(Multiple Choice)
1. Why does fraud seem to be increasing at such an alarming rate?
a. Computers, the Internet, and technology make fraud easier to commit.
b. Most frauds today are detected, whereas in the past many were not.
c. A new law requires that fraud be reported within 24 hours.
d. People understand the consequences of fraud to organizations.

2. Which of the following is not an important element of fraud?
a. Confidence.
b. Deception.
c. Trickery.
d. Intelligence.

3. Fraud is considered to be:
a. A serious problem that continues to grow.
b. A problem that affects very few individuals.
c. A mild problem that most businesses need not worry about.
d. A problem under control.

4. People who commit fraud are usually:
a. New employees.
b. Not well groomed and have long hair and tattoos.
c. People with strong personalities.
d. Trusted individuals.

5. “The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets” is the definition of which of the following types of fraud?
a. Employee embezzlement or occupational fraud.
b. Investment scams.
c. Management fraud.
d. Vendor fraud.

6. Corporate employee fraud fighters:
a. Work as postal inspectors and law enforcement officials.
b. Prevent, detect, and investigate fraud within a company.
c. Are lawyers that defend and/or prosecute fraud cases.
d. None of the above.

7. Investment scams most often include:
a. An action by top management against employees.
b. Worthless investments or assets sold to unsuspecting investors.
c. An overcharge for purchased goods.
d. Nonpayment of invoices for goods purchased by customers.

8. Which of the following is not true of civil fraud?
a. It usually begins when one party files a complaint.
b. The purpose is to compensate for harm done to another.
c. It must be heard by 12 jurors.
d. Only “the preponderance of the evidence” is needed for the plaintiff to be successful.