Kranacher ForensicAccounting TestBank Ch03
Forensic Accounting
By Mary-Jo Kranacher, CPA/CFF, CFE
Chapter 3
Who Commits Fraud and Why: Criminology and Ethics
LEARNING OBJECTIVES
3-1 Describe occupational fraud and abuse.
3-2 Compare and contrast theories of crime causation.
3-3 Identify the six situational categories that cause nonshareable problems from Cressey’s research. 3-4 Discuss the essence of organizational crime.
3-5 Give examples of behavioral or other environmental indications of fraud.
3-6 Explain the relationship between an employee’s position and the level of theft (according to
Hollinger and Clark’s research).
3-7 Analyze the role of corporate governance mechanisms in fraud prevention.
3-8 Describe corporate governance breakdowns in the facilitation of historical fraudulent acts.
3-9 Identify ethical issues, conflicts of interest, and noncompliance with corporate policies and procedures in the context of a specific case.
3-10 Discuss alternative courses of action in a given scenario within the framework of appropriate ethical conduct.
True/False
1-T/F #1. Without visually representing the crime scene, very different conclusions are reached about who committed a crime.
Answer: T
1-T/F #2. Conspiracy is a means of prosecuting the individuals involved in illegal organized activity.
Answer: T
1-T/F #3. Negligence applies when a person acts in a reasonable and prudent manner.
Answer: F
1-T/F #4. Cressey called embezzlers “temptation violators.”
Answer: F
1-T/F #5. According to Albrecht, personal integrity refers to the personal code of ethical behavior that each person adopts.
Answer: T
1-T/F #6. White-collar crime is not used interchangeably with occupational fraud and economic crime.
Answer: F
1-T/F #7. For purposes of defining occupational fraud and abuse, employees include only top or middle managers.
Answer: F
1-T/F #8. The term white-collar crime captures the essence of the type of perpetrator that one finds at the heart of occupational fraud and abuse.
Answer: T
1-T/F #9.
By Mary-Jo Kranacher, CPA/CFF, CFE
Chapter 3
Who Commits Fraud and Why: Criminology and Ethics
LEARNING OBJECTIVES
3-1 Describe occupational fraud and abuse.
3-2 Compare and contrast theories of crime causation.
3-3 Identify the six situational categories that cause nonshareable problems from Cressey’s research. 3-4 Discuss the essence of organizational crime.
3-5 Give examples of behavioral or other environmental indications of fraud.
3-6 Explain the relationship between an employee’s position and the level of theft (according to
Hollinger and Clark’s research).
3-7 Analyze the role of corporate governance mechanisms in fraud prevention.
3-8 Describe corporate governance breakdowns in the facilitation of historical fraudulent acts.
3-9 Identify ethical issues, conflicts of interest, and noncompliance with corporate policies and procedures in the context of a specific case.
3-10 Discuss alternative courses of action in a given scenario within the framework of appropriate ethical conduct.
True/False
1-T/F #1. Without visually representing the crime scene, very different conclusions are reached about who committed a crime.
Answer: T
1-T/F #2. Conspiracy is a means of prosecuting the individuals involved in illegal organized activity.
Answer: T
1-T/F #3. Negligence applies when a person acts in a reasonable and prudent manner.
Answer: F
1-T/F #4. Cressey called embezzlers “temptation violators.”
Answer: F
1-T/F #5. According to Albrecht, personal integrity refers to the personal code of ethical behavior that each person adopts.
Answer: T
1-T/F #6. White-collar crime is not used interchangeably with occupational fraud and economic crime.
Answer: F
1-T/F #7. For purposes of defining occupational fraud and abuse, employees include only top or middle managers.
Answer: F
1-T/F #8. The term white-collar crime captures the essence of the type of perpetrator that one finds at the heart of occupational fraud and abuse.
Answer: T
1-T/F #9.