ITS 4450 - Fraud Risk Assessment Tools and Investigation

Review for Second Test

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


  1. What kinds of fraud might interest the SEC in their regular capacity?

  2. Why is it wrong to misreport assets and expenses in financial statements?

  3. What information is the content of the GAAP? (Hint: not the clothing store.)

  4. How does overstating inventory misrepresent your company?

  5. How does financial statement fraud require a different skill set in the investigator, compared to earlier chapters?

  6. What is a liability? Would a fraud likely understate it or overstate it?

  7. Inadequate disclosure should be a catch all phrase for most kinds of fraud. What distinguishes a fraud of this type, according to the text and my notes?

  8. What is occupational fraud?

  9. How can customers commit fraud against an organization?

  10. What is the legal difference between skimming and larceny?

  11. What is a wire transfer? How might a fraudster arrange to perform one?

  12. Compare bribery and extortion. How are they similar?

  13. How is consumer fraud different from most other frauds in the text?

  14. Why does an identity thief need to know other skills or other people?

  15. How is the definition of a skimmer different in chapters 14 and 15?

  16. Why is money laundering called that? Why does that business work for this kind of fraud?

  17. How can a bankruptcy be caused by a fraud? How can it conceal one?

  18. What might be the monetary penalty in a criminal tax fraud case?

  19. In a bankruptcy, what are the creditor and the debtor supposed to receive? What would make a bankruptcy into a fraud?

  20. What is the difference between a chapter 7 and a chapter 11 bankruptcy?

  21. In money laundering, what do the following terms mean? placement, layering, integration

  22. In online advertising, what is a click-through rate? What would be the effect of falsifying a higher click-through rate?

  23. Compare the pressures the text links to e-commerce fraud to those it linked to other frauds conducted by employees against their employers.

  24. Discuss the need (or lack of it) for social engineering skills in various kinds of fraud. Does this change your mental image of what a scammer should be like?

  25. Checking references online, voir dire means to speak the truth. How does this apply to an expert witness in court?