Fraud Tree Exam

Question 1

Three Main Categories of the Fraud Tree

Answer 1

Corruption, Asset Misappropriation, and Financial Statement Fraud

Question 2

Asset Misappropriation

Answer 2

Cash, Inventory and All Other Assets

Question 3

Cash

Answer 3

Theft of Cash on Hand, Theft of Cash Receipts, Fraudulent Disbursements

Question 4

Theft of Cash Receipts

Answer 4

Skimming, Cash Larceny

Question 5

Skimming

Answer 5

Sales, Receivables, Refunds and Other

Question 6

Sales

Answer 6

Unrecorded, Understated

Question 7

Receivables

Answer 7

Write-off Schemes, Lapping Schemes, Unconcealed

Question 8

Fraudulent Disbursements

Answer 8

Billing Schemes, Payroll Schemes, Expense Reimbursement Schemes, Check Tampering, Register Disbursements

Question 9

Billing Schemes

Answer 9

Shell Company, Non-Accomplice Vendor, Personal Purchases

Question 10

Payroll Schemes

Answer 10

Ghost Employee, Falsified Wages, Commission Schemes

Question 11

Expense Reimbursement Schemes

Answer 11

Mischaracterized Expenses, Overstated Expenses, Fictitious Expenses, Multiple Reimbursements

Question 12

Check Tampering

Answer 12

Forged Maker, Forged Endorsement, Altered Payee, Authorized Maker

Question 13

Register Disbursements

Answer 13

False Voids, False Refunds

Question 14

Inventory and All Other Assets

Answer 14

Misuse, Larceny

Question 15

Larceny

Answer 15

Asset Requisitions and Transfers, False Sales and Shipping, Purchasing and Receiving, Unconcealed Larceny

Question 16

Corruption

Answer 16

Conflicts of Interest, Bribery, Illegal Gratuities, Economic Extortion

Question 17

Conflicts of Interest

Answer 17

Purchasing Schemes, Sales Schemes

Question 18

Bribery

Answer 18

Invoice Kickbacks, Bid Rigging

Question 19

Financial Statement Fraud

Answer 19

Net Worth / Net Income Overstatements, Net Worth / Net Income Understatements

Question 20

Net Worth/Net Income Overstatements

Answer 20

Timing Differences, Fictitious Revenues, Concealed Liabilities and Expenses, Improper Asset Valuations, Improper Disclosures

Question 21

Net Worth/Net Income Understatements

Answer 21

Timing Differences, Understated Revenues, Overstated Liabilities and Expenses, Improper Asset Valuations, Improper Disclosures