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Principles of Fraud Examination 4th Edition Test Bank

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Chapter 1–Introduction1.Which of the following best describes theobjectiveof a fraud examination?a.To make recommendations to management about how to prevent fraudb.To determine whether financial statements are free ofmisstatements due tofraudc.To express an opinion on the guilt or innocence of a suspectd.To determine whether a crime has been committed, and if so, who isresponsible2.Which of the following isnota part of the fraud theory approach?a.Analyze available data.b.Develop “what-if”scenarios.c.Identify who committed the fraud.d.Refine the hypothesis.3.Once sufficientpredicationhas been established, what is the first step a fraudexaminer following the fraud theory approach should take?a.Create a hypothesis.b.Analyze data.c.Interview witnesses.d.Interviewthesuspect.4.The discipline of fraud examination includes all of the following except:a.Writing investigative reportsb.Determining the guilt of the suspectc.Testifying to findingsd.Interviewing witnesses5.Fraud examination differs from auditing in that fraud examination is:a.Recurringb.Adversarialc.General in scoped.All of the above6.Predication, although important, is not required in a fraud examination.a.Trueb.False7.In a fraud examination, evidence is usually gathered in a manner that moves fromgeneral to specific.a.Trueb.False

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