review these duplicative materials the fraud examiner must recognize and remove duplicates in the data collected. This method is referred to as filtering deduplication, and it is important to help reduce the vast amounts of information gathered during a fraud investigation.
Question 73 of 100
73. Question
Which statement is true regarding the jurisdiction of storage?
Correct
Cloud providers typically store data on servers at various locations around the world.
As a result, facts relating to persons within the same organization may be separated at different physical locations, thus complicating the ability of an investigator to assess jurisdiction.
Incorrect
Cloud providers typically store data on servers at various locations around the world.
As a result, facts relating to persons within the same organization may be separated at different physical locations, thus complicating the ability of an investigator to assess jurisdiction.
Question 74 of 100
74. Question
What does recovering mobile date through the file systems include?
Correct
The main areas for recovering data on mobile devices are:
Logical: It involves the logical objects contained in a logical store (e.g. a partition of the file system). The actual data that can be retrieved using a logical exam will vary depending on the device type, but the retrievable information may include text messages, multi-media messages, call registers, contacts, tasks, images, audio, videos, calendar entries, etc.
File system: This includes information in the logical extraction and hidden information such as deleted information and operating system files.
Physical: This includes information on a physical store (e.g., flash memory or memory chip).
Incorrect
The main areas for recovering data on mobile devices are:
Logical: It involves the logical objects contained in a logical store (e.g. a partition of the file system). The actual data that can be retrieved using a logical exam will vary depending on the device type, but the retrievable information may include text messages, multi-media messages, call registers, contacts, tasks, images, audio, videos, calendar entries, etc.
File system: This includes information in the logical extraction and hidden information such as deleted information and operating system files.
Physical: This includes information on a physical store (e.g., flash memory or memory chip).
Question 75 of 100
75. Question
Which of the following is not a way of verifying the data extracted from a device?
Correct
It is possible to check extracted information in different ways, including:
· Check that the data extracted is in line with the data presented by the system.
· Use more than one forensic method to extract data from the system and cross-check the results by comparing the data extracted from each tool.
· To validate individual files, test the hash values of the extracted information against the originals.
Incorrect
It is possible to check extracted information in different ways, including:
· Check that the data extracted is in line with the data presented by the system.
· Use more than one forensic method to extract data from the system and cross-check the results by comparing the data extracted from each tool.
· To validate individual files, test the hash values of the extracted information against the originals.
Question 76 of 100
76. Question
Which of the following is not a general process for tracing illicit transactions?
Correct
Tracing transactions investigation will usually include the following elements:
· Gather information.
· Profile the suspect.
· Review lead information and leads should be prioritized.
· Track transactions that are illicit.
Incorrect
Tracing transactions investigation will usually include the following elements:
· Gather information.
· Profile the suspect.
· Review lead information and leads should be prioritized.
· Track transactions that are illicit.
Question 77 of 100
77. Question
Which of the following data analysis software functions is most likely to be used in identifying missing items in a sequence or series?
Correct
Gap tests are used to identify missing items in a sequence or series, such as missing checks or invoice numbers. It can also be used to find sequences where none are expected to exist (e.g., employee government identification numbers).
Incorrect
Gap tests are used to identify missing items in a sequence or series, such as missing checks or invoice numbers. It can also be used to find sequences where none are expected to exist (e.g., employee government identification numbers).
Question 78 of 100
78. Question
Which of the following is least likely to be an example of a data analysis query that can be performed to detect fraud through the examination of cash disbursement records?
Correct
The following are examples of data analysis queries that can be performed to detect fraud through the examination of cash disbursement records:
– Summarize cash disbursements by account, bank, department, vendor, etc.
– Verify audit trail for all disbursements by purchase order, vendor, department, etc.
– Generate vendor cash activity summary for analysis.
– Identify disbursements by department, supervisor approval, or amount limits.
Incorrect
The following are examples of data analysis queries that can be performed to detect fraud through the examination of cash disbursement records:
– Summarize cash disbursements by account, bank, department, vendor, etc.
– Verify audit trail for all disbursements by purchase order, vendor, department, etc.
– Generate vendor cash activity summary for analysis.
– Identify disbursements by department, supervisor approval, or amount limits.
Question 79 of 100
79. Question
Which of the following is least likely to be an example of a data analysis query that can be performed on asset accounts to detect fraud?
Correct
The following are examples of data analysis queries that can be performed to detect fraud through the examination of asset accounts:
– Generate depreciation to cost reports.
– Compare book and tax depreciation and indicate variances.
– Sort asset values by asset type or monetary amount.
– Select samples for asset existence verification.
– Recalculate expense and reserve/provision amounts using replacement costs.
Incorrect
The following are examples of data analysis queries that can be performed to detect fraud through the examination of asset accounts:
– Generate depreciation to cost reports.
– Compare book and tax depreciation and indicate variances.
– Sort asset values by asset type or monetary amount.
– Select samples for asset existence verification.
– Recalculate expense and reserve/provision amounts using replacement costs.
Question 80 of 100
80. Question
Which of the following types of analysis is a method of using software to extract usable information from unstructured text data?
Correct
Textual analytics is a method of using software to extract usable information from unstructured text data. Textual analytics software can categorize data to reveal patterns, sentiments, and relationships indicative of fraud. Textual analytics provides the ability to uncover additional warning signs of potentially fraudulent employee behavior.
Incorrect
Textual analytics is a method of using software to extract usable information from unstructured text data. Textual analytics software can categorize data to reveal patterns, sentiments, and relationships indicative of fraud. Textual analytics provides the ability to uncover additional warning signs of potentially fraudulent employee behavior.
Question 81 of 100
81. Question
Emotional Tone Analysis is a type of Data Analysis, which of the following statement is false about it?
Correct
Emotional Tone Analysis is a way to discover fraud clues concealed in text by taking into account the emotional tone of correspondence between employees. A fraud investigator must recognize messages that are negative, shocked, confidential or worried. This needs the use of sophisticated software and a thorough understanding of legal environment of employee rights and workplace searches and until pursuing these methods, they must consult with technical and legal experts.
Incorrect
Emotional Tone Analysis is a way to discover fraud clues concealed in text by taking into account the emotional tone of correspondence between employees. A fraud investigator must recognize messages that are negative, shocked, confidential or worried. This needs the use of sophisticated software and a thorough understanding of legal environment of employee rights and workplace searches and until pursuing these methods, they must consult with technical and legal experts.
Question 82 of 100
82. Question
From the following statements, which of the following is incorrect about Link Analysis?
Correct
Fraud examiners use the link analysis software to create visual representations of data from multiple data sources using charts with line connections. Indirect relationships and multi-degree separation relationships can be defined with the help of Link Analysis.
Incorrect
Fraud examiners use the link analysis software to create visual representations of data from multiple data sources using charts with line connections. Indirect relationships and multi-degree separation relationships can be defined with the help of Link Analysis.
Question 83 of 100
83. Question
Which of the following is not one of the minimum requirements of attributes a data analysis software should have?
Correct
The software for data analysis should have the following minimum requirements:
· Import / export capabilities of software: how easily is data imported / exported given the data format and structure.
· Visualization of data: how easy is it to transfer the data from a table to a chart for analysis and interpretation?
. Search for suite of tools: He should select the most suitable set of tools based on his available data and then select the software best suited to his current and future needs.
Incorrect
The software for data analysis should have the following minimum requirements:
· Import / export capabilities of software: how easily is data imported / exported given the data format and structure.
· Visualization of data: how easy is it to transfer the data from a table to a chart for analysis and interpretation?
. Search for suite of tools: He should select the most suitable set of tools based on his available data and then select the software best suited to his current and future needs.
Question 84 of 100
84. Question
Out of the following, which statement is true about phases of computer forensics?
Correct
The planning phase ensures that all equipment used in a forensic capacity is legitimate and reliable.
In the privacy issues phase, the fraud examiner must be knowledgeable of the law pertaining to workplace seizures. If it becomes necessary to seize a computer or other device capable of storing digital evidence, the investigator should consult with legal counsel.
In the seizing, acquisition of digital evidence must be secured in a forensically sound manner so that the evidence is not
tainted or destroyed.
Incorrect
The planning phase ensures that all equipment used in a forensic capacity is legitimate and reliable.
In the privacy issues phase, the fraud examiner must be knowledgeable of the law pertaining to workplace seizures. If it becomes necessary to seize a computer or other device capable of storing digital evidence, the investigator should consult with legal counsel.
In the seizing, acquisition of digital evidence must be secured in a forensically sound manner so that the evidence is not
tainted or destroyed.
Question 85 of 100
85. Question
When does a graceful shutdown occur?
Correct
There is a hard shutdown due to power failure. Therefore, a hard shutdown is achieved by unplugging all the computer power and power cables. When the consumer relies on the collection of built-in processes that prepare a computer for shutdown, a graceful shutdown occurs.
Incorrect
There is a hard shutdown due to power failure. Therefore, a hard shutdown is achieved by unplugging all the computer power and power cables. When the consumer relies on the collection of built-in processes that prepare a computer for shutdown, a graceful shutdown occurs.
Question 86 of 100
86. Question
Which of the following is least likely to be the aim of a fraud examiner who engages in undercover operations by abandoning his true identity as a fraud examiner and adopting another identity?
Correct
A fraud examiner is undercover when he officially abandons his identity as a fraud examiner and adopts one designed to obtain information from people who do not realize his true identity. The aim of abandoning his true identity is normally to avoid being compromised, to minimize danger to the fraud examiner, and to ensure the operation’s success.
Incorrect
A fraud examiner is undercover when he officially abandons his identity as a fraud examiner and adopts one designed to obtain information from people who do not realize his true identity. The aim of abandoning his true identity is normally to avoid being compromised, to minimize danger to the fraud examiner, and to ensure the operation’s success.
Question 87 of 100
87. Question
Surveillance is the planned observation of people, places, or objects. Which of the following are the two general types of surveillance?
Correct
There are two general types of surveillance. The two general types of surveillance are mobile surveillance (also known as tailing or shadowing) and fixed surveillance (also referred to as stakeout or plant).
Incorrect
There are two general types of surveillance. The two general types of surveillance are mobile surveillance (also known as tailing or shadowing) and fixed surveillance (also referred to as stakeout or plant).
Question 88 of 100
88. Question
When using data analysis to detect fraud, the fraud examiner should organize and analyze the data in a way designed to uncover patterns that are consistent with the specific fraud scenarios identified during the planning stage. Which of the following categorizations is least likely to be used in grouping data being analyzed?
Correct
The specific groupings should be based on the target fraud scenario and data being analyzed, but such categorization might include grouping data by:
– Geographical location
– Business division or unit
– Time period
– Dollar value
– Salesperson
Incorrect
The specific groupings should be based on the target fraud scenario and data being analyzed, but such categorization might include grouping data by:
– Geographical location
– Business division or unit
– Time period
– Dollar value
– Salesperson
Question 89 of 100
89. Question
According to Mark J. Nigrini, Benford’s Law will be valid if the data set has a certain criteria. Which of the following is not a one of them?
Correct
Nigrini defines the following criteria for the validity of Benford’s Law that a data set should have:
1. The data set will define the sizes of similar phenomena.
2. No minimum or maximum values should be included in the set of data.
3. The data set should not be allocated numbers, e.g. transaction numbers.
4. The set of data must contain more smaller items than large ones.
Incorrect
Nigrini defines the following criteria for the validity of Benford’s Law that a data set should have:
1. The data set will define the sizes of similar phenomena.
2. No minimum or maximum values should be included in the set of data.
3. The data set should not be allocated numbers, e.g. transaction numbers.
4. The set of data must contain more smaller items than large ones.
Question 90 of 100
90. Question
Which is the incorrect statement about criminal background records?
Correct
Criminal background checks include reviewing criminal court records to see if a person has a criminal misconduct history. Courts records and law enforcement agencies are the primary sources of criminal records. Notice that countries differently control access to each of these outlets.
Incorrect
Criminal background checks include reviewing criminal court records to see if a person has a criminal misconduct history. Courts records and law enforcement agencies are the primary sources of criminal records. Notice that countries differently control access to each of these outlets.
Question 91 of 100
91. Question
Which of the following is a correct statement regarding duplicate searches?
Correct
Duplicate testing is used in specified fields to classify transactions with duplicate values. This technique can quickly analyze the file and joined multiple files to illustrate key field duplicate values.
However, Fraud examiners may construct expressions or equations based on their knowledge and perceptions of what the information will contain.
Incorrect
Duplicate testing is used in specified fields to classify transactions with duplicate values. This technique can quickly analyze the file and joined multiple files to illustrate key field duplicate values.
However, Fraud examiners may construct expressions or equations based on their knowledge and perceptions of what the information will contain.
Question 92 of 100
92. Question
What does compliance verification determine?
Correct
Verification of compliance decides how employee transactions comply with company policies. If an organization limits the number of its reimbursements, analytical software may track compliance with this limit.
A fraud examiner may decide whether regular checks disbursed, such as mileage reimbursement, are consistent within the regular rate by verifying multiples of a number function.
Incorrect
Verification of compliance decides how employee transactions comply with company policies. If an organization limits the number of its reimbursements, analytical software may track compliance with this limit.
A fraud examiner may decide whether regular checks disbursed, such as mileage reimbursement, are consistent within the regular rate by verifying multiples of a number function.
Question 93 of 100
93. Question
What option is correct regarding multi-file processing?
Correct
Multi-file processing allows the user to connect many files without using the Join command by establishing relationships between multiple files. Relating an outstanding invoice master file to an account receivable file based on the customer number would be a common data relationship. The relationship may be expanded to include a detailed invoice folder based on the number of the invoice. This relationship allows the client to see which customers have outstanding date-sorting invoices.
Incorrect
Multi-file processing allows the user to connect many files without using the Join command by establishing relationships between multiple files. Relating an outstanding invoice master file to an account receivable file based on the customer number would be a common data relationship. The relationship may be expanded to include a detailed invoice folder based on the number of the invoice. This relationship allows the client to see which customers have outstanding date-sorting invoices.
Question 94 of 100
94. Question
What is the following is not a correct statement regarding using data analysis software?
Correct
The software for data analysis allows the fraud investigator to centralize the investigation and rely less on others to collect data. Because it is possible to sort through the amount of information data software, the fraud examiner no longer has to rely on different information sources. In the past, the fraud examiner would have to ask for the help of several individuals in the accounting department to find the data while analyzing a company’s accounts for potential inconsistencies. Now, however, software programs will do all the work, ensuring an above-the board
investigation without many variables.
Incorrect
The software for data analysis allows the fraud investigator to centralize the investigation and rely less on others to collect data. Because it is possible to sort through the amount of information data software, the fraud examiner no longer has to rely on different information sources. In the past, the fraud examiner would have to ask for the help of several individuals in the accounting department to find the data while analyzing a company’s accounts for potential inconsistencies. Now, however, software programs will do all the work, ensuring an above-the board
investigation without many variables.
Question 95 of 100
95. Question
Cloud computing offers numerous benefits. Which of the following is least likely to be an advantage of storing data and applications on the cloud?
Correct
Cloud computing offers numerous benefits. These benefits include the following:
– The cloud can provide savings on hardware, software, or licensing fees.
– Cloud services offer a cost-effective alternative to building out IT infrastructure.
– The cloud improves accessibility because users can access the cloud anytime and anywhere.
– With cloud computing, organizations can easily scale information technology resources up or down to suit their business needs.
Incorrect
Cloud computing offers numerous benefits. These benefits include the following:
– The cloud can provide savings on hardware, software, or licensing fees.
– Cloud services offer a cost-effective alternative to building out IT infrastructure.
– The cloud improves accessibility because users can access the cloud anytime and anywhere.
– With cloud computing, organizations can easily scale information technology resources up or down to suit their business needs.
Question 96 of 100
96. Question
During the planning phase of investigations involving computers, the fraud examiner needs to take certain steps. Which of the following is least likely to be a step involved in the planning phase of computer forensics for investigations involving computers?
Correct
Before the fraud examiner can seize evidence, he must take certain steps to help ensure that the evidence will be admissible. These steps involved in the planning phase of investigations involving computers include:
– Determining whether there are any privacy interests in the item(s) to be searched.
– Making appropriate preparations if the investigation involves the use of a legal order.
– Ensuring that all equipment used in a forensic capacity is legitimate and reliable.
– Ensuring that the fraud examiner is properly trained to employ relevant digital forensic tools.
– Ensuring that equipment is employed in the manner for which it was designed.
Incorrect
Before the fraud examiner can seize evidence, he must take certain steps to help ensure that the evidence will be admissible. These steps involved in the planning phase of investigations involving computers include:
– Determining whether there are any privacy interests in the item(s) to be searched.
– Making appropriate preparations if the investigation involves the use of a legal order.
– Ensuring that all equipment used in a forensic capacity is legitimate and reliable.
– Ensuring that the fraud examiner is properly trained to employ relevant digital forensic tools.
– Ensuring that equipment is employed in the manner for which it was designed.
Question 97 of 100
97. Question
What name is given to the part of the cognitive interview in which the investigator seeks to track down who was involved and obtain specific details about the suspect?
Correct
The portion of the cognitive interview in which the investigator seeks to track down who was involved and obtain specific details about the suspect is known as the specific-detail phase. In this phase, the investigator seeks to get additional information about the event by asking the witness to describe the suspect with specific details.
Incorrect
The portion of the cognitive interview in which the investigator seeks to track down who was involved and obtain specific details about the suspect is known as the specific-detail phase. In this phase, the investigator seeks to get additional information about the event by asking the witness to describe the suspect with specific details.
Question 98 of 100
98. Question
What is the process that an organization uses to preserve all forms of potentially relevant information when litigation is pending or reasonably anticipated known as?
Correct
The steps that an organization takes to instruct employees not to delete or destroy potentially relevant records to a new or imminent legal case is known as a litigation hold. Litigation hold procedures are necessary to ensure that potentially responsive documents are not destroyed once evidence of misconduct arises.
Incorrect
The steps that an organization takes to instruct employees not to delete or destroy potentially relevant records to a new or imminent legal case is known as a litigation hold. Litigation hold procedures are necessary to ensure that potentially responsive documents are not destroyed once evidence of misconduct arises.
Question 99 of 100
99. Question
To add credibility to forged documents, fraudsters backdate them. What is the name used to refer to items located at a time when they could not have existed or occurred?
Correct
Often, to add credibility to forged documents, fraudsters backdate them. Items located at a time when they could not have existed or occurred are referred to as anachronisms. To determine whether contemporary documents were backdated, experts usually rely on diligent investigation and forensic document examiners.
Incorrect
Often, to add credibility to forged documents, fraudsters backdate them. Items located at a time when they could not have existed or occurred are referred to as anachronisms. To determine whether contemporary documents were backdated, experts usually rely on diligent investigation and forensic document examiners.
Question 100 of 100
100. Question
When obtaining evidence to be used for a fraud examination, the evidence is gotten in different forms. Which of the following is least likely to be a form in which evidence can be obtained?
Correct
Evidence of fraud is usually obtained in different forms. Evidence of fraud can come in the form of documents, physical evidence, or in the form of statements by witnesses.
Incorrect
Evidence of fraud is usually obtained in different forms. Evidence of fraud can come in the form of documents, physical evidence, or in the form of statements by witnesses.
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