Fraud Final Quiz

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Baker College, Muskegon *

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Apr 3, 2024

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6/12/23, 11:29 AM Final Exam | Coursera Congratulations! You passed! Grade received 83.33% Latest Submission Grade 83.33% To pass 70% or higher Go to next item 1. The acronym “M.I.C.E.”, as typical motivations of fraud perpetrators, stands for: 1 /1 point @ Money, Ideology, Coercion, and Ego. O Money, Ideology, Coercion, and Environment. O Motive, Ideology, Coercion, and Ego. O Money, Image, Capability, and Environment. Correct Correct. These are the four motivators included in M.l.C.E. 2. Upon discovering fraud, internal auditors: 1 /1 point O must fully investigate it and determine perpetrator(s), value, damage, and recommend possible action. O should only continue their investigation if the fraud is in the present or immediately previous period. @ have an obligation to notify the board of directors when the incidence of significant fraud has been established to a reasonable degree of certainty. O must provide the audit committee and the board of directors with a preliminary written statement detailing the known facts and presenting reasonable suspicions as to perpetrators, values, methods, and time periods affected. Correct Correct. Auditors have the responsibility of notifying management and the board of directors immediately is there is a reasonable degree of certainty that a significant fraud has occurred. 3. The difference between fraud and errors is: 0/ 1 point O The materiality of the value involved. O Intent of those involved. @ Whether it affects owners’ equity or not. O All of the choices are correct. Incorrect An effect on owners’ equity is not a difference between fraud and error. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 1/21

6/12/23, 11:29 AM Final Exam | Coursera 4. Financial statement fraudsters often: 1/ 1 point O Start as accidental fraudsters and progress to predator fraudsters. O Rely on collusion to mask the fraud. O Frequently go from company to company committing the same type of fraud. @ All of the above. Correct Correct. Financial statement fraudsters often progress from accidental fraudsters to predator fraudsters, rely on collusion, and go from company to company committing the same crime. 5. One major difference between fraud and a mistake is: 0 /1 point O Cover-up O Conversion (benéefit to the perpetrator) O Concealment @ The act Incorrect Both frauds and a mistake involve some sort of incorrect action to occur. 6. Which of the following acts would be considered a fraud act (in contrast to an abuse)? 1 /1 point O Surfing the Internet while at work. O Taking a long lunch or break. O Using sick leave to see a child’s play at school. @ Removing small amounts of cash from the cash register till. Correct Correct. Removing small amounts of cash from a register is considered theft, which is a fraudulent act, which is defined as a crime for gain that uses deception as its primary modus operandi. 7. In terms of the definition of occupational fraud and abuse, who is an employee? 1 /1 point @ Any person who receives regular and periodic compensation from an organization for his or her labor. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 2/21

6/12/23, 11:29 AM Final Exam | Coursera O Any trust violator. O Respectable business and professional men. O Only rank and file workers. Correct Correct. This is the definition of an employee in the context of occupational fraud and abuse. 8. Fraud can be committed by: 1 /1 point intentional misapplication of accounting principles that guide the disclosure of financial information. omission of events, transactions, or other significant information in the notes related to the financial statements. alteration of the underlying accounting data. All of the choices are correct. @000 Correct Correct. All of the options are ways fraud can be committed. 9. Auditing is responsible for: 1 /1 point O litigation support and redemption. O risk assessment and calculation of damages. @ risk assessment and internal controls. O business valuation and risk assessment. Correct Correct. These are the common elements of an audit, making them the primary responsibility of the auditor. 10. While a fraud examiner’s objective is to determine whether fraud has occurred and who 1 /1 point is likely responsible, the financial forensics investigator’s MAIN objective is to: O attempt to gather sufficient evidence to support or refute an audit opinion. @ determine whether the allegations are reasonable based on both the financial and non-financial evidence. O calculate financial impact based on a specific formula(s). https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 3/21

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6/12/23, 11:29 AM Final Exam | Coursera O gather the required financial and nonfinancial evidence to examine the allegations independently and determine their accuracy. Correct Correct. Forensic investigators examine both monetary and nonmonetary evidence to determine if the allegations of fraud are reasonable. 11. Which of the following is NOT one of the three-pronged processes of remediation? 1 /1 point ® O O O The prevention and detection of a fraud that has already occurred. The recovery of losses through insurance, the legal system, or other means. Support for the legal process as it tries to resolve the matter in the legal environment. The modification of operational processes, procedures, and internal controls to minimize the chances of a similar fraud recurring. Correct Correct. Prevention and detection of fraud that has occurred is part of the fraud detection process, not one of the elements of the process of remediation. The three- pronged process of remediation involves 1) the recovery of losses through insurance, the legal system, or other means, 2) support for the legal process as it tries to resolve the matter in the legal environment, and 3) modification of operational processes, procedures, and internal controls to minimize the chances of a similar fraud recurring. 12. One of the most important contributions of criminology to the study of fraud is: 1 /1 point O the M.I.C.E. concept. @ the fraud triangle. O the relationship of punishment to remediation. O none of the above. Correct Correct. The fraud triangle is considered one of the most important contributions of criminology to the study of fraud because it describes the three underlying causes/pressures on an individual that, when present, could lead that individual to commit fraud. 13. Signs of pressure that would prompt an individual to commit fraud include: 1 /1 point O A wealthy brother O Success at work https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 4/21

6/12/23, 11:29 AM Final Exam | Coursera O A change in home value @ Both “a” and “¢” Correct Both options "a" and "c" represent pressures that could lead to fraudulent actions. 14. Which of the following is the most likely reason, as suggested by Cressey, that an 1 /1 point employee tries to solve a financial problem in secret? @ because they are afraid of losing the approval of those around them. O because they are afraid of getting arrested. O because they worry that someone else will want part of the money they steal. O because they are afraid they will have to go back to college. Correct Correct. Cressey believes that employees solve financial problems in secret because they do not want to lose their reputation or approval of others, which may occur if their financial problems are made public. 15. The Fraud Triangle consists of: pressure, opportunity, and rationalization. 1 /1 point @ True O False Correct Correct. Pressure, opportunity, and rationalization are the three elements of the Fraud Triangle. 16. From the list below, create the typical fraud perpetrator profile. 1 /1 point Male, high school education, young, general labor, and with the company for years. Female, high school education, young, general labor, and relatively new to the company. Male, post-secondary education, middle aged, professional, and with the company for years. Female, post-secondary education, middle aged, professional, and relatively new to the company. O@®@0OO0 https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 5/21

6/12/23, 11:29 AM Final Exam | Coursera Correct Correct. This is the profile of the typical fraudster profile. 17. As compensation of the perpetrator increases, the losses associated with the perpetrator 1 /1 point rise. This is most likely because: O the perpetrator has a greater appreciation of costly pleasures. @ the perpetrator has greater access to company funds and assets. O the perpetrator has a higher cost of status and image. O the perpetrator can coerce others into the scheme. Correct Correct. Higher compensation generally means higher status in the company, which gives the perpetrator greater access to company funds. 18. Which one of the following ways differentiates an act of fraud from a mistake/error? 0/ 1 point O Demonstrating that the employee concealed the act. O Showing that there were multiple incidents of the same act. O The destruction of evidentiary documents that describe the act. @ All of the above. Incorrect Concealment and cover-up are not methods of differentiating a fraud from a mistake. 19. Conversion can be shown to have occurred by: 0/ 1 point O Tracing the money to the defendant’s care O Tracing the money to the defendant’s department O Tracing the money to the defendant’s bank account @ All of the above Incorrect Tracing money to a defendant’s care or department does not prove conversion. In order to prove conversion, there must be evidence of personal benefit with the money. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 6/21

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6/12/23, 11:29 AM Final Exam | Coursera 20. Signs that an individual is a predator fraudster include: O Repeat offenses. O Takes advantage of sudden opportunity. O Frequent job turnover caused by boredom. @ All of the above. Correct Correct. All of the options are signs that an individual is a predator fraudster. 21. The difference between a predator fraudster and an accidental fraudster is: O The accidental fraudster does not seek opportunity; the predator fraudster does. O The predator fraudster is a repeat offender; the accidental fraudster is not. O The accidental fraudster is in need of funds; the predator fraudster is not. @ Both “A” and “B” Correct Correct. Both options “A” and “B” are differences between an accidental and predator fraudster. 22. Albrecht developed the fraud scale, which includes the following components: O None of the above are the components for the fraud scale. O situational pressures, personal integrity, and criminal record. O high personal debt, living beyond one’s means, drug or alcohol problems. @ situational pressures, perceived opportunity, and personal integrity. Correct Correct. Albrecht's fraud scale includes all of these components. 23. Which of the following is true concerning the fraud scale developed by Albrecht? O Situational pressures are not important when integrity is examined in the fraud scale. @ The fraud diamond and its addition of capability, was based on criticism of both the fraud triangle and fraud scale. O Personal integrity was added, and rationalization was deleted from the fraud triangle. O None of the above are the components of the fraud scale. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 1/ 1 point 1 /1 point 1/ 1 point 0 /1 point 7/21

6/12/23, 11:29 AM Final Exam | Coursera Incorrect Incorrect. The fraud diamond was created based on criticism about the fraud triangle only. 24. To improve the effectiveness of the fraud triangle, Wolfe and Hermanson suggests which 1 /1 point characteristic as an addition to the fraud triangle (making it the fraud diamond) ? @ Capability O Capacity to steal O Integrity O Ego or entitlement. Correct Correct. The four elements of the fraud diamond suggested by Wolfe and Hermanson include motive, opportunity, rationalization, and capability. 25. Large frauds are typically associated with all of the following EXCEPT: 1 /1 point O Lack of segregation of duties and responsibilities. O Placing undeserved trust in key employees. O Operating on a crisis basis @ Working with management to set realistic goals Correct Correct. Goal setting with employees can give an individual a purpose within the company, foster loyalty, and give them an achievable objective to make them feel accomplished, making them less likely or willing to commit a fraud. 26. The three primary objectives of an internal control program are: 1 /1 point O fraud prevention, fraud deterrence, and fraud mitigation. @ fraud prevention, fraud deterrence, and fraud detection. O fraud deterrence, fraud detection, and fraud prosecution. O fraud elimination, fraud deterrence, and fraud mitigation. Correct Correct. Fraud prevention, deterrence, and detection are three objectives of an internal control program. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 8/21

6/12/23, 11:29 AM Final Exam | Coursera 27. Perpetrators of large frauds are likely to use the money for all of the following EXCEPT: O to purchase new homes. O to pay for expensive vacations. O to support extramarital affairs. @ to pay taxes. Correct In general, if the money is stolen, the perpetrator is not going to use those funds to pay taxes, both because they do not want to and because it puts them at a higher risk of being detected. Instead they attempt to conceal their money from detection to avoid taxation. 28. Overall, management must design, implement, and maintain: O an internal controls program to protect entity assets, liabilities, and owners’ equity. O internal controls to support effective and efficiency of operations, reliability of reporting, and compliance with laws and regulations. O an automated accounting system that implements each component of U.S. GAAP accounting principles. @ All of the choices are correct. Incorrect Incorrect. All answer choices are not correct. 29. From the statements below select the most correct. O Prevention and deterrence are typically more costly than attempting to remediate a fraud that has already occurred. O Fraud deterrence refers to creating environments in which people are prohibited from committing fraud. O ]Ifratéd detection refers to the process of preventing and discovering the presence of raud. @ Prevention and deterrence are typically more cost beneficial than attempting to remediate a fraud that has already occurred. Correct Correct. Prevention and detection can actually save an organization a lot of money compared to the potential losses of a fraud that does occur or paying for the remediation process for these frauds. 30. Fraud deterrence begins: O with the employer’s internal controls. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 1/ 1 point 0/ 1 point 1 /1 point 1 /1 point 9/21

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6/12/23, 11:29 AM Final Exam | Coursera @ in the employee’s mind. O with the fraud examination. O with regulatory and legal actions such as PCAOB Auditing Standard No. 5, AICPA Statement on Auditing Standards (SAS) No. 99, and the Sarbanes—Oxley Act. Correct Correct. Fraud deterrence involves creating an environment that discourages fraudulent activities through the threat of negative repercussions. Therefore, the employee considering a fraudulent act is the first person who can prevent a fraudulent act before it is even committed. 31. Three of the various objectives of an internal control program are: 1 /1 point @ fraud prevention, fraud deterrence, and fraud detection. O fraud deterrence, fraud detection, and fraud prosecution. O fraud elimination, fraud deterrence, and fraud mitigation. O fraud prevention, fraud deterrence, and fraud mitigation. Correct Correct. Fraud prevention, deterrence, and detection are three objectives of an internal control program. 32. Sources of information include: 1/ 1 point O Witnesses to an act of fraud. O Surveillance by private detectives. O Surveillance by police officers. @ All of the above Correct Correct. All of the options can be used as sources of information. 33. 1 /1 point When attempting to capture data that a fraudster has tried to delete from a device, such as a computer hard drive or mobile phone, the forensic expert should: (Mark all that apply) Duplicate the device using forensic hardware/software. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 10/21

6/12/23, 11:29 AM Final Exam | Coursera Correct True, but not the only correct answer. Turn off the device using the manufacturer’s on/off switch. Use specialized software/hardware to retrieve the deleted data. Correct True, but not the only correct answer. 34. When looking for fraud, credit card companies constantly mine data and look for 1 /1 point transactions that are similar to historical patterns of fraud. Which of the following are examples of patterns that they use. (Mark all that apply) D Purchases of electronic items at a retailer in a large metropolitan area. Multiple purchases at a store in a relatively short period of time. Correct True, but not the only correct answer. A, without more information is not a red flag. B & C are examples provided in the lecture Large purchases of “high-risk” items at a retailer from which the card holder has not previously purchased. Correct True, but not the only correct answer. A, without more information is not a red flag. B & C are examples provided in the lecture 35. Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued 0/ 1 point because: @ there is not supporting evidence of fraud. O the red flags are not associated with financial statement preparation. O there are many red flags in day-to-day operations that are not fraud indicators. O the audit committee is involved in other investigations. Incorrect Incorrect. Red flags often are not accompanied by supporting evidence of fraud, but that is not the reason these symptoms of fraud go unnoticed. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 11/21

6/12/23, 11:29 AM Final Exam | Coursera 36. When using red flags as a basis for further investigation: 0 /1 point O O ® O each fraud will have some unique attributes. each fraud has exactly the same elements making identification easier. red flags prove of very limited value due to their massive number in day-to-day operations. All of the choices are correct. Incorrect Incorrect. Though red flags are very common in day-to-day operations, they do help identify problem areas that should be examined, which can lead to the identification of fraud, making them helpful in investigations. 37. When searching for breakdowns of internal controls by collusion and fraud, auditors: 1/ 1 point O O O @® should check all journal entries made on holidays, weekends, and late at night. should discuss with employees any journal entry which has been made to reduce liabilities or increase owners’ equity. should verify all journal entries and values associated with consolidations which resulted for work within spreadsheets. should obtain an understanding of the internal control processes regarding journal entries and other adjustments. Correct Correct. Processes such as segregation of duties and employee training (deterrence methods) can be used to stop collusion. If the investigator obtains an understanding of the organization’s control processes may reveal weaknesses that could help detect collusion efforts. 38. The transfer of funds obtained illegally from a US bank to another US bank is an 0/ 1 point example of: O Integration O Layering @ Placement O None of the above Incorrect Incorrect. The placement phase involves placing an asset into the financial system. This requires that the stolen assets be put into a form that will not cause detection in order to get them into an institution that will allow them to “clean” the money. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 12/21

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6/12/23, 11:29 AM Final Exam | Coursera 39. Duplicate searches in data extraction and analysis software could be used to discover: 1 /1 point @ Invoices that have been paid twice O Missing employees O Missing invoices O Stolen inventory Correct Correct. Duplicate searches in data extraction and analysis software would have the ability to find invoices that have been paid twice. 40. Which of the following best describes text analysis? 0/ 1 point @ a systems-type approach to fraud detection relying on the text of the software code. O a targeted approach to fraud detection that searches for emotion in text. O an approach to infer meaning from words and phrases and the way in which they are used. O data mining tools such as Access, ACL, or IDEA that identify obscure relationships. Incorrect Incorrect. This describes “software code analysis” 41. 1 /1 point The Fraud Triangle is generally present when an accidental fraudster commits fraud. The three legs represent perceived or actual instances of concepts. Which of the following is NOT one of the legs of the Fraud Triangle? O Opportunity Predictability O O Pressure Rationalization Correct Correct. Predictability is NOT one of the legs of the Fraud Triangle. The actual legs are Opportunity, Pressure, and Rationalization. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 13/21

6/12/23, 11:29 AM Final Exam | Coursera 42. Which 1/ 1 point of the following is/are applicable to the “Predator”, but not the “Accidental” fraudster? (Mark all that apply) O O Arrogance @ Correct True, but not the only correct answer. Pressure and Rationalization, part of the original fraud triangle, are relevant. They are replaced by Arrogance and Criminal Mindset for the Predator. Pressure Opportunity Criminal Mindset Correct True, but not the only correct answer. Pressure and Rationalization, part of the original fraud triangle, are relevant. They are replaced by Arrogance and Criminal Mindset for the Predator 43. The biggest advantage investigators have when tracing the flow of illegal funds is: 1 /1 point O Most illegal funds consist of electronic transfers, making detection easier. O Most illegal funds at some time flow through a bank in the US making detection easier. @ Most illegal funds return to the persons performing the laundering making detection easier. O Most illegal funds are converted to hard assets making detection easier. Correct Correct. The main goal of money laundering is to eventually get the stolen assets back to the perpetrator for their own personal use and benefit. Though it may take time, in general, the funds will eventually return to them, making detection easier. 44. Which of the following is NOT a concern to those in the battle against money 1 /1 point laundering? O De-materialization of money — Anything of value — goods and services (real estate, jewels, precious metals, on-line accounts) O New forms of value — loyalty points traded for drugs https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 14/21

6/12/23, 11:29 AM Final Exam | Coursera O Dis-intermediation — banks not center of transactions — e.g., bit-coin @ All of the above are concerns for law enforcement Correct Correct. De-materialization of money, new forms of value, and dis-intermediation are all new concerns for those investigating money laundering. 45. Which is generally considered the lowest threshold for ethical decision making? 1 /1 point O A professional code of ethics of an accounting organization. O Codes of conduct or directives about what is best for society. @ The law. O The underlying values that guide society. Correct Correct. Following the law is a required baseline to prevent legal consequences of an unethical decision. 46. With regard to Cynthia Cooper and Betty Vinson, both from WorldCom, which of the 1/ 1 point following is correct? O Cynthia Cooper went to jail for her role in whistle-blowing because she divulged WorldCom trade secrets. O Betty Vinson and Cynthia Cooper both went to jail for their roles in blowing the whistle on WorldCom. O Betty Vinson, though less celebrated, played an important role in helping Cynthia Cooper uncover and report the WorldCom fraud. @ Betty Vinson, even though she went to jail for her role in WorldCom, could be considered a victim. Correct Correct. Vinson was instructed to make fraudulent entries in the company’s financials and, in fear of losing her job, did it, which could potentially make her a victim. 47. Which is the following is NOT a best practice for an effective whistleblower program? 1 /1 point O The tip hotline must be available and publicly known. O The tip hotline must be open to any type of inappropriate behavior. O Legitimate employee concerns must be taken seriously. @ The tipster needs to identify themselves because of the need to ask follow-up guestions during the investigation. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 15/21

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6/12/23, 11:29 AM Final Exam | Coursera Correct Correct. Individuals should be allowed to make anonymous claims. People may be discourages from reporting inappropriate behavior if they must identify themselves due to fear of repercussions from superiors or the individual they report. 48. With regard to Cynthia Cooper and Betty Vinson, both from WorldCom, which of the 1 /1 point following is FALSE? O Betty Vinson, even though she went to jail for her role in WorldCom, could be considered a victim. Betty Vinson and Cynthia Cooper both played important roles in the WorldCom fraud. whistle-blowing. Cynthia Cooper, though celebrated as a hero for her role in WorldCom, suffered no ill O Cynthia Cooper was named a Time Magazine Person of the Year for her role in @ effects from her courage and high ethical standards. Correct Correct. Following the reveal of the fraud, Cooper was constantly followed by media and lost her job, which led to severe anxiety and depression for the whistleblower. 49. Which of the following are the three stages of money laundering? 1 /1 point O Assessment Integration Correct Integration is one of the three stages of money laundering. Placement @ Correct Placement is one of the three stages of money laundering. Layering https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 16/21

6/12/23, 11:29 AM Final Exam | Coursera @ Correct Layering is one of the three stages of money laundering. 50. With regard to changes 1 /1 point pertaining to money laundering, which of the following changes is NOT a concern to those in the battle against money laundering? O bit-coin and other forms of “electronic money” prepaid value cards (e.g., Visa debit card) O O mobile payments ® All of the other choices are a concern for law enforcement Correct Correct. The use of bit-coin and eMoney, prepaid value cards, and mobile payments are all concerns for law enforcement that make tracing funds more difficult. 51. Financial statement fraud 1 /1 point consists of: O Recognizing revenues not yet earned O Inappropriate entries to reserve accounts O Capitalizing expenses when inappropriate @ All of the other choices are correct Correct Correct. All of the options are examples of financial statement frauds. 52. Financial statement fraud 1 /1 point is complex because: O More than one account is usually affected More than one person is usually involved O Most people do not have access to the source documents and therefore cannot detect the fraud @ All of the other choices are correct https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 17/21

6/12/23, 11:29 AM Final Exam | Coursera Correct Correct. All of the options are reasons financial statement fraud is complex 53. Which of the following best 1 /1 point describes situations with complex frauds and financial crimes O O O ® Organizations associated with complex frauds and financial crimes often dismantle legitimate businesses. Organizations associated with complex frauds and financial crimes often involve single individuals acting alone. Organizations associated with complex frauds and financial crime can be described as employing a large number of accidental fraudsters. Organizations associated with complex frauds and financial crime often mix illegal activities with legitimate business activities. Correct Correct. Usually complex fraud or financial crimes in an organization require legitimate business activity to occur simultaneously so that the fraudulent act are more difficult to detect/ easier to conceal. 54. The key to successful fraud detection and investigation using digital tools and 1 /1 point techniques requires which approach? O A systems-type approach. @ A targeted approach. O A results-driven approach. O The approach is not relevant if you have access to data warehouses and data mining tools such as Access, ACL, or IDEA Correct Correct. A targeted approach is required when using digital tools and techniques during fraud detection and investigation. 55. The functions of data 1 /1 point extraction and analysis software tools include all EXCEPT: O Sorting @ Input into payroll system https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 18/21

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6/12/23, 11:29 AM Final Exam | Coursera O Verifying multiples of a number O Correlations analysis Correct Correct. Data extraction and analysis software tools are generally used to aid the auditing process by organizing, interpreting, and analyzing large amounts in input data to make it both understandable and manageable for users. These tools cannot be used to input information into a company’s databases or systems. 56. Which of the following is 1 /1 point correct, when considering the phrase “Following the money”? Select all that apply. Requires knowledge of every place the money has been @ Correct Correct. Having knowledge of where the money has been is one of the factors of “following money.” Is often difficult to do given the use of foreign banks for layering @ Correct Correct. Following money can be made difficult if the perpetrator uses offshore or foreign bank accounts in their layering process. Due to stricter privacy laws in these foreign countries, it is nearly impossible to track once it is taken offshore. Often requires access to foreign bank accounts Correct Correct. Many money launderers will move their funds to foreign accounts during their layering process, so in order to follow the money, an investigator must have access to these foreign bank accounts in order to successfully track its whereabouts. 57. Analytical anomalies 1 /1 point include all of the following except: transactions too small or too large for normal activity. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 19/21

6/12/23, 11:29 AM Final Exam | Coursera @ explained cash shortages. O excessive purchases. O excessive debit and credit memos. Correct Correct. By definition, analytical anomalies are transaction or financial statement relationships that do not make sense. If the cash shortage is explained, it makes sense, making this not an analytical anomaly. 58. Anomalies are: 1/ 1 point O most often red flags that indicate fraud is present. @ part of the day-to-day operations for most companies. seldom seen in companies with good internal controls and procedures. Correct Correct. Anomalies are also referred to as “red flags” that should indicate something may be wrong at some point in the organization. However, they are a part of day-to-day activities, leading to many of them being disregarded. 59. Data can be altered by: 1 /1 point O Changing numbers on a check; e.g. making a “3” an “8” O Destroying supporting detail O Making copies and submitting them as the original @ All of the other answers are correct Correct Correct. All of the choices would be a way for fraudsters to alter data. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 20/21

6/12/23, 11:29 AM Final Exam | Coursera 60. Common 1 /1 point violations pertaining to occupational fraud and abuse include all of the following except: O asset misappropriation. O corruption. O financial reporting fraud. @ All of these are common violations. Correct Correct. All of the choices are major categories of fraud. https://www.coursera.org/learn/forensic-accounting/exam/3G21c/final-exam/attempt?redirectToCover=true 21/21

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