Solutions for Fraud Examination, 8th Edition by W. Steve Albrecht.pdf

DOWNLOAD THE Test Bank for Fraud Examination 5th Edition Albrecht
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1. WhichnofnthenfollowingnisnNOTnanprimaryncontrolnprocedurentonminimizenthenoccurrencenofnfraud?
a. Dualncustody
b. Systemsnofnauthorization
c. Internalnauditndepartment
d. Documentsnandnrecords

ANSWER: c
FEEDBACK: a.n Incorrect.n Dualn custody,n orn segregationn ofn duties,n isn an controln activity.
b. Incorrect.n Systemsn ofn authorizationn aren an controln activity.
c. Correct.
d. Incorrect.n Documentsn andn recordsn aren controln activities--theyn producen ann auditn trail.
POINTS: 1
DIFFICULTY: Moderate
LEARNINGn OBJECTIVES:n LO:n2-6
NATIONALn STANDARDS:n n UnitednStatesn-nBUSPROG:n-nTechnology
KEYWORDS: Bloom's:nUnderstanding

2. WhichnofnthenfollowingnisnNOTnancommonnrationalizationnofnfraudnperpetrators?
a. Thenorganizationnowesnme
b. I'mnonlynborrowingnthenmoney
c. Nononenwillngetnhurt
d. Nononenwillncare

ANSWER: d
FEEDBACK: a.n Incorrect.n Thisn isn an commonn rationalizationn forn committingn fraud.
b. Incorrect.n Thisn isn an commonn rationalizationn forn committingn fraud.
c. Incorrect.n Thisn isn an commonn rationalizationn forn committingn fraud.
d. Correct.n Fraudn perpetratorsn usuallyn rationalizen theirn actionsn byn thinkingn “In deserven more.”
POINTS: 1
DIFFICULTY: Easy
LEARNINGn OBJECTIVES:n LO:n2-7
NATIONALn STANDARDS:n n UnitednStatesn-nBUSPROG:n-nTechnology
KEYWORDS: Bloom's:nRemembering




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3. EachnofnthenfollowingnisnannexamplenofnannabusenofnancontrolnenvironmentnEXCEPT:
a. ThenHRndepartmentnfailedntonchecknannapplicant'snbackgroundnandnhirednsomeonenwhonhadncommittednfraudninnt
henpast.
b. Anmanagerninstructsnemployeesnnotntonsharenpasswords,nandnthennsharesnhernpasswordsnwithnhernimmediaten
assistant.
c. Ancompanynhasnestablishedncodesnofnconductnandnconductsntrainingnmeetingsntonteachnemployeesntondistinguishn
betweennacceptablenandnunacceptablenbehavior.nAttendancenisnvoluntary.
d. Thenemployeesnknownwhonhasnresponsibilitynforneachnbusinessnactivity.nProceduresntonfollownareninnplace.

ANSWER: d
FEEDBACK: a.n Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.n An clearn organizationaln structuren isn ann importantn fraud-
deterringn element.n Itn isn easiern ton tracknmissingnassetsnandnmoneynwhennallnemployeesnknownexactly
nwhonisnresponsiblenforneachnbusinessn activity.


POINTS: 1
DIFFICULTY: Moderate
LEARNINGn OBJECTIVES:n LO:n2-6
NATIONALn STANDARDS:n n UnitednStatesn-nBUSPROG:n-nTechnology
KEYWORDS: Bloom's:nUnderstanding

4. Anfraudnperpetratornusesnthenfloatntimenbetweennbanksntongiventhenimpressionnthatnhenhadnmoneyninnhisnaccounts.n
Whichncrimenisnhencommitting?
a. Floating
b. Strip
c. Spinning
d. Kiting

ANSWER: d
FEEDBACK: a.n Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.
POINTS: 1
DIFFICULTY: Moderate
LEARNINGn OBJECTIVES:n LO:n2-5
NATIONALn STANDARDS:n n UnitednStatesn-nBUSPROG:n-nTechnology
KEYWORDS: Bloom's:nRemembering




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5. WhichnisnfollowingnobservationsnisnTRUE?
a. Researchnshowsnthatnonlynpeoplenwithnancriminalnmindnsetncommitnfraud.
b. Fraudnperpetratorsnusuallyncannbendistinguishednfromnothersnonnthenbasisnofnpsychologicalncharacteristics.
c. Mostnfraudnperpetratorsnhavenprofilesnthatnarensimilarntonthosenofnothernpeople.
d. Whennfraudndoesnoccur,nthenmostncommonninitialnreactionnbynthoseninvolvedninnthenfraudnisnconfession.

ANSWER: c
FEEDBACK: a.n Incorrect.n Researchn showsn thatn anyonen cann commitn fraud.
b. Incorrect.n Fraudn perpetratorsn usuallyn can’tn ben distinguishedn fromn othern peoplen onn then basisn of
demographicn orn psychologicaln characteristics.

c. Correct.
d. Incorrect.n Whenn fraudn doesn occur,n then mostn commonn reactionn byn thosen aroundn then fraudn isn denial.
POINTS: 1
DIFFICULTY: Easy
LEARNINGn OBJECTIVES:n LO:n2-1,6n-nLO:n2-1
NATIONALn STANDARDS:n n UnitednStatesn-nBUSPROG:n-nTechnology
KEYWORDS: Bloom's:nRemembering

6. Whennmanagementnfraudnoccurs,ncompaniesnusually:
a. overstatenassetsnandn netnincome.
b. understatenassetsn andn netnincome.
c. overstaten assetsn andn understaten netn income.
d. understaten assetsn andn overstaten netn income.

ANSWER: a
FEEDBACK: a.n Correct.
b. Incorrect.n Usually,n whenn managementn fraudn occurs,n companiesn overstaten assetsn onn then balancen sh
eetnandn netn incomen onn then incomen statement.

c. Incorrect.n Usually,n whenn managementn fraudn occurs,n companiesn overstaten assetsn onn then balancen sh
eetnandn netn incomen onn then incomen statement.

d. Incorrect.n Usually,n whenn managementn fraudn occurs,n companiesn overstaten assetsn onn then balancen sh
eetnandn netn incomen onn then incomen statement.

POINTS: 1
DIFFICULTY: Easy
LEARNINGn OBJECTIVES:n LO:n2-2
NATIONALn STANDARDS:n n UnitednStatesn-nBUSPROG:n-nTechnology
KEYWORDS: Bloom's:nRemembering




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