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| Section | Objectives |
|---|---|
| Fraud Investigation and Analysis | - Evidence collection and documentation
|
| Fraud Schemes | - Asset Misappropriation Schemes
|
| Financial Crimes | - Money Laundering
|
1. The taxing authority in a country allows companies to subtract the cost of production from their gross sales to determine taxable income. A business owner operating in that country purchases materials from a local supplier and pays the supplier to alter the receipt to show a higher price than was paid. When the business owner submits the company's tax information to the taxing authority, they submit the altered receipt to reduce their tax burden. The business owner is MOST LIKELY committing which of the following schemes?
A) A failure to declare income scheme
B) An excise tax evasion scheme
C) A tax credit deferral scheme
D) A falsified tax deduction scheme
2. Which of the following can constitute a bribe, even if the illicit payment is never actually made?
A) Overbilling in payment
B) Offering a payment
C) Corruption in payment
D) Kickback payment
3. Which of the following is TRUE regarding pyramid schemes?
A) None of the above
B) All pyramid organizational structures are illegal
C) The goal that participants of pyramid schemes have is to sell worthless products to friends and family
D) An illegal pyramid scheme is modeled to pay off its earliest investors but not its later investors
4. Which of the following elements must be TRUE for a ghost employee scheme to be successful?
A) Payment must be delivered to someone who is unconnected to the victim company.
B) Wage rate information must be collected for the ghost employee.
C) The ghost employee must be a real person.
D) Payment must be made via direct deposit.
5. Which of the following signs is MOST LIKELY to indicate that a third-party vendor or contractor is engaging in a corruption scheme?
A) The third party requests that payment be sent to a different country from where it conducts business.
B) The third party is consistently awarded contracts based on a reputation for providing higher quality services than its competitors.
C) The third party charges lower-than-average prices for the goods and services it offers to customers.
D) The third party provides contact information that contains a single address and a telephone number.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: A |
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