ITS 4450 - Fraud Risk Assessment Tools and Investigation

Review for First Test

The following questions are provided to help you study for the first test. Do not expect to see these exact questions on the test.

  1. What are the seven elements that define a crime as a fraud?

  2. Which of the seven elements relates to the most crucial part of a fraud?

  3. What are the two kinds of prosecution that may be pursued on the behalf of fraud victims?

  4. Regarding check kiting, what is lag or float time?

  5. What are the three elements of the Fraud Triangle? Give an example of each of them.

  6. Why would some people who commit frauds not need all three elements?

  7. What is fraud recruitment? Give an example of a kind of power involved in it.

  8. The text tells us that 40% of employees will behave in what way, based on their personal ethics?

  9. What is the difference between a preventative control and a detective control?

  10. What are the four kinds of evidence discussed in chapter 3? Which kind is preferred by investigators?

  11. What are the three parts of the Fraud Element/Action triangle? How does this triangle differ from the one we learned first?

  12. How can an employee assistance program be part of fraud prevention?

  13. What are some of the necessary elements of a whistle blowing program?

  14. In the current model of handling fraud, what are the options a company typically faces in the action phase? Which option is more likely to deter future fraud, and why?

  15. What is the anti-fraud value of mandatory vacations? How else can we accomplish the same results?

  16. In a company setting, who is most likely to notice an indication of a fraud?

  17. Explain an internal control weakness and how it might enable fraud.

  18. What are two things that might change about a fraud perpetrator, drawing the attention of an investigator?

  19. What is a bell curve? What kind of data would we assume would fit such a curve?

  20. What is Benford's Law? What kinds of data would we expect it to apply to? How is it useful in fraud investigation?

  21. What is stratification of data? How does it relate to summarization?

  22. What is meant by conversion of stolen assets?

  23. What is a chain of evidence?

  24. What is a subpoena duces tecum?

  25. What is net worth? How does it relate to a fraud investigation?

  26. Who is Dr. Elisabeth Kübler-Ross? To whom does her work apply in a fraud case?

  27. Given a choice, when would you prefer to use open ended questions in an interview? How about closed questions?

  28. What are some inhibitors to communication in an interview? How would you work around them?

  29. What are the three closing questions the text recommends always using?