Test Bank for Forensic and Investigative Accounting, 9th Edition by D Larry Crumbley - Chapters 1-0, 9780808053224 Rationals Included 2

Test Bank: Forensic and Investigative Accounting, 9th Edition by
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D Larry Crumbley - Chapters 1-
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0, 9780808053224 | Rationals Included
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1-3.cThecscribescofcancientcEgyptcwerecthecforerunnerscofctoday'scaccountants.

a.cTrue
b.cFalsec-cANSWER:ca

1-13.cArthurcAndersenccreatedcacCPAcfirmcthatceventuallycdisappeared.
a.cTrue
b.cFalsec-cANSWER:ca

1-21.cForensic‐typecfieldworkcrefersctocancattitudinalcshiftcincancauditor'scdegreecofcskepticism.
a.cTrue
b.cFalsec-cANSWER:ca

1-22.cConsultingcstandardscmaycapplyctocacforensiccaccountant.
a.cTrue
b.cFalsec-cANSWER:ca

1-23.cPeremptorycrefersctocthecfactcthatcacforensiccaccountantccancbecproactive.
a.cTrue
b.cFalsec-cANSWER:ca

1-24.cAcforensiccauditciscgenerallycacsamplingcactivity.
a.cTrue
b.cFalsec-cANSWER:cb

1-27.cThecsmokingcgunctocconvictcAlcCaponecwascaccashcreceiptscjournalcwithcCapone'scnameconcit.
a.cTrue
b.cFalsec-cANSWER:ca

1-29.cPlagiarismciscconsideredctocbecfraud.
a.cTrue
b.cFalsec-cANSWER:ca

1-
30.cAcforensiccaccountantcusescinterviewscandcleveragingctechniquescdesignedctocelicitcsufficientcinfor
mationctocprovecorcdisapprovecachypothesis.
a.cTrue
b.cFalsec-cANSWER:ca

1-31.cAcforensiccaccountantcdoescnotcsearchcpubliccrecords.
a.cTrue
b.cFalsec-cANSWER:cb

*1-32.cLikeconctelevisioncshows,cacforensiccaccountantcmaychavectockeepcacchaincofccustody.
a.cTrue
b.cFalsec-cANSWER:ca

1-
47.cWhichciscnotconecofcthecsixcareascofclitigationcservicescthatcthecAICPAccommitteecsuggestedcinc1986?

,a.cDamages.
b.cValuation.
c.cAccounting.
d.cAnalyses.
e.cAllcthecabovecwerecsuggested.c-cANSWER:ce

1-50.cPeremptorycreferscto:
a.cBectherecfirst.
b.cNotcrequiringcanyccausectocbecshown.
c.cOnecwhocstrivesctocbecthecbest.
d.cTakecthecplacecof.
e.cNonecofcthecabove.c-cANSWER:ca

1-51.cWhatcwascthecsmokingcgunctocconvictcAlcCapone?

a.cAncaccountant'sccashcreceiptscledger.
b.cLavishclifestyle.
c.cMurderingcaccompetitor.
d.cWholesalingcalcoholiccbeverages.
e.cNonecofcthecabove.c-cANSWER:ca*

1-53.cWhichcwouldcnotcbecincludedcincthecAICPA'scdefinitioncofcforensiccaccounting?

a.cAuditing.
b.cInvestigativecskills.
c.cQuantitativecmethods.
d.cAccounting.
e.cNonecofcthecabove.c-cANSWER:ce

1-61.cWhichcwouldcprobablycnotcbecancaddedcprocedurecincacforensiccaudit?

a.cExtensivecusecofcinterviews.
b.cNotcacceptingcsamplingcascevidence.
c.cMendingcevidentialcmattercstandardscwithcthecrulescofcevidence.
d.cSearchingcforclegalcevidence.
e.cAllcwouldcbecused.c-cANSWER:ce

*1-64.cWhichcwhite‐collarccrimescdoescthecFBIcinvestigate?
a.cMoneyclaundering.
b.cBankcfraud.
c.cHealthccarecfraud.
d.cEnvironmentalccrimes.
e.cAllcofcthecabove.c-cANSWER:ce

2-3.cAcforensiccaccountantccancnormallycassumecthatcthecbookscandcrecordscarectruecandccorrect.
a.cTrue
b.cFalsec-cANSWER:cb

2-
5.cKnowledgecofcbothcstatuteclawcandccaseclawcmaycbecrelevantctocthecgoalscorcobjectivescofcacforensicc
accountant.
a.cTrue
b.cFalsec-cANSWER:ca

2-6.cCriminologycisconecareacofcthecforensiccaccountant'scknowledgecbase.
a.cTrue
b.cFalsec-cANSWER:ca

,2-8.cAcpsychologyccoursecwouldcnotcbechelpfulcforcacforensiccaccountant.
a.cTrue
b.cFalsec-cANSWER:cb*

2-19.cData‐
drivencforensicctechniquescwillcalwayscdetectcfraudcschemes,cincludingcbriberycandckickbacks.
a.cTrue
b.cFalsec-cANSWER:cb

2-28.cAckick‐backcschemeccancnormallycbeccaughtcbycacdata‐drivencapproach.
a.cTrue
b.cFalsec-cANSWER:ca

2-
29.cFraudciscmuchclikecanciceberg:cmanycofcthecbehavioralcfactorsclurkconctopcofcthecwatercreadyctocsinkc
accorporation.

a.cTrue
b.cFalsec-cANSWER:cb

2-30.cAcbriberycschemeccancbestcbeccaughtcbycbehavioralcfactors.

a.cTrue
b.cFalsec-cANSWER:ca

2-31.cJustclikectermites,cfraudccancdestroycancorganization.
a.cTrue
b.cFalsec-cANSWER:ca

2-32.cRecessionscoftencincreasecfraudcandcabuse.
a.cTrue
b.cFalsec-cANSWER:ca*

2-
35.cAccordingctocthecFBI'scdefinitioncofcfraud,ctherecshouldcbecancapplicationcorcthreatcofcphysicalcforcec
orcviolence.

a.cTrue
b.cFalsec-cANSWER:cb

2-36.cOnecneedcnotcbecacCPActocobtaincthecCertifiedcincFinancialcForensicsc(CFF).
a.cTrue
b.cFalsec-cANSWER:cb

2-37.cForensiccaccountantscneedcancunderstandingcof:
a.cAccounting.
b.cLaw.
c.cCriminology.
d.cInvestigativecauditing.
e.cAllcofcthecabove.c-cANSWER:ce

2-45.cWhichctaskcprobablycwouldcnotcbecrequiredcofcacCertifiedcFraudcExaminer?
a.cGathercevidence.
b.cWritecreports.
c.cAssistcincinvestigatingcfraud.
d.cTestifycinctheccourtroom.

, e.cAllcofcthecabovecmaycbecrequired.c-cANSWER:ce

3-3.cThecauditccommitteecisconeclegcofcthecsix‐leggedcstoolcofcthecfinancialcreportingcprocess.
a.cTrue
b.cFalsec-cANSWER:ca

3-4.cMisrepresentationcisconecofcthecthreecM'scofcfinancialcreportingcfraud.
a.cTrue
b.cFalsec-cANSWER:ca

3-5.cThecbill‐and‐
holdcpracticecinvolvescsellingcinventoryctoccustomerscandcholdingcthecmerchandise,cwithcancagreement
ctocdelivercthecgoodsclater.



a.cTrue
b.cFalsec-cANSWER:ca

*3-
7.cAcrestaurantcmaycreducecincomec(andcexpenses)cifcitscleasecagreementcpaymentscarecbasedcuponcre
staurantcsales.

a.cTrue
b.cFalsec-cANSWER:cA

*3-8.cBookingcincomecbeforecreceivingcpaymentscisccalledc"channelcstuffing"cbycthecSEC.
a.cTrue
b.cFalsec-cANSWER:ca

*3-10.cAcKPMGcsurveycbreakscfraudcintocinternalcandcexternalcfraud.
a.cTrue
b.cFalsec-cANSWER:ca

*3-12.cUndercthecKPMGcsurveycschemecofcfraud,ccheckcforgeryciscalwayscancexternalcfraud.

a.cTrue
b.cFalsec-cANSWER:cb

*3-
13.cThecoldercfraudcpyramidcofcEdwincSutherlandchadcthesecthreecfactorscofcfraud:cmotive,copportunity
,candcrationalization.
a.cTrue
b.cFalsec-cANSWER:ca

*3-
14.cAcgamblingcproblemcwouldcbecconsideredcancexamplecofcthecrationalizationcfactorcincthecfraudcpyra
mid.
a.cTrue
b.cFalsec-cANSWER:cb

*3-15.cIneffectivecinternalccontrolscarecactemptingcopencdoorcorcopportunitycforcfraud.
a.cTrue
b.cFalsec-cANSWER:ca

*3-16.cEffectivecinternalccontrolscwillcalwayscstopcfraud.
a.cTrue
b.cFalsec-cANSWER:cb