INV 1705 QUIZ 6: Proactive Fraud Investigation

What is the primary objective of a proactive fraud investigation?

• A) To respond to whistleblower tips

• B) To deter future fraudulent activities

• C) To punish offenders

• D) To recover losses

Which of the following is essential in constructing a proactive fraud investigation plan?

• A) Hiring external auditors

• B) Waiting for a tip-off

• C) Risk assessment and data analysis

• D) Legal action against suspects

Why are internal controls important in proactive fraud investigations?

• A) They eliminate all fraud risks

• B) They help detect and prevent fraud

• C) They prevent audits

• D) They confuse the fraudster

In a proactive investigation, continuous monitoring is used to:

• A) Document employee performance

• B) Eliminate the need for whistleblowers

• C) Replace external audits

• D) Track fraudulent behavior in real-time

What is the role of data analytics in proactive fraud investigation?

• A) Identifying anomalies and red flags

• B) Manual checks only

• C) Random sampling of accounts

• D) Filing legal complaints

Which of the following is NOT a characteristic of a proactive fraud investigation?

• A) Continuous improvement

• B) Reactive response to an incident

• C) Use of data mining techniques

• D) Predictive risk modeling

Which team is typically involved in proactive fraud investigations?

• A) Marketing team

• B) Operations team only

• C) Fraud risk management team

• D) Product development team

What is the first step in designing a proactive fraud detection program?

• A) Conducting a fraud risk assessment

• B) Implementing penalties

• C) Employee training

• D) Installing surveillance equipment