Which of the following would be a violation of the chain of custody?
Question 1 options:
Locking documents in a safe that only the investigator has the combination to
Mailing original documents to another party without proof of receipt.
Signing over original documents to legal counsel
Documenting the placing of items in a case file for storage.
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Question 2 (2 points) Question 2 Unsaved
Two common approaches to using ratio analysis are:
Question 2 options:
Internal and external
Horizontal and vertical
Formal and informal
Industry and general.
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Question 3 (2 points) Question 3 Unsaved
Once financial statement fraud is suspected, how should the fraud investigator proceed?
Question 3 options:
Call the district attorney to begin criminal proceedings.
Determine whether the financial statements agree with the general ledger balances.
Perform a Benford's Law test.
Interview the accounting department staff.
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Question 4 (2 points) Question 4 Unsaved
Which of the following type of records can typically only be access by law enforcement?
Question 4 options:
Commercial Databases
Motor Vehicle Identification Number
Dealership vehicle records
UCC Filings
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Question 5 (2 points) Question 5 Unsaved
If the fraud investigator is not an employee of the IRS, or a member of a federal agency that can obtain tax records via subpoena, how much he obtain the information?
Question 5 options:
Through a bench warrant
Through discovery or voluntary consent of the tax payer.
Through a subpoena issued by a Grand Jury.
All of the above
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Question 6 (2 points) Question 6 Unsaved
Databases, court records and real estate records are all considered:
Question 6 options:
Sources of information for an investigation.
Worthless in an investigation.
Forensic data collections
Areas of hiding for individuals who wish to commit fraud.
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Question 7 (2 points) Question 7 Unsaved
Which of the types of filings would most likely indicate a financial need that might motivate financial statement fraud?
Question 7 options:
Bankruptcy
Luxury vehicle loan.
Statement of net loss.
Divorce
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Question 8 (2 points) Question 8 Saved
What is link analysis?
Question 8 options:
It is the analysis between modified documents and the individual who modified them.
It is a process that allows information in various databases and files to be evaluated and integrated in such a way that associations become apparent.
It is the process that allows private databases to be compared to public databases
It is the linking of the money trail through large cash deposits
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Question 9 (2 points) Question 9 Unsaved
If skimming has been in practice for years in a business, why might it be hard to detect using horizontal analysis?
Question 9 options:
Comparing a year in which receipts have been skimmed to other years in which. receipts have been skimmed will usually not reveal differences.
Horizontal analysis is typically performed in industries that have high skimming rates.
Gross margins for the industry typically won't reveal any fraud when evaluated via Horizontal analysis.
Skimming typically is revealed on the income statement and horizontal analysis is only done on balance sheet accounts.
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Question 10 (2 points) Question 10 Unsaved
Besides a judge, what other person may issue a search warrant in certain jurisdictions?
Question 10 options:
District Attorney
Elected Sheriff
Magistrate
Grand Jury Foreman/woman
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Question 11 (2 points) Question 11 Unsaved
Through Net Worth Analysis, you are attempting to determine:
Question 11 options:
Total earnings for a period of years
The change in net worth for the year.
The amount of debt financing
None of the above
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Question 12 (2 points) Question 12 Unsaved
__________ are used when third parties (persons other than the client) have knowledge of some aspect of a financial or non-financial matter and can be asked to provide this information.
Question 12 options:
Confirmations
Engagement Letters
Subpoenas
Grand Juries
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Question 13 (2 points) Question 13 Unsaved
The pre-announcement of a forensic accountants investigation might do what in a business?
Question 13 options:
Make a guilty party confess
Stop the fraud once and for all.
Force the guilty parties to stop their fraud, which will subsequently show up on the financial statements.
All of the above.
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Question 14 (2 points) Question 14 Unsaved
Which of the following will NOT explain a change in net worth?
Question 14 options:
Inflation
Income
Liabilities
Inheritances
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Question 15 (2 points) Question 15 Unsaved
Chemical analysis is performed by means of infrared, fluorescence, and spectro-chromatography to establish the difference between inks appearing on the same paper in handwriting analysis.
Question 15 options:
True
False
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Question 16 (10 points) Question 16 Unsaved
Once fraud within the financial statements is suspected, what are the next steps that the audit team would take? Provide examples.
Question 16 options:
Spell check
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Question 17 (10 points) Question 17 Unsaved
How does a Benford analysis work?
Question 17 options:
Spell check
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Question 18 (2 points) Question 18 Unsaved
Which of the following is NOT a kind of question asked during an interview?
Question 18 options:
Introductory
Informational
Leading
Admission-seeking
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Question 19 (2 points) Question 19 Unsaved
__________ are asked to determine whether the interviewee is a suspect and are only asked when the interviewer believes that the interviewee is a suspect.
Question 19 options:
Leading questions
Assessment questions
Statements of fact
Accusing questions
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Question 20 (2 points) Question 20 Unsaved
When should an interview be recorded?
Question 20 options:
Always
Never
Only if note taking will not be detailed enough
With a court order
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Question 21 (2 points) Question 21 Unsaved
If taking notes during an interview, what technique should be used?
Question 21 options:
Write brief words to enable clear recall for later re-writing of full notes
Write full notes- re-writing them later will not be allowed during court proceedings.
Write brief notes to assist in full recall months later at trial
Ask the interviewee to write down the details.
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Question 22 (2 points) Question 22 Unsaved
Bringing a pre-written list of questions to an interview:
Question 22 options:
Will lead to tunnel vision and not allow for a good interview
Should always be done, and a list of questions provided to the interviewee prior to the interview.
Should be approved by the corporation paying for the investigation prior to the interview.
Will lead to a shorter, less time consuming interview
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Question 23 (2 points) Question 23 Unsaved
Why would a suspect be interviewed in a neutral environment?
Question 23 options:
To move them closer to a police station.
To assist them with memory recall.
To purposefully place him in a setting that isn't familiar to him.
All of the above
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Question 24 (2 points) Question 24 Unsaved
Why would an interviewer use the mirroring technique?
Question 24 options:
To display friendliness to the interviewee and encourage them to open up.
To make a mockery of the interviewee and encourage them to make an excited utterance.
To keep the interviewee's attention on the interviewer and his questions.
To subliminally let the interviewee know who is in charge of the situation.
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Question 25 (2 points) Question 25 Unsaved
If an interviewee is afraid to answer a specific reason for fear of retaliation, the interviewer should:
Question 25 options:
Assure them that the information will be kept as quiet as possible.
Guarantee the interviewee that their name will not be associated with any information.
Not force the interviewee to answer the question.
Treat the interviewee as a guilty party and charge them with accessory to the crime.
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Question 26 (2 points) Question 26 Unsaved
If the investigator is seeking a signed confession, when should this confession be presented for signature?
Question 26 options:
Prior to the interview.
Within 30 days of the interview
During the interview, but allow the suspect to take it to their legal counsel for review.
During the interview.
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Question 27 (2 points) Question 27 Unsaved
How can body behavior lead to clues about the truthfulness of a suspect?
Question 27 options:
If a suspect begins to sweat, they are hiding something
If a suspect cannot make eye contact, they are lying.
If their body language changes during questioning, they are hiding something.
All of the above
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Question 28 (2 points) Question 28 Unsaved
If the investigator is very familiar with evidence in his possession and can respond with details so that subject believes interviewer has substantial evidence on subject, then they are using which persuasive approach to interviewing?
Question 28 options:
Rapid questioning
Indirect.
Everything is known.
Folder.
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Question 29 (2 points) Question 29 Unsaved
Typically, the primary difference between interviewing and interrogating a subject is:
Question 29 options:
Miranda rights are read prior to interrogating
Miranda rights are read prior to interviewing.
Interviewing always occurs with a lawyer present.
Interrogating always takes place at a police station
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Question 30 (2 points) Question 30 Unsaved
Which of the following would not be a part of the forensic accountants profile of a suspect?
Question 30 options:
Length of time suspect has been with the firm
Suspect's assets.
Suspect's outstanding bills, including recent purchases such as cars and real estate.
Suspects children's school grades
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Question 31 (2 points) Question 31 Unsaved
The signed confession should be a(n) _______________ regarding the guilt of the perpetrator.
Question 31 options:
Concise statement
Detailed account of the amount of fraud that has occurred.
Full statement recalling every time the fraud incurred
Sleuth's response answering all the questions of who, what, when, where, why and how.
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Question 32 (2 points) Question 32 Unsaved
Which of the following can be the most important part of most investigations?
Question 32 options:
Interviews
Interrogations
Financial Statement ratio analysis
Both A and B