CAPA Fraud Prevention and Detection 3

Question 1

According to the Association of Certified Fraud Examiners (ACFE), what percentage of occupational fraud cases are detected through tips?

Accepted Answer

More than 40%

Answer

Less than 10%

Answer

Approximately 20%

Answer

Exactly 30%

Question 2

What is a 'ghost vendor' in the context of AP fraud?

Accepted Answer

A fictitious vendor record created to receive fraudulent payments

Answer

A vendor whose contract has expired but remains in the system

Answer

A vendor who delivers goods anonymously

Answer

A backup vendor used only during supply chain disruptions

Question 3

Which three-way match component is most critical for detecting receipt of goods fraud in AP?

Accepted Answer

Matching the invoice to the purchase order and the receiving report

Answer

Matching the invoice to the vendor contract

Answer

Matching the invoice to the budget forecast

Answer

Matching the invoice to the prior year payment history

Question 4

An AP manager approves all invoices submitted by their spouse's business without disclosing the relationship. Under most corporate ethics policies, this constitutes:

Accepted Answer

A conflict of interest that likely violates company policy and may be fraudulent

Answer

A standard related-party transaction requiring disclosure

Answer

An acceptable practice if the pricing is market rate

Answer

A vendor diversity initiative

Question 5

Which AP data analytics test is used to identify payments made to vendors with addresses that match employee addresses?

Accepted Answer

Vendor-employee address cross-match

Answer

Benford's Law test

Answer

Days payable outstanding analysis

Answer

Invoice aging analysis

Question 6

What is the significance of an invoice numbered just below a company's approval threshold (e.g., $4,990 when the threshold is $5,000)?

Accepted Answer

It may indicate invoice splitting to avoid higher-level authorization requirements

Answer

It is likely a standard vendor pricing practice

Answer

It qualifies for an early payment discount

Answer

It signals the vendor is offering a promotional rate

Question 7

Which of the following best describes the 'fraud triangle' concept as applied to AP employees?

Accepted Answer

The combination of pressure, opportunity, and rationalization that together explain why individuals commit fraud

Answer

The three departments involved in AP processing

Answer

The three-way match of PO, invoice, and receipt

Answer

A three-step escalation process for reporting fraud