Fraud Examination Practice Exam
Course Introduction
Fraud Examination is a course designed to provide students with a comprehensive understanding of how fraud is committed, detected, and prevented in organizations. The course covers the various types of occupational fraud, the psychological and environmental factors that contribute to fraudulent behavior, and the legal and ethical considerations in handling fraud cases. Students will explore the investigative techniques used to uncover fraud, including interviewing, document analysis, and financial statement examination. Through case studies and real-world examples, the course emphasizes practical strategies for internal controls, reporting mechanisms, and the development of antifraud policies. This prepares students to recognize fraud risks and contribute to the design of systems that deter, detect, and address fraudulent activities.
Recommended Textbook
Profit Without Honor White Collar Crime and the Looting of America 6th Edition by Stephen M. Rosoff
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13 Chapters
813 Verified Questions
813 Flashcards
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Page 2
Chapter 1: Introduction
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64 Verified Questions
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Sample Questions
Q1) Criminaloid
A)A theory that forces social scientists to reconsider accepted theories
B)A scheme that attempts to cheat people by paying original investors with money from new investors
C)Coined the term "white-collar" crime
D)Used by Edwin Sutherland to study data relating to many industries from different sources
E)Loss of trust when the privileged wealthy few are punished less severely than others
F)Is based on the occupations of the perpetrator
G)Former treasurer of the United States imprisoned for tax fraud
H)A pillar of society/paragon of virtue who in reality was interested only in personal gain using any means
Answer: H
Q2) Barry Minkow regarded money generated from stock sales as money he could use to invest in other companies.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Crimes Against Consumers
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68 Verified Questions
68 Flashcards
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Sample Questions
Q1) Which federal agency regulates advertising?
A)FTC
B)SEC
C)FDIC
D)FCC
Answer: A
Q2) 5 - 10% of all minutes logged on the telephone time scams are concentrated in what area?
A)Psychic hotlines
B)Music sales
C)Work at home offices
D)Sex lines
Answer: D
Q3) The term "laissez faire" refers to which of the following?
A)Governments should not interfere with free markets
B)Consumers being protected from fraud artists
C)Buyers should be aware of offers that sound too good to be true
D)Fairness to consumers
Answer: A
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Page 4
Chapter 3: Unsafe Products
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68 Verified Questions
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Sample Questions
Q1) Children are not a concern for those who work in the area of consumer safety.
A)True
B)False
Answer: False
Q2) Tobacco companies have used specific marketing campaigns with flavored cigarettes to target women.
A)True
B)False
Answer: False
Q3) Counterfeit medications in Africa can be found in:
A)district hospitals.
B)local vendors.
C)households.
D)all of the above
Answer: D
Q4) President George Bush vomited and fainted at a state dinner in Japan due to taking the drug ________________.
Answer: Halcion
Q5) ________________ refers to products that are worthless.
Answer: quackery
Page 5
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Chapter 4: Environmental Crime
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60 Verified Questions
60 Flashcards
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Sample
Questions
Q1) W.R Grace and its Cryovac Division that produced the Woburn Leukemia Cluster was guilty of performing all of the following activities <b>except</b>:
A)providing false information to the federal government about toxic disposal practices.
B)dumping toxic waste.
C)admitting to the dumping but denying the carcinogenic nature of the substances.
D)inadequate workplace safeguards.
Q2) Identify the three major types of contaminations resulting from waterborne diseases.
Q3) Criminal law is a relatively new tool used to enforcing environmental statutes.
A)True
B)False
Q4) Pearland, Texas, home to the abandoned Brio refinery, a site targeted for clean up under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), is said to have developed the highest ________________ rate in the country.
Q5) Illustrate the development of Superfund and discuss its deficiencies, including (but not limited to) the Brio site.
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Chapter 5: Institutional Corruption: Mass Media and Religion
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Sample Questions
Q1) Dick Clark also testified before Congress in the payola scandal. He was never accused of wrongdoing, although all of the following were true <b>except that</b>:
A)he received 143 song copyrights as gifts.
B)he promoted Elvis Presley based on promise of future benefits.
C)singers involved with companies he owned got special places in his program.
D)said he may have promoted artists associated with his companies without realizing it.
Q2) A more stringent alternative to religious corruption would be longer jail sentences for wrongdoers.
A)True
B)False
Q3) Jimmy Swaggart railed against Catholics, Jews, intellectuals, mental health professionals, liberals, gays, and other social scapegoats. He was dismissed from the Assemblies of God ministry when it was disclosed that:
A)he acknowledged a child conceived outside of marriage.
B)he disclosed obsession with prostitution and pornography.
C)he was a homosexual.
D)he admitted to an addiction to prescription drugs.
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Page 7
Chapter 6: Securities Fraud
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) The investigation that snared Dennis Levine took notice of all of the following <b>except</b>:
A)a proposed merger, trade, or acquisition would occur.
B)a Swiss bank in the Bahamas.
C)heavier-than-usual sales would take place involving companies that would later be involved in a merger, trade, or acquisition.
D)the trades all involved Levin's firm.
Q2) Milken agreed to pay a $600 million fine and serve ______________ years in prison.
A)5
B)2
C)10
D)20
Q3) Milken and Boesky entered into a parking arrangement that was beneficial to both of them. This arrangement involved:
A)shifting the loss of investment to the fake stock owner.
B)limiting Drexel exposure to loss.
C)a risky but legal arrangement.
D)disguising the true stock owner's identity to comply with regulations.
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Page 8
Chapter 7: Corporate Fraud
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61 Verified Questions
61 Flashcards
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Sample Questions
Q1) How do you think corporate fraud affects consumer confidence in the economy?
Q2) Enron's limited partnerships were all of the following <b>except</b>:
A)a way to raise money.
B)a tool permitting insiders to reap huge profits.
C)used to conceal colossal debt.
D)a mechanism to limit employee losses.
Q3) The financial press, mesmerized by Enron's dazzling bottom line, missed a critical wake-up call.
A)True
B)False
Q4) Lay's paying back loans with questionable assets accomplished with of the following besides putting money in his bank account?
A)Avoided alerting regulators
B)Took advantage of his co-conspirators
C)Was a last-ditch effort to improve the company's bottom line
D)Avoided substantial tax consequences
Q5) Qwest was accused of artificially pumping up its revenue over a period of several years.
A)True
B)False
Page 9
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Chapter 8: Fiduciary Fraud
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Sample Questions
Q1) The insurance industry is largely regulated by individual states.
A)True
B)False
Q2) The Multiple Employer Welfare Agreement enables employers to meet welfare payment requirements for healthcare.
A)True
B)False
Q3) Alan Teale and his far-flung group of companies took advantage of the public in all of the following ways <b>except</b>:
A)avoiding the reinsurance scam.
B)disability plans for professional athletes.
C)liability policies for high school athletes.
D)securing claims with treasury notes secured by the Sovereign Cherokee Nation Tejas.
Q4) The primary investment vehicle for First Pension was:
A)penny stock.
B)nonexistent mortgages.
C)deal stocks.
D)junk bonds.
Q5) The insurance industry is largely regulated by individual ________________.
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Chapter 9: Crimes by the Government
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Sample Questions
Q1) Evaluate waterboarding, a torture technique that dates back over 100 years.Do you believe it is an effective means of torture especially because it does not leave any marks on its victim?
Q2) The ________________ Study involved testing an African American group of subjects.
Q3) Though most of the medical experimentation by the military took place decades ago, soldiers in what recent conflict were given an unapproved pretreatment for nerve gas attacks without their knowledge?
A)Bosnian conflict
B)Vietnam War
C)Persian Gulf War
D)United States invasion of Iraq
Q4) Identify and discuss some of the most egregious examples of the United States government using people as human guinea pigs.
Q5) During the Kennedy administration, the IRS was encouraged to target right-wing extremists.
A)True
B)False
Q6) "Big corruption" is normalized government ________________.
Page 11
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Chapter 10: Corruption of Public Officials
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Sample Questions
Q1) Identify the three methods used by federal legislators to cheat the public. Provide examples.
Q2) Which of the following would be associated with grass-eaters?
A)Trying to help
B)Graft
C)Looking the other way
D)Aggressive corruption
Q3) Identify the types of police corruption and give an example of each.
Q4) What are possible explanations for police corruption?
Q5) Which one of the following could be a part of a shakedown?
A)Arresting a business rival
B)Planting evidence
C)Money for not making an arrest
D)A lying eyewitness
Q6) Operation Greylord, which targeted judicial wrongdoing, took place in ____________.
Q7) Explain why individuals are motivated to engage in corrupt behavior. How do they justify their actions?
Q9) Graft cases have been prosecuted in ____________ major American cities. Page 12
Q8) One lobbyist described PAC money as a civilized approach to ____________ buying.
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Chapter 11: Medical Crime
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Sample Questions
Q1) Health Maintenance Organizations (HMOs) are the new model for providing medical care. Criticisms of HMOs include all of the following <b>except</b>:
A)big salaries for administrators.
B)overemphasis on profit instead of care.
C)multiple trips to many specialists.
D)negligent under-treatment.
Q2) An item that millions use every day that makes it easier to catch psychiatrists in wrongdoing is a wristwatch.
A)True
B)False
Q3) The term "self-referral" stands for the practice of:
A)doctor selection of specialists and services based on financial connections.
B)HMO selection of specialists and services based on providers in a network.
C)insurance company selection of specialists and services based on low cost.
D)patient selection of specialists and services based on recommendations from friends.
Q4) How effective is the medical profession at policing itself? Give specific examples for your answers. What changes do you think would be needed to improve accountability in the profession?
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Page 14
Chapter 12: Computer Crime
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Sample Questions
Q1) Examine both domestic and international computer espionage and give examples of each. Why do you think it is more difficult to determine the extent of international espionage?
Q2) According to the text, the broad but somewhat more specific definition of computer crime can be described as:
A)destruction, theft, unauthorized or illegal use, modification or copying of information, programs, services, equipment, or communication networks.
B)a crime that could not be committed without a computer.
C)crimes using a computer to accomplish their ends.
D)a computer or its periphery used as a weapon.
Q3) A reason for the Nigerian scam is that it has a well-educated populace.
A)True
B)False
Q4) Toll fraud is:
A)avoiding a fee to use a road.
B)avoiding phone charges.
C)avoiding cable television fees.
D)avoiding internet services fees.
Q5) Only the ________________ computer criminals are caught.
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Chapter 13: Conclusions
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Sample Questions
Q1) All of the following could provide motivation in a criminogenic industry <b>except</b>: A)raises. B)bonuses.
C)comp time. D)stock options.
Q2) The three levels of sociological analysis are societies, institutions, and ________________.
Q3) Conventional theories of crime have a tautological quality to them. Criminality is defined using the same terms as are used for causal factors. The term circular may be substituted for tautological.
A)True
B)False
Q4) There is very little corporate leniency extended to white-collar criminals.
A)True
B)False
Q5) Recent corporate scandals reveal that some greedy CEOs and other top executives have ________________ inflated the value of their firms' assets.
Q6) The term ________________ might be substituted for tautological.
Page 16
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