Topic 6 Investigating Theft Acts Flashcards
Which of the following is not a category used in the fraud triangle plus inquiry paradigm?
a. Theft investigative techniques.
b. Concealment investigative techniques.
c. Action investigative techniques.
d. Conversion investigative techniques.
Answer c)
When beginning an investigation, it is important that fraud examiners use techniques that will:
a. Not arouse suspicion.
b. Identify the perpetrator.
c. Determine the amount of the fraud.
d. Identify when the fraud occurred.
Answer a)
When conducting interviews during an investigation, which of the following words should usually be avoided?
a. Audit.
b. Inquiry.
c. Investigation.
d. Record examination.
Answer c)
When beginning a fraud investigation, which of the following methods is most useful in identifying possible suspects?
a. Preparing an identification chart.
b. Preparing a vulnerability chart.
c. Preparing a surveillance log.
d. Hiring a private investigator to tail the subject.
Answer b)
Invigilation:
a. Is most commonly used when investigating crimes that involve the taking of physical assets.
b. Can create tremendous amounts of documentary evidence.
c. Provides evidence to help determine whether fraud is occurring.
d. All of the above are true.
Answer c)
Which of the following is not a theft act investigation method?
a. Invigilation.
b. Honesty testing.
c. Seizing and searching computers.
d. Surveillance and covert operations.
Answer b)
When deciding whether or not to investigate, which of the following factors should an organization not consider?
a. Possible cost of the investigation.
b. Perceived strength of the predication.
c. Possible public exposure resulting because of the investigation.
d. All of the above should be considered.
Answer d)
Surveillance, when properly performed, is always done:
a. Without the perpetrator’s knowledge.
b. During nonworking hours.
c. Only by law enforcement agents.
d. None of the above.
Answer a)
Which of the following is not included in a vulnerability chart?
a. Explanations of the fraud triangle in relation to suspects of fraud.
b. Breakdowns in key internal controls that may have created fraud opportunities.
c. Internal controls that a company plans to institute in the future.
d. Theft act investigation methods.
Answer c)
A vulnerability chart:
a. Forces investigators to explicitly consider all aspects of a fraud.
b. Shows the history of fraud in a company.
c. Identifies weaknesses in every aspect of a company’s internal control.
d. Gives a detailed record of all the movements and activities of the suspect.
Answer a)
Fixed-point, or stationary, observations can be conducted by:
a. Certified fraud examiners.
b. Company personnel.
c. Private investigators.
d. Anyone, if conducted properly.
Answer d)
Surveillance logs should include all of the following except:
a. Time the observation began and ended.
b. Cost of the surveillance equipment used.
c. Movements and activities of the suspect.
d. Distance the observation was from the scene.
Answer b)
Wiretapping, a form of electronic surveillance, can usually be legally used by:
a. Internal auditors.
b. Company controllers.
c. CPAs.
d. None of the above.
Answer D
Which of the following investigation methods often raise concerns about employees’ privacy at work?
a. Electronic surveillance.
b. Invigilation.
c. Forensic accounting.
d. Interviewing and interrogation.
Answer a)
Who should be consulted before any form of surveillance takes place?
a. Public investors and the company’s board of directors.
b. State attorney general.
c. Legal counsel and human resources.
d. All company executives.
Answer c)
When seizing computers, a calculation (also called a hash) that ensures you have an exact clone and have not changed data is called
a(n): a. NIST number.
b. ODBC connection.
c. Internet packet calculation.
d. CRC checksum number.
Answer d)
A snapshot of active memory should be done:
a. Before seizure of the computer.
b. After seizure of the computer but before turning off the computer.
c. After turning off the computer but before calculation of the checksum number.
d. After calculation of the checksum number but before searching.
Answer b)
Which of the following is the last step in an investigation?
a. Interview suspect
b. Interview former employees
c. Interview former buyers
d. Perform surveillance
Answer a)
When investigating fraud, investigators should usually interview suspects:
a. at the beginning of the investigation process to really put the heat on them.
b. in the middle of the investigation process to make them feel that they are not really a suspect.
c. at the end of the investigation process so that they can gather sufficient evidence against them.
d. any time during the investigation process to avoid creating undue stress and suspicion among other employees.
Answer c)
Which of the following is NOT a method for theft investigation?
a. Covert operations (surveillance)
b. Electronic searches
c. Invigilation
d. Physical evidence
Answer b)
Which of the following statements regarding invigilation is accurate?
a. It is a method of creating a loosely monitored environment to catch fraudulent activities.
b. It is an inexpensive method of monitoring all employees during the investigation process.
c. It is most commonly used in such high-risk areas such ‘as expensive inventory.
d. It is a method of watching and recording physical facts, acts, and movements
Answer c)
Identify the best pattern/order to go about a theft investigation.
a. Search public records, check personal records, interview suspect, interview former employers, and interview
other buyers.
b. Check personnel records, interview former employers, search public records, interview other buyers, and
interview suspect.
c. Interview suspect, interview former employers, search public records, check personal records, and interview
other buyers.
d. Interview other buyers, check personal records, interview former employers, interview suspect, and search
public records.
Answer b)
Which of the following is NOT a type of surveillance?
a. Stationary or fixed point
b. Audit
c. Tailing
d. Electronic surveillance
Answer b)
Which investigation technique relies on a person’s senses, especially hearing and seeing?
a. Invigilation
b. Surveillance and covert operations
c. Electronic evidence
d. Obtaining physical evidence
Answer b)
