OIC Financial Crimes & Fraud Investigation 3

Question 1

What role does forensic accounting play in a financial crimes investigation?

Accepted Answer

It applies accounting and auditing skills to analyze financial evidence for legal proceedings

Answer

Forensic accounting combines accounting, auditing, and investigative skills to examine financial records for evidence of fraud or criminal activity, providing findings that can be used in court.

Question 2

What is 'skimming' in the context of financial fraud?

Accepted Answer

Removing cash from a business before it is recorded in the accounting system

Answer

Skimming is an off-book fraud where cash receipts are stolen before they are entered into an organization's accounting records, making it particularly difficult to detect through standard audits.

Question 3

What is 'phishing' in the context of financial crimes?

Accepted Answer

Using deceptive electronic communications to trick victims into revealing financial credentials

Answer

Phishing is a social engineering attack where criminals use deceptive emails, texts, or websites that appear legitimate to trick victims into providing financial account credentials, passwords, or personal identifying information.

Question 4

What is the general federal statute of limitations for wire fraud and bank fraud offenses?

Accepted Answer

10 years from the date of the offense

Answer

Under federal law, the statute of limitations for wire fraud (18 U.S.C. § 1343) and bank fraud (18 U.S.C. § 1344) is generally 10 years from the date of the offense.

Question 5

In financial fraud investigations, what does the term 'layering' refer to?

Accepted Answer

Creating complex layers of financial transactions to obscure the origin of illicit funds

Answer

Layering is the second stage of money laundering, involving a series of complex financial transactions designed to put distance between illicit funds and their criminal source, making the paper trail difficult to follow.

(OIC) Oregon Inspector Certification Practice Test

(OIC) Oregon Inspector Certification Practice Test

OIC Financial Crimes & Fraud Investigation 3