Chapter 4
Programs that help employees deal with personal pressures.
What are Employee Assistance Programs (EAP)?
This is typically the easiest fraud symptom to detect.
What are Lifestyle Changes?
Understand the business, identify possible frauds that could exist, catalog possible fraud symptoms, use technology to gather data about symptoms, analyze results, and investigate symptoms are the steps to this.
What is the Proactive Method of Fraud Detection?
Unusual processes or procedures in the accounting system.
What are Accounting Anomalies?
A person who feels no guilt because they have no conscience.
What is a Psychopath?
Segregation of duties, system of authorizations, and physical safeguards are all examples of this.
What are Preventative Controls?
Auditors are most likely to detect fraud during this stage.
What is Concealment?
States that the first digit of random data sets will begin with a 1 more often than a 2, a 2 more often than a 3, and so on.
What is Benford's Law?
Relationships in financial or nonfinancial data that do not make sense, such as an unreasonable change in a volume, mix, or price.
What are Analytical Anomalies?
What is Collusion?
This document is where the organization can communicate clear expectations about what is and is not acceptable in an organization
What is the Code of Conduct?
Three procedures a small business owner should do.
What is reconcile the bank statement, pay everything by check, and sign every check?
The splitting of complex data sets into groupings.
What is Stratification?
The most common type of account that fraud perpetrators adjust in order to conceal fraud.
What are Expense Accounts?
Anonymity, Independence, Accessibility, and Follow-up are are elements of this.
What is an effective Whistle-Blowing System?
Approximately _____ of all frauds are committed alone and the remaining _____ involve collusion.
71% and 29%?
Tips and compalints are catorizaed as this because they typically turn out to be unjustified.
What are Fraud Symptoms?
Runs one or more calculations on the subtables to produce a single record representing each subtable.
What is Summarization?
What are Irregularities in Source Documents?
The 2 common emotions first-time perpetrators feel.
What is Fear and Guilt?
This method provides companies the biggest savings.
What is Fraud Prevention?
Lack of segregation of duties, lack of physical safeguards, and lack of independent checks are all examples of this.
What are Internal Control Fraud Symptoms?
This allows the use of the powerful SQL language for searching and filtering of the data.
What is the Open Database Connectivity (ODBC)?
Examples include driving luxury cars, wearing expensive clothes and jewelry.
What are Lifestyle Symptoms?
Who is typically in the best position to observe fraud?
What are Employees?