Reem Mohammad

Forensic Accounting
Chapter 9
1.Which type of question seeks to assess the interviewees honesty?
a.Informational.
b.Assessment.
c.Admission-seeking.
d.Introductory.
2.Which of the following is nota type of occupational fraud?
a.Corruption.
b.Asset misappropriation.
c.Conflict of interest.
d.All of the above are types of occupational fraud.
3.Which of the following is not an example of an external fraud?
a.An outsider giving a kickback to a purchasing officer.
b.An offshore hacker stealing customer credit card data.
c.A customer opens a credit account under a fake name.
d.All of the above are external fraud.
4.The profile of the typical fraudster in the organizations suggests ____________.
a.A criminal background
b.A dysfunctional psychological background.
c.Antisocial tendencies.
d.None of the above.
5.POS schemes are a form of ____________.
a.Sales skimming schemes.
b.Corruption schemes.
c.Lapping schemes.
d.None of the above.
6.The absence of a voucher package would most likely be associated with a(n)____ fraud
scheme.
a.Sales skimming.
b.Corruption.
c.Expenditure cycle.
d.None of the above.
7.Check washing is most likely to associated with ____________.
a.A payroll fraud scheme.
b.Identity theft.
c.Fake credit accounts.
d.None of the above.
8.Generally speaking, the most likely issue in production fraud is ____________.
a.Improper hiring of production employees.

b.Inventory losses.
c.A lack of adequate supervision.
d.None of the above.
9.Which is not a vector of attack in electronic systems?
a.Input manipulation.
b.Program alteration.
c.Sabotage.
d.All of the above are vectors of attack in electronic systems.
10.A scheme in which a vendor seeks to overbill involves ____________.
a.Balanced billing.
b.Balance billing.
c.Invoice billing.
d.None of the above.
11.____________ provides an exemption for workplace investigations for suspected
misconduct relating to employment, a suspected violation of state or federal laws, or a violation
of a preexisting written company policy.
a.The Internet False Identification Prevention Act.
b.The Fair Credit Reporting Act.
c.The Fair and Accurate Credit Transaction Act (FACTA).
d.None of the above.
12.Which of the following is not associated with identity theft?
a.Hackers.
b.Shoulder surfers.
c.Street thieves.
d.All of the above.
13.Which money-laundering technique involves making many small deposits in different
locations?
a.Currency structuring.
b.Smurfing.
c.The use of a financial intermediary.
d.None of the above.
14.Which of the following is not a traditional area of crime for the LCN?
a.Loansharking.
b.Labor racketeering.
c.Gambling.
d.All of the above are traditional areas of crime for the LCN.
15.Terrorism represents ____________.
a.A special type of organized crime.
b.An organization that engages in reverse money laundering.
c.Both a and b.
d.Neither a nor b.

Short Answer Questions

1.Why is corruption fraud often so hard to prove?
Corruption is improper influence and it is hard to prove there is an improper influence
unless you have proof of the fraud being committed.
2.What are some examples of external frauds?
Vendor fraud and client fraud
3.How do bid rigging schemes work?
Bid schemes work by manipulating the bidding process so that way that way the
outcome is predetermined.
4.What internal control deficiencies are required for a lapping scheme to work?
There would have to be no separation of duties when it comes to processing a
customers duties.
5.What types of fraud are prevented by a voucher system?
Purchasing frauds such as purchases without proper authorization and accepting
shipments and payments from vendors.
6.What are five vectors of attack in electronic systems?
The five vectors of attack in electronic systems are input manipulation, direct file
alteration, program alteration, data theft, and sabotage.
7.How does balance billing fraud work?

Balance billing fraud works by invoicing the customer by the balance on account not by
the specific orders so the vendor can add charges to the balance or not credit returned
shipment to the customers account.
8.What is the most difficult problem in catching identity thieves?
Its hard to catch identity thieves because you dont know who they are. If you do not
know who you are looking for it is hard to look for where they will be to catch them.
9.What are the elements of the money-laundering process?
The money-laundering process involves 3 steps: placement, layering, and integration
10.What role does FinCEN play in defeating organized crime?
The FinCEN is a government organization that enforces the anti-money laundering laws
which is how it defeats organized crime