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

The ACFE Report to the Nations consistently finds that tips account for more than 40% of fraud detection, making it the single most common detection method.

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 ghost vendor is a fake entity added to the vendor master file by a fraudulent employee so that payments can be routed to an account they control.

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

Three-way matching compares the purchase order, invoice, and receiving report to verify that goods or services were actually ordered, delivered, and billed correctly before payment is authorized.

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

Approving transactions that personally benefit a family member without disclosure is a conflict of interest that violates typical corporate ethics policies and may rise to the level of fraud.

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

A vendor-employee address cross-match compares the vendor master file against employee records to identify shared addresses, phone numbers, or bank accounts suggesting fictitious or related vendors.

CAPA - Certified Accounts Payable Associate Practice Test

CAPA - Certified Accounts Payable Associate Practice Test

CAPA Fraud Prevention and Detection 3