Financial Crime Tutorial 7

1. Choose the CORRECT objectives of fraud investigation.

      I. To determine whether fraud has/is occurring

 II.  To determine who is responsible

III. To gather evidence of fraud 

                  IV. To prove or disprove the legal elements of the offense 

• A.    I, II, III

• B.    II, III, IV

• C.   I, III, IV

• D.   All of the above

2. Which of the following is part of a fraud investigation?

• The auditor is reviewing the financial statement of the company

• The investigator is getting statements from the witness regarding the missing cash

• The directors are discussing the missing stocks in the warehouse of the company

• The auditor is collecting sufficient evidence for producing the annual report

3. Which of the following is the INCORRECT statement regarding fraud investigation?

• A fraud investigation examines the evidence to determine whether or not a fraud occurred

• Identifying fraud risk indicators is important in the fraud investigation

• The fraud investigation process begins with a mere suspicion that a fraud has occurred

• Fraud investigation processes are standard police-type processes

4. How does a fraud examiner conduct a fraud investigation process?

5. I.  Interviewing

6. II. Observing behaviors, specific offenses

  III. Examination of financial statements

IV. Perform financial auditing

• I, II, III

• I, II, IV

•   I, III, IV

• All of the above

5. Which of the following is TRUE regarding ordinary conspiracy?

• Never aware that they are a party to fraud

• One or more of the people cooperating in the scheme is innocent

• Involves willing cooperation of two or more people intent to commit fraud

• Involves only 1 person