Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Fraud Exam > Quiz1_Review > Flashcards

Quiz1_Review Flashcards

(60 cards)

Start Studying
1
Q

What kind of checks did Alan Salah deposit…

A

counterfeit cashier’s checks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How do we know the checks were counterfeit…?

A

the check number had been altered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Dr. Gallentine was committing fraud by altering this…

A

patient documentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What kind of statements were obtained from the witnesses in the Dr. Gallentine case…?

A

signed, sworn statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What was one of the lessons learned from “Down The Rabbit Hole….?

A

don’t be afraid to innovate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a Ponzi Scheme….?

A

a scheme of fraud where new investors pay older investors or the fraudster but there is no real investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

One of the first mentions of a Ponzi scheme in history was…!

A

Charles Dicken’s books or Sarah Howe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In terms of Ponzi schemes – if it looks too good to be true…

A

then it is too good to be true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is one of the four good sources of fraud information…

A

government sources, researches, insurance companies, victims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A Ponzi scheme is in what classification of fraud…?

A

investment fraud

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the “theft diagram”?

A

theft act, conversion, concealment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What was the main provision of the SOX Act…

A

whistle-blower programs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What theory says that people are less likely to choose crime if they had strong social bonds, and that people tend to unavoidably learn things they see or experience in a “hands on” way…

A

Social Learning Theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does the “slippery slope effect” say…

A

individuals more readily justify small indiscretions which tends to justify bigger ones

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What was the purpose of the story of the tree….

A

example of creating a positive work environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is one good way to prevent crime…

A

establishing good internal control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What should the tone be set to prevent fraud in an organization…

A

the tone at the top

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a system to help employees with life issues that might impact their performance…

A

Employee Assistance Program

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Organizations should develop what kind of approach to fraud prevention…

A

comprehensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In terms of deterring fraud in a company, what expectation must be created…

A

an expectation of punishment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

This theory indicates that criminals learn of possibilities of crime, or seeks them out, as part of their daily actions…

A

Routine Activity Theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Routine Activity Theory (Elements of a crime)

A
  1. A motivated offender
  2. A suitable victim
  3. The absence of a capable guardian…
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What size of a company is fraud most prevalent in…

A

small to middle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a purpose of a civil action against an individual…?”

A

obtain a financial recovery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What was the origin of the “Pygmalion Effect”…
a sculptor made a statue so beautiful he fell in love with i
26
What type of font is required…
Times New Roman
27
What is the line spacing in A.P.A. style?…
double-spacing
28
How many spaces is every line in a reference indented after the first line…?
five spaces
29
What must be contained in the title block of the cover page…?
title of paper, name of author, and “area of study
30
How is the “Running Head” supposed to look like…?
Running Head: TITLE OF YOUR PAPER
31
Fraud involving misstatements in the balance sheet, income statement, and the statement of cash flows is called…?
financial statement fraud
32
The type of power wherein the fraudster influences another person because of expertise or knowledge…?
expert power
33
Fraud as it pertains to vendor fraud involving collusion is called…?
indirect fraud
34
Ways that perpetrators of fraud spend or utilize stolen assets are…?
conversion
35
In a civil case the prosecution must prove the case beyond a…?
preponderance of the evidence
36
What is the total percentage of organizational assets lost to fraud?
5%
37
Biological Factors
Any biological condition or situation which diverts an individual from developing from a societal norm. (MENTAL ILLNESS)
38
Situational Factors
Any current condition or situation which diverts and individual from developing from a societal norm.
39
Situational Factors
family and/or friends/associates poverty, education, parenting practices, and family structure poor communication skills and weak family bonds Bankruptcy, desire for profitability, desire to demonstrate a company’s turnaround
40
Social Exchange Theory
Cost and benefit analysis between two parties to determine risks and benefits
41
Routine activity theory (3 parts of it)
absence of guardian, motivated offender, suitable victim
42
Sigmund Freud
“The Father of Psychoanalysis”
43
Cesare Lombroso
“Father of Criminology”
44
Travis Hirschi
“The Father of the Social Control Theory”
45
The fraud triangle
pressure, opportunity, rationalization
46
Seven Specific Parts of Fraud
``` a representation, about a material point, which is false, and intentionally or recklessly so, which is believed, and acted upon by the victim, to the victim’s damage ```
47
Two types of entities that commit fraud
Committed against an organization or on behalf of an organization Committed against and individual or by individual(s)
48
Fraud classification according to victims:
Company or Organization as victim - Employee embezzlement - Vendor fraud - Customer fraud Shareholders or debt-holders as victims -Management fraud Unwary individuals as victims -Investments and other consumer fraud
49
6 Main types of fraud
Occupational Fraud Employee Embezzlement Vendor Fraud Customer Fraud Management Fraud Investments and Other Consumer Fraud
50
Four main pressures to commit fraud
Financial pressures Vices Work-related pressures Other pressures
51
Six major factors that increase fraud opportunity
1. Lack of controls 2. Inability to judge performance quality 3. Failure to discipline fraudsters 4. Lack of access to information 5. Ignorance, apathy and incapacity 6. Lack of audit trail
52
Controls to Prevent / Detect Fraud (CONTROL ENVIRONMENT)
1) Management’s Role and Example 2) Management Communication 3) Appropriate Hiring 4) Clear Organizational Structure 5) Effective Internal Audit Department
53
Controls to Prevent / Detect Fraud (ACCOUNTING SYSTEM)
1. Valid 2. Properly authorized 3. Complete 4. Properly classified 5. Reported in the proper period 6. Properly valued 7. Summarized correctly
54
Controls to Prevent / Detect Fraud (CONTROL ACTIVITIES)
1. Segregation of duties, or dual custody 2. System of authorizations 3. Independent checks 4. Physical safeguards 5. Documentation and records
55
How Organizations Fight Fraud
1. prevention 2. etection 3. investigation 4. Follow-up legal action
56
Creating a Positive Work Environment: | Fraud occurs less frequently when employees have
1) Positive feelings about an organization | 2) A sense of ownership in the organization
57
Create a culture of honesty, openness, and assistance by…
1. Hiring honest people and providing fraud awareness training 2. Creating a positive work environment 3. Providing an employee assistance program (EAP) that helps employees deal with personal pressures
58
How to create a positive work environment?
1. Setting expectations about honesty 2. Having positive personnel and operating procedures. 3. Having open-door or easy access policies
59
Five ways to eliminate fraud opportunities:
1. Have good internal controls 2. Discourage collusion 3. Monitor employees and provide a whistle-blowing system 4. Create an expectation of punishment 5. Conduct proactive auditing
60
Good fraud auditing involves four steps:
1. Identify fraud risk exposures 2. Identify the fraud symptoms of each exposure 3. Build audit programs to proactively look for symptoms and exposures 4. Investigate fraud symptoms identified

Fraud Exam (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions