ACCT 562 WEEK 7 QUIZ ANSWERS
Question 1.1. (TCO F) Which of the following factors should be considered when determining
whether to employ outside consultants during a fraud examination engagement? (Points : 3)
Company politics
The degree of expertise required for specific tasks
Potential threats of retaliation against internal investigators
All of the above
Question 2.2. (TCO F) Which of the following statements about handling and storing
documentary evidence is not true? (Points : 3)
Documents received should be initialed and dated by the fraud examiner.
The original document should be preserved for forensic examinations.
Photocopied documents should be stored in transparent plastic envelopes.
Documents should never be stapled or paper-clipped.
Question 3.3. (TCO F) Which of the following statements is true regarding the use of
undercover operations as part of a fraud examination? (Points : 3)
Undercover operations should be used only if there is sufficient probable cause that a
crime has been committed.
There are no restrictions governing the use of undercover operations as part of fraud
investigations
Undercover operations must be coordinated with appropriate law enforcement to be
legal.
Undercover operations are never legal and should not be used in fraud examinations.
Question 4.4. (TCO F) Jackson, CFE, is investigating a suspected embezzlement by one of
XYZ Corp.’s employees. As part of this investigation, she is assembling a financial profile of
the suspect. Among other things, she wants to see if the suspect has made any significant real
estate purchases since the embezzlement scheme began. Information on real estate
transactions such as deeds, grants, transfers, and mortgages is located: (Points : 3)
With the county recorder
With the state tax assessor
With the secretary of state
With the U.S. Department of Land Management
, Question 5.5. (TCO F) A well-written, accurate, and understandable investigation report
will: (Points : 3)
Convey all pertinent evidence
Add credibility to the investigation
Accomplish the objectives of the case
All of the above
Question 6.6. (TCO F) The axiom that states employees who believe that they will be caught
engaging in occupational fraud and abuses are less likely to commit it is called: (Points : 3)
Cognitive choice
Preventive selection
Perception of detection
None of the above
Question 7.7. (TCO F) Having an adequate program to report fraud is vital to the success of
an organization’s efforts to detect and deter fraud. Which of the following is a key point that
should be emphasized in such a program? (Points : 3)
If everyone works together, fraud, waste, and abuse can be completely eliminated
within the organization.
There is an exact method for reporting suspected wrongdoing.
Penalties may be assessed on employees who report inaccurate information,
regardless of intent.
All of the above
Question 8.8. (TCO F) As it relates to Corporate Sentencing Guidelines, corporations are
required to perform certain minimum steps for due diligence. Which of the following is one of
the required steps? (Points : 3)
Consistently enforce standards through appropriate discipline.
Have policies defining standards and procedures to be followed by the organization’s
agents and employees.
Use due care not to delegate significant authority to people who are known to have a
propensity to engage in illegal activities.
All of the above are part of due diligence
Question 1.1. (TCO F) Which of the following factors should be considered when determining
whether to employ outside consultants during a fraud examination engagement? (Points : 3)
Company politics
The degree of expertise required for specific tasks
Potential threats of retaliation against internal investigators
All of the above
Question 2.2. (TCO F) Which of the following statements about handling and storing
documentary evidence is not true? (Points : 3)
Documents received should be initialed and dated by the fraud examiner.
The original document should be preserved for forensic examinations.
Photocopied documents should be stored in transparent plastic envelopes.
Documents should never be stapled or paper-clipped.
Question 3.3. (TCO F) Which of the following statements is true regarding the use of
undercover operations as part of a fraud examination? (Points : 3)
Undercover operations should be used only if there is sufficient probable cause that a
crime has been committed.
There are no restrictions governing the use of undercover operations as part of fraud
investigations
Undercover operations must be coordinated with appropriate law enforcement to be
legal.
Undercover operations are never legal and should not be used in fraud examinations.
Question 4.4. (TCO F) Jackson, CFE, is investigating a suspected embezzlement by one of
XYZ Corp.’s employees. As part of this investigation, she is assembling a financial profile of
the suspect. Among other things, she wants to see if the suspect has made any significant real
estate purchases since the embezzlement scheme began. Information on real estate
transactions such as deeds, grants, transfers, and mortgages is located: (Points : 3)
With the county recorder
With the state tax assessor
With the secretary of state
With the U.S. Department of Land Management
, Question 5.5. (TCO F) A well-written, accurate, and understandable investigation report
will: (Points : 3)
Convey all pertinent evidence
Add credibility to the investigation
Accomplish the objectives of the case
All of the above
Question 6.6. (TCO F) The axiom that states employees who believe that they will be caught
engaging in occupational fraud and abuses are less likely to commit it is called: (Points : 3)
Cognitive choice
Preventive selection
Perception of detection
None of the above
Question 7.7. (TCO F) Having an adequate program to report fraud is vital to the success of
an organization’s efforts to detect and deter fraud. Which of the following is a key point that
should be emphasized in such a program? (Points : 3)
If everyone works together, fraud, waste, and abuse can be completely eliminated
within the organization.
There is an exact method for reporting suspected wrongdoing.
Penalties may be assessed on employees who report inaccurate information,
regardless of intent.
All of the above
Question 8.8. (TCO F) As it relates to Corporate Sentencing Guidelines, corporations are
required to perform certain minimum steps for due diligence. Which of the following is one of
the required steps? (Points : 3)
Consistently enforce standards through appropriate discipline.
Have policies defining standards and procedures to be followed by the organization’s
agents and employees.
Use due care not to delegate significant authority to people who are known to have a
propensity to engage in illegal activities.
All of the above are part of due diligence
