April 2010

What's Your Fraud IQ?

From Journal of Accountancy.

Although the required knowledge, expertise, and roles of auditors and fraud examiners differ, CPAs occasionally find themselves in situations where evidence of fraud is right in front of them. Without a basic understanding of some methods for identifying and analyzing suspicious transactions, unsuspecting accountants might let the red flags of fraud keep flying. Do you have what it takes to pick up on the warning signs of fraud? Do you know what to do if you spot something questionable? Use this quiz to test your knowledge of some of the techniques that can help detect and analyze potential fraud.

1. The data analysis technique that involves testing whether, within a given data set, digits appear in certain positions in the numbers in the expected proportion is known as __________.

a. Digit occurrence matching
b. Benford’s law analysis
c. Correlation analysis
d. One-to-one checking

Test your Fraud IQ.

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.