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| Section | Weight | Objectives |
|---|---|---|
| Asset Misappropriation – Non-Cash Assets | 5–10% | - Concealment techniques - Misuse of assets - Inventory and equipment theft |
| Financial Statement Fraud | 10–15% | - Expense and liability understatements - Revenue and asset overstatements - Detection and red flags - Timing and disclosure manipulations |
| Accounting Concepts | 5–10% | - Internal control fundamentals - Basic accounting principles - Financial statements structure - Recording and summarizing transactions |
| Asset Misappropriation – Cash Disbursements | 10–15% | - Billing schemes - Check and payment tampering - Payroll schemes - Expense reimbursement schemes |
| Asset Misappropriation – Cash Receipts | 5–10% | - Prevention and detection methods - Cash larceny schemes - Cash skimming schemes |
| Theft of Data and Intellectual Property | 5–10% | - Data and IP theft methods - Corporate espionage - Safeguarding proprietary information |
| Identity Theft | 1–5% | - Types and techniques - Prevention and detection |
| Corruption Schemes | 5–10% | - Conflicts of interest - Bribery and kickbacks - Illegal gratuities and extortion |
| Industry-Specific Financial Crimes | 15–25% | - Real estate and securities fraud - Healthcare fraud - Cyber-enabled and cryptocurrency fraud - Insurance fraud - Financial institution fraud |
1. When an incorrect total is carried from the journal to the ledger or from the ledger to the financial statements, this method is called:
A) False balance
B) Forced Balance
C) Out-of-balance
D) None of all
2. _________ normally are carried on an organization's books as expenses because they tend to be consumed by the organization within a year of purchase.
A) Assets
B) Expenses
C) Supplies
D) Equity
3. Which of the following elements must be TRUE for a ghost employee scheme to be successful?
A) Wage rate information must be collected for the ghost employee.
B) The ghost employee must be a real person.
C) Payment must be made via direct deposit.
D) Payment must be delivered to someone who is unconnected to the victim company.
4. ________ increase assets and expenses and/or decrease liabilities and/or equity.
A) Journal Entries
B) Debit
C) Credit
D) None of all
5. Which of the following signs is a red flag that might indicate an entity is operating a securities business without the proper license or registration?
A) The entity's website lists a prospectus for each security.
B) The entity has a lack of customer complaints.
C) The entity has a history of regulatory filings.
D) The entity's promoters have unexplained gaps in their work history.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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