Risk Management Test Preparation
Course Introduction
Risk Management is a comprehensive course that explores the strategies, tools, and processes used to identify, assess, and mitigate various types of risks faced by organizations. The course covers fundamental concepts such as risk identification, qualitative and quantitative risk analysis, risk response planning, and ongoing risk monitoring. Students will learn about different risk categories, including financial, operational, strategic, and compliance risks, and analyze real-world scenarios to understand risk management practices in diverse sectors. Emphasis is placed on the integration of risk management frameworks within organizational decision-making and the development of risk-aware cultures. By the end of the course, students will be equipped with the knowledge and practical skills necessary to proactively manage risks and enhance organizational resilience.
Recommended Textbook
Fraud Examination 5th Edition by W. Steve Albrecht
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18 Chapters
886 Verified Questions
886 Flashcards
Source URL: https://quizplus.com/study-set/1315
Page 2
Chapter 1: The Nature of Fraud
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/26176
Sample Questions
Q1) To be successful,plaintiffs in civil cases must prove their case by which of the following?
A)Preponderance of evidence.
B)Beyond a reasonable doubt.
C)To a degree of reasonable mitigation.
D)To the standard of prima facie.
Answer: A
Q2) Which among the following frauds is most likely to be a civil charge?
A)Racketeering
B)Mail fraud
C)Defamation
D)Perjury
Answer: C
Q3) What is required to prove fraud,as opposed to negligence?
A)Gross error
B)Intent
C)Preponderance of the evidence
D)Confession from the perpetrator
Answer: B
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Page 3
Chapter 2: Who Commits Fraud and Why
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57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/26177
Sample Questions
Q1) A fraud perpetrator is able to convince a potential victim that he will receive a large bonus if he supports him in a fraud scheme.Which type of power is the fraud perpetrator using?
A)Expert power
B)Coercive power
C)Legitimate power
D)Reward power
Answer: D
Q2) Which of the following is NOT an element of a good control environment?
A)Trust
B)Modeling
C)Appropriate hiring
D)Management's communication
Answer: A
Q3) Which of the following is NOT a common financial pressure associated with fraud?
A)Living beyond one's means
B)High bills or personal debt
C)Personal financial losses
D)Desire to hurt employer financially
Answer: D
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Chapter 3: Fighting Fraud: an Overview
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56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/26178
Sample Questions
Q1) Although there are multiple approaches to fraud investigation,most investigators tend to rely heavily on ______.
A)invigilation
B)surveillance
C)interviews
D)confrontation
Answer: C
Q2) All of the following are part of the fraud element triangle EXCEPT:
A)Theft act
B)Concealment
C)Conversion
D)Rationalization
Answer: D
Q3) Which of the following is true about legal action taken by organizations who are the victims of fraud?
A)Legal action is taken in fewer than half of frauds committed.
B)Legal criminal action is brought the the victim organization.
C)Civil action is a good way to get restitution.
D)Civil action sends a message to others not to commit fraud.
Answer: A
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Chapter 4: Preventing Fraud
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/26179
Sample Questions
Q1) Which of the following is a step that organizations should undertake while recruiting employees?
A)Conduct a covert investigation on the background of each candidate.
B)Consider the candidate's word as truth to ensure a culture of trust and honesty.
C)Require candidates to certify that all information on their résumé is accurate.
D)Verify the candidate's race, age, and religion during the interview.
Q2) Which of the following is a sign of a positive work environment?
A)Rigid rules followed by the organization
B)Managers who care about the employee work ethic
C)Careful hiring policies
D)Having positive personnel and operating procedures
Q3) Which of the following explains the Pygmalion effect?
A)Employees who commit fraud are likely to do so more than once.
B)The probability of fraud detection increases with the number of people involved.
C)People generally perform according to a leader's expectations.
D)Absence of controls leads to increased incidents of dishonesty.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Recognizing the Symptoms of Fraud
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/26180
Sample Questions
Q1) Which of the following scenarios is least conducive to fraud?
A)Outstanding bills at home
B)Mandatory vacation time
C)Economic downturns
D)Moral decay in upper management
Q2) Research in psychology indicates that when people commit a crime (especially for the first time),they are initially overwhelmed by ____ and ____.
A)guilt, fear
B)anxiety, insomnia
C)confidence, rationalization
D)defensiveness, anger
Q3) Which of the following is a true statement?
A)A fraud perpetrator who normally smokes often quits after committing a fraud.
B)The perpetrator may start entertaining coworkers more often and more lavishly.
C)The perpetrator may start looking coworkers directly in the eye when talking to them.
D)The perpetrator who committed the fraud act to pay off gambling debts may suddenly stop gambling.
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Chapter 6: Data-Driven Fraud Detection
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/26181
Sample Questions
Q1) Identify the true statement about detecting fraud using financial statement reports.
A)Performing horizontal analysis requires converting the Income statement balances to percentages of gross sales.
B)Vertical analysis is the most direct method of focusing on changes from period to period.
C)Before performing any data-driven analysis that targets fraud and corruption in financial statements, the numbers in all three types of financial statements need to be converted to percentages.
D)Small frauds may not affect the summarized financial statements significantly to be detected.
Q2) Identify the formula used to calculate z-score.
A)(Mean - Value)/Standard Deviation
B)(Mean - Value)/(Mean + Value)
C)(Value - Mean)/Standard Deviation
D)(Value - Mean)/Median
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Chapter 7: Investigating Theft Acts
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44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/26182
Sample Questions
Q1) Which checksum method is considered more advanced and secure than the method it replaced?
A)MD5
B)CRC-1
C)SHA-1
D)CRC-2
Q2) A divisional manager is suspected of adding ghost employees to the payroll.Which investigative method can most easily uncover this type of fraud?
A)Undercover operations
B)Theft
C)Concealment
D)Conversion
Q3) Experts recommend that invigilation must continue:
A)for at least 7 days.
B)for at least 14 days.
C)for at least 21 days.
D)for an indefinite period determined by the individual investigator.
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Chapter 8: Investigating Concealment
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42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/26183
Sample Questions
Q1) Which of the following statements is true?
A)Concealment investigation includes document investigation, physical asset counts, and computer searches.
B)Most concealment investigation techniques focus on obtaining eyewitness accounts as evidence.
C)Honesty testing is considered as a concealment investigation technique.
D)Concealment investigation is dependent on employee cooperation to gather evidence
Q2) What is the most common way to obtain private documents (either oral or written)?
A)subpoena
B)search warrant
C)voluntary consent
D)audit
Q3) Which of the following is NOT utilized to make determinations about the document being examined?
A)forensic chemistry
B)microscopy
C)photography
D)radiology
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Page 10
Chapter 9: Conversion Investigation Methods
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42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/26184
Sample Questions
Q1) From the following,identify an item that does NOT go into current net worth calculations?
A)Preliminary expenses
B)Prior year's net worth
C)Funds from known sources
D)Assets
Q2) Refer Data Set 9-1.Calculate the net worth of the individual at the end of year 1.
A)$3,000
B)$8,000
C)$0
D)$288,000
Q3) Funds from unknown sources equals:
A)Assets liabilities.
B)Net worth increase + living expenses.
C)Income funds from known sources.
D)Net worth prior year's net worth.
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11
Chapter 10: Inquiry Methods and Fraud Reports
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/26185
Sample Questions
Q1) While reacting to crisis,an individual usually becomes withdrawn,uncooperative,or embarrassed in the ____ stage.
A)Denial
B)Anger
C)Rationalization
D)Depression
Q2) The most effective theme of interviewing is:
A)That help is being sought.
B)The motive for committing the fraud.
C)The fraud and how it evolved.
D)The suspect's involvement in the fraud.
Q3) Which of the following is NOT a characteristic of a good interview?
A)The interview is of sufficient length and depth to get relevant facts
B)The interview focuses on pertinent information
C)The interview is conducted as far away from the event as possible
D)The interviewer includes extraneous facts
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Chapter 11: Financial Statement Fraud
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47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/26186
Sample Questions
Q1) Which of the following are considered the backbone of capitalism and allow investors,lenders,and regulators to measure the performance of a business?
A)Government policies
B)Financial statements
C)Stock prices
D)Credit reports
Q2) Which of the following observations concerning backdating of options is true?
A)It will not result in restatement of financial statements.
B)The extraordinary timing and frequency of occurrences defied statistical probability.
C)There is no concrete evidence that managers gained because of this practice.
D)It is an accepted means of compensating managers who perform exceedingly well.
Q3) Which of the following organizational characteristics is an indicator of a possible fraud?
A)A board of directors comprised mainly of outsiders.
B)An independent internal audit department.
C)An audit committee comprised mainly of insiders.
D)An overstaffed accounting department.
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13
Chapter 12: Revenue- and Inventory-Related Financial Statement
Frauds
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49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/26187
Sample Questions
Q1) When a company understates the cost of goods sold,what is the effect on the inventory turnover ratio?
A)The ratio might increase or decrease depending upon the amount by which it is understated.
B)The ratio will decrease.
C)No effect.
D)The ratio will increase.
Q2) Inventory fraud often involves overstating inventory and/or understating cost of goods sold.The result is a decrease in the:
A)gross profit ratio.
B)inventory turnover ratio.
C)number of days sales in inventory.
D)accounts receivable turnover ratio.
Q3) Which of the following can be used to simultaneously view the relationships between all numbers on the balance sheet or income statement?
A)Horizontal analysis
B)Vertical analysis
C)Ratio analysis
D)Trend analysis
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Chapter 13: Liability, asset, and Inadequate Disclosure
Frauds
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47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/26188
Sample Questions
Q1) Which method is NOT used to overstate assets?
A)Inappropriately capitalizing costs that should be expensed.
B)Recording newly acquired assets at cost instead of fair market value in a healthy economy.
C)Creating ficticious accounts receivable or inventory to hide thefts.
D)Inflating assets through mergers and acquisitions by manipulation of intercompany accounts and transactions.
Q2) Which asset is probably the most difficult to overstate under normal audit procedures?
A)Fixed assets
B)Marketable securities
C)Cash
D)Accounts receivable
Q3) All of the following observations concerning off-balance-sheet arrangements are true,EXCEPT:
A)A common use is to allocate risks among third parties.
B)The might include structured finance or special purpose entities.
C)They are often used to engage in leasing, hedging, or research and development services.
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D)They are considered illegal under SEC guidelines.
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Chapter 14: Fraud Against Organizations
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/26189
Sample Questions
Q1) Which fraud is committed by an employee who doesn't record customer sales and pockets the payment?
A)Larceny
B)Disbursement
C)Skimming
D)Illegal gratuities
Q2) Thefts of inventory are divided into two groups.Identify them.
A)Corruption and bribery
B)Expense scheme and skimming
C)Economic extortion and illegal gratuities
D)Larceny and misuse
Q3) Which of the following occurs when an employee demands a payment from a vendor in order to make a decision in that vendor's favor?
A)Bribery
B)Larceny
C)Economic extortion
D)Illegal gratuity
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Chapter 15: Consumer Fraud
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/26190
Sample Questions
Q1) Which of the following is the limit set on consumers' credit card fraud liability by Federal law?
A)$50
B)$100
C)$150
D)$200
Q2) Which act makes it illegal for any agency that receives federal funding to disclose privacy information about individuals?
A)Identity Theft and Assumption Deterrence Act
B)Family Education Rights and Privacy Act of
C)The Gramm-Leach-Bliley Act
D)Fair Credit Reporting Act
Q3) What is one of the biggest marketing campaigns of illegal MLMs?
A)Promise of full-time work from home for huge weekly earnings.
B)Absence of headhunter fees.
C)A mysterious "benefactor" interested in contributing a large sum of money.
D)Promise that investors will always make money from future downline growth.
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Chapter 16: Bankruptcy, divorce, and Tax Fraud
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66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/26191
Sample Questions
Q1) Which of the following is usually the most complex step in the money laundering process?
A)integration
B)layering
C)placement
D)transfering
Q2) Which type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements,such as having regular income and debts of $1 million or less?
A)Chapter 3
B)Chapter 5
C)Chapter 7
D)Chapter 11
E)Chapter 13
Q3) Which of the following is always involved in planned bankruptcies?
A)Setting up a new company whose purpose is to help the perpetrator carry out the scheme
B)Purchasing inventory in increasing amounts on credit
C)Planning a bankruptcy with the creditors before a loan is made
D)The perpetrator skipping town when the bankruptcy is filed
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Chapter 17: E-Commerce Fraud
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/26192
Sample Questions
Q1) Which of the following activities would be the least practical for a fraud examiner?
A)gaining an understanding of the tools and methods perpetrators use in e-business fraud
B)gaining a working knowledge of computer networking systems
C)learning the strengths and weaknesses of Windows
D)getting to know each company employee's interactions with the systems
Q2) In an electronic environment,no other control can better prevent fraud than the wise use of _________.
A)digital certificates
B)biometrics
C)anti-virus software
D)passwords
Q3) The threat of falsified identity is less of a concern in the case of:
A)virtual private networks.
B)traditional EDI settings.
C)e-business.
D)unsecured online transactions.
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Page 19
Chapter 18: Legal Follow-Up
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/26193
Sample Questions
Q1) Which of the following is a part of expert witness testimony during a trial?
A)presenting visuals to convey issues more completely regarding complex fraud issues
B)responding to direct-questioning by the attorney representing the opposing side
C)responding to questions for clarification from the jury
D)responding to cross examination by the attorney who hired the expert witness
Q2) Which of the following is a protection offered to defendants by the Fifth Amendment?
A)Protects against unreasonable searches.
B)Precludes a person from being tried twice for the same crime.
C)Grants the right to a speedy trial.
D)Allows the state to take a private party's property without just compensation.
Q3) All of the following observations are true about a criminal case EXCEPT:
A)guilt must be established "beyond a reasonable doubt."
B)the case is most often settled before it goes to trial.
C)defendants have the right to "plead the fifth."
D)a jury's decision must be unanimous.
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