1.
Four examples of fraud engagements could include:
a.
Locating evidence of vendor kickbacks.
b.
Locating test bank.
c.
Providing assistance to the audit team in investigating a potential
fraud.
d.
Consulting as to implementation of fraud prevention, deterrence, and
detection programs.
2.
Forensic accounting, also commonly referred to as “litigation support,”
generally means the use of accounting in a court of law.
3.
Simply defined, fraud is an intentional deception. Black’s Law Dictionary defines fraud as:
“A generic term, embracing all multifarious means
which human ingenuity can devise, and which are resorted to by one individual
to get advantage over another by false suggestions or by suppression of truth,
it includes all surprise, trickery, cunning, dissembling, and any unfair way by
which another is cheated for test bank.”
Four examples would include; Management fraud,
Employee fraud, vendor fraud, and insurance fraud.
4.
Three components of the fraud triangle include:
a.
Perceived pressure.
b.
Perceived opportunity.
c.
Rationalization.
Knowledge of the three elements provides the
practitioner with an understanding of the different approaches that may be
taken in the investigation.
5.Test bank,
red flag, or risk factor, is a characteristic that provides a motivation or
opportunity for fraud to occur, or an indication that fraud may have occurred.
6.
Management fraud, or fraudulent financial reporting, refers to actions whereby
management attempts to inflate reported earnings or other assets in order to
deceive outsiders. Employee fraud, or
misappropriation of assets, refers to illegal acts perpetrated by employees of
a company.
7.
Risk factors associated with management fraud include:
a.
Management’s characteristics and influence over the control
environment.
b.
Industry conditions of textbook solutions.
c.
Operating characteristics and financial stability.
Risk factors associated with employee fraud include:
a.
Susceptibility of assets to misappropriation.
b.
Controls.
8. The
basic steps of a textbook solutions include:
a.
Identify the issue/ plan the investigation.
b.
Gather the evidence/the investigation phase.
c.
Evaluate the evidence.
d.
Report findings to management/ legal counsel.
9.
Two examples of a business/due diligence investigation include:
a.
Verifying information about an entity before entering into a joint
venture.
b.
A background check on new corporate officer.
10.
Three computerized tools utilized by the fraud examiner include:
a.
Data mining software.
b.
Public databases.
c.
Internet.
11.
Data mining software, an outgrowth of expert systems, models a database for the
purpose of determining patterns and relationships among the data. Whereas public databases are various public
accessible databases that contain information of different types such as
lawsuits, bankruptcies, tax liens, and property transactions. Many of these databases are useful in a fraud
examination/investigation for textbook solutions is available
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