MBA 710: Spr 2023 - Xiang (Gail) Gao - Modules 1-3

Match social security number to the employee name to see if there are multiple names under one social security number. This is a _________.

a. Compliance verification

b. Duplicate testing.

c. Bench-marking

b. Duplicate testing.

The following data can be used to perform benchmarking.

a. Industry data

b. Budget data

c. All the other three choices are correct.

d. Historical data

c. All the other three choices are correct.

Why do we need to identify the amounts just below the threshold?

a. Fraudster creates random number.

b. Fraudster try to avoid internal control by using the number lower than threshold and maximize his/her benefit from fraud.

c. Fraudster always use large number.

b. Fraudster try to avoid internal control by using the number lower than threshold and maximize his/her benefit from fraud.

Why do we need to look into the round-dollar payment?

a. Round dollar payment should happen frequently.

b. Fraudster does not want to conceal the transaction.

c. Real transactions do not occur in simple round numbers.

c. Real transactions do not occur in simple round numbers.

Benford's law can be used to detect fraud because:

a. The fraudster can easily replicate the nature pattern.

b. The frequency of the nature numbers has pattern.

c. The frequency of the nature numbers are random.

b. The frequency of the nature numbers has pattern.

Why do we need to understand how the data is generated when we perform the analysis?

a. (Garbage in, garbage out.) If the data is not generated or structured properly, the results are meaningless.

b. We need to interview before run the analysis.

c. We can look the data randomly.

a. (Garbage in, garbage out.) If the data is not generated or structured properly, the results are meaningless.

Data analytics is the best way of detecting fraud or fraud prevention.

True or False

False

Prevention is more important than detection.

True or False

True

Which category of occupational fraud is the most common fraud?

a. Corruption

b. Financial statement fraud

c. Asset misappropriation

c. Asset misappropriation

Which category of fraud is the costliest occupational fraud?

a. Financial statement fraud

b. Asset misappropriation

c. Corruption

a. Financial statement fraud

Please match the fraud detection method to active/passive method.

IT controls

Active

Please match the fraud detection method to active/passive method.

By police

Passive

Please match the fraud detection method to active/passive method.

Confession

Passive

Please match the fraud detection method to active/passive method.

Surveillance/Monitoring

Active

Please match the fraud detection method to active/passive method.

Management review

Active