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- 1. Multiple Choice
Which of the following is NOT a procedure that will be performed using Benford’s law:
The first two digits test
The random 2 digits test
The first three digits test
The last two digits test
- 2. Multiple Choice
All the following are drawbacks in using data analytics for fraud detection, EXCEPT:
Reporting of ‘false trues’
Usage of wrong technique
Populations with extremely large volumes of data
Areas involving high levels of judgment
- 3. Multiple Choice
The name of a tool to detect lies - commonly known as ‘lie detector' is:
Polygraphs
Regression plotter
Mind charter
Sedation graph
- 4. Multiple Choice
If the population has both positive and negative numbers, the Benford’s test is run using:
2 separate tests for positive and negative values
Absolute values of the numbers in data base
Netting of positive and negative numbers
Benford’s law cannot be applied.
- 5. Multiple Choice
Primary responsibility for fraud prevention lies with:
SFIO (Serious Fraud Investigating Office)
Internal Auditor
External auditor
Management
- 6. Multiple Choice
Which of the following is a scheme of financial statements fraud:
Fictitious Revenues
Improper asset valuations
Concealed liabilities and expenses
Generally a combination of all the above
- 7. Multiple Choice
A Data Analytic exercise of General Ledger data using Tableau can be used to detect all the following frauds – EXCEPT:
Completeness of trial balance produced for audit.
Unauthorized sales made to related parties
Forged cheque used to pay cash to a supplier
Netting of a receivable balance with payable balance to conceal cash receipts
- 8. Multiple Choice
Select one BEST response. Embedding keyword search as a tool in GL module helps to identify which type of irregularities:
Wrong depreciation calculated for a class of fixed assets
Illegal gratification to a government official
An error of omission in the bank reconciliation statement
A missing disclosure in the financial statements
- 9. Multiple Choice
Tableau based tools can analyze volumes of data up to:
1 to 2 million line items
2 to 5 million line items
5 to 10 million line items
More than 10 million line items
- 10. Multiple Choice
Journal Entry testing (JET) as a tool for identifying abnormal entries is effective for all the following types of abnormal entries – EXCEPT:
Entries made on weekends and official holidays by chief accountant
Entries made by marketing manager using the accountant’s credentials
Entries made and reversed on next days.
Entries made to rarely used accounts
- 11. Multiple Choice
Which one of the following is an example of ‘Green Flag’ as an early warning bell:
An accountant always shows a slightly excess physical cash as compared to the book balance
An entity has always faced a zero difference in its equation of [assets - (liabilities + equity)] in its balance sheet generated using Oracle.
On an analysis of past 5 years data, a retail supermarket chain has always shown a bad debt level of near 0% in all 5 years.
Bank reconciliation statement for a particular bank account of a company is not reconciled for 3 years.
- 12. Multiple Choice
RSF test as a data analytics tool may not be successful with populations having large number of single records per subset, because the technique:
Needs different data characteristics to draw a scatter diagram of attributes
Uses tools like MS Excel where unique records can not be used
Compares the top two records for each subset to calculate
Requires diverse data records to create a historical pattern
- 13. Multiple Choice
Following are examples of a few data analytic tools used in forensic accounting and fraud detection (select as many choices as applicable):
IDEA
ACL
Tableau
MS Excel
- 14. Multiple Choice
VLOOKUP syntax in MS Excel uses the following information (select as many choices as applicable):
Lookup value
Range containing the lookup value
The column number in the range containing the return value
Approximate match (TRUE) or Exact match (FALSE)
- 15. Multiple Choice
In an IT environment, following are early warning bells for a potential fraud (select as many choices as applicable):
Over-enthusiastic migration from migration from one application to a new one
Implementing a computerized system without staff orientation
Errors in migration of closing balances in old system to opening balances in a new system.
Multiple manual override request in system customization
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