White Collar Crime
Chapter Exam Questions
Course Introduction
This course explores the complex world of white collar crime, focusing on nonviolent offenses committed by individuals, businesses, and government officials for financial gain. Students will examine the various types of white collar crimes, including fraud, embezzlement, insider trading, bribery, and corruption, along with the social, economic, and organizational factors that contribute to these offenses. The course also addresses the investigation and prosecution of white collar crimes, regulatory frameworks, ethical considerations, and the impact of such crimes on victims and society. Through case studies and analysis, students will develop a deeper understanding of prevention strategies and the challenges faced in combating white collar criminal conduct.
Recommended Textbook Fraud Examination 3rd Edition by W. Steve Albrecht
Available Study Resources on Quizplus
18 Chapters
929 Verified Questions
929 Flashcards
Source URL: https://quizplus.com/study-set/228 Page 2
Chapter 1: The Nature of Fraud
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/3460
Sample Questions
Q1) Fraud is deception that includes all of the following except:
A) False representation
B) Tricky and/or cunning tactics
C) Confidence in the perpetrator
D) Unintentional Errors
Answer: D
Q2) One way that criminal law differs from civil law is that it:
A) Provides remedies for violations of private rights.
B) Must yield a unanimous verdict.
C) Can have a jury of fewer than 12 persons.
D) Allows for various claims in one action.
Answer: B
Q3) Who are the primary victims of financial statement fraud?
A) Employees and middle management.
B) Organizations that buy goods or services.
C) Analysts and pundits.
D) All Stockholders
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Why People Commit Fraud
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/3461
Sample Questions
Q1) All of the following are primary control activities (procedures) except:
A) Physical safeguards
B) System of authorizations
C) Audit Trail
D) Documents and records
E) All of the above are primary control activities
Answer: C
Q2) Which of the following is not a possible control activity:
A) Having separate authorization, bookkeeping, and custody functions.
B) Protecting access to important information with a password.
C) Requiring two individuals to work on the same task.
D) All are control activities.
Answer: D
Q3) Which racial group is most likely to commit fraud?
A) Caucasian
B) African American
C) Asian
D) Hispanic
E) People of every race commit fraud
Answer: E
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Fighting Fraud: An Overview
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3462
Sample Questions
Q1) Evidence that is gathered using interviewing techniques is referred to as:
A) Physical evidence
B) Interview evidence
C) Testimonial evidence
D) Observation evidence
Answer: C
Q2) All of the following factors can be associated with high levels of fraud except:
A) Top management that does not pay attention to appropriate behavior
B) Lack of recognition of job performance
C) Unrealistically low pay
D) Lack of understanding of different department functions
Answer: D
Q3) Which is not one of the three basic elements of fraud?
A) Concealment
B) Theft
C) Opportunity
D) Conversion
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Preventing Fraud
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/3463
Sample Questions
Q1) Fraud is prevented and reduced by:
A) Creating a culture of honesty, openness, and assistance
B) Terminating employees without prosecution
C) Eliminating opportunities to commit fraud
D) Both A and C
Q2) The last step in the "fraud savvy" model for dealing with fraud includes follow-up. What is a likely outcome when a company allows perpetrators to go un-prosecuted?
A) The company will avoid bad publicity
B) The perpetrator and others in the company will commit fraud again in the future
C) The perpetrator will be saved from pain and embarrassment and having learned his or her lesson will not commit fraud again
D) Management will send a signal that fraud will not be tolerated
Q3) Which of the following is a sign of a positive work environment?
A) Yearly turnover of hourly employees exceeds 25%
B) Company returns that consistently beat the industry average
C) Departments cut work parties to keep within their budget
D) Employees work long hours because they care about the company
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Recognizing the Symptoms of Fraud
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/3464
Sample Questions
Q1) Accounting anomalies include all of the following except
A) Irregularities in source documents
B) Lack of segregation of duties
C) Inaccuracies in ledgers
D) Faulty journal entries
Q2) Which of the following entries may indicate fraud except:
A) Journal entries made near the end of an accounting period
B) Journal entries made without documentary support
C) Journal entries that do not balance
D) All of the above are frequently indicative of fraud
Q3) ___________ are often in the worst position to detect fraud.
A) Auditors
B) Co-workers
C) Managers
D) Company accountants
E) Friends
Q4) People who can delay gratification rarely embezzle.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Data-Driven Fraud Detection
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/3465
Sample Questions
Q1) __________ is the splitting of complex data sets into case-specific tables.
A) Summarization
B) Stratification
C) Data Mining
D) None of the above
Q2) Each of the following is true about Benford's Law except:
A) Benford's law broadly identifies the possible existence of fraud, but does not identify promising leads.
B) Benford's law states that each digit (from 1 to 9) will be the first digit in a number approximately the same amount of times as every other digit.
C) A major advantage of using Benford's law to detect fraud is that it is the least expensive method to implement and use.
D) Fraud perpetrators are less likely to learn that you are analyzing data according to Benford's law because it does not involve extensive data mining queries.
Q3) A Matasos matrix allows a user to combine different indicators to different schemes.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Investigating Theft Acts
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/3466
Sample Questions
Q1) Locating a scene to be observed, anticipating the actions that are most likely to occur at the scene, and keeping detailed notes on tape or film is:
A) Static surveillance
B) Electronic Surveillance
C) Stationary surveillance
D) Moving surveillance
Q2) In considering the fraud triangle plus inquiry approach to investigation, surveillance, invigilation, and physical evidence are all:
A) Theft act investigation methods
B) Conversion investigations methods
C) Inquiry investigation methods
D) Concealment investigations methods
Q3) Why do fraud investigations initially involve few people and avoid the word "investigation?"
A) To avoid alerting suspects about the investigation
B) To avoid incriminating innocent people
C) To avoid unnecessary stress or suspicion among employees
D) All of the above
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Investigating Concealment
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/3467
Sample Questions
Q1) Moe owns a 24-hour convenience store. He has noticed that the amounts of liquor inventory purchases have gotten bigger and frequent lately. Nevertheless, sales provided by this particular item haven't increased. He is concerned that the two night-shift employees might be involved. The best method to use for this investigation is:
A) Theft investigation
B) Conversion investigation
C) Embezzlement investigation
D) Concealment investigation
Q2) Documents are a great source of evidence because of the following:
A) They do not forget
B) They cannot be cross-examined or confused by attorneys
C) They cannot commit perjury
D) They never tell inconsistent stories of different occasions
E) All of the above
Q3) All of the following information can be obtained from a cancelled check except:
A) Account number of the maker
B) Account number of the person who presented the check
C) A trail of all people who transferred the check (assignees and assignors)
D) Nature of transaction (cashed, deposited, presented for payment)
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Conversion Investigation Methods
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/3468
Sample Questions
Q1) A fraud investigator would have the least amount of difficulty obtaining the _________ of a suspect.
A) Tax returns
B) Military records
C) Birth records
D) Social security number
Q2) What will perpetrators of fraud almost universally do with their stolen funds?
A) Invest the stolen funds
B) Save the funds for emergency retirement, etc.
C) Spend them
D) Return them
Q3) Evidence gathered from searching through someone's trash:
A) Can help identify concealment attempts
B) Can help to determine how a perpetrator is spending stolen money
C) Can help understand how a perpetrator is stealing money
D) All of the above are true
Q4) True or false: Federal records are usually more useful than state and local records when investigating fraud.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Inquiry Methods and Fraud Reports
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/3469
Sample Questions
Q1) Calibration is:
A) The use of interpersonal space to convey meaning.
B) The process of observing behavior before questioning begins.
C) The strongest response to a threatened ego
D) The weakest response to a threatened ego
Q2) Which of the following is the correct sequence of reactions to crisis?
A) Denial, anger, rationalization, depression, acceptance
B) Rationalization, anger, depression, acceptance, denial
C) Denial, depression, anger, rationalization, acceptance
D) Rationalization, depression, anger, denial, acceptance
Q3) 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
E) none of the above
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Financial Statement Fraud
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/3470
Sample Questions
Q1) Revenue frauds are perpetrated by:
A) Improperly timing transactions
B) Recording receivables to fictitious customers
C) Overestimating the extent to which the earnings process has been completed
D) All of the above
Q2) Which of the following is not a common way that financial statement fraud is perpetrated?
A) Improper revenue recognition
B) Overstating of assets
C) Understating expenses
D) Overstating liabilities
Q3) Understanding a company's debt or leverage is important for which of the following reasons?
A) It helps in gaining a perspective of management's motivations.
B) It helps in understanding the pressures a company faces.
C) It helps identify opportunities in which the company might commit fraud.
D) B and C
E) All of the above
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Revenue- and Inventory-Related Financial
Statement Frauds
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3471
Sample Questions
Q1) 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) Two of the above
E) All of the above
Q2) Which of the following are ways to proactively search for fraud symptoms?
A) Responding to customer complaints regarding sales terms.
B) Investigating anomalies noticed when sampling transactions for routine control testing.
C) Exploring claims of a disgruntled employee that were received in an exit interview.
D) None of the above.
Q3) An example of a(n) __________ is a lack of segregation of duties:
A) Analytical symptom
B) Accounting symptom
C) Control symptom
D) Lifestyle symptom
E) None of the above
14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Liability, Asset, and Inadequate Disclosure
Frauds
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/3472
Sample Questions
Q1) When analyzing the balance sheet for under recorded accounts payable which of the following ratios is applicable?
A) Long-term debt/Stockholder's Equity
B) Warranty Expense/Sales
C) Current Ratio
D) Various accrual/Related expenses
Q2) Which of the following is a symptom of Accounts Payable fraud?
A) Discrepancies in cut-off tests
B) Discussion of Contingent liabilities in Board Minutes
C) Liens on properties that are supposed to be paid for
D) None of the above
Q3) "Recording unearned revenues as earned revenues" is a fraud scheme, that misstates which of the following accounts:
A) Accounts Payable
B) Cash
C) Notes Payable
D) None of the above
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Fraud Against Organizations
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3473
Sample Questions
Q1) Identify the statement that does NOT represent one of the four types of corruption.
A) Offering, giving, receiving, or soliciting anything of value in order to influence an official act.
B) False documents cause the victim company to unknowingly make a fraudulent disbursement.
C) Employees demand payments from vendors for deciding in the vendors' favor
D) An employee, manager, or executive has an undisclosed economic or personal interest in a transaction that adversely affects the company.
E) Corrupt employees are rewarded for favorable decisions after deals are approved.
Q2) A conflict of interest is corruption that can be defined as:
A) Offering, giving, receiving or soliciting anything of value in order to influence an official act
B) Corrupt employees demand payments from vendors for deciding in the vendors' favor
C) Corrupt employees are rewarded for making favorable decisions
D) The employee has an undisclosed economic or personal stake in a transaction that adversely affects the company
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Consumer Fraud
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/3474
Sample Questions
Q1) A Nigerian Money Offer email scam is a form of:
A) Foreign advance-fee scam
B) Purchase of real estate scam
C) Clearing house scam
D) Disbursement of money from wills scam
Q2) Which act provides fines and punishments for identity theft?
A) Identity Theft and Assumption Deterrance Act
B) Family Education Rights and Privacy Act of 1974
C) The Gramm-Leach-Bliley Act
D) Fair Credit Reporting Act
Q3) Accumulating documentation is part of which stage of the identity theft cycle?
A) The action stage
B) The discovery stage
C) The trial stage
D) The concealment stage
Q4) Which organization should victims of identity theft contact first?
A) Social Security Office
B) A local police department
C) The victim's credit organization, such as Trans Union, Equifax, or Experian.
D) Federal Trade Commission
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Bankruptcy, Divorce, and Tax Fraud
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/3475
Sample Questions
Q1) The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?
A) File a bankruptcy petition
B) File a document in a bankruptcy proceeding
C) Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding
D) All of the above
Q2) In dealing with divorce and bankruptcy, when books and records of the debtor/marital partner have been destroyed or are hard to locate it generally means:
A) Fraud has caused the bankruptcy or divorce
B) The bankruptcy or divorce is used to perpetrate the fraud
C) The bankruptcy or divorce is used to conceal the fraud
D) None of the above
Q3) The Office of U.S. Trustee is an agency in which of the following departments?
A) Homeland Defense
B) Department of Justice
C) Department of the Treasury
D) Department of Agriculture
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Fraud in E-Commerce
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/3476
Sample Questions
Q1) Fraud risks are higher in e-commerce settings because:
A) Personal contact is limited so the personal hurt that is caused is not seen
B) Fraud can be committed electronically instead of by stealing physical assets
C) Fraud committed electronically is harder to detect than other types of fraud
D) E-commerce is new and few fraud detectors are familiar with electronic fraud schemes
Q2) Which is not a method of preventing fraud through control activities
A) Separation of Duties
B) Sniffing
C) Authorization of transactions and activities
D) Physical control over assets and records
Q3) Separation of duties falls under which of the following internal control element
A) Control activities
B) Risk assessment
C) Control environment
D) Monitoring
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Legal Follow-Up
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/3477
Sample Questions
Q1) In the discovery stage of a civil litigation, attorneys obtain information about the other side's case through all of the following except?
A) Motion practice.
B) Subpoenas.
C) Depositions.
D) Requests for admission.
Q2) Which of the following protections does the Fifth Amendment provide for defendants?
A) The right to receive a speedy and public trial.
B) Requires that a probable cause exist before a defendant is arrested.
C) Protects defendants against unreasonable searches and seizures by the government.
D) Precludes a person from being tried twice for the same crime.
Q3) A grand jury:
A) Is allowed to hear evidence not admissible in court
B) Can issue and enforce a subpoena
C) Consists of 16 to 23 citizens
D) Two of the above
E) All of the above
To view all questions and flashcards with answers, click on the resource link above.
20