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WorksheetsFraud Principles
Total questions: 10
Worksheet time: 5mins
Which statement best describes occupational fraud?
Legal exploitation of tax allowances for corporate advantage
Reporting a loss due to market forces beyond management control
Making any error in financial reporting without intent or benefit
Using one’s position for personal enrichment by misusing employer resources
Which belief most aligns with a fraud auditor’s perspective?
Red flags are invisible without whistleblower allegations
Only lower-level employees commit fraud in organizations
Fraud is impossible when auditors reconcile all bank accounts
Fraud can occur even where controls seem tight and complete
Which element of Cressey’s Fraud Triangle addresses a stressful personal need that motivates a person to commit fraud?
Deterrence reduces likelihood of theft
Rationalization forms ethical justifications
Pressure creates a personal financial strain
Opportunity provides weak internal controls
An employee with no criminal record convinces herself that taking funds is acceptable under her circumstances. Which Fraud Triangle elements best describe this situation?
Pressure with abundant external monitoring
Opportunity with strict oversight present
Rationalization with a clean personal record
Rationalization with prior illegal history
Which pairing best illustrates insider fraud against a company?
Employee lapping of receivables and fake credit memos
Vendor short-shipping and double billing
Collusive price fixing with competitors
Customer bribing employees to leak pricing
A supplier substitutes inferior materials and bills the company at full price. This scheme is best classified as which category?
Insider fraud against the company
Outsider fraud against the company
Frauds for the company
Consumer and investor frauds
Which set correctly lists the three main categories in the ACFE Fraud Tree?
Fraudulent statements, asset misappropriation, corruption
Insider fraud, outsider fraud, management fraud
Consumer fraud, vendor fraud, investment scams
Cash diversions, check kiting, receivable lapping
Which step typically occurs before a formal fraud investigation can begin?
Predication is determined by a fraud professional
The suspect confesses during interrogation
Losses are reimbursed by the insurer
A trial date is scheduled by the court
A company notices missing data, unusual increases, and unfavorable variances. What are these most accurately considered?
Proof of embezzlement beyond reasonable doubt
Behavioral red flags suggesting possible fraud
Normal fluctuations explained by seasonality
Internal audit conclusions closing the case
What is the top list of 5 scandalous fraud in 2025?
phantom urinary catheters
China cyber scam kingpins
the 'tuna bond' case
AI-driven fraud crypto ring
