ACCT 4120 Chapter 3

Question 1

steps taken to keep fraud from occurring

Answer 1

fraud prevention

Question 2

an act designed to protect investors from the fraudulent activities of a company’s employees

Answer 2

Sarbanes-Oxley Act of 2002

Question 3

a means whereby an employee can report fraud without fear of repercussions

Answer 3

whistle-blowing system

Question 4

a model that explains why people make unethical decisions

Answer 4

EMM

Ethical Maturity Model

Question 5

an explanation of the behaviors a company expects from its employees and how deviations from these expectations will be punished

Answer 5

codes of conduct

Question 6

evidence gathered from individuals

Answer 6

testimonial evidence

Question 7

uncovering evidence of fraud

Answer 7

fraud detection

Question 8

the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has occurred, is occurring, or will occur

Answer 8

predication

Question 9

fingerprints, tire marks, weapons, stolen property, identification numbers or marks on stolen objects, and other tangible evidence

Answer 9

physical evidence

Question 10

evidence gathered from paper, computers, and other written or printed sources

Answer 10

documentary evidence

Question 11

looking for evidence of a crime

Answer 11

investigation

Question 12

efforts to catch the perpetrator(s) in the embezzlement act or to gather information about such acts

Answer 12

theft act

Question 13

evidence that is sensed (seen, heard, felt, etc.) by the investigators themselves

Answer 13

personal observation

Question 14

focusing on records, documents, computer programs and servers, and other places where perpetrators might try to conceal or hide (cover) their dishonest acts

Answer 14

concealment

Question 15

searching for ways in which perpetrators have spent or used their stolen assets

Answer 15

conversion