CP6-Fraud Auditing and Forensic Accounting

Welcome to your CP6-Fraud Auditing and Forensic Accounting Exam

Total Number of Question: 60

Total Time is 120 Minutes

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Confidence schemes, art forgery, falsified scientific research data are classified as:

White collar crimes

Occupational Frauds

All of these

None of these

Examples of the types of disputes that require a quantification of damages include:

Product Liability

Lying on resume

Suffering due to loss

All of these

None of these

The pre-qualification of a forensic expert, “not to compromise their professional or business judgment because of bias, conflict of interest or the undue influence of others” is termed as:

Ethical Compliance

Objectivity

Integrity

All of these

None of these

The modern definition of fraud is derived primarily from:

Case and statute law

Dictionary

Theories

All of these

None of these

The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets is defined as:

Corrosion

Occupational fraud

Identity theft

All of these

None of these

The Accounting Professional & Ethical Standards Board (APESB) was established as an independent body in:

2006

2013

2000

All of these

None of these

Claims can be pleaded as a negligence.

True

False

Not sure

The forensic accountant is generally only concerned with __________.

Economic damages

Pain caused by damages

Loss of goodwill

All of these

None of these

There are __________ accounting cycles:

One

Five

Sixteen

All of these

None of these

10.

Fraud is also viewed as an easy way to get money without running the risk of ________.

Punishment

Reward

Compensation

All of these

None of these

11.

The “bottom-up” reasoning is also known as:

Deductive reasoning

Inductive reasoning

Both of these

None of these

12.

_________ are the safeguards to minimize the opportunity for theft or misappropriation.

External controls

Internal Controls

Both of these

None of these

13.

Legal cases are proven through __________

Suspicions

Inferences

Theories

All of these

None of these

14.

__________ is/are important when analyzing data from a fraud investigation perspective

Body language

Verbal gestures

Patterns or relationships

All of these

None of these

15.

__________ analysis tools help organizes the flow of events or data over time.

Temporal

Matric and link charts

Social network diagrams

All of these

None of these

16.

White-collar crimes are a subclass of:

Fraud

Burglary

Thefts

All of these

None of these

17.

In small-business the most common type of frauds:

Occupational Frauds

Kickbacks

Identity theft

All of these

None of these

18.

__________ is a method of tracking business activities in a particular time period.

Economics

Accounting

Finance

All of these

None of these

19.

In recent years, with ________ advancement, fraud becomes more sophisticated.

Social

Technological

Scientific

All of these

None of these

20.

In the proactive investigation, the ________ generates the complaint.

Offender

Victim

Investigator

All of these

None of these

21.

In _________________ each factor is as relatively important as the other.

Unweighted Solvability Scheme

Weighted Solvability Scheme

Both of these

None of these

22.

These skills are essential to an effective investigation ___________

Data mining

Interviewing witnesses

Maintaining documents

All of these

None of these

23.

_________ may stem from an unwarranted investigation resulting in defamation of the suspect’s character.

Financial Liability

Civil Liability

Moral Liability

All of these

None of these

24.

Surveillance and undercover operations are common mode of financial crimes investigation

True

False

Not sure

25.

Being able to ___________ electronic data is an essential ingredient of an effective fraud investigation

Manipulate

Program

Delete

All of these

None of these

26.

In the process of proof, inferences, built in chains, lead logically from point A to point B.

True

False

Not sure

27.

________ analysis tools help us model relationships among people, organizations, or groups.

Associational

Temporal

Process flow

All of these

None of these

28.

__________ is/are the common type/s of occupational frauds:

Asset misappropriation

Corruption

Fraudulent statements

All of these

None of these

29.

Good internal control measures include preparing a ____________ that defines responsibilities.

Floor map

Organizational chart

Job description

All of these

None of these

30.

Evidence must also be gathered and preserved in such a way that it can meet the standards-of-proof tests of any court; this is the ____to which investigative accounting is held.

Forensic Standard

Accounting Standard

Ethical Standards

All of these

None of these

31.

When fraud is suspected, the first job of the investigative accountant is to ________the evidence to prove or disprove the allegations.

Hide

Manipulate

Discover

All of these

None of these

32.

Suspect interviews are usually called _______.

Remand

Chit - chat

Interrogations

All of these

None of these

33.

In civil cases, liability is established by the ____ rigorous standard of the balance of probabilities.

Less

Partial

All of these

None of these

34.

_____________is the theft of cash during its collection but before it is recorded on the company books.

Skimming

Billing

Payroll theft

All of these

None of these

35.

Analyzing data to discover patterns and relationships that are important to decision making is called ____________

Trend analysis

Data mining

Ratio analysis

All of these

None of these

36.

The key evaluators of risk in financial statements are __________.

Income and expense

Sales and profit

Assets and Debt

All of these

None of these

37.

__________ investigations result from external notification that a crime has occurred.

Proactive

Reactive

Both of these

None of these

38.

Every fraud has an institutional context.

True

False

Not sure

39.

The financial investigator must also be a good _______.

Pathologist

Psychologist

Economist

All of these

None of these

40.

Management can commit fraud through the manipulation of earnings reported on the financial statements prepared for shareholders and creditors.

True

False

Not sure

41.

The purpose of the Sarbanes-Oxley Act of 2002 was to provide investors with greater in American corporations.

Protection

Confidence

Reimbursements

All of these

None of these

42.

Common types of cash theft include:

Fraudulent disbursements

Skimming

Cash larceny

All of these

None of these

43.

_________ holds that familiar events have a script that guides how they are encoded in our brain.

Personality theory

The schema theory

Neurological theory

All of these

None of these

44.

In a ________ posture, the investigator discovers the financial crime in progress independent of a victim report.

Proactive

Reactive

Both of these

None of these

45.

Fraud is ______ likely to occur in an ethical corporate culture created by a principled management that respects the law.

Equally

Less

All of these

None of these

46.

Some witnesses who are far removed from the actual crime might have the best _____

Reputation

Information

Skills

All of these

None of these

47.

_________ is one of the techniques of rapport building.

Scolding

Picnic

Paralanguage

All of these

None of these

48.

Best evidence refers to the ________ piece of evidence for a particular claim.

Most Appropriate

Original

Clearly Visible

All of these

None of these

49.

Examples of off-book frauds include ___________

Billing

Bribery and kickbacks

Check forgery

All of these

None of these

50.

The interviewee must not be asked specific questions such as physical sensations at crime scene, room, persons in room etc.

True

False

Not sure

51.

Covert surveillance of suspect employees and keystroke logging might prove valuable in narrowing suspicion or identifying members of a conspiracy.

True

False

Not sure

52.

Frauds in Sales and Collections Cycle include:

Outright cash thefts

Kickbacks to customers

Front-end fraud

All of these

None of these

53.

In the _______ cases, the goal is repair of damage to the victim.

Civil

Criminal

Both of these

None of these

54.

Torts are civil_________.

Crimes

Norms

Wrongs

All of these

None of these

55.

__________ can hinder attempts to link individuals to transactions.

Poor gatekeeping

Poor record keeping

Poor network security

All of these

None of these

56.

In fraud investigation, ______ is one of the fundamental process in gauging performance and Genuity of entity’s financial statements.

Trend analysis

Ration Analysis

Timeline analysis

All of these

None of these

57.

___________ do not leave an audit trail.

Billing

Check tempering

Off-book Frauds

All of these

None of these

58.

Assets are further controlled through comparing ______ counts with the financial records.

Invoices

Physical Inventory

Purchase vouchers

All of these

None of these

59.

Financial crime investigation is similar to civil or criminal cases investigation.

True

False

Not sure

60.

In a _________ scheme of investigation, a fingerprint at the scene might be more important in determining outcome than the availability of a witness.

Unweighted solvability scheme

Weighted solvability scheme

Both of these

None of these

CP6-Fraud Auditing and Forensic Accounting

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