Term
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Definition
| T/F Fraud examinations can be conducted by professionals other than accountants, including law enforcement officials, corporate security specialists, or private investigators |
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Term
| False. It also involves techniques such as interviews, statement analysis, public records searches, and forensic documentation |
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Definition
| T/F Fraud Examination is similar to Auditing in that it only involves the review of financial data |
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Term
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Definition
| T/F Audits are conducted primarily by examining financial data |
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Term
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Definition
| T/F Fraud Examinations are conducted by 1) documenting the examination, 2) reviewing external data such as public records, and 3) interviews |
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Term
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Definition
| T/F An audit's goal is to determine whether fraud has occurred and to determine who is responsible |
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Term
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Definition
| T/F Fraud examinations are more specific than audits because they are conducted to resolve specific allegations |
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Term
| False. Analyze the available data first and then create a hypothesis |
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Definition
| T/F Under the Fraud Theory Approach, you must first create a hypothesis and then analyze the available data |
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Term
| False. The goal is to determine, through testing and revision, whether a crime has been committed |
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Definition
| T/F The goal of a fraud examination is to "pin" the crime on a particular individual |
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Term
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Definition
| T/F It is not necessary for a fraud examiner to be skilled in the examination of financial statements, books and records, and supporting documents; this is the responsibility of the auditor |
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Term
| False. Moves from general to specific |
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Definition
| T/F In a fraud examination, the evidence is usually gathered in a manner that moves from the specific to the general |
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Term
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Definition
| T/F Suspected frauds are usually referred to as "internal frauds" or "external frauds" |
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Term
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Definition
| T/F External frauds are the most costly and the most common frauds |
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Term
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Definition
| T/F Internal fraud can also be referred to as occupational fraud and abuse |
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Term
| False. Embezzlement can also involve property |
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Definition
| T/F The term embezzlement refers only to the taking of money from its owner |
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Term
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Definition
| T/F Edwin Sutherland coined the term "white-collar crime" |
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Term
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Definition
| T/F The term "white-collar crime" has changed over time to refer to almost any financial or economic crime |
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Term
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Definition
| T/F The basic tenet of the theory of differential association is that crime is genetic |
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Term
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Definition
| T/F Cressey developed the theory of differential association |
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Term
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Definition
| T/F Sutherland believed that the learning process involved two specific areas: 1) the techniques to commit the crime; and 2) the attitudes, drives, rationalizations, and motives of the criminal mind |
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Term
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Definition
| T/F Cressey developed the "Fraud Triangle" |
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Term
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Definition
| T/F Cresey used the term "non-shareable" to describe a problem that the employee felt should be kept secret and private |
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Term
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Definition
| T/F This is an example of a Violation of Ascribed Obligations. A woman goes into debt or incurs large financial obligations. By admitting that she lost money through a disreputable act, she would be admitting that she is unworthy to hold her trusted position |
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Term
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Definition
| T/F One of the situations that Cressey believed caused a non-shareable problem included problems resulting from personal failure |
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Term
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Definition
| T/F According to Cressey, all three elements - perceived non-shareable financial problem, perceived opportunity, and the ability to rationalize - were needed for a trust violation to occur |
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Term
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Definition
| T/F Opportunities to commit fraud may be created by deficient or missing internal controls |
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Term
| False. Perpetrators who were interested primarily in "beating the systems" committed larger frauds |
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Definition
| T/F Perpetrators who believed their pay was not adequate committed larger frauds |
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Term
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Definition
| T/F Hollinger and Clark concluded that employee deviance is primarily caused by job dissatisfaction |
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Term
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Definition
| T/F Hollinger and Clark discovered that production deviance was two to three times more common than property violations |
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Term
| False. Is not a predictor of employee theft. The correlation between income and theft exists because of the employee's concern over their financial situation |
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Definition
| T/F Income alone is a predictor of employee theft |
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Term
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Definition
| T/F Since younger employees tend to be less committed to the idea of conforming to established social rules and structures, they would be more likely to engage in illegal conduct |
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Term
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Definition
| T/F Hollinger and Clark determined that perceived certainty of detection is inversely related to employee theft |
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Term
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Definition
| T/F The Report to the Nation on Occupational Fraud and Abuse was also referred to as The Wells Report |
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Term
| False. Males caused larger median losses than females |
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Definition
| T/F Female employees caused median losses more than twice as large as those of male employees |
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Term
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Definition
| T/F There is a linear correlation between education and median loss |
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Term
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Definition
| T/F The age group that caused the most cases of fraud was between the ages of 41 and 50 |
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Term
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Definition
| T/F The age group that caused the largest median loss included individuals over the age of 60 |
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Term
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Definition
| T/F The largest percent of fraud cases were committed by employees that had never been charged or convicted |
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Term
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Definition
| T/F Surprise audits, anonymous reporting mechanisms, and fraud training measures are the most effective mechanisms for reducing the cost and duration of fraud schemes |
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Term
| False. Fraudulent Statements |
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Definition
| T/F Asset misappropriations caused the largest median cost to the company among the three major categories of occupational fraud |
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Term
| False. An Independent Businessman would use this rationalization |
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Definition
| T/F A long-term violator would use the rationalization that the funds entrusted to them were really theirs |
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Term
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Definition
| T/F A long-term violator would use the rationalization that they were embezzling to keep their families from shame, disgrace, or poverty |
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