Fraud Examination: Chapter 1

Which individual listed is most likely to commit financial statement fraud in order to benefit an organization?

an executive

In fraud prosecution cases, ______ matter consists of the underlying data and all corroborating information available.

evidential

The most common fraud committed on behalf of an organization is:

fraudulent financial reporting

The burden of proof in a criminal case:

is beyond a reasonable doubt

Employee embezzlement can be direct or indirect. Indirect fraud occurs when:

an employee receives a kickback from a vendor

What is the most cost-effective way to minimize the cost of fraud?

Prevention

Telemarketing fraud usually falls into this category.

Investment scam

Civil claims begin when one party files a complaint against another, usually for the purpose of:

being awarded financial restitution

Fraud in companies such as WorldCom, Enron, Waste Management, Sunbeam, Rite-Aid, Phar-Mor, and Parmalat are examples of:

management fraud

The study conducted by the Association of Certified Fraud Examiners in 2016 estimated that organizations lose _____ percent of their annual revenues to fraud.

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How is the confidence element established in a Ponzi scheme?

By paying returns to investors initially

One way that criminal law differs from civil law is that it:

must yield a unanimous verdict

Fraud has a direct dollar-for-dollar impact on a company's:

net income

Generally, applicants for CFE certification should have a minimum of a bachelor’s degree or equivalent from an institution of higher learning. Alternatively, if applicants do not have a bachelor’s degree, they may substitute ______ months of fraud-related professional experience for each year of academic study.

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