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Which of the following is NOT an element of a Ponzi scheme? a. Gaining other's confidence. b. Promising abnormally high returns. c. Collected money is invested. d. Investment principle is partially used to make payments to previous investors. What is required to prove fraud, as opposed to negligence? a. Gross error b. Intent c. Preponderance of the evidence d. Confession from the perpetrator Which of the following is a common example of vendor fraud? a. Fraud perpetrated through collusion between buyers and vendors. b. Fraud perpetrated by upper management. c. The perpetrator physically removes the inventory from the business premises. d. A fraud perpetrated through financial statement manipulation. A company is a victim of a $414 million fraud. At that time its profit margin is 10%. How much additional revenue should the company generate in order to recover the effect on net income? a. $41.4 million b. $414 million c. $4.14 billion d. $41.4 billion Which of the following observations concerning occupational fraud is NOT true? a. It is clandestine. b. It is committed for the purpose of direct or indirect financial benefit to the employee. c. It usually involves two or more employees. d. It costs the employing organization assets, revenues, or reserves

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