Free Printable Financial Crime Q1/2

1.

Offenses committed in the business world are called...

a)

black Crimes

b)

White Collar Crimes

c)

Business Crimes

d)

Computer Crimes

2.

Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?

a)

excessive pressure for management to meet debt repayment requirements

b)

management's practice of making overly aggressive forecasts

c)

high turnover of accounting, internal audit, and information technology staff

d)

significant accounting estimates involving subjective judgments

3.

Which of the following is a factor that relates to attitudes or rationalization to misappropriate assets?

a)

a sense of superiority by executives

b)

significant accounting estimates involving subjective judgments

c)

high turnover of accounting, internal audit and information technology staff

d)

excessive pressure for management to meet debt repayment requirements

4.

Most fraud is committed by strangers who get your personal financial information through illegal means.

a)

True

b)

False

5.

Match the type of fraud: Chris learned their identity had been used during an arrest, but Chris hadn’t been arrested.

a)

Tax

b)

Investment

c)

Identity Theft

d)

Communications

e)

Credit

6.

Match the way fraud may occur in the scenario: A scammer is using email to pretend to be your bank.

a)

Computer

b)

Skimming

c)

Phishing

d)

Stealing

7.

Is fraud legal or illegal?

a)

illegal

b)

Legal

8.

Fraud is: deliberate deception, designed to secure unfair or unlawful gain.

a)

True

b)

False

9.

Which of the following situations best describe the element of Pressure in the Fraud Triangle

a)

Arman was fired recently and lose his source of income. Due to this, he is unable to pay his rent and has resulted to write a fraudulent cheque to pay for his rent

b)

Sharon is an accountant in Selimut Tebal Sdn. Bhd. where she is in charge of the company accounts, bank, cheques, payments etc. Due to this, she decided to falsify documents so that she can get the Company to pay for her personal expenses

c)

Maximus did not get his bonus this year due to his bad performance at work. He felt that he is not getting the right treatment and deserve a bonus, hence he decided to misuse the company’s asset for his personal use

d)

Justin did not receive his bonus during the year and he was determined to do something about this

10.

Which of the following situations best describe the element of Rationalisation in the Fraud Triangle

a)

Arman was fired recently and lose his source of income. Due to this, he is unable to pay his rent and has resulted to write a fraudulent cheque to pay for his rent

b)

Sharon is an accountant in Selimut Tebal Sdn. Bhd. where she is in charge of the company accounts, bank, cheques, payments etc. Due to this, she decided to falsify documents so that she can get the Company to pay for her personal expenses

c)

Maximus did not get his bonus this year due to his bad performance at work. He felt that he is not getting the right treatment and deserve a bonus, hence he decided to misuse the company’s asset for his personal use

d)

Justin did not receive his bonus during the year and he was determined to do something about this

11.

An employee notices that there is a weak internal control in the company and coincidentally the employee is in charge of all the finance and accounting matters.

What is/are the elements in the fraud triangle shown in the situation above?

a)

Perceived pressure

b)

Rationalisation

c)

Perceived opportunity

d)

Ethics

12.

“Due to some of the firm’s assets missing, the management has decided to conduct an investigation on the missing asset by hiring an external expert on this matter.”

What kind of audit is done judging by the situation above?

a)

Internal Audit

b)

External Audit

c)

Fraud Audit

d)

Environmental Audit

13.

All the situation below will require fraud investigation except for:

a)

The CEO noticed that their internal control is lacking in the purchasing department.

b)

The store supervisor noticed that there are some stocks that have gone missing during the stock take

c)

During the petty cash count, the counter from the admin department noticed that the cash was short of RM1,000

d)

The sales manager notices that this month sales are much lower than last month even though the customers have increased significantly compared to last month

14.

What is the main difference between financial statement audit and fraud audit?

a)

Financial statement audit is reviewing the whole set of the accounts where another fraud audit is done by focusing on one or two specific accounts that are suspected in fraud.

b)

Financial statement audit focus on one or two accounts where else fraud audit is looking the whole set of accounts

c)

Financial statement audit is the same as fraud audit

d)

Fraud audit is compulsory and financial statement audit is optional

15.

Draw the Fraud Triangle Theory

Financial Crime Q1/2

Total questions: 15

Worksheet time: 10mins

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