Week 3 Quiz » Week 3 » Forensic Accounting And Fraud Examination

Q: Sources of information include:

Correct. All of the options can be used as sources of information.

Q: With regard to financial data analysis and effective fraud detection, which of the following statements is INACCURATE.

Correct Answer. If there is an unexplained and dramatic increase in an item from one period to the next that could be a sign of fraud OR it could simply be normal operations. This is an inaccurate statement.

Q: When looking for fraud, credit card companies constantly mine data and look for transactions that are similar to historical patterns of fraud. Which of the following are examples of patterns that they use. (May have more than one correct answer)

True, but not the only correct answer. A, without more information is not a red flag. B & C are examples provided in the lecture. <br> True, but not the only correct answer. A, without more information is not a red flag. B & C are examples provided in the lecture.

Q: Which of the following statements about adjusting journal entries is NOT correct?

Correct answer. Unusual, significant, one-time adjusting journal entries should receive greater scrutiny by auditors.

Q: Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued because:

Correct. Red flags, also known as anomalies, are part of the day-to-day operations, resulting in them being unnoticed or not pursued.

Q: Journal entries of concern include:

Correct. In general, senior management members should not be making journal entries as part of their day-to-day operating duties. Because of this oddity, and these individuals’ influence over the company, their entries may be called into question.

Q: Which of the following software tools cannot be used in “big data” analysis.

Correct. Camtasia is a computer screen capture software.

Q: With regard to text analysis, which of the following is NOT correct:

Inaccurate statement. Public records can be a reliable source of information.

Q: The functions of data extraction and analysis software tools include all EXCEPT:

Correct. Data extraction and analysis software tools are generally used to aid the auditing process by organizing, interpreting, and analyzing large amounts in input data to make it both understandable and manageable for users. These tools cannot be used to input information into a company’s databases or systems

Q: Which is the following statements with regard to the WorldCom fraud is NOT accurate?

Correct Answer. Part of internal auditor Cynthia Cooper’s WorldCom investigation involved asking for documents to support the adjusting entries related to line charge capitalizations.