Forensic Accounting and Fraud Examination Coursera Quiz Answers

Get All Weeks Forensic Accounting and Fraud Examination Coursera Quiz Answers

Week 01: Forensic Accounting and Fraud Examination Coursera Quiz Answers

Q1. Which of the following correctly reflects the common law understanding of fraud?

[expand title=View Answer] Fraud has three critical elements in most state courts but four elements at the federal level. [/expand]

Q2. In terms of frequency of occurrence, the largest category of fraud is which of the following:

[expand title=View Answer] Asset misappropriation [/expand]

Q3. Which of the following is the most likely reason, as suggested by Cressey, that an employee tries to solve a financial problem in secret?

[expand title=View Answer] because they are afraid they will have to go back to college.[/expand]

Q4. In this week, we introduce the Accidental Fraudster. Which of the following represent skills required to be a successful forensic professional and fraud examiner? (Mark all that apply .)

[expand title=View Answer]
1.Technical competency.
2.Investigative proficiency.
3.Critical thinking.
[/expand]

Q5. Common violations pertaining to occupational fraud and abuse include all of the following except:

[expand title=View Answer] All of these are common violations. [/expand]

Q6. From the list below, create the typical fraud perpetrator profile.

[expand title=View Answer] Male, high school education, young, general labor, and with the company for years./expand]

Q7. The interrelationship among auditing, fraud examination, and financial forensics is:

[expand title=View Answer] dynamic and changes over time.[/expand]

Q8. While a fraud examiner’s objective is to determine whether fraud has occurred and who is likely responsible, the financial forensics investigator’s objective is to:

[expand title=View Answer] gather the required financial and nonfinancial evidence to examine the allegations independently and determine their accuracy.[/expand]

Q9. Which of the following is not one of the three-pronged processes of remediation?

[expand title=View Answer] The modification of operational processes, procedures, and internal controls to minimize the chances of a similar fraud recurring. [/expand]

Support for the legal process as it tries to resolve the matter in the legal environment.

Q10. Which of the following statements is correct with regard to collusion?

[expand title=View Answer]Collusion is seldom responsible for management’s ability to override the system of internal control[/expand]

Q1. To understand the importance of fraud, one should understand the losses that occur due to fraud each year. According to ACFE estimates, worldwide, how much is annually lost due to fraud?

[expand title=View Answer] US 3.5 trillion [/expand]

Q2. In this week, we introduce the Accidental Fraudster. Which of the following represent skills required to be a successful forensic professional and fraud examiner? (Mark all that apply .)

[expand title=View Answer]
1.Technical competency.
2.Investigative proficiency.
[/expand]

Q3. Pressure is a form of motive.

[expand title=View Answer] False [/expand]

Q4. Which of the following is NOT recognized by the ACFE as a behavioral warning sign?

[expand title=View Answer] Complained about lack of authority[/expand]

Q5. Please identify the most correct statement with respect to fraud victims:

[expand title=View Answer] Small businesses particularly small charities and not-for-profits, in many cases, cannot afford to become victims of fraud.[/expand]

Q6. As legitimate compensation increases, the losses associated with perpetrators generally rise. This relationship is most likely because a perpetrator frequently:

[expand title=View Answer] develops a higher cost of status and image.[/expand]

Q7. The person most responsible for the creation of the fraud triangle.

[expand title=View Answer] Noted sociologist and criminologist Donald Cressey.[/expand]

Q8. With regard to the fraud triangle, which of the following statements is correct?

[expand title=View Answer] Pressure and opportunity are the most critical and dominant attributes of the fraud triangle and the only ones that must be present for a fraud to occur [/expand]

Q9. With regard to auditing, fraud examination and forensic accounting, which statement is correct?

[expand title=View Answer] Auditing, fraud examination and forensic accounting sometimes overlap, depending on the nature and extent of facts and circumstances observed.[/expand]

Q10. While a fraud examiner’s objective is to determine whether fraud has occurred and who is likely responsible, the financial forensics investigator’s objective is to:

[expand title=View Answer] gather the required financial and nonfinancial evidence to examine the allegations independently and determine their accuracy.[/expand]

Q11. Which of the following statements is correct with regard to collusion?

[expand title=View Answer] Frauds involving collusion are difficult to detect [/expand]

Week 02: Forensic Accounting and Fraud Examination Coursera Quiz Answers

Q1. One major difference between fraud and a mistake is:

[expand title=View Answer] Concealment [/expand]

Q2. Which if the following is usually correct, concerning a predator?

[expand title=View Answer] Predators are probably more comfortable dealing with authorities and anti-fraud mechanisms, like audits, than accidental fraudsters are. [/expand]

Q3. Capability as an attribute of fraudsters is most closely associated with which of the following

[expand title=View Answer] Technical competency [/expand]

Q4. With regard to internal controls, which of the following would generally not be considered an internal control for payroll.

[expand title=View Answer]Cameras to record activities at the workplace.[/expand]

Q5. Fraud deterrence begins:

[expand title=View Answer] in the employee’s mind. [/expand]

Q6. The Fraud Diamond has which of the following attributes added to the Fraud Triangle

[expand title=View Answer] Integrity [/expand]

Q7.Overall, management must design, implement, and maintain:

[expand title=View Answer] internal controls to support effective and efficiency of operations, reliability of reporting, and compliance with laws and regulations. [/expand]

Q8. One of the main findings of Donald Cressey is the following observation.

[expand title=View Answer]Cressey concluded that opportunities such as weak internal controls led normally law-abiding persons to commit fraud acts.[/expand]

Q9. Signs that an individual is a predator fraudster include:

[expand title=View Answer] All of the other answers are correct.[/expand]

Q10.With regard to segregation of duties, which of the following is not one of the four major functions

[expand title=View Answer] correcting [/expand]

Q1. One of the main findings of Donald Cressey is the following observation.

[expand title=View Answer]Cressey concluded that opportunities such as weak internal controls led normally law-abiding persons to commit fraud acts. [/expand]

Q2. Which of the following is NOT an attribute of the “predatory” fraud triangle?

[expand title=View Answer] Arrogance [/expand]

Q3. Conversion can be shown to have occurred by:

[expand title=View Answer]
1.Tracing the money to the defendant’s care
2.Tracing the money to the defendant’s department
3.Tracing the money to the defendant’s bank account
4.All of the above
[/expand]

Q4. The Fraud Diamond has which of the following attributes added to the Fraud Triangle

[expand title=View Answer] Integrity [/expand]

Q5. Overall, management must design, implement, and maintain:

[expand title=View Answer]
1.an internal controls program to protect entity assets, liabilities, and owner’s equity.
2.internal controls to support effective and efficiency of operations, reliability of reporting, and compliance with laws and regulations.
3.an automated accounting system that implements each component of U.S. GAAP accounting principles.
4.All of the choices are correct.
[/expand]

Q6. Albrecht developed the fraud scale, which includes the following components:

[expand title=View Answer] situational pressures, perceived opportunity, and personal integrity. [/expand]

Q7. Which of the following is true of the Dorminey et al “meta-model”

[expand title=View Answer] Fraud prevention, deterrence and detection do NOT play a role in the meta-model[/expand]

Q8. Why are preventative controls preferred (if cost-effective)?

[expand title=View Answer]
1.They almost always discover the cash that is missing.
2.They help recover the losses that can be anticipated
3.They keep losses from occurring.
[/expand]

Q9. With regard to segregation of duties, which of the following is not one of the four major functions

[expand title=View Answer] correcting [/expand]

Q10. Three of the various objectives of an internal control program are:

[expand title=View Answer] fraud prevention, fraud deterrence, and fraud detection.[/expand]

Week 03: Forensic Accounting and Fraud Examination Coursera Quiz Answers

Q1. What is the INCORRECT statement about fraud detection?

[expand title=View Answer]Perception of Detection relies on employees knowing with 100% certainty that if they commit fraud, they will be caught. [/expand]

Q2. A fraudster erases files from his hard drive. This is an example of data alteration.

[expand title=View Answer] True [/expand]

Q3. When looking for fraud, credit card companies constantly mine data and look for transactions that are similar to historical patterns of fraud. Which of the following are examples of patterns that they use. (May have more than one correct answer)

[expand title=View Answer]
1.A. Purchases of electronic items at a retailer in a large metropolitan area.
2.Large purchases of “high-risk” items at a retailer from which the card holder has not previously purchased.
[/expand]

Q4. Which of the following statements about adjusting journal entries is NOT correct?

[expand title=View Answer] Unusual, significant, one-time adjusting journal entries are seldom cause for greater scrutiny by auditors.[/expand]

Q5. Anomalies are

[expand title=View Answer] most often red flags that indicate fraud is present. [/expand]

Q6. Analytical anomalies include all of the following except:

[expand title=View Answer] explained cash shortages. [/expand]

Q7. Journal entries of concern include:

[expand title=View Answer] entries made by accounting personnel. [/expand]

Q8. Duplicate searches in data extraction and analysis software could be used to discover:

[expand title=View Answer]Invoices that have been paid twice [/expand]

Q9. Which of the following best describes text analysis?

[expand title=View Answer] an approach to infer meaning from words and phrases and the way in which they are used.[/expand]

Q10. Which of the following is most accurate with regard to files deleted from a computer’s hard drive prior to the arrival of fraud examiners or forensic accountants?

[expand title=View Answer] The data is lost and as a result to perpetrator may get away with their crime. [/expand]

Q1. Sources of information include:

[expand title=View Answer]
1.Witnesses to an act of fraud.
2.Surveillance by private detectives.
3.Surveillance by police officers.
4.All of the above
[/expand]

Q2. With regard to financial data analysis and effective fraud detection, which of the following statements is INACCURATE.

[expand title=View Answer] Financial data analysis is an extremely sophisticated endeavor.[/expand]

[expand title=View Answer]
1.Multiple purchases at a store in a relatively short period of time.
2.Large purchases of “high-risk” items at a retailer from which the card holder has not previously purchased.
[/expand]

Q4. Which of the following statements about adjusting journal entries is NOT correct?

[expand title=View Answer] Unusual, significant, one-time adjusting journal entries are seldom cause for greater scrutiny by auditors. [/expand]

Q5. Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued because:

[expand title=View Answer] there are many red flags in day-to-day operations that are not fraud indicators. [/expand]

Q6. Journal entries of concern include:

[expand title=View Answer]
1.entries made by accounting personnel.
2.entries made by members of senior management.
3.routine accrual entries prepared at year-end.
4.All of the choices are correct.
[/expand]

Q7. Which of the following software tools cannot be used in “big data” analysis.

[expand title=View Answer] Camtasia[/expand]

Q8. With regard to text analysis, which of the following is NOT correct:

[expand title=View Answer] Public records, despite their availability, are not generally a reliable source of information. [/expand]

Q9. The functions of data extraction and analysis software tools include all EXCEPT:

[expand title=View Answer] Input into payroll system[/expand]

Q10. Which is the following statements with regard to the WorldCom fraud is NOT accurate?

[expand title=View Answer] There were many warning signs of problems at WorldCom, but ultimately, tips investigated by internal auditors brought the fraud into the open.[/expand]

Q11. Which of the following best describes text analysis?

[expand title=View Answer] an approach to infer meaning from words and phrases and the way in which they are used. [/expand]

Q12. With regard to financial data analysis and effective fraud detection, which of the following statements is INACCURATE.

[expand title=View Answer]If there is an unexplained and dramatic increase in an item from one period to the next, it is a red flag, or badge, that indicates fraud. [/expand]

Week 04: Forensic Accounting and Fraud Examination Coursera Quiz Answers

Q1. The three V’s of money laundering include all except the following:

[expand title=View Answer] Vacuum [/expand]

Q2. The three V’s of money laundering include all but the following:

[expand title=View Answer] How do you quickly move large amounts of cash [/expand]

Q3. The Mexico City mansion cash seizure resulted in how much United States currency:

[expand title=View Answer] $206 million [/expand]

Q4. The biggest advantage investigators have when tracing the flow of illegal funds is:

[expand title=View Answer] Most illegal funds are converted to hard assets making detection easier [/expand]

Q5. Which of the following are the three stages of money laundering? (Mark all that apply)

[expand title=View Answer]
1.Integration
2.Layering
3.Placement
[/expand]

Q6. Select the following item(s) that are reasons that people launder money:

[expand title=View Answer]
1.To disguise illegal activities such as bribery, illegal drug proceeds, or fraud
2.To avoid using cash for large purchases (which might be detected)
3.To avoid personal liabilities (such as bankruptcy, judgments, or divorce settlements)
[/expand]

Q7. Barney Drum travels with large sums of cash for deposit in foreign bank accounts. This may be a method for hiding assets.

[expand title=View Answer] True [/expand]

Q8. Which of the following methods is used to make detection of persons responsible for money laundering more difficult?

[expand title=View Answer]The use of commercial checks [/expand]

Q9. Generally, what is the best estimate of the impact of money laundering?

[expand title=View Answer] 2% to 5% of the world’s GDP[/expand]

Q10. A shell company generally refers to limited liability or other business entity with no significant assets or ongoing business activities.

[expand title=View Answer] True[/expand]

Q1. When looking for money laundering methods, the forensic examiner should consider which of the following as alternatives to cash : (Mark all that apply)

[expand title=View Answer]
1.Bitcoin
2.Gift cards
3.Disguised precious metals
[/expand]

Q2. The Mexico City mansion cash seizure resulted in how much United States currency:

[expand title=View Answer] $206 million [/expand]

Q3. The biggest advantage investigators have when tracing the flow of illegal funds is:

[expand title=View Answer] Most illegal funds return to the persons performing the laundering making detection easier. [/expand]

Q4. Which of the following are the three stages of money laundering? (Mark all that apply)

[expand title=View Answer]
1.Integration
2.Layering
3.Placement
[/expand]

Q5. Assuming standard packs of 50 $20 bills contained within a wrapper of money, what is the maximum amount of money that can be carried in a normal-size briefcase (attaché’ case)?

[expand title=View Answer] $1,000,000 [/expand]

Q6. Barney Drum travels with large sums of cash for deposit in foreign bank accounts. This may be a method for hiding assets.

[expand title=View Answer] True [/expand]

Q7. With regard to emerging payments methods and money laundering, which of the following statements is NOT correct?

[expand title=View Answer] Bulk cash smuggling is a new technique because of recent enhancement of anti-money laundering laws.[/expand]

Q8. With regarding to changes pertaining to money laundering, which of the following change is NOT a concern to those in the battle against money laundering?

[expand title=View Answer] New forms of value – loyalty points traded for drugs [/expand]

Q9. The traditional technique in money laundering has been to keep the money in the country.

[expand title=View Answer] True [/expand]

Q10. The three V’s of money laundering include all but the following:

[expand title=View Answer] The de-materialization of money [/expand]

Q11. With regard to pipe wrenches used in money laundering, which of the following statements are correct?

[expand title=View Answer] None of the statements are true [/expand]

Q12. Transferring funds obtained illegally from a safe deposit box in the US to a safe deposit box in Canada is an example of:

[expand title=View Answer] Placement [/expand]

Q13. Shell companies can be found through:

[expand title=View Answer]
1.All of the above
2.A lifestyle/spending habits audit
3.Examination of ownership records in a country known to harbor and protect criminal activities
4.Examination of parental trust accounts
[/expand]

Q14. With regard to changes pertaining to money laundering, which of the following changes is NOT a concern to those in the battle against money laundering?

[expand title=View Answer] All of the above are a concern for law enforcement [/expand]

Q15. A shell company generally refers to limited liability or other business entity with no significant assets or ongoing business activities.

[expand title=View Answer] True [/expand]

Q16. Which of the following is correct, when considering the phrase “Following the money”?

[expand title=View Answer]
1.Requires knowledge of every place the money has been
2.Is often difficult to do given the use of foreign banks for layering
3.Often requires access to foreign bank accounts
4.All of the choices are correct.
[/expand]

Q17. With regard to specified unlawful acts, which of the following is one such act:

[expand title=View Answer] Burning one’s business location for insurance proceeds. [/expand]

Q18. Shell companies typically: (Mark all that apply)

[expand title=View Answer]
1.Have no physical presence (other than a mailing address)
2.Have no employees
3.Produce no independent economic value
[/expand]

Q19. The Mexico City mansion cash seizure resulted in how much United States currency:

[expand title=View Answer] Enough to pave all the major highways in Mexico [/expand]

Q20. Money laundering is the disguising of the existence, nature, source, ownership, location, and disposition of property derived from criminal activity.

[expand title=View Answer] True [/expand]

Q21. The conversion of illegal funds that have been moved to disguise its origin, to assets that appear to be derived from legal sources, is which step in the money laundering process?

[expand title=View Answer] Integration[/expand]

Q22. Which of the following is NOT true?

[expand title=View Answer] Money laundering is a victimless crime [/expand]

Q23. Select the following item(s) that are reasons that people launder money:

Q24. With regard to emerging payments methods and money laundering, the parallel banking system, not tied to any country or government, is of significant concern to the anti-money laundering community.

[expand title=View Answer] True [/expand]

Q25. Generally, what is the best estimate of the impact of money laundering?

[expand title=View Answer] 2% to 5% of the world’s GDP[/expand]

Q26. How would an investigator detect an offshore bank account made by a drug dealer?

[expand title=View Answer] By tracing money transfers out of the country [/expand]

Q27. One method of hiding assets is to:

[expand title=View Answer] Place the ownership of the assets in a child’s trust. [/expand]

Week 05: Forensic Accounting and Fraud Examination Coursera Quiz Answers

Q1. The acronym “M.I.C.E.”, as typical motivations of fraud perpetrators, stands for:

[expand title=View Answer] Money, Ideology, Coercion, and Ego.[/expand]

Q2. Which of the following is an example of financial statement fraud?

[expand title=View Answer] The sales manager records as a sale in 20X0, goods shipped on January 1, 20X1, the day after year-end. [/expand]

Q3. One major difference between fraud and a mistake is:

[expand title=View Answer] Conversion (benefit to the perpetrator) [/expand]

Q4. Which of the following acts would be considered a fraud act (in contrast to an abuse)?

[expand title=View Answer] Removing small amounts of cash from the cash register till.[/expand]

Q5. In terms of the definition of occupational fraud and abuse, who is an employee?

[expand title=View Answer] Any person who receives regular and periodic compensation from an organization for his or her labor. [/expand]

Q6. Fraud can be committed by:

[expand title=View Answer]
1.intentional misapplication of accounting principles that guide the disclosure of financial information.
2.omission of events, transactions, or other significant information in the notes related to the financial statements.
3.alteration of the underlying accounting data.
4.All of the choices are correct.
[/expand]

Q7. While a fraud examiner’s objective is to determine whether fraud has occurred and who is likely responsible, the financial forensics investigator’s MAIN objective is to:

[expand title=View Answer] gather the required financial and nonfinancial evidence to examine the allegations independently and determine their accuracy. [/expand]

Q8. Signs of pressure that would prompt an individual to commit fraud include:

[expand title=View Answer]Both “a” and “c” [/expand]

Q9. Which of the following is the most likely reason, as suggested by Cressey, that an employee tries to solve a financial problem in secret?

[expand title=View Answer] because they are afraid of losing the approval of those around them. [/expand]

Q10. The Fraud Triangle consists of: pressure, opportunity, and rationalization.

[expand title=View Answer] True [/expand]

Q11. As compensation of the perpetrator increases, the losses associated with the perpetrator rise. This is most likely because:

[expand title=View Answer]the perpetrator has a higher cost of status and image. [/expand]

Q12. Which of the following is most accurate concerning a predator?

[expand title=View Answer] Predators are probably more comfortable dealing with authorities and anti-fraud mechanisms, like audits, than accidental fraudsters are. [/expand]

Q13. Signs that an individual is a predator fraudster include:

[expand title=View Answer]
1.Repeat offenses.
2.Takes advantage of sudden opportunity.
3.Frequent job turnover caused by boredom.
4.All of the above.
[/expand]

Q14. The difference between a predator fraudster and an accidental fraudster is:

[expand title=View Answer] The predator fraudster is a repeat offender; the accidental fraudster is not. [/expand]

Q15. Which of the following is true concerning the fraud scale developed by Albrecht?

[expand title=View Answer] None of the above are the components of the fraud scale. [/expand]

Q16. To improve the effectiveness of the fraud triangle, Wolfe and Hermanson suggests which characteristic as an addition to the fraud triangle (making it the fraud diamond) ?

[expand title=View Answer] Ego or entitlement. [/expand]

Q17. Large frauds are typically associated with all of the following EXCEPT:

[expand title=View Answer] Working with management to set realistic goals [/expand]

Q18. Overall, management must design, implement, and maintain:

[expand title=View Answer]
1.an internal controls program to protect entity assets, liabilities, and owners’ equity.
2.internal controls to support effective and efficiency of operations, reliability of reporting, and compliance with laws and regulations.
3.an automated accounting system that implements each component of U.S. GAAP accounting principles.
4.All of the choices are correct.
[/expand]

Q19. From the statements below select the most correct.

[expand title=View Answer] Prevention and deterrence are typically more cost beneficial than attempting to remediate a fraud that has already occurred. [/expand]

Q20. Three of the various objectives of an internal control program are:

[expand title=View Answer] fraud prevention, fraud deterrence, and fraud detection. [/expand]

Q21. Why is it difficult for entry-level employees to be forensic accountants?

[expand title=View Answer] There needs to be a level of accounting knowledge of what is normal, to recognize when something is not normal. [/expand]

Q22. When looking for fraud, credit card companies constantly mine data and look for transactions that are similar to historical patterns of fraud. Which of the following are examples of patterns that they use. (Mark all that apply)

[expand title=View Answer]
1.Purchases of electronic items at a retailer in a large metropolitan area.
2.Multiple purchases at a store in a relatively short period of time.
3.Large purchases of “high-risk” items at a retailer from which the card holder has not previously purchased.
[/expand]

Q23. Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued because:

[expand title=View Answer] there are many red flags in day-to-day operations that are not fraud indicators. [/expand]

Q24. Duplicate searches in data extraction and analysis software could be used to discover:

[expand title=View Answer] Invoices that have been paid twice [/expand]

Q25. Which of the following best describes text analysis?

[expand title=View Answer] an approach to infer meaning from words and phrases and the way in which they are used.[/expand]

Q26. The Fraud Triangle is generally present when an accidental fraudster commits fraud. The three legs represent perceived or actual instances of concepts. Which of the following is NOT one of the legs of the Fraud Triangle?

[expand title=View Answer] Predictability [/expand]

Q27. Which of the following is/are applicable to the “Predator”, but not the “Accidental” fraudster? (Mark all that apply)

[expand title=View Answer]
1.Arrogance
2.Criminal Mindset
[/expand]

Q28. The biggest advantage investigators have when tracing the flow of illegal funds is:

[expand title=View Answer] Most illegal funds return to the persons performing the laundering making detection easier. [/expand]

Q29. Which of the following is NOT a concern to those in the battle against money laundering?

[expand title=View Answer]
1.De-materialization of money – Anything of value – goods and services (real estate, jewels, precious metals, on-line accounts)
2.New forms of value – loyalty points traded for drugs
3.Dis-intermediation – banks not center of transactions – e.g., bit-coin
4.All of the above are concerns for law enforcement
[/expand]

Q30. Which is generally considered the lowest threshold for ethical decision making?

[expand title=View Answer]A professional code of ethics of an accounting organization.[/expand]

Q31. With regard to Cynthia Cooper and Betty Vinson, both from WorldCom, which of the following is

[expand title=View Answer]Betty Vinson, even though she went to jail for her role in WorldCom, could be considered a victim.[/expand]

Q32. Which is the following is NOT a best practice for an effective whistleblower program?

[expand title=View Answer] The tipster needs to identify themselves because of the need to ask follow-up questions during the investigation. [/expand]

Q33. With regard to Cynthia Cooper and Betty Vinson, both from WorldCom, which of the following is FALSE?

[expand title=View Answer] Betty Vinson, even though she went to jail for her role in WorldCom, could be considered a victim. [/expand]

Q34. Which of the following are the three stages of money laundering?

[expand title=View Answer]
1.Assessment
2.Integration
3.Placement
4.Layering
[/expand]

Q35. With regard to changes pertaining to money laundering, which of the following changes is NOT a concern to those in the battle against money laundering?

[expand title=View Answer] All of the other choices are a concern for law enforcement[/expand]

Q36. Financial statement fraud consists of:

[expand title=View Answer]
1.Recognizing revenues not yet earned
2.Inappropriate entries to reserve accounts
3.Capitalizing expenses when inappropriate
4.All of the other choices are correct
[/expand]

Q37. Financial statement fraud is complex because:

[expand title=View Answer]
1.More than one account is usually affected
2.More than one person is usually involved
3.Most people do not have access to the source documents and therefore cannot detect the fraud
4.All of the other choices are correct
[/expand]

Q38. Which of the following best describes situations with complex frauds and financial crimes

[expand title=View Answer] Organizations associated with complex frauds and financial crime often mix illegal activities with legitimate business activities. [/expand]

Q39. The functions of data extraction and analysis software tools include all EXCEPT:

[expand title=View Answer] Input into payroll system[/expand]

Q40. Which of the following is correct, when considering the phrase “Following the money”? Select all that apply.

Q41. Anomalies are:

[expand title=View Answer] most often red flags that indicate fraud is present. [/expand]

Q42. Data can be altered by:

[expand title=View Answer]
1.Changing numbers on a check; e.g. making a “3” an “8”
2.Destroying supporting detail
3.Making copies and submitting them as the original
4.All of the other answers are correct
[/expand]

Q43. Common violations pertaining to occupational fraud and abuse include all of the following except:

[expand title=View Answer]
1.asset misappropriation.
2.corruption.
3.financial reporting fraud.
4.All of these are common violations.
[/expand]

Q44. Conversion can be shown to have occurred by:

Q45. Perpetrators of large frauds are likely to use the money for all of the following EXCEPT:

[expand title=View Answer] to pay taxes. [/expand]

Q46. Fraud deterrence begins:

[expand title=View Answer] with regulatory and legal actions such as PCAOB Auditing Standard No. 5, AICPA Statement on Auditing Standards (SAS) No. 99, and the Sarbanes–Oxley Act. [/expand]

Q47. The key to successful fraud detection and investigation using digital tools and techniques requires which approach?

[expand title=View Answer] A systems-type approach. [/expand]

Q48. Upon discovering fraud, internal auditors:

[expand title=View Answer] must fully investigate it and determine perpetrator(s), value, damage, and recommend possible action. [/expand]

Q49. When attempting to capture data that a fraudster has tried to delete from a device, such as a computer hard drive or mobile phone, the forensic expert should: (Mark all that apply)

[expand title=View Answer] Duplicate the device using forensic hardware/software. [/expand]

Q1. Which of the following are important to include in your overall fraud policy? (Mark all that apply)

[expand title=View Answer]
1.Emphasize that the fraud policy will be enforced
2.Provide examples of behaviors that may be red flags for fraud
3.Define fraud in the context of your organization
4.Describe the process for reporting fraud
[/expand]

Q2. Which of the following is an example of financial statement fraud?

[expand title=View Answer] The sales manager records as a sale in 20X0 shipments of goods that occurred on January 1, 20X1, the day after year-end [/expand]

Q3. The main deterrent for fraud in the corporate environment:

[expand title=View Answer] is the threat of getting caught. [/expand]

Q4. Given the acronym M.I.C.E. offered in Chapter 1 / Module 1, which attribute most closely reflects Betty Vinson’s role in the WorldCom fraud.

[expand title=View Answer] Ego or entitlement [/expand]

Q5. Which of the following is NOT an example of financial statement fraud?

[expand title=View Answer] The CEO insists that the payment for current year accrued bonuses be deferred to the next fiscal year.[/expand]

Q6. Cynthia Cooper provides a good example of the process of what to do when fraud is suspected. Which of the following events occurred first?

[expand title=View Answer] Cooper met with the Audit Committee chair.[/expand]

Q7. With regard to losses from fraud and attempts to recover stolen money, which of the following is the correct statement?

[expand title=View Answer] Approximately 50% of the time, the organization recovers nothing. [/expand]

Q8. In the WorldCom fraud, whose personal life most closely resembled Cynthia Coopers?

[expand title=View Answer] Accountant Betty Vinson[/expand]

Q9. Which is the following statements with regard to the WorldCom fraud in NOT correct?

[expand title=View Answer] The central part of internal auditor Cynthia Cooper’s WorldCom investigation involved “big data” analysis in order to avoid having to manually review documents. [/expand]

Q10. WorldCom’s CEO (Chief Executive Officer) received a prison sentence of 25 years, while the CFO (Chief Financial Officer) received a sentence of five (5) years. To what was the difference in sentences attributed?

[expand title=View Answer] The CFO cooperated with prosecutors and investigators.[/expand]

Conclusion:

In conclusion, our journey through the Forensic Accounting and Fraud Examination course has been an enlightening exploration of the intricate world of financial investigation, fraud detection, and forensic accounting.

Throughout this course, we have gained a comprehensive understanding of the principles, techniques, and methodologies essential to uncovering financial misconduct and safeguarding the integrity of financial systems.

Find More Related Quiz Answers >>

Agile Leadership: Introduction to Change Coursera Quiz Answers

Agile Leader Training Coursera Quiz Answers

Developing an Agile Team Coursera Quiz Answers

Agile Organization Coursera Quiz Answers

Agile Leadership Capstone Coursera Quiz Answers