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2. Confrontational interviews should usually be...

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2. Confrontational interviews should usually be conducted when a. police decide that the suspect is guilty b. the examiner is starting the investigation c. all other investigative procedures have been completed d. the investigation is taking too long e. none of the above 20. Which statement is false? a. The net worth analysis may be used when searching for hidden income in drug trafficking and insurance fraud situations. b. Whereas the focus of the net worth method is on the year-end balances as well as other assets and liabilities, the bank deposit technique looks at the funds deposited during the year. c. The bank deposit method attempts to reconstruct gross taxable receipts rather than adjusted taxable income. d. The bank deposit method is appropriate when most of the income is deposited in banks and most of the expenses are paid by checks. e. All of the above are true. 26. One important initial goal in asset tracing for the professional is a. to establish a cooperative relationship with the foreign government involved b. to attach any assets hidden offshore c. to establish some paper trail that evidences communication, either initially or ongoing, with the holder of the assets d. a and b e. none of the above 27. One method of identifying the foreign holder of assets is a. by checking a person?s Rolodex and/or calendar b. by checking with U.S. Customs c. by checking passport stamps d. by examining travel documents and not necessarily just the passport e. none of the above 28. The proceeding in criminal forfeiture is a. against a person being charged with a crime (in personam) b. against an item of property being charged with a crime (in rem) c. neither in personam nor in rem d. such that no property is forfeited unless it is proved by a preponderance of the evidence that the property was involved in the crime 29. In civil forfeiture, once probable cause is established, the burden of proof a. shifts to the property owner to show beyond a reasonable doubt that the property is not related to the crime b. shifts to the property owner to show by a preponderance of the evidence that the property is not related to the crime c. belongs to the government to show beyond a reasonable doubt that the property is implicated in the crime d. belongs to the government by a preponderance of the evidence that the property is implicated in the crime e. none of the above 5 30. Which of the following statements is true? a. it matters whether the owner of property was involved in the crime for purposes of civil forfeiture b. the owner does not even have to be accused or even suspected of involvement in the criminal activity for his property to be forfeited c. it matters whether the owner of property was even aware that criminal activity was taking place d. even if the owner can prove the object?s innocence, the government still has a right to the property that relates back to the time of its illegal use e. none of the above 31. Attachment is a remedy which allows a plaintiff to a. place a lien on a claim the defendant has against a third party b. create a judicial lien on a defendant?s property before final resolution of a legal claim where there are exigent circumstances c. take part of a defendant?s wages to satisfy an outstanding legal claim d. none of the above 32. Garnishment allows a plaintiff to a. place a lien on a defendant?s property before final resolution of a legal claim where there are exigent circumstances b. place a lien on a claim the defendant has against a third party c. get a judgment against a defendant and have a court order the satisfaction of that judgment d. none of the above 33. Which of the following is not a method used to move funds offshore? a. wire transfers b. professional intermediaries c. personal checks d. all of the above e. none of the above 34. The difference between an offshore bank and a shell bank is that: a. the shell bank has a physical presence in the country in which it is licensed whereas the offshore bank does not b. the offshore bank specifically cannot carry on business in the jurisdiction in which it is licensed whereas such restrictions do not specifically affect shell banks c. only shell banks use correspondent services d. U.S. banks have more access to client account information in a shell bank than in an offshore bank e. none of the above 35. Redundancy as an asset protection concept is meant or designed to prevent which of the following: a. a creditor goes into a U.S. court and obtains a writ of attachment to seize a banks account in an offshore jurisdiction b. a creditor obtains a U.S. court judgment against a debtor and then tries to get a court in the offshore jurisdiction where the debtor?s assets are located to enforce that judgment c. a creditor obtains a U.S. court judgment against the debtor, files a writ of execution and then levies against the debtor?s U.S.-based assets to force the repatriation of the debtor?s offshore assets d. none of the above 6 36. Creditors are not limited to asking questions or requesting documents from the debtor. They can also subpoena records and there is little the debtor can do to stop these attempts. Many times the most valuable source of information for a creditor is a. bank account statements b. telephone records unless a prepaid calling card has been used c. depositions of the debtor and his/her accountant d. written interrogatories sent to the debtor e. none of the above 37. The purpose of money laundering is to: a. take illegitimate funds and make them look like they were earned from legitimate business activities b. purposefully transfer restricted grant monies into discretionary accounts through confutation c. secretly take suitcases full of money from one country to another d. only a and b Questions 38 through 42 are based on the following information: John Sampson Computation of Unreported Taxable income Assets 12-31-02 12-31-03 12-31-04 12-31-05 Cash on hand 1,000.00 1,000.00 1,000.00 1,000.00 Cash in banks 15,000.00 15,000.00 15,000.00 15,000.00 Checking accts 2,556.79 167.56 356.06 264.57 Bonds 91,897.58 122,770.04 123,001.00 132,601.17 Stocks & Notes receivable 2,983.72 1,983.72 983.72 13,487.50 Real Estate 10,386.92 10,386.92 10,386.92 61,886.92 Business Equip. 5,700.00 5,700.00 5,700.00 5,700.00 Autos 10,428.49 5,950.00 7,854.70 9,554.70 Total Assets 139,953.50 162,958.24 164,282.40 239,494.86 Liabilities Mortgages & Loans Payable 402.88 49.93 -0- 22,260.00 Taxes Payable 7,059.11 5,105.90 4,089.00 6,040.85 Total Liabilities 7,461.99 5,155.83 4,089.00 28,300.85 Net Worth 132,491.51 157,802.41 160,193.40 211,194.01 03 04 05 Beginning Net Worth 132,491.51 157,802.41 160,193.40 John Sampson?s living expenses were 12,646.61, 22,303.34, and 16,283.63 in 2003, 2004, and 2005, respectively. His tax deductions were 2,394.66, 2,461.99, and 3,738.75 for 2003, 2004, and 2005, respectively. His income tax exemptions were 2400, 2400, and 2400 for 2003, 2004, and 2005, respectively. Mr. Moose? reported taxable incomes were 7,527.33, 18,765.49, and 9,610.33 for 2003, 2004, and 2005, respectively. 38. John Sampson?s corrected taxable income for 2003 per the net worth method is a. $33,162.85 b. $ 7,851.95 c. $ 7,527.33 d. none of the above 7 39. John Sampson?s unreported taxable income for 2003 is a. $ -0- b. $324.62 c. $25,635.52 D. It cannot be determined 40. John Sampson?s unreported taxable income for 2005 is a. $61,145.49 b. $51,000.61 c. It cannot be determined d. $51,535.16 41. John Sampson?s unreported taxable income for 2004 is a. $2,390.99 b. $18,765.49 c. -0- d. It cannot be determined e. None of the above 42. John Sampson?s change in net worth for 2005 is a. $2,390.00 b. $51,000.61 c. $75,212.46 d. None of the above 43. One of the most significant problems with Foreign Asset Protection Trusts (FAPTS) involves: a. A beneficiary also serving as a trustee b. Settlor control (i.e. a settlor cannot also be a trustee) c. A settlor serving as a protector d. A settlor being a beneficiary e. b and c. 44. One possible solution to the trustee problem in FAPTS is to have a committee of trustees, wherein at least one person is a foreign trustee. The advantage of this arrangement is that: a. It allows the foreign trustee to provide the nexus to the offshore trust jurisdiction so that offshore law applies. b. It prevents a U.S. Court from obtaining jurisdiction over FAPT assets. c. It prevents a creditor from learning the identity of the legal title holder of trust assets. d. None of the above. e. All of the above. 45. Benford?s analysis is not a useful analytical tool when it is used with aggregated data. a. True b. False 8 46. Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting? a. lack of controls related to the calculation and approval of accounting estimates b. ineffective oversight of financial reporting by the board of directors c. management?s practice of making overly aggressive forecasts d. high turnover of accounting, internal audit and information technology staff e. none of the above 47. Auditors may identify conditions during fieldwork that change or support a judgment about the initial assessment of fraud risks. Which of the following conditions should alert an auditor about the initial assessment? a. missing or conflicting evidence b. discrepancies in the accounting records c. unusual relationships between the auditor and management d. larger firms often undertake a higher number of complex transactions that may leave them open to accusations of unscrupulousness a. none of the above 48. A fraud auditor who has confirmed accounts receivable may discover that the sales journal was held open past year-end if: a. Positive confirmations sent to debtors are not returned. b. Negative confirmations sent to debtors are not returned. c. Most of the returned negative confirmations indicate that the debtor owes a larger balance than the amount being confirmed. d. Most of the positive confirmations indicate that the debtor owes a smaller balance than the amount being confirmed. a. None of the above. 49. The fraud examiner is concerned that individuals in the purchasing department are initiating purchases on their own to companies in which they have a vested interest. The document which the examiner would be most interested in reviewing under these circumstances would be the: a. purchase order b. receiving report c. voucher d. purchase requisition e. bill of lading 50. During the consideration of a small business client?s internal controls, the fraud examiner discovered that the accounts receivable clerk approves credit memos and has access to cash. Which of the following controls would be most effective in offsetting this weakness? a. The owner reviews errors in billings to customers and postings to the subsidiary ledger. b. The controller receives the monthly bank statement directly and reconciles the checking accounts. c. The owner reviews credit memos after they are recorded. d. The controller reconciles the total of the detail accounts receivable accounts to the amount shown in the ledger. 9 51. When an accounts receivable clerk is allowed to steal one customer?s payment and apply the next one toward that payment and so on, this is a violation of: a. segregation of duties b. management oversight c. checks and balances d. all of the above 52. What will not happen when inventory purchases of a company are understated? a. Goods available for sale is understated. b. Cost of goods sold is understated. c. Ending inventory is understated. d. Net income is overstated . 53. Which of the following is not useful in detecting fraud that non-existent assets are recorded in statement accounts? a. Total fixed assets/total assets. b. Total fixed assets/long-term debt. c. Individual fixed asset account balances/total fixed assets. d. Fixed assets/total current liabilities.,Can I shorten the list of questions - I'll pay the same: 37. The purpose of money laundering is to: a. take illegitimate funds and make them look like they were earned from legitimate business activities b. purposefully transfer restricted grant monies into discretionary accounts through confutation c. secretly take suitcases full of money from one country to another d. only a and b Questions 38 through 42 are based on the following information: John Sampson Computation of Unreported Taxable income Assets 12-31-02 12-31-03 12-31-04 12-31-05 Cash on hand 1,000.00 1,000.00 1,000.00 1,000.00 Cash in banks 15,000.00 15,000.00 15,000.00 15,000.00 Checking accts 2,556.79 167.56 356.06 264.57 Bonds 91,897.58 122,770.04 123,001.00 132,601.17 Stocks & Notes receivable 2,983.72 1,983.72 983.72 13,487.50 Real Estate 10,386.92 10,386.92 10,386.92 61,886.92 Business Equip. 5,700.00 5,700.00 5,700.00 5,700.00 Autos 10,428.49 5,950.00 7,854.70 9,554.70 Total Assets 139,953.50 162,958.24 164,282.40 239,494.86 Liabilities Mortgages & Loans Payable 402.88 49.93 -0- 22,260.00 Taxes Payable 7,059.11 5,105.90 4,089.00 6,040.85 Total Liabilities 7,461.99 5,155.83 4,089.00 28,300.85 Net Worth 132,491.51 157,802.41 160,193.40 211,194.01 03 04 05 Beginning Net Worth 132,491.51 157,802.41 160,193.40 John Sampson?s living expenses were 12,646.61, 22,303.34, and 16,283.63 in 2003, 2004, and 2005, respectively. His tax deductions were 2,394.66, 2,461.99, and 3,738.75 for 2003, 2004, and 2005, respectively. His income tax exemptions were 2400, 2400, and 2400 for 2003, 2004, and 2005, respectively. Mr. Moose? reported taxable incomes were 7,527.33, 18,765.49, and 9,610.33 for 2003, 2004, and 2005, respectively. 38. John Sampson?s corrected taxable income for 2003 per the net worth method is a. $33,162.85 b. $ 7,851.95 c. $ 7,527.33 d. none of the above 7 39. John Sampson?s unreported taxable income for 2003 is a. $ -0- b. $324.62 c. $25,635.52 D. It cannot be determined 40. John Sampson?s unreported taxable income for 2005 is a. $61,145.49 b. $51,000.61 c. It cannot be determined d. $51,535.16 41. John Sampson?s unreported taxable income for 2004 is a. $2,390.99 b. $18,765.49 c. -0- d. It cannot be determined e. None of the above 42. John Sampson?s change in net worth for 2005 is a. $2,390.00 b. $51,000.61 c. $75,212.46 d. None of the above,I'd like to cancel - whats the procedure?

 

Paper#4949 | Written in 18-Jul-2015

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