What is the primary objective of forensic auditing?
a) Preparing financial statements
b) Investigating financial fraud and misconduct
c) Assessing company tax compliance
d) Preparing company budgets
Which of the following is a common type of financial fraud?
a) Earnings manipulation
b) Employee training fraud
c) Customer retention fraud
d) Digital marketing fraud
What role does forensic auditing play in corporate governance?
a) It ensures compliance with HR policies
b) It helps detect financial fraud and strengthens internal controls
c) It improves marketing campaigns
d) It analyzes employee performance
Which regulatory body often investigates financial fraud cases in the USA?
a) SEC (Securities and Exchange Commission)
b) FDA (Food and Drug Administration)
c) FCC (Federal Communications Commission)
d) EPA (Environmental Protection Agency)
What is the most common financial statement fraud?
a) Overstating revenue
b) Understating advertising expenses
c) Increasing employee salaries
d) Delaying tax payments
Which forensic auditing technique is used to detect fraud?
a) Ratio analysis
b) Customer satisfaction surveys
c) Social media marketing
d) Employee feedback analysis
Money laundering involves:
a) Concealing the origins of illegally obtained money
b) Paying high corporate taxes
c) Investing in stock markets legally
d) Opening a legitimate business
Which of the following is an example of asset misappropriation?
a) Skimming cash from sales
b) Properly recording all transactions
c) Correctly classifying financial expenses
d) Investing in government bonds
Which software is commonly used in forensic accounting investigations?
a) Excel
b) IDEA
c) Photoshop
d) PowerPoint
Which organization establishes global anti-money laundering policies?
a) FATF (Financial Action Task Force)
b) NASA
c) WHO
d) FIFA
Which is a common red flag for financial fraud?
a) Sudden increase in revenue with no explanation
b) Increased marketing campaigns
c) High employee morale
d) Improved customer satisfaction
Which method is often used to detect money laundering?
a) Benford’s Law
b) SWOT analysis
c) Marketing mix analysis
d) Customer feedback survey
Which of the following is NOT a type of financial fraud?
a) Financial statement fraud
b) Asset misappropriation
c) Identity theft
d) Employee promotions
A Ponzi scheme is a:
a) Fraudulent investment scam promising high returns
b) Legitimate business model
c) Government savings plan
d) Banking regulation
Which of the following is an indicator of fraud in an organization?
a) Employees refusing to take vacations
b) High job satisfaction levels
c) Increased profit margins
d) Frequent team-building activities
Which type of fraud involves recording fake transactions?
a) Financial statement fraud
b) Customer fraud
c) Employee performance fraud
d) Product development fraud
What is the purpose of a forensic audit report?
a) To provide evidence in court for financial fraud cases
b) To calculate employee bonuses
c) To increase company branding
d) To manage supply chain costs
Which document is essential in forensic auditing investigations?
a) Bank statements
b) Marketing reports
c) Sales brochures
d) Employee attendance sheets
Which famous company was involved in one of the largest accounting fraud scandals?
a) Enron
b) Apple
c) Microsoft
d) Tesla
Which agency investigates corporate fraud in the USA?
a) FBI (Federal Bureau of Investigation)
b) NASA
c) UNICEF
d) WTO
Which financial crime involves using fake identities to obtain loans?
a) Identity fraud
b) Insider trading
c) Tax evasion
d) Budget manipulation
What does forensic auditing focus on?
a) Detecting and investigating financial fraud
b) Managing daily operations
c) Planning marketing campaigns
d) Evaluating employee performance
Which act in the USA aims to prevent corporate fraud?
a) Sarbanes-Oxley Act
b) Clean Air Act
c) Affordable Care Act
d) Copyright Act
Which technique is commonly used to trace fraudulent transactions?
a) Data analytics
b) Employee surveys
c) Advertisement tracking
d) Sales reports
Which of the following is a white-collar crime?
a) Fraudulent financial reporting
b) Burglary
c) Shoplifting
d) Physical assault
Who is responsible for preventing fraud within a company?
a) Management and internal auditors
b) Customers
c) External vendors
d) Government agencies only
