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Opportunity is required to commit fraud. Which is not an example of opportunity? a. Corrupt business practices b. Insufficient internal controls c. Use of management override d. Pressures from management The fraud diamond adds which to the three factors included in the fraud triangle? a. Rationalization b. Capability c. Pressure d. Predisposition You can accidentally commit fraud if you don't follow procedures. a True b. False Sarah is a 48-year-old loan officer with a degree in Business Finance. She has worked at her current financial institution for 7 years. Which TWO descriptors match the most common profile of a fraudster? a. University degree b. Years with employer C. Age d. Gender Everyone who uses illegal drugs will become a fraudster. a. True b. False Which is not a red flag associated with fraud? a. Something doesn't feel right b. Must act fast c. A payment plan d. Secrecy Which describes one way to prevent fake invoice fraud? Which describes one way to prevent fake invoice fraud? a. The employee who onboards the vendor also pays expenses b. Employee who pays expenses does not enter the invoices into the system c. The employee who process payroll does not add new employees d. Invoices are printed on special letterhead to ensure legitimacy Which TWO are normally required for a fraud scheme to succeed? a. Sense of urgency b. Desire to make money C. Gullible clients d. Pressure to act Which is not a detective fraud control? a. Check internal account activity I b. Vacation policy c. Screen email messages d. Match employee data with clients and vendors Which describes data leakage? a. Employee steals software b. Employee steals process for investment portfolios c. Employee steals a document from a deposit box d. Employee steals customer files Which TWO should you include in your Know Your Employee preventative control process? a. Hire a detective to investigate b. Require original document c. Check all bank account transactions for the last three months d. Personal credit check The best controls for fraud prevention are process-embedded controls a. True b. False A vendor sends you an email updating their payment information and requests that you acknowledge receipt by replying to the email or telephoning the number provided. What should you do? a. Ignore the email b. Reply to the email c. Telephone the number provided d. Telephone the number you have in your system Which Line of Defense owns customer risk? a. Business b. Compliance c. Internal audit d. External audit Which is the best strategy for preventing fraud? a. Assign fraud prevention duties to the 3rd Line of Defense b. Assign fraud prevention duties to all Lines of Defense c. Assign fraud prevention duties to audit d. Hire a third-party provider for fraud prevention A fraud risk assessment must be customized to your organization. I a. True b. False You should include vendors and customers in your fraud risk training program. a. True b. False Which should you not do when investigating fraud? a. Document steps to improve controls b. Retain fraudster while determining how the fraud was committed. c. Determine the fraud amount d. Document all findings Which step is not part of the fraud risk assessment cycle? a. Report fraud to authorities b. Prepare reports c. Implement controls d. Perform training Which TWO describe a Ponzi scheme? a. No work b. Recruits pay recruiter a portion of their profits c. Some legitimate businesses d. Always fraudulent

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