CIA CIA Fraud Examination & Prevention

Question 1

According to the fraud triangle, which of the following is NOT one of the three elements that contribute to fraudulent behavior?

Accepted Answer

Greed

Answer

Pressure

Answer

Rationalization

Answer

Opportunity

Question 2

Which type of fraud involves an employee creating fictitious vendors and submitting false invoices for payment?

Accepted Answer

Ghost vendor scheme

Answer

Skimming

Answer

Lapping

Answer

Kiting

Question 3

The Association of Certified Fraud Examiners (ACFE) Report to the Nations identifies which category as causing the greatest median loss per case?

Accepted Answer

Financial statement fraud

Answer

Asset misappropriation

Answer

Corruption

Answer

Payroll fraud

Question 4

Which internal control is most effective at preventing check tampering fraud?

Accepted Answer

Dual authorization for check issuance

Answer

Periodic bank reconciliations

Answer

Monthly expense reports

Answer

Annual external audits

Question 5

What is 'lapping' in the context of accounts receivable fraud?

Accepted Answer

Using one customer's payment to cover a stolen prior payment

Answer

Recording fictitious sales to inflate revenue

Answer

Writing off customer balances and pocketing cash

Answer

Issuing duplicate payments to vendors

Question 6

Which data analytics technique is commonly used to detect potential payroll fraud such as ghost employees?

Accepted Answer

Matching employee records to payroll disbursements

Answer

Regression analysis

Answer

Benford's Law analysis

Answer

Horizontal financial statement analysis