INTRODUCTION

Question 1

Fraud examination is

Answer 1

a methodology for resolving fraud allegations from inception to disposition

Question 2

fraud examination involves

Answer 2

obtaining evidence and taking statements, writing reports, testifying to findings, and assisting in the detection and prevention of fraud

Question 3

Forensic accounting is

Answer 3

the use of professional accounting skills in matters involving potential or actual civil or criminal litigation.

Question 4

Axioms of Fraud Examination

Answer 4

Fraud is Hidden
Reverse Proof
Existence of Fraud

Question 5

Assembling the Fraud Team

Answer 5

Certified Fraud Examiners 
Auditors 
Security
Human Resources Personnel 
Management Representative
Outside Consultant 
Legal Counsel

Question 6

Predication

Answer 6

the totality of circumstances that would lead a reasonable, professionally trained, and prudent individual to believe a fraud has occurred, is occurring, and/or will occur

Question 7

The fraud theory approach involves the

following steps, in the order of their occurrence:

Answer 7

• Analyse available data
• Create a hypothesis
• Test the hypothesis
• Refine and amend the hypothesis

Question 8

The Fraud Examiner’s Tool Kit

Answer 8

Interviewing
Neutral Third-Party Witnesses 
Corroborative Witnesses 
Co-Conspirators
Subject

Question 9

The purpose of the fraud examination is

Answer 9

to prove or disprove the legal elements of the
offence. Each and every element must be proven (1) beyond a reasonable doubt in criminal cases, and (2) by a preponderance of the evidence in civil cases

Question 10

While it is not possible or necessary to list every variation of white-collar crime and fraud, all have common elements, such as

Answer 10

• Intent—knowingly to commit a wrongful act or to achieve a purpose inconsistent with law or public policy
• Disguise of purpose—falsities and misrepresentations employed to accomplish the
scheme
• Reliance—by the offender on the ignorance or carelessness of the victim
• Voluntary victim action—to assist the offender
• Concealment—of the offence

Question 11

Some of the more common ways to show

intent include proof that the accused

Answer 11

• Had no legitimate motive for the activities
• Repeatedly engaged in the same or similar activity of an apparent wrongful nature
• Made conflicting statements
• Made admissions
• Acted to impede the investigation of the offence
• Made statements the offender clearly knew to be false

Question 12

Proof Stages in Fraud Cases

Answer 12

Stage One: Building the Circumstantial Case
Stage Two: Obtaining Direct Evidence
Stage Three: Sealing the Case through Examination of the Subject