MCQ Bank
A significant gap between operating income and operating cash flow may be an indicator of:
- A) Tax evasion
- B) Financial statement fraud
- C) Increased shareholder equity
- D) Poor investment decisions
Which one of the following data analysis tools is used to identify missing items in a sequence or series?
- A) Gap test
- B) Stratification
- C) Sort and index
- D) Duplicate searches
What does the Beneish M-Score help identify?
- A) Market share anomalies
- B) Financial statement fraud likelihood
- C) Cash flow issues
- D) Payroll misstatements
If the investigation focuses on unexplained wealth increase, which evidence is admissible?
- A) Social media posts
- B) Verbal claims from neighbors
- C) Rumors about spending
- D) Documents of cash flow transactions
What is a key method to detect asset misappropriation?
- A) Rotating duties or mandatory leave for key employees
- B) Price variance analysis
- C) Surprise vacation approval
- D) Issuing multiple vendor invoices
Which document shows legal ownership transfer of a property?
- A) Contract Agreement
- B) Transfer Deed
- C) Registration Book
- D) Purchase Offer
What is the primary advantage of using non-financial ratios in fraud detection?
- A) They eliminate the need for financial data
- B) They are easy to manipulate
- C) Perpetrators usually do not alter non-financial data
- D) They reduce the cost of auditing
Concealment of family ties in a business sale may indicate:
- A) Tax exemption
- B) Potential fraud
- C) Reduced liability
- D) A legitimate transaction
Why might a judge require strict supervision during a telephonic intercept?
- A) To safeguard privacy rights
- B) To limit technical issues
- C) To increase investigator convenience
- D) To reduce recording costs
The forensic accountant as an expert witness may be involved at the following stages throughout the development of the case, EXCEPT:
- A) Conducting financial statement analysis
- B) Case assessment
- C) Identification of documentation required to support the case
- D) Evaluation of scope of work
All of the following tools can be used by the investigator for examining and detecting fraud in a company by an employee to save cost and time, EXCEPT:
- A) Surveys
- B) Stratification
- C) Duplicate searches
- D) Gap test
If a sale to a related party is concealed, investigators:
- A) Assume innocence
- B) Consider it a red flag
- C) Ignore the evidence
- D) Accept documents without review
The “eyeball” in surveillance refers to:
- A) The first point of observation
- B) The subject’s countermeasure
- C) The lead officer
- D) The base officer