Fraud Examination

JEOPARDY

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Level 5

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Level 1 for 100

Following the fraud theory approach, the first step a fraud examiner should take is:

Analyze data

Level 1 for 200

The correct order for a fraud examiner to follow when interviewing a witnesses?

Neutral third-parties, corroborative witnesses, coconspirators, suspect

Level 1 for 300

The fraud scale was developed by whom?

W. Steve Albrecht

Level 1 for 400

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. The highest ranked factor was:

Living beyond their means

Level 1 for 500

Research in the HollingerClark study suggests that the best way to deter employee theft is by: Increasing the perception of detection

Level 2 for 100

____________________ is the theft of cash from a victim entity prior to its entry in an accounting system.

Skimming

Level 2 for 200

The customer service department at JNC, Inc. has been receiving phone calls from customers for whom there is no record. This is a red flag of what type of scheme? Unrecorded sales

Level 2 for 300

George Albert was a property manager for a large apartment complex while he was going to college. One of his duties was to collect rent from the tenants. If rent was paid after the third of the month, a late fee was tacked on to the amount due. When a tenant paid his rent late, George would backdate the payment, record and remit only the rent portion to his employers, and pocket the late fee. This is an example of what type of fraud?

Sales skimming

Level 2 for 400

Where do most larceny schemes involving cash occur?

At the point of sale

Level 2 for 500

Most important factor in preventing cash larceny from the deposit is:

Separating the duties of the deposit function

Level 3 for 100

Dorothy McNally stole $232 from the company deposit while on the way to the bank. She can conceal the theft by recording the missing amount on the bank reconciliation as a(n): Deposit in transit

Level 3 for 200

Fictitious entities created for the sole purpose of committing fraud are called

Shell companies

Level 3 for 300

____________________ are schemes in which the employee intentionally mishandles payments that are owed to legitimate vendors.

Pay-and-return schemes

Level 3 for 400

A _______________ is an individual on the payroll who does not actually work for the organization. Ghost employee

Level 3 for 500

The most common method of misappropriating funds from the payroll is: Overpayment of wages

Level 4 for 100

If an employee generates a much higher percentage of uncollected sales than his coworkers, what type of scheme might he be committing?
Commission scheme

Level 4 for 200

Ellie Weaver works for the JAG Group as the customer service supervisor. When Joel Carter was hired into her department, she listed his start date as one month before he actually began work. Accordingly, the payroll department generated an extra paycheck for Carter, which Weaver intercepted and cashed at a liquor store. What type of fraud is this? Ghost employee scheme

Level 4 for 300

Having a client pay for a hotel stay while also getting the expense reimbursed by your employer is what type of expense reimbursement scheme? Fictitious expense reimbursement

Level 4 for 400

Donna Holbrook, an administrative assistant at Mason Enterprises, charged some office supplies to the company credit card. Several weeks later, she attached the store receipt from the purchase to an expense report and requested reimbursement from the company. This is an example of which type of expense reimbursement scheme? Multiple reimbursement

Level 4 for 500

The group that is the most likely to commit financial statement fraud per the COSO study?

Senior management

Level 5 for 100

While conducting the annual audit of Bluebird Companys financial statements, Elsie Finnegan, CFE, CPA, came across some fishy findings. The company recorded several large and unusual sales at the end of the fiscal year to customers Elsie had never heard of. Further, all of these sales occurred within the companys specialty division, which had previously been in danger of closing due to recurring losses. Based on these findings, what type of financial statement fraud could likely be occurring? Fictitious revenue

Level 5 for 200

Recurring attempts by management to justify marginal or inappropriate accounting treatments on the basis of materiality is a red flag associated with which type of financial statement fraud? Improper disclosures

Level 5 for 300

While conducting an interview, you have reason to believe that the respondent is not being truthful. What type of questions will help you establish the respondents credibility?
Assessment

Level 5 for 400

During an interview, when an interviewee repeatedly fiddles with a pen or picks lint from her clothing, she is giving nonverbal clues called:

Manipulators

Level 5 for 500

Identifying trends in over-purchased and/or obsolete inventory over several periods is a proactive computer audit test that can be used to detect is?
Corruption