Fraud Exam 3

vulnerability chart

a tool that explicitly considers all aspects of the fraud

theft act investigation

activities that directly investigate the fraud act

surveillance

watching or recording the physical facts, acts, and movements that are part of the theft act of a fraud

invigilation

a theft act investigative technique that involves close supervision of suspects during an examination period

computer forensics

gathering of electronic evidence

cyclic redundancy check (CRC) number

a calculation (using encryption algorithms) based on the contents of a disk or file

chain of custody

a record must be kept of when a document is received and what has happened to it since its reciept

bates numbers

used by attorneys involved in litigation to track all documents

link analysis

using software to find links between people, places, and events

discovery sampling

a form of statistical sampling that allows an auditor to generalize and make inferences from the sample to the population

sampling risk

the possibility that the sample will not be representative of the population

nonsampling risk

to examine a fraudulent check and not recognize it as such

subpoenas

a written order in the name of the court, requiring a witness to submit to a deposition, give testimony at trial, or report to an administrative body

document examination

a specialized form of investigation that applies forensic chemistry, microscopy, light, and photography in making determinations about documents

document experts

a person who can determine whether a document was written by the person whose signature it bears, has been forged, or has been altered by additions, deletions, obliterations, erasures, or photocopying

interview

a question-and-answer session designed to elicit information

national crime information center (NCIC)

major database maintained by the fbi

interstate identification index (III)

fbi database that retains arrest and criminal records on a nationwide basis

postal inspectors

investigators who handle major fraud cases involving the use of mail, and they work for the prosecution of offenders who violate postal laws

trashing

looking through a person’s trash for personal evidence

Gramm-Leach-Bliley act

makes it illegal to use false pretenses to gain information, but does allow banks and other financial institutions to share customer information if they disclose it to customers

opting out

sending written notice to the bank denying the bank the right to sell someone’s personal bank information

net worth method definition

based on a person’s assets (things owned), liabilities (debts), living expenses, and income

net worth calculation

assets - liabilities = net worth - prior year’s net worth = net worth increase + living expenses = income - funds from known sources = funds from unknown sources

catharsis

an expression of ideas and feelings to relieve emotional tension

inhibitor

any sociopsychological barrier that impedes the flow of relevant information by making respondents unable or unwilling to provide information

induction

the respondent is asked to convert concrete experiences into a higher level of generalization

deduction

the respondent is asked to give concrete examples of certain categories of experience

custom

typical behavior

facilitators of communication

the respondent is asked to give concrete examples of certain categories of experience

rapport

to establish some common ground before questioning begins

informational question

nonconfrontational, nonthreatening, and used for information-gathering purposes

controlled-answer techniques

to establish some common ground before questioning begins

free narrative

an orderly continuous account of an event or incident, given with or without prompting

proxemic communication

the use of interpersonal space to convey meaning

chronemic communication

the use of time in interpersonal relationships to convey meaning, attitudes, and desires

pacing

controlling the length of pauses and the rate of speech

silent probe

to control the length of time after a respondent finishes a sentence before posing another question

kinetic communication

how body movements convey meaning

paralinguistic communication

the use of volume, pitch, and voice quality to convey meaning

volatile interviews

the use of volume, pitch, and voice quality to convey meaning

norming

the process of observing behavior before and after critical questions are asked instead of doing so during the questioning

calibrating

the process of observing behavior before and after critical questions are asked instead of doing so during the questioning

benchmark admission

questions that are accusatory in nature

pencil-and-paper honesty tests

objective tests that elicit information about a person’s honesty and personal code of ethics

graphology

objective tests that elicit information about a person’s honesty and personal code of ethics

voice stress analysis

determines whether a person is lying or telling the truth by using a mechanical device connected to them

polygraphs

an attempt to assess stress, and hence lying, by measuring key physical responses