EMT Practice Test

1. Question Content...

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Question1: Which sale occurs when the accomplice of the employee-fraudster "buys" merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Question2: A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

Question3: A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

Question4: __________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

Question5: In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Question6: The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others is called:

Question7: Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.

Question8: _________ revenues involve the recording sales of goods or services hat did not occur.

Question9: Fill in the Blanks
The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

Question10: A typical issue involving material and fraud would be:

Question11: According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

Question12: Bid-rigging scheme occurs when:

Question13: Skimming is:

Question14: Fill in the Blanks
___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Question15: The prime targets for skimming schemes which are hard to monitor and predict such as late fees and parking fees, are:

Question16: The person or persons who have access to __________ are often the targets of unethical vendors seeking an advantage in the process.

Question17: One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

Question18: ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Question19: ___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Question20: The most basic skimming scheme occurs when:

Question21: A voucher is:

Question22: Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.

Question23: In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.

Question24: By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

Question25: The fraudsters' interest lies with an employer other than a company.

Question26: Which of the following is NOT standard of generally accepted accounting principles?

Question27: Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

Question28: Which of the following is NOT the reason why senior management will overstate business statement?

Question29: ________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Question30: According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Question31: Fill in the Blanks
A ____________ can be very costly for an organization to undertake, both in terms of money and time spent.

Question32: Most of the shell company schemes involve the purchase of goods rather than services.

Question33: Delivery has not occurred or services have not been rendered when:

Question34: In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

Question35: Physical tampering prevention is a check tampering technique that is used to secure bank assisted controls.

Question36: Skimming cases can more likely to be detected by:

Question37: In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Question38: Which counts sometimes can give rise to inventory theft detection?

Question39: Which of the following are the classifications for the Corruption?

Question40: Which of the following is NOT the reason to bribe employees of the purchaser?

Question41: Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not results from theft.

Question42: The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

Question43: A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.

Question44: Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.

Question45: Larceny by Fraud or deception means that:

Question46: Fill in the Blanks
One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

Question47: A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:

Question48: Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

Question49: Which of the following are not of Basic types of non-sharable problems?

Question50: Statistical sampling enables the examiner to predict the occurrence rate for the population and therefore determine with some accuracy the error rate, or the potential for fraud.

Question51: Which of the following is NOT the phase of the bidding process?

Question52: In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.

Question53: Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:

Question54: Which of the following search is used for unusually high incidence of returns and allowances scheme?

Question55: Which of the following is true for Red flags associated with fictitious revenues?

Question56: A journal in which all sales made on credit or cash are listed is:

Question57: Which of the following is NOT the type of billing scheme?

Question58: In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

Question59: Another way to eliminate competition in the solicitation phase of the selection process is to:

Question60: When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

Question61: Forced reconciliation of the account says:

Question62: The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

Question63: The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.

Question64: Fill in the Blanks
______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

Question65: Which of the following is the criterion for bid solicitation?

Question66: A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

Question67: Fill in the Blanks
_________ is defined as a person who works for the victim organization and who is primary culprit