Fraud Examination: Chapter 3

In an organization, individuals who suspect fraud usually don't come forward because they:

fear being branded as a whistle-blower

Civil suits are usually quite rare in cases of employee fraud because:

perpetrators have usually spent the money

The gathering of this type of evidence in a fraud investigation often involves forensic analysis by experts.

Physical evidence

Studies show that legal action against fraudsters is typically taken:

less than 50 percent of the time

In the ethical maturity model, instilling in others a desire to develop ethical awareness and courage is referred to as:

ethical leadership

FALSE concerning legal actions by organizations regarding fraud?

Legal action stops future frauds

Audits, public record searches, and net worth calculations are used to gather what type of evidence in fraud investigation?

Documentary

_______ refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has occurred, is occurring, or will incur.

Prediction

In the past, most frauds were detected:

by accident

When perceived pressures and/or opportunities are low, a person needs more ________ to commit fraud.

rationalization

a consideration that influences the risk of fraud when identifying a company's fraud risks?

industry characteristics

In recent years, organizations have implemented a number of initiatives to more proactively detect fraud. The first and most common proactive fraud detection approach has been to:

install reporting hotlines

Although there are multiple approaches to fraud investigation, most investigators tend to rely heavily on:

interviews

Investigative methods utilized to catch a fraud perpetrator while he/she is actually receiving a kickback fall under which of the following categories?

Theft act investigative methods

Which is the highest level in the ethical maturity model?

Ethical leadership

Investigative techniques under which approach include invigilation, surveillance, and covert operations?

Personal observation

Which level in the ethical maturity model can be summarized as a “willingness to pay the price for ethics”?

Ethical courage

Which type of evidence is gathered from individuals using investigative techniques such as interviewing, interrogation, and honesty tests?

Testimonial evidence