EXAMINATION ON FAFI

The best description of red flag is?

a. Traces of criminal and crime left at the scene.

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b. The red colour of ink marked against a crime scene.

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c. The shout when fraud is discovered.

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d. The Fred flag raised indicating danger.

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Samples of a red flag may include the followings except ?

a. Accounting anomaly

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b. Missing sequence

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c. Payment of dividend

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d. Change in behavior.

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The ……… Is usually based on red flag of that particular fraud?

a. Fraud schemes

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b. Fraud theory

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c. Fraud investigation

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d. The fraud allegaty.

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Red flag means that ?

a. Fraud has occurred.

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b. Is an indication that fraud could occur.

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c. Is a conclusion that surely fraud occured.

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d. Certainly true fraud occured and the allegations are true.

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Identifying red flag is critical to ?

a. Prosecuting the aledged.

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b. Prevention and detection of fraud.

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c. Winning a fraud cases in court.

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d. Correcting bad fraudulent habit.

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Rapid growth and unusual profits as red flags related to?

a. Procurement fraud

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b. Ghost workers

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c Financial statement fraud

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d. Embezzlement.

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Employee’s red flags could include all of these except?

a. Are disgruntled with employer or supervisor

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b. Never take a vacation or take it in short time frames (probable in lapping and ghost employee schemes)

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c. Absence from work consistently..

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d. Have financial strains or debt problems

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Excessive transfer from one entity to another sister corporation could be considered as ?

a. Red flag on financial statements

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b. Good attitude of balancing an account.

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c. Prudent way to evade tax.

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d. Investment strategy.

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Fraud involving an employee with a relationship with a third party by which the employee and/or the third party gain a financial advantage is described as?

a. Maladministration

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b. Conflict of interest

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c. Procurement schemes

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d. Larceny.

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The issue of red flag and materiality is significant in?

a. Aggregate

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b. One off.

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c. Ratio

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d. Samples.

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The major goal of any anti-fraud program is ?

a. Fraud detection

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b. Fraud assessment

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c. Fraud elimination

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d. Fraud prevention.

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A key to successful fraud prevention is …?

a. To look at entity's culture and how to change it.

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b. Identify fraudulent staff

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c. To segregate senior staff from junior staff.

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d. To suspend entity's operations until fraud is prevented.

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Before the passage of SOX in America, ……….. Was associated with all major financial fraud?

a. Failure of strategic business plan

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b. Failure of corporate Governance structure.

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c. Failure of internal audit

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d. Failure of international guidelines.

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The incidence of board members dominated by insiders will likely lead to…?

a. Effective fraud prevention.

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b. Effective fraud detection

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c. Effective internal Governance

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d. Weakness of corporate Governance.

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What sets the tone at the top of management?

a. Management style

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b. Management teamwork

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c. Management objectives

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d. Management anti fraud program.

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Overoptimistic goals set by management can lead to ?

a. High profit

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b. Aggressive achievement

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c. Fraud

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d. Strong management.

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One of these statements best defines policies?

a. Law and compliance

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b. Objectives and principles

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c. Political strategy

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d. Skill and leadership

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In a business setting, procedures involves?

a. The skills of staff

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b. The transactions carried out in the business.

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c. The ways and actions taken to achieve the goals.

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d. The attitude of management.

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Business ethics involves one of the followings?

a. Values and Principles

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b. Principles and management profiles

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c. Skills and values

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d. Integrity and standards.

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The concept of perception of detection in anti fraud program involves all of the following except?

a. Investigation

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b. Surveillance

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c. Spot check

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d. Anonymous tips.

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A key fraud detection is more of ?

a. Weak internal Control

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b. Strong internal Control

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c. No internal Control

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d. Unorganised internal Control

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Specific fraud detection methods are directed to?

a. General fraud schemes

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b. Specific schemes

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c. Particular fraud schemes

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d. All fraud schemes.

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……..can check asset misappropriation fraud schemes?

a. Fraud audit

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b. Work station rotation or rotation of duties.

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c. Promotion of staff.

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d. Delegation of duty.

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Spot check is a type of ?

a. External audit method.

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b. Internal control.

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c. Cross examination of fraudster.

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d. Whistleblower.

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The practice of ghost employee is a fundamental ……?

a. Fraud scheme

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b. Control measure

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c. Tax evasion scheme

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d. Error of pay roll.

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Skimming fraud often occure ……….the actual booking of entry.

a. After

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b. Before .

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c. As

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d. Immediately.

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A proper definition of fraud is important one of the following?

a. Crafting a Fraud policy .

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b. Accepting allegations of fraud

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c. Using Ted alert

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d. Establishing a fraud theory.

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The fraud policy statement should include all the followings except?

a. The need for repercussions if fraud occured.

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b. The unit responsible for investigation when fraud occur.

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c. Should convey the need to maintain the appropriate level of confidentiality.

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d. The totality of how to manage the entity's profits.

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What is the Need of communicating fraud policy to all the staff?

a. For the sake of catching the fraudster.

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b. For publishing a fraud guide.

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c. To educate the staff on how to commit fraud.

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d. To buy in their Commitment and compliance.

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What is the difference between fraud and error?

a. Fraud is human, error is a mistake.

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b. Fraud is with deliberate intent, error is unplanned for.

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c. Fraud relates to only money, error is general.

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d. Fraud is a risk, error is strength.

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Effective fraud risk assessment is dependent on knowledge of ?

a. Fraud triangle

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b. Fraud concept

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c. Forensic examination

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d. Risk management.

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Risk is similar to. ?

a. Death

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b. Danger

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c. Threats

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d. Conflict

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The risk suite includes. ….?

a. Top down , risk based audit approach.

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b. Down up , strategic based approach

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c. Risk and analystic assessment

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d. Risk opportunity approach

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What is the full meaning of AICPA .

a. American Institute of chartered public Accountants

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b. American Institution of Chartered Public Auditors

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c. American Institute of certified Public Accountants

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d. American Institute of certified Public Auditors..

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The institute of internal Auditors emphasized that internal audit function and activities should start with …?

a. Internal Control

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b. Internal audit

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c. Risk assessment

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d. Fraud Assessment.

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According to Donald Cressey, the theory of unshareable financial need refers to?

a. Fraud

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b. Pressure

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c. Intent

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d. Fraud schemes

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Autocratic and profit management orientation will always tend to …?

a. Low fraud environment

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b. High fraud environment

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c. No fraud environment

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d. Fraud prevention.

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Normal risk assessment should be conducted..?

a. At interval

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b. Regularly

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c. During crisis

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d. When needed.

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A good risk assessment should consider one of the following?

a. The organization purpose

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b. The people and process

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c. The management style

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d. Fraud environment

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One of the following is not an internal factor to be considered in risk assessment?

a. Failure to create an honest culture.

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b. Failure to articulate and communicate minimum standards of performance and personal conduct.

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c. Failure to work with the system

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d. Inadequate orientation and training on legal, ethical, fraud, and security issues.

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A typical fraud by Charles Ponzi in 1920 is today refered to as?

a. Advance fee fraud

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b. Fraud

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c. Ponzi scheme

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d. fraud schemes

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The electric utility business in 1920 was involved in a fraud led by?

a. Crownwill

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b. Samuel Insull

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c. Mafido

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d. Indigo

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What is the full meaning of SOX?

a. Secret of exchange.

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b. Security offer exchange

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c. Sarbanese – Oxley Act.

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d. Select organization exchange rate.

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The foreign Corrupt practices Act was established in ?

a. 1970

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b. 1977

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c. 1980

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d. 1960

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One of the skills required by forensic auditor is?

a. Statistical sampling method.

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b. Knowledge of evidence

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c. Financial budget System

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d. Accountability.

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One of the following is not fraud?

a. Theft

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b. Embezzlement

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c. Trust

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d. White collar crime.

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Rationalization is the same thing as ?

a. Intent

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b. Accepting wrong as right.

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c. Amending the custom

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d. Doing the wrong.

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Fraud scope is limitless and can include?

a. Small businesses and large corporations

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b. Only joint ventures

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c. Businesses outside owners control.

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d. Only businesses in the urban areas.

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The engagement process is part of ?

a. The fraud investigation process

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b. The fraud Principles

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c. Skills of forensic auditors

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d. Evidence process.

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If the responsible parties refuse to return the client’s funds, the findings of the fraud investigation can be coordinated with?

a. The Court, the victim and the relations of the parties .

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b. The Legal counsel, law enforcement and regulatory authorities.

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c. The police and the debt recovery agents.

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d. The customary chiefs and the close friends.

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EXAMINATION ON FAFI

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