Chapter 1: Occupational Fraud Overview

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What is one of the key objectives after studying this chapter?

Understand the seriousness of fraud and its impact (correct)

Understand the technicalities of civil fraud laws

Learn about different types of fraud in detail

Memorize statistical figures related to fraud

Where do statistics on the prevalence and cost of fraud come from?

Non-profit organizations, regulatory bodies, forensic accounting firms, consulting firms

Private corporations, law enforcement agencies, academic institutions, financial institutions

Government agencies, researchers, insurance companies, victims of fraud (correct)

Media reports, public surveys, internal audits, external audits

What is the main difference between fraud committed against an organization and fraud committed on behalf of an organization?

The involvement of external agencies in the investigation

The amount of financial loss incurred by the organization

The legal consequences for the organization

The intent of the perpetrator (correct)

Which group is NOT a typical source of statistics on fraud occurrences?

Academic institutions Signup and view all the answers

What is a key aspect covered in this chapter regarding fraud-fighting careers?

The different career paths available in fighting fraud Signup and view all the answers

Which statement best describes the focus of this chapter?

Understanding the impact and types of fraud Signup and view all the answers

What did Ponzi promise to investors in his scheme?

Double your money in 90 days Signup and view all the answers

What was the single most critical element for fraud to be successful?

Confidence Signup and view all the answers

What does the word 'con' mean based on the text?

To deceive Signup and view all the answers

Why was Ponzi able to gain investors' confidence in his scheme?

By paying high returns consistently Signup and view all the answers

What was one of the key components of Ponzi's scheme according to the text?

Paying returns to original investors Signup and view all the answers

What aspect of Ponzi's scam is considered extremely helpful in understanding fraud?

Deception and confidence Signup and view all the answers

What is an example of customer fraud involving a bank in Chicago?

Customers deceiving organizations into giving them something they should not have Signup and view all the answers

Which type of fraud involves top management deceptively misstating financial statements?

Financial statement fraud Signup and view all the answers

What kind of fraud includes selling fraudulent investments to unsuspecting investors?

Ponzi schemes Signup and view all the answers

Which of the following is NOT an example of financial statement fraud?

Telemarketing fraud Signup and view all the answers

In which type of fraud do customers get something for nothing?

Financial statement fraud Signup and view all the answers

What is a common characteristic of fraud involving Nigerian letter or money scams?

Misleading individuals through false promises Signup and view all the answers

What are the two common forms of fraud perpetrated by vendors?

Shipment of inferior goods and nonshipment of goods Signup and view all the answers

In direct occupational fraud, what is an example of direct theft of company assets?

Stealing company cash Signup and view all the answers

What type of fraud involves employee collusion with vendors or buyers for illicit gains?

Indirect fraud Signup and view all the answers

Which scenario represents indirect occupational fraud?

Employee receives bribes from vendors for higher purchase prices Signup and view all the answers

What is a common outcome of fraud perpetrated through collusion between buyers and vendors?

Overcharge for purchased goods Signup and view all the answers

Which company is provided as an example of direct fraud in the text?

CVC Construction Signup and view all the answers

What skills are considered important for a fraud examiner according to the text?

Analytical skills and technological skills Signup and view all the answers

Which of the following is NOT a requirement to become a Certified Fraud Examiner (CFE)?

Having a bachelor's degree Signup and view all the answers

In addition to academic and professional qualifications, what other criteria must be met to become a Certified Fraud Examiner (CFE)?

Being of high moral character Signup and view all the answers

What is a key focus area related to human behavior that fraud examiners should understand?

Why people rationalize dishonesty Signup and view all the answers

Which group provides the opportunity to become a Certified Fraud Examiner (CFE)?

Association of Certified Examiners (ACFE) Signup and view all the answers

What is typically the minimum academic requirement for applicants seeking CFE certification?

Bachelor's degree or equivalent Signup and view all the answers