Known income subtracted from total income gives a reasonable estimate of:

Known income subtracted from total income gives a reasonable estimate of: 

A. Unknown funds
B. Liabilities
C. Living expenses
D. Net worth

Answer: A

Under the net worth method, a person who has an increase in net with of $100,000, known expenses of $80,000, and a salary of $60,000, would have an unknown income of:

Under the net worth method, a person who has an increase in net with of $100,000, known expenses of $80,000, and a salary of $60,000, would have an unknown income of: 

A. $0
B. $110,000
C. $120,000
D. $140,000

Answer: C

Each of these statements is true about the net worth method for determining embezzled amounts except:

Each of these statements is true about the net worth method for determining embezzled amounts except: 

A. The net worth method generally understates amounts stolen.
B. Much of the information necessary for determining an individual's assets, liabilities, living expenses, and income is available through public searches.
C. Courts are generally suspicious of dollar amounts determined by the net worth method because courts realize that the net worth method can only provide approximations of the amount stolen.
D. The net worth method is useful for obtaining confessions from suspects during interviews or interrogations.

Answer: C

Each of these agencies is correctly matched with the type of information the agency provides except:

Each of these agencies is correctly matched with the type of information the agency provides except: 

A. Department of Justice: Maintains records relating to the detection, prosecution, and rehabilitation of offenders
B. The Secret Service: Deals with counterfeiting, theft of government checks, interstate credit card violations, and some computer crimes.
C. State Attorney General: Maintains birth records and information about people's Social Security Numbers
D. Central Intelligence Agency: Investigates security matters outside the United States.
E. Department of Business Regulation: Maintains licensing information about various professionals.

Answer: C

The Gramm-Leach-Bliley Act allows:

The Gramm-Leach-Bliley Act allows: 

A. Banks to sell customer information
B. Financial institutions to share information
C. customers to "opt out" and ask that their information not be shared.
D. All of the above

Answer: D

The formula to calculate funds from unknown sources is:

The formula to calculate funds from unknown sources is: 

A. Assets-Liabilities-Prior Year's Net Worth+Living Expenses-Funds from Known Sources
B. Assets-Liabilities-Prior Year's Net Worth-Living Expenses-Funds from Unknown Sources
C. Assets-Liabilities-Prior Year's Net Worth+Living Expenses+Funds from Unknown Sources
D. Assets-Liabilities-Prior Year's Net Worth-Living Expenses+Funds from Unknown Sources

Answer: A

The net worth method is a calculation based on a person's:

The net worth method is a calculation based on a person's: 

A. Assets, liabilities, equity, and living expenses
B. Assets, liabilities, equity, and income
C. Assets, liabilities, income, and living expenses
D. Assets, income, and living expenses

Answer: C

Which source could be used to access valuable financial information in a fraud investigation?

Which source could be used to access valuable financial information in a fraud investigation? 

A Financial institutions
B. Internet sites
C. The former spouse of a suspected fraud perpetrator
D. Trash
E. All of the above

Answer: E

Which are usually some of the best and most helpful federal fraud investigators?

Which are usually some of the best and most helpful federal fraud investigators?

A. Officers of the Secret Service
B. Employees of the Bureau of Prisons
C. Officers of the Department of Vital Statistics
D. Postal inspectors

Answer: D

A database of criminal records maintained by the FBI is:

A database of criminal records maintained by the FBI is: 

A. The CIA
B. The III
C. The NCIC
D. Both A and C
E. Both B and C

Answer: E

Most conversion investigations involve searching public records and other sources to trace:

Most conversion investigations involve searching public records and other sources to trace: 

A. Purchases of assets
B. Payments of liabilities
C. Changes in lifestyle
D. Net worth
E. All of the above

Answer: E

Which of the following is a possible use of conversion-based investigation techniques?

Which of the following is a possible use of conversion-based investigation techniques? 

A. Searching public records to trace purchases of assets and payments of liabilities
B. Attempting to locate previous spouses' bank account records
C. Locating significant amounts of money held by related parties
D. All of the above

Answer: D

Conversion investigations focus on how suspects:

Conversion investigations focus on how suspects: 

A. Had opportunities to steal
B. Had motives to commit fraud
C. Spent stolen money
D. Committed the actual theft

Answer: C

The net worth method is effective:

The net worth method is effective: 

A. As evidence in court
B. To help obtain a confession
C. To conduct an interview of suspects
D. All of the Above

Answer: D

Which of the following laws regulates the activities of credit, insurance, and employment investigations?

Which of the following laws regulates the activities of credit, insurance, and employment investigations? 

A. Fair Investigation Act of 1980
B. Fair Credit Reporting Act of 1971
C. Credit, Insurance, and Employment Investigation Act
D. There is no governing law

Answer: B

How useful are local and county records in fraud investigations?

How useful are local and county records in fraud investigations? 

A. Very useful
B. Not useful
C. Somewhat useful
D. Aren't allowed in the investigation of a fraud

Answer: A

Which of the following organizations maintain public information that can be accessed in record searches

Which of the following organizations maintain public information that can be accessed in record searches 

A. Local agencies
B. State agencies
C Federal agencies
D. All of the above

Answer: D

The net worth method of analyzing financial information can help to determine:

The net worth method of analyzing financial information can help to determine: 

A. The suspect's feelings about the organization
B. Possible perpetrators of the fraud
C. The suspect's personality characteristics
D. The amount of embezzled funds

Answer: D

Evidence gathered from public records can be useful in:

Evidence gathered from public records can be useful in: 

A. Identifying with the suspect.
B. Obtaining a confession
C. Making the suspect feel at ease
D. None of the above

Answer: B

Although most perpetrators begin their thefts because of a perceived critical need, they usually continue to embezzle in order to:

Although most perpetrators begin their thefts because of a perceived critical need, they usually continue to embezzle in order to: 

A. Beat the system
B. Fulfill an inner desire to commit fraud.
C. Improve their lifestyle
D. Achieve a higher self-esteem

Answer: C