Question 3With regard to predatory fraudsters, which of thefollowing statements is correct?1 pointThe fundamental premise of the Fraud Triangle suggests that when an ordinaryperson, or predatory fraudster, commits fraud, all three of the legs of thetriangle must be present.Predators spend their time and energy looking for opportunities tocommit fraud.The fundamental premise of the Fraud Triangle suggeststhat when an ordinary person, or accidental fraudster, commits fraud, all threeof the legs of the triangle must be present.Predatory fraudsters are good at creating elaborate excuses orrationalizations for their conduct.4.Question 4Large fraud perpetrators are more likely to use the money for all of the following except:1 pointto purchase new homes.to pay for expensive vacations.to support extramarital affairs.to pay taxes.5.Question 5Overall, management must design, implement, and maintain:1 pointan internal controls program to protect entity assets, liabilities, and owners’ equity.internal controls to support effective and efficiency of operations, reliability of reporting, and compliance with laws and regulations.an automated accounting system that implements each component of U.S. GAAP accounting principles.All of the choices are correct.6.Question 6Based on a number of theories, people obey laws for all of the following reasons except:1 pointThe fear of punishment.The desire for rewards.In order to act in a just and moral manner according to society’s standards.Due to a duty to act7.Question 7With regard to internal controls, which of thefollowing would generally not be considered an internal control for payroll.1 pointUse of time cardsPasswords to log into computersIdentification cards to record when employees start and end a job taskCameras to record activities at the workplace.8.Question 8Fraud deterrence begins:1 pointwith the employer’s internal controls.in the employee’s mind.with the fraud examination.with regulatory and legal actions such as PCAOB Auditing Standard No. 5, AICPA Statement on Auditing Standards (SAS) No. 99, and the Sarbanes–Oxley Act.9.Question 9When describing the characteristics of a crime, the Triangle of Fraud Action contains which of the following components?1 pointThe ActRationalizationConversionFinancial Pressure10.Question 10Three of the various objectives of an internal control program are:1 pointfraud prevention, fraud deterrence, and fraud mitigation.fraud prevention, fraud deterrence, and fraud detection.fraud deterrence, fraud detection, and fraud prosecution.fraud elimination, fraud deterrence, and fraud mitigation.

Question 6From an investigatory perspective, the shortcoming ofthe fraud triangle is as follows:1 pointThe fraud triangle doesn’t help the investigatorunderstand the motivations of the fraudster.The fraud triangle doesn’t help the investigator understand why thefraudster committed fraud.Pressure and rationalization are generally notobservable.The fraud triangle is as important to an investigation as any othertool

Question 2Which of the following is NOT an attribute of the “predatory” fraudtriangle.1 pointOpportunityArroganceCriminal mindsetRationalization

Which of the following is not one of the components of the fraud triangle?Multiple choice question.DishonestyRationalizationOpportunityPressure

Read the case below and identify the component of the fraud triangle that DID NOT result in the fraud. Was it the victim's attitudes or rationalisation? Did the perpetrators take advantage of an opportunity? Were the victims lured in by incentives or pressured? Scammers are pretending to be children in need of financial help as part of a new messaging scam targeting parents, authorities have warned.Key points:The scammers invent emergencies to encourage payment, such as needing a new phone or paying an urgent billDetectives have identified at least 25 victims of the scam this yearPolice say these sorts of scams are often under-reportedAt least 25 victims of the scam, which originated in Europe, have been detected in Victoria this year.The victims typically receive a WhatsApp or text message from an unknown number impersonating their child.According to police, messages often say something along the lines of "Hi mum, I've changed provider/lost/broken my phone – I'm temporarily using this number for now."The offenders eventually request money from the victim, usually using some kind of emergency as their justification for needing the funds.Most of the offenders are based overseas and are not known to the victims. Question is adapted from this news story - https://www.abc.net.au/news/2022-08-12/hi-mum-messaging-scam-targeting-parents/101326776 Links to an external site.- students do not need to read the story to answer the questionGroup of answer choicesIncentive or pressureFraudsters took advantage of all componentsAttitude or rationalisationOpportunity to commit fraud

Question 8To improve the effectiveness of the fraud triangle, Wolfe and Hermanson suggests which characteristic as an addition to the fraud triangle?1 pointCapabilityCapacity to steal IntegrityEgo or entitlement.9.Question 9With regard to segregation of duties, which of the following is not oneof the four major functions1 pointauthorizingcorrectingrecordingsafeguarding10.Question 10