Chapter 2: Why People Commit Fraud Flashcards
Fraud Perpetrators:
a. Look like other criminals.
b. Have profiles that look like most people.
c. Are usually very young.
d. Are none of the above.
b. Have profiles that look like most people.
Which of the following is NOT one of the three elements of the fraud triangle?
a. Perceived Pressure
b. Perceived opportunity
c. Rationalization
d. Intelligence.
d. Intelligence.
Which of the following is a common perceived pressure?
a. The ability to outsmart others.
b. Opportunity to cheat others.
c. A financial need.
d. The ability to “borrow” money by committing fraud.
c. A financial need.
If pressures and opportunities are high and personal integrity is low, the chance of fraud is:
a. High
b. Medium
c. Low
d. Very low
a. High
Which of the following is PROBABLY THE LEAST common type of fraud pressure?
a. Vices
b. Work-related pressures
c. Financial pressures
d. Pressure to outsmart peers
d. Pressure to outsmart peers
Fraud opportunity involves:
a. Opportunity to conceal fraud.
b. Opportunity to avoid being punished for fraud.
c. Opportunity to commit fraud.
d. All of the above
e. None of the above
d. All of the above
Which of the following is NOT one of the three elements of the control system of an organization?
a. The control environment
b. The accounting system
c. Management
d. Control activities or procedures
c. Management
Which of the following non-control provides opportunities for fraud?
a. Inability to judge the quality of performance.
b. Lack of access to, or asymmetrical, information.
c. Failure to discipline fraud perpetrators.
d. Lack of an audit trial.
e. All of the above provide opportunities for fraud.
e. All of the above provide opportunities for fraud.
Who generally has the highest risk of becoming a fraud victim?
a. Businessperson.
b. Older, less educated people.
c. College students.
d. None of the above.
b. Older, less educated people.
How frequently do most people rationalize?
a. Often.
b. Sometimes.
c. Rarely.
d. Never.
a. Often.
Which of the following kinds of pressure is most often associated with fraud?
a. Work-related pressures.
b. Financial pressures.
c. Vice pressures.
d. None of the above.
b. Financial pressures.
Which of the following is NOT a primary control activity?
a. Use of documents and records to create an audit trail.
b. Independent checks.
c. Decreasing work-related pressure.
d. Physical safeguards.
c. Decreasing work-related pressure.
It is the ____ and ____ of existing controls, not the ____ of controls, that allows most frauds to be perpetrated.
a. Existence, use, lack
b. Lack, ignorance, existence
c. Overriding, ignoring, lack
d. Overriding, lack, use
c. Overriding, ignoring, lack
On what element of the fraud triangle do most fraud-fighters usually focus all or most of their fraud preventive efforts?
a. Perceived pressure
b. Perceived Opportunity.
c. Power Structure.
d. Rationalization.
b. Perceived Opportunity.
Which of the following is NOT an internal control activity (procedure)?
a. System of authorizations
b. Appropriate hiring procedures.
c. Independent checks.
d. Documents and records
e. All of the above are internal control activities
b. Appropriate hiring procedures.
