Question<\/p>\n
Question 1 (2 points) Question 1<\/p>\n
Running a computer program that compares adjustments to inventory to the void\/refund transactions summarized by employee can detect which of the following schemes?<\/p>\n
Question 1 options:<\/p>\n
Skimming schemes<\/p>\n
Cash larceny schemes<\/p>\n
Register disbursement schemes<\/p>\n
All of the above<\/p>\n
Question 2 (2 points) Question 2<\/p>\n
In order to prove that fraud occurred, four elements must be present.<\/a> Which of the following is not one of those elements?<\/p>\n Question 2 options:<\/p>\n Reliance on the false statement by the victim<\/p>\n A material false statement<\/p>\n Intent to cause the victim damages<\/p>\n Knowledge that the statement was false<\/p>\n Question 3 (2 points) Question 3<\/p>\n For the perpetrator, the most dangerous part of a typical register disbursement scheme is often:<\/p>\n Question 3 options:<\/p>\n replacing the returned merchandise in the physical inventory.<\/a><\/p>\n adjusting the cash register tape to match the cash count.<\/a><\/p>\n physically removing the cash from the register and carrying it out of the store.<\/a><\/p>\n forging the customer receipt as documentation for the reversing transaction.<\/a><\/p>\n Question 4 (2 points) Question 4<\/p>\n An altered or forged receipt can indicate what type of expense reimbursement scheme?<\/p>\n Question 4 options:<\/p>\n Mischaracterized expense reimbursements<\/p>\n Fictitious expense reimbursements<\/p>\n Overstated expense reimbursements<\/p>\n All of the above<\/p>\n Question 5 (2 points) Question 5<\/p>\n Daisy McMillan works as the office manager for Timball and Lewis, a medium-sized law firm.<\/a> One afternoon, she went to the hardware store to purchase a few maintenance items for the office.<\/a> While there, she also bought her husband a hammer as a birthday present.<\/a> At the register, the items, including the hammer, totaled $63.<\/a> She paid for all the items together and received both a carbon copy receipt and a separate credit card receipt.<\/a> Back at the office, she carefully scratched additional numbers on to the carbon copy receipt to increase the total price to $168 and turned in the altered receipt for reimbursement.<\/a> Several weeks later, she turned in the credit card receipt along with another reimbursement request for the $63.<\/a> What type of expense reimbursement fraud did she commit?<\/p>\n Question 5 options:<\/p>\n Overstated expense reimbursement<\/p>\n Multiple reimbursements<\/p>\n Mischaracterized expense reimbursement<\/p>\n All of the above<\/p>\n Question 6 (2 points) Question 6<\/p>\n When an employee perpetrates a credit card refund scheme, the perpetual inventory will show a greater amount than the physical inventory.<\/a><\/p>\n Question 6 options:<\/p>\n True<\/p>\n False<\/p>\n Question 7 (2 points) Question 8<\/p>\n Which of the following methods can be used to perpetrate a fictitious expense reimbursement scheme?<\/p>\n Question 7 options:<\/p>\n Submitting expenses that were paid by a third party<\/p>\n Stealing blank receipts<\/p>\n Creating counterfeit receipts<\/p>\n All of the above<\/p>\n Question 8 (2 points) Question 9<\/p>\n According to the 2012 Report to the Nations on Occupational Fraud and Abuse, register disbursement schemes were the most frequently reported type of fraudulent disbursement scheme.<\/a><\/p>\n Question 8 options:<\/p>\n True<\/p>\n False<\/p>\n Question 9 (2 points) Question 10<\/p>\n In one of the case studies in the textbook, Marcus Lane, a geologist for an environmental management and engineering services firm, traveled all over North and South America as part of his job, resulting in numerous expense reimbursements.<\/a> Unfortunately, Lane went too far and began to double book his air travel using his personal credit card.<\/a> He booked two separate flights to the same location, but with a huge cost difference.<\/a> He used the cheaper ticket for the actual flight and returned the more expensive ticket for credit.<\/a> And, of course, he submitted the more expensive ticket for reimbursement.<\/a> How was he punished?<\/p>\n Question 9 options:<\/p>\n He was terminated and agreed to pay the money back.<\/a><\/p>\n He was convicted of grand theft and received probation.<\/a><\/p>\n He was allowed to resign and the company agreed not to seek a refund if it was kept quiet.<\/a><\/p>\n He resigned from the company and a civil suit was filed against him.<\/a><\/p>\n Question 10 (2 points) Question 11<\/p>\n In a study by Steve Albrecht, Marshall Romney, and Keith Howe, participants were asked to rank personal characteristics as motivating factors that contributed to fraud.<\/a> The highest ranked factor was:<\/p>\n Question 10 options:<\/p>\n living beyond one’s means.<\/a><\/p>\n lack of recognition of job performance.<\/a><\/p>\n lack of appreciation by management.<\/a><\/p>\n undue family or peer pressure.<\/a><\/p>\n Question 11 (2 points) Question 12<\/p>\n In a study by Steve Albrecht, Marshall Romney, and Keith Howe, participants were asked to rank characteristics of the organizational environment that contributed to fraud.<\/a> The highest ranked factor was:<\/p>\n Question 11 options:<\/p>\n inadequate attention to detail.<\/a><\/p>\n lack of clear lines of authority.<\/a><\/p>\n placing too much trust in key employees.<\/a><\/p>\n lack of an internal audit function.<\/a><\/p>\n Question 12 (2 points) Question 13<\/p>\n Register disbursement schemes are different from skimming and larceny at the register in that they:<\/p>\n Question 12 options:<\/p>\n are on-book schemes, whereas skimming and larceny are off-book schemes.<\/a><\/p>\n leave a record of the removal of money on the register tape.<\/a><\/p>\n require the use of an accomplice.<\/a><\/p>\n all of the above.<\/a><\/p>\n Question 13 (2 points) Question 14<\/p>\n Remy Lewis has just started working as a marketing research analyst for Commercial Casting Company in New York City.<\/a> He is relocating his family to New York from North Carolina, but they haven’t moved yet.<\/a> Twice a month, the company pays for Lewis to travel to North Carolina to visit his family and help with the move.<\/a> During the month of September, Lewis only visited his family once; however, he submitted expense reports for mileage for two separate trips to North Carolina and back.<\/a> What type of scheme is this?<\/p>\n Question 13 options:<\/p>\n Fictitious expense reimbursement<\/p>\n None of the above<\/p>\n Mischaracterized expense reimbursement<\/p>\n Billing<\/p>\n Question 14 (2 points) Question 15<\/p>\n Nicolas Barrens conspired with his manager to steal nearly $6,000 over 2 months from the grocery store where they worked.<\/a> Each time Nicolas rang up a customer at the register, he asked the customer if he’d like a receipt.<\/a> When a customer said no, Nicolas pretended to discard the receipt in the trash, but actually slipped the receipt into his pocket.<\/a> At the end of his shift, he filled out a void slip for each of these sales and submitted them to his supervisor for approval.<\/a> With the original receipt and the approved void slip, Nicolas removed cash from the register in the amount of the voided sales and split the proceeds with his supervisor.<\/a> Nicolas committed what type of fraud scheme?<\/p>\n Question 14 options:<\/p>\n Skimming<\/p>\n Fictitious expenses<\/p>\n False voids<\/p>\n None of the above<\/p>\n Question 15 (2 points) Question 16<\/p>\n Which of the following is not considered a red flag of a fictitious expense reimbursement scheme?<\/p>\n Question 15 options:<\/p>\n An employee repeatedly uses the company credit card for business travel expenses.<\/a><\/p>\n An employee’s reimbursement requests are always for round-dollar amounts.<\/a><\/p>\n An employee frequently requests reimbursement for high-dollar items that he claims were paid for in cash.<\/a><\/p>\n An employee submits reimbursement requests that consistently fall just below the reimbursement limit.<\/a><\/p>\n Question 16 (2 points) Question 17<\/p>\n Which of the following is not a part of the fraud theory approach?<\/p>\n Question 16 options:<\/p>\n Develop “what-if” scenarios<\/p>\n Refine the hypothesis<\/p>\n Identify who committed the fraud<\/p>\n Analyze available data<\/p>\n Question 17 (2 points) Question 18<\/p>\n Skimming receivables is generally more difficult to conceal than skimming sales.<\/a><\/p>\n Question 17 options:<\/p>\n True<\/p>\n False<\/p>\n Question 18 (2 points) Question 19<\/p>\n Dorothy McNally stole $232 from the company deposit while on the way to the bank.<\/a> She can conceal the theft by recording the missing amount on the bank reconciliation as a(n):<\/p>\n Question 18 options:<\/p>\n outstanding check.<\/a><\/p>\n deposit in transit.<\/a><\/p>\n none of the above.<\/a><\/p>\n credit memo.<\/a><\/p>\n Question 19 (2 points) Question 20<\/p>\n In one of the case studies in the textbook, Laura Grove was the head teller at a bank in Tennessee.<\/a> As the head teller, she had the authority to open the night depository along with another teller.<\/a> For security reasons, each teller only had half of the combination to the vault.<\/a> In the end, Grove opened the approximately $16,000.<\/a> How was the case settled?<\/p>\n Question 19 options:<\/p>\n She was prosecuted but received probation in lieu of prison time.<\/a><\/p>\n She paid the bank back in lieu of prosecution.<\/a><\/p>\n She was dismissed and signed a promissory note to repay the money.<\/a><\/p>\n She was prosecuted and sentenced to eighteen months in jail.<\/a><\/p>\n Question 20 (2 points) Question 21<\/p>\n In one of the case studies in the textbook, Brian Lee, a top-notch plastic surgeon, collected payments from his patients without giving a cut to the clinic where he practiced.<\/a> How was his fraud discovered?<\/p>\n Question 20 options:<\/p>\n Through an anonymous tip to the clinic<\/p>\n Through a routine audit of the clinic’s records<\/p>\n None of the above<\/p>\n By accident<\/p>\n Question 210 (2 points) Question 22<\/p>\n The two categories of cash receipts schemes are:<\/p>\n Question 21 options:<\/p>\n lapping and skimming.<\/a><\/p>\n lapping and cash larceny.<\/a><\/p>\n cash larceny and skimming.<\/a><\/p>\n skimming and billing schemes.<\/a><\/p>\n Question 22 (2 points) Question 23<\/p>\n Arthur Baxter, a manager in records retention for SWC Company, has ordered seven laptop computers for his department, even though he only has five employees.<\/a> In addition to each laptop, he ordered extra copies of several software programs.<\/a> When the equipment arrives, Baxter sends one of the extra laptops to his son who is a freshman at Eastern University and sells three of the original software packages to friends.<\/a> Which of the following offenses could Baxter be charged with?<\/p>\n Question 22 options:<\/p>\n Embezzlement<\/p>\n Conversion<\/p>\n All of the above<\/p>\n Larceny<\/p>\n Question 23 (2 points) Question 24<\/p>\n Mandating supervisory approval for write-offs or discounts can help prevent receivables skimming schemes.<\/a><\/p>\n Question 23 options:<\/p>\n True<\/p>\n False<\/p>\n Question 24 (2 points) Question 25<\/p>\n Invoices that are submitted by shell companies can be for fictitious goods or services or for items that were actually sold to the victim company.<\/a><\/p>\n Question 24 options:<\/p>\n True<\/p>\n False<\/p>\n Question 25 (2 points) Question 26<\/p>\n Anne Mullens is the bookkeeper for DWG Refrigeration Repair.<\/a> One afternoon while she was preparing the bank deposit, a customer came in to the office and paid his account in full with a $57 check.<\/a> Rather than adding the check to the deposit, Anne pocketed $57 cash from the previously recorded amount and included the customer’s check in the money to be taken to the bank.<\/a> What type of scheme did Anne commit?<\/p>\n Question 25 options:<\/p>\n Skimming<\/p>\n Larceny<\/p>\n Currency balancing<\/p>\n Kiting<\/p>\n Question 26 (2 points) Question 27<\/p>\n Cash misappropriations are divided into two broad groups: fraudulent disbursements schemes and cash receipts schemes.<\/a><\/p>\n Question 26 options:<\/p>\n True<\/p>\n False<\/p>\n Question 27 (2 points) Question 28<\/p>\n Which of the following methods can be used to conceal a larceny scheme that occurred at the point of sale?<\/p>\n Question 27 options:<\/p>\n Stealing from another employee’s register<\/p>\n Destroying the register tape<\/p>\n Falsifying the cash count<\/p>\n All of the above<\/p>\n Question 28 (2 points) Question 29<\/p>\n Procedures that can be used to prevent and\/or detect receivables skimming include which of the following?<\/p>\n Question 28 options:<\/p>\n Reconciling the bank statement regularly<\/p>\n Performing a trend analysis on the aging of customer accounts<\/p>\n Mandating that employees take annual vacations<\/p>\n All of the above<\/p>\n Question 29 (2 points) Question 30<\/p>\n The central weakness of a cash larceny scheme is the resulting imbalance in the organization’s accounting records.<\/a><\/p>\n Question 29 options:<\/p>\n True<\/p>\n False<\/p>\n Question 30 (2 points) Question 31<\/p>\n ____________________ are schemes in which the employee intentionally mishandles payments that are owed to legitimate vendors.<\/a><\/p>\n Question 30 options:<\/p>\n Pay-and-return schemes<\/p>\n Shell company schemes<\/p>\n Pass-through schemes<\/p>\n Switch-and-swap schemes<\/p>\n Question 31 (2 points) Question 32<\/p>\n When a billing scheme is occurring, the company’s expenses appear lower than they should, causing the financial statements to show falsely inflated profits.<\/a><\/p>\n Question 31 options:<\/p>\n True<\/p>\n False<\/p>\n Question 32 (2 points) Question 33<\/p>\n Warning signs of a shell company scheme include which of the following?<\/p>\n Question 32 options:<\/p>\n A vendor that is not listed in the phone book<\/p>\n An unexpected and significant increase in “consulting expenses”<\/p>\n Invoices lacking details of the items purchased<\/p>\n All of the above<\/p>\n Question 33 (2 points) Question 34<\/p>\n A method of concealing receivables skimming by crediting one account while abstracting money from a different account is known as:<\/p>\n Question 33 options:<\/p>\n lapping.<\/a><\/p>\n account substitution.<\/a><\/p>\n plugging.<\/a><\/p>\n kiting.<\/a><\/p>\n Question 34 (2 points) Question 35<\/p>\n Nicolas Hill, CFE, has been hired to look into suspicious activity at Mason & Jefferson, LLC.<\/a> The company’s controller has reason to believe that the company has fallen victim to a shell company scheme.<\/a> As part of his investigation, Nicolas should do which of the following?<\/p>\n Question 34 options:<\/p>\n Match the vendor master file to the accounts receivable file<\/p>\n All of the above<\/p>\n Extract all employees without a social security number<\/p>\n Review payments with little or no sequence between invoice numbers<\/p>\n Question 35 (2 points) Question 36<\/p>\n Which of the following controls will help prevent and detect falsified hours and salary schemes?<\/p>\n Question 35 options:<\/p>\n The duties of payroll preparation, authorization, and distribution are segregated.<\/a><\/p>\n Sick leave and vacation time are monitored for excesses by the payroll department.<\/a><\/p>\n All of the above.<\/a><\/p>\n Supervisors return authorized timecards to the employees for review before they are sent to the payroll department.<\/a><\/p>\n Question 36 (2 points) Question 37<\/p>\n The most common method of misappropriating funds from the payroll is:<\/p>\n Question 36 options:<\/p>\n theft of payroll deductions.<\/a><\/p>\n overstating commissions.<\/a><\/p>\n overpayment of wages.<\/a><\/p>\n using a ghost employee.<\/a><\/p>\n Question 37 (2 points) Question 38<\/p>\n Which type of check tampering scheme is usually the most difficult to defend against?<\/p>\n Question 37 options:<\/p>\n Authorized maker<\/p>\n Forged endorsement<\/p>\n Altered payee<\/p>\n Concealed check<\/p>\n Question 38 (2 points) Question 39<\/p>\n In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine, submitted phony invoices.<\/a> When Miano received the checks for the phony invoices, he forged the contractor’s signature.<\/a> He then endorsed the check in his own name.<\/a> What controls weaknesses did the company have that facilitated Miano’s scheme?<\/p>\n Question 38 options:<\/p>\n Employees in the accounts payable department did not follow departmental procedures.<\/a><\/p>\n Accounts payable never checked signatures on the invoices against the authorized signatures on file.<\/a><\/p>\n Miano was allowed to pick up the approved invoices from the administrative vice-president’s office and deliver them to the accounts payable department.<\/a><\/p>\n All of the above.<\/a><\/p>\n Question 39 (2 points) Question 40<\/p>\n In one of the case studies in the textbook, Melissa Robinson, who worked as an executive secretary for a worldwide charitable organization and was active in her children’s school, was also a thief.<\/a> As one of two people allowed to sign checks on the organization’s bank accounts, she learned early on that she could forge the second person’s signature without anyone becoming suspicious.<\/a> What red flags were present that indicated that something wasn’t appropriate?<\/p>\n Question 39 options:<\/p>\n Robinson would not release any financial information when requested and gave excuses for why it wasn’t available.<\/a><\/p>\n There were a lot of missing files that the auditors couldn’t locate during their annual audit.<\/a><\/p>\n Robinson would not take vacation leave.<\/a><\/p>\n All of the above.<\/a><\/p>\n Question 40 (2 points) Question 40<\/p>\n Which of the following procedures will not help prevent ghost employee schemes?<\/p>\n Question 40 options:<\/p>\n The personnel records are maintained separately from the payroll and timekeeping functions.<\/a><\/p>\n The personnel department verifies all changes to the payroll.<\/a><\/p>\n The personnel department conducts background and reference checks on all prospective employees before hiring them.<\/a><\/p>\n The person responsible for hiring new employees also supervises the payroll function.<\/a><\/p>\n Question 41 (2 points) Question 42<\/p>\n In one of the case studies in the textbook, Melissa Robinson, who worked as an executive secretary for a worldwide charitable organization and was active in her children’s school, was also a thief.<\/a> As one of two people allowed to sign checks on the organization’s bank accounts, she learned early on that she could forge the second person’s signature without anyone becoming suspicious.<\/a> How was she finally caught?<\/p>\n Question 41 options:<\/p>\n Robinson’s husband tipped off the audit committee after he became suspicious of some of Robinson’s purchases.<\/a><\/p>\n A co-worker contacted the organization’s executive director when she found that a company check had been written to the children’s school for Robinson’s personal items.<\/a><\/p>\n New officers were elected, and they took the accounting books from her.<\/a><\/p>\n The auditors discovered her fraud during an annual audit of the books.<\/a><\/p>\n Question 42 (2 points) Question 43<\/p>\n Which of the following procedures can help prevent and detect the theft and conversion of outgoing company checks?<\/p>\n Question 42 options:<\/p>\n Train employees to look for dual endorsements on canceled checks.<\/a><\/p>\n Track changes made to vendor records.<\/a><\/p>\n Chart the date of mailing for every outgoing check.<\/a><\/p>\n All of the above.<\/a><\/p>\n Question 43 (2 points) Question 44<\/p>\n Concealing a check tampering scheme generally means hiding both the identity of the perpetrator and the fact that the fraud ever occurred.<\/a><\/p>\n Question 43 options:<\/p>\n True<\/p>\n False<\/p>\n Question 44 (2 points) Question 45<\/p>\n In one of the case studies in the textbook, Ernie Phillips was a CPA who had fallen on hard times both financially and personally.<\/a> He eventually got a job as a controller for a friend who had just been named as the receiver for a financial services company.<\/a> Within a short period of time Phillips began writing checks to himself that had nothing to do with payroll.<\/a> What happened to Phillips?<\/p>\n Question 44 options:<\/p>\n He was charged criminally, and while out on bail, he fled with his family.<\/a><\/p>\n He quit his job and moved to another state.<\/a><\/p>\n He paid the money back by mortgaging his home.<\/a><\/p>\n He pleaded guilty to fraud and grand theft and spent 24 months in prison.<\/a><\/p>\n Question 45 (2 points) Question 46<\/p>\n Which of the following computer audit tests can be used to detect billing schemes?<\/p>\n Question 45 options:<\/p>\n Extracting delivery addresses that do not correspond to company locations<\/p>\n Extracting manual checks and summarizing by vendor and issuer<\/p>\n Extracting a sample of vendor open invoices for confirmation with the vendor<\/p>\n All of the above<\/p>\n Question 46 (2 points) Question 47<\/p>\n Jed Butler is an internal auditor for Billings Industries.<\/a> Recently he ran a program that identified customer accounts which had previously been dormant for six months or more but had sales in the last two months of the year.<\/a> What type of fraud would this test most likely reveal?<\/p>\n Question 46 options:<\/p>\n Pay-and-return scheme<\/p>\n Shell company scheme<\/p>\n Personal purchases scheme<\/p>\n Commission scheme<\/p>\n Question 47 (2 points) Question 48<\/p>\n According to the 2012 Report to the Nat<\/p>\n","protected":false},"excerpt":{"rendered":" Question Question 1 (2 points) Question 1 Running a computer program that compares adjustments to inventory to the void\/refund transactions summarized by employee can detect which of the following schemes? Question 1 options: Skimming schemes Cash larceny schemes Register disbursement Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-51034","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/51034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=51034"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/51034\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=51034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=51034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=51034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}