(Multiple Choice)
1. Which of the following is true regarding fraud?
a. It is easily identified.
b. It is seldom observed.
c. When a fraud occurs, there is no question whether or not a crime has been committed.
d. Many witnesses are usually available when fraud occurs.

2. Which of the following is not a fraud symptom related to source documents?
a. Duplicate payments.
b. Missing documents.
c. A tip from an employee.
d. Photocopied documents.

3. Which of the following is a fraud symptom related to an internal control weakness?
a. Lack of proper authorization.
b. Lack of independent checks.
c. Inadequate accounting system.
d. Lack of physical safeguards.
e. All of the above.

4. In the three elements of fraud (theft act, concealment, conversion), who is usually in the best position to detect the fraud?
a. Coworkers and managers.
b. Customers.
c. Owners.
d. Vendors.

5. When a person commits a crime:
a. He or she usually becomes engulfed by emotions of fear and guilt.
b. He or she will experience no changes in behavior.
c. He or she usually becomes friendly and nice.
d. He or she experiences a lower stress level.

6. Most people who commit fraud:
a. Use the embezzled funds to build a savings account..
b. Give the embezzled funds to charity.
c. Experience no change in their lifestyle.
d. Use the embezzled funds to improve their lifestyle.

7. Which of the following is not a reason people are hesitant to come forward with knowledge or suspicions of fraud?
a. They often think that squealing on someone is wrong.
b. They fear reprisal for being a whistle-blower.
c. It is usually impossible to know for sure that a fraud is taking place.
d. People who report fraud are often rewarded monetarily.

8. Which of the following is not one of the categories of employee fraud symptoms?
a. Accounting anomalies.
b. Analytical anomalies.
c. Tips and complaints.
d. Firm structure.

9. Embezzlement of assets reduces the left side of the accounting equation. To conceal the theft, the embezzler must find a way to reduce the right side of the accounting equation. A perpetrator would most likely reduce the right side of the equation by:
a. Reducing accounts payable.
b. Paying dividends.
c. Increasing expenses.
d. Altering stock accounts.