Question Details

ACCT 345 Chapter 9 Conversion Investigation Methods PART 1


MULTIPLE CHOICE

	1.	Which of the following types of information do credit reporting agencies not maintain?
a.	Information of current and former employers
b.	Account information such as payment schedules, items purchased, and buying habits.
c.	Marketing information such as customer breakdowns by age, sex, and income levels
d.	Consumer information such as addresses and family members
e.	Credit reporting agencies maintain all of the above information



	2.		Using the data below the income from unknown sources for year 2 and 3 respectively are:
	Year 1	Year 2	Year 3
Home	220000	220000	220000
Car	25000	25000	50000
Investments	40000	50000	65000
Bank Account	3000	7000	10000
Total Assets	288000	302000	345000
			
Home Loan	200000	150000	100000
Auto Loan	20000	0	0
Student Loan	60000	20000	0
Total Liabilities	280000	170000	100000
			
Salary		95000	105000
Investments		4000	5000
Inheritance		6000	0
Total Income		105000	110000
			
Homeloan		13200	13200
Auto loan		9600	9600
Other living		20000	22000
Wedding		4000	0
Total Expenses		46800	44800
    
a.	-27,800; -41,800
b.	275,800; 267,800
c.	81,800; 311,800
d.	65,800; 47,800




	3.	Social Security contains information about an individual.  Which item below is not included in an individual's social security number?
a.	Area the person was living when the number was issued
b.	A unique serial number for a person
c.	Race 
d.	Group number



	4.	Searching through someone's garbage is considered a legal activity when:
a.	the trash is more than 14 days old
b.	the trash is in the person's possession
c.	the trash has left the person's home or sidewalk
d.	Stealing a person's trash is never considered a legal activity.



	5.	Income from known sources subtracted from total income gives a reasonable estimate of:
a.	Unknown funds
b.	Liabilities
c.	Living Expenses
d.	Net Worth



	6.	During an interview with Heidi Royce, she confessed to accepting $64,500 in kickbacks from a key supplier over the last 6 months.  Heidi- income for the year was $48,000 and her living expenses totaled $94,500 due mainly to medical costs of $40,000.  She has a current net worth of $20,000.  What was her (increase/decrease) in net worth?
a.	$6,500
b.	$2,000
c.	$71,000
d.	$9,500



	7.	What is the purpose of the net worth calculation in fraud?
a.	It is used to determine the extent of stolen funds
b.	It is used to determine how much money can be stolen without causing a company to go bankrupt.
c.	It is used to help locate fraudulent asset accounts
d.	All of the above



	8.	Which of the following is not one of the credit reporting agencies used to check identity theft?
a.	Experian
b.	Equifax
c.	Transunion
d.	Proquest



	9.	________ is both a federal and state source of information.
a.	Secretary of state
b.	Bureau of prisons
c.	Department of defense
d.	Permit departments



	10.	Which of the following is not a needed component for computing a person's Net Worth?
a.	Parent's financial status
b.	Prior year's net worth
c.	Funds from known sources
d.	Net worth increase



	11.	Which of the following is not a type of information that can be obtained from the County Land Office and Tax Assessor's Office?
a.	Real Estate that has been purchased
b.	Automobile registration
c.	Property's current assessed value
d.	Liens removed


	12.	All of the following federal agencies maintain information that can help fraud investigations except which?
a.	ATF
b.	Social Security Administration
c.	Department of Justice
d.	Postal Service



	13.	Which of the following agencies is generally the least productive in a records search?
a.	Searching Local agencies
b.	Searching County agencies
c.	Searching State agencies
d.	Searching Federal agencies



	14.	Which of the following is not a federal source of information?
a.	Secretary of State
b.	CIA
c.	Bureau of Prisons
d.	FBI



	15.	Evidence gathered from searching through someone's trash:
a.	Can help identify concealment attempts
b.	Can help to determine how a perpetrator is spending stolen money
c.	Can help understand how a perpetrator is stealing money
d.	All of the above are true



	16.	Net worth calculations do all of the following except:
a.	Determine Net worth
b.	Determine funds from unknown sources
c.	Determine where fraudulent monies are hidden
d.	Determine a person's Net Worth Increase



	17.	Which of the following statements is false regarding the net worth method?
a.	The net worth method generally understates amounts stolen.
b.	Much of the information necessary for determining an individual's assets, liabilities, living expenses, and income is available through public records.
c.	Courts are generally suspicious of dollar amounts determined by the net worth method because courts realize that the net worth method can only provide approximations of the amount stolen.
d.	The net worth method is useful for obtaining confessions from suspects during interviews or interrogations.



	18.	Which of the following is not a good reason for involving postal inspectors in a fraud investigation?
a.	Postal inspectors share jurisdiction with other federal, state, and local agencies.
b.	Postal inspectors work for the prosecution of offenders who violate postal laws.
c.	Postal inspectors have access to an individual- past and current addresses.
d.	Postal inspectors work to protect citizens from loss through theft that uses the mail system.



	19.	Mandy calls a local newspaper and pretends to be a neighbor who is away for the winter.  She obtains account history and orders newspaper service for six months.  Has Mandy committed fraud?
a.	No.  The newspaper has not yet been delivered nor paid.
b.	Yes.  She is in violation of the Gramm-Leach Bliley Act of 1999.
c.	No.  Her neighbor can obtain all of the newspapers when they return next spring.
d.	Yes.  She has engaged in mail fraud, Title 18, U.S. Code Section 1344.



	20.	You are investigating a fraud in which you suspect that one of your suppliers from another state has been giving bribes and kickbacks to your purchasing agent in exchange for a lucrative, exclusive contract.  Which of the following agencies/individuals would be the most helpful in investigating this fraud?
a.	The FBI because they have national jurisdiction and can investigate and prosecute violators from a different state.
b.	The state attorney general for the supplier- state because they are responsible for enforcing all state civil and criminal laws.
c.	Postal inspectors because the bribes and kickbacks were most likely made through the mail system; therefore, federal mail statutes apply.
d.	The IRS because your purchasing agent is not too bright and probably reported the bribes and kickbacks as income on his tax returns.