Fraud Investigation Techniques: Module 5 Knowledge Check

Module 5 Knowledge Check QUESTION 1 1. In most investigations of a fraud suspect, investigators should begin by: 2. a . interviewing co-workers. b . checking personal and company records. c . confronting the suspect. d . performing invigilation. 10 points QUESTION 2 1. Mark owns a 24-hour convenience store. Lately he has noticed that the liquor inventory purchases have gone up by huge amounts, although sales proceeds from this category haven't increased. He suspects his two night-shift employees. Which is the best investigative method to uncover such a fraud? 2. a . Electronic investigation b . Conversion investigation c . Concealment investigation d . Inquiry investigation 10 points QUESTION 3 1. The least reliable method of obtaining documentary evidence is: 2. a . by accident. b . through traditional audits. c . through computer-based queries d . by using statistical techniques. 10 points

QUESTION 4 1. The three most common ways to obtain hard-to-get documentary evidence are: 2. a . voluntary consent, surveillance, and invigilation. b . subpoena, search warrant, and voluntary consent. c . search warrant, invigilation, and surveillance. d . subpoena, voluntary consent, and searching public records. 10 points QUESTION 5 1. What is invigilation? 2. a . A theft act investigative technique that involves close supervision of the suspects during the examination period. b . A theft act investigative technique that involves confiscating and searching computers and other electronic sources of information. c . A theft act investigative technique that records the physical evidence, facts, and movements which form part of a fraud. d . A theft act investigative technique that is used when large-scale fraud is likely and other methods of investigation fail. 10 points QUESTION 6 1. Which of the following is an increasingly popular form of gathering physical evidence of fraud? 2. a . Confiscating and searching computers b . Creating and viewing surveillance tapes c . Reviewing spending habits of all those possibly involved d . Tracking missing inventory through bar codes 10 points QUESTION 7 1. Which of the following is the last step in an investigation?

2. a . Interview former employees b . Interview suspect c . Interview former buyers d . Perform surveillance 10 points QUESTION 8 1. A ____ is a tool for explicitly considering all aspects of the fraud and for establishing fraud theories. 2. a . vulnerability chart b . Pareto chart c . surveillance log d . perceptual map 10 points QUESTION 9 1. A divisional manager is suspected of adding ghost employees to the payroll. Which investigative method can most easily uncover this type of fraud? 2. a . Theft b . Conversion c . Undercover operations d . Concealment 10 points QUESTION 10 1. Computer-based queries of accounting and other databases are utilized in which of the following investigation methods? 2. a . Inquiry

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b . Conversion c . Theft d . Concealment

QUESTION 1 1. Which of the following is a benefit of creating a vulnerability chart? 2. a . It forces the investigators to explicitly consider all aspects of a fraud act. b . It conveys a warning to all employees that fraud will not be tolerated. c . It shows management where controls are weak. d . It lists/coordinates the steps the investigator must take to uncover the perpetrator. 5 points QUESTION 2 1. A divisional manager is suspected of adding ghost employees to the payroll. Which investigative method can most easily uncover this type of fraud? 2. a . Concealment b . Theft c . Undercover operations d . Conversion 5 points QUESTION 3 1. A ____ is a tool for explicitly considering all aspects of the fraud and for establishing fraud theories. 2. a . Pareto chart b . vulnerability chart c . perceptual map d . surveillance log 5 points QUESTION 4 1. Concealment investigative techniques do not work well in kickback situations. Why?

2. a . The risk involved in such investigations is unusually high. b . The parties in the transaction will be hard to trace. c . Results of concealment investigative techniques are not admissible as evidence in courts. d . There is usually no direct documentary evidence. 5 points QUESTION 5 1. Which of the following is NOT a method for theft investigation? 2. a . Electronic searches b . Covert operations (surveillance) c . Invigilation d . Physical evidence 5 points QUESTION 6 1. Several factors are considered in deciding whether or not to investigate fraud. Which of the following is NOT one of them? 2. a . Perceived cost of the investigation b . Exposure or amount that could have been taken c . Preparation of a surveillance log d . Perceived strength of the predication 5 points QUESTION 7 1. An investigator locates the scene that should be observed, anticipates the action that is most likely to occur at the scene, and keeps detailed notes on all activities involving the suspect. Which type of surveillance is being used here? 2. a . Electronic surveillance

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b . Stationary surveillance c . Static surveillance d . Moving surveillance 5 points QUESTION 8 1. ______ means that there are symptoms or red flags that a fraud may be occurring. 2. a . Vulnerability b . Presumption c . Predication d . Audit 5 points QUESTION 9 1. Which checksum method is considered more advanced and secure than the method it replaced? 2. a . MD5 b . SHA-1 c . CRC-2 d . CRC-1 5 points QUESTION 10 1. Experts recommend that invigilation must continue: 2. a . for at least 7 days. b . for at least 21 days. c . for an indefinite period determined by the individual investigator.

d . for at least 14 days. 5 points QUESTION 11 1. Which of the following statements regarding search warrants is NOT accurate? 2. a . Search warrants are generally used only in criminal cases. b . There is a belief that documents have been used in committing a crime. c . Only law enforcement officials can execute a search warrant. d . A "possible cause" condition must be met before a search warrant is issued. 5 points QUESTION 12 1. The best way to obtain documentary evidence is: 2. a . by chance, accident, or tip discovery. b . through computer-based queries of full-population accounting and other databases. c . through discovery sampling. d . through interviews and interrogations. 5 points QUESTION 13 1. Computer-based queries of accounting and other databases are utilized in which of the following investigation methods? 2. a . Inquiry b . Concealment c . Conversion d . Theft 5 points

QUESTION 14 1. What is the term for the risk that the sample was not representative of the population? 2. a . Sampling risk b . Systematic risk c . Nonsampling risk d . Compliance risk 5 points QUESTION 15 1. Which of the following statements regarding subpoenas is accurate? 2. a . A subpoena can only be issued by a grand jury or the court. b . A subpoena must be signed by the chair of the grand jury. c . A subpoena is one of the two ways to gain access to hard-to-get documentary information. d . A subpoena asks for voluntary information and cooperation. 5 points QUESTION 16 1. Which of the following is an example of secondary evidence? 2. a . Testimony of recipient of stolen assets b . Confession of outside vendors who paid bribes c . Testimony of witnesses of the fraud act d . Photocopies of documentary evidence 5 points QUESTION 17 1. Which aspect of documentary evidence should be kept in mind to ensure that the documents can be identified later and accessible for trial?

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2. a . Marking of evidence b . Coordination of evidence c . Organization of evidence d . Chain of custody of documents 5 points QUESTION 18 1. An audit is part of which type of investigative method? 2. a . Inquiry b . Concealment c . Theft d . Conversion 5 points QUESTION 19 1. ________ is a simple, statistically based method of analyzing a subset of transactions from a larger pool. 2. a . Cluster sampling b . Structured sampling c . Discovery sampling d . Probability sampling 5 points QUESTION 20 1. Which of the following products can be useful to coordinate the evidence in large cases that involve investigators, legal counsel, accountants, expert witnesses, and management representatives? 2. a . Ringtail

b . Analyst's Notebook c . DatiCon d . CaseMap

Module 5 Knowledge Check

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