Investigating concealment chapter 8

. ____ are used by attorneys involved in litigation to track all documents.

Bates numbers

The risk that an auditor will examine a fraudulent check and not recognize it as being fraudulent is called _________ .

non-sampling risk

During a concealment investigation, an investigator fails to recognize that an invoice had been forged. This represents a:

non-sampling risk.

Computer searches and physical asset counts usually focus on the ________ element of the fraud triangle.

concealment

Methods for concealment investigation include all but which of the following?

Honesty testing

The three most common ways to obtain documentary evidence which are valuable but difficult to obtain are:

subpoena, search warrant, and voluntary consent

Which of the following statements is true?

Concealment investigation includes document investigation, physical asset counts, and computer searches.

________ means that a record must be kept of when a document is received and what has happened to it since its receipt.

d. Chain of custody

Which of the following does NOT appear on a check that has been cashed?

Time of the transaction

_______ is the risk that the sample was not representative of the population.

Sampling risk

Which of the following is generally considered a best practice while handling documentary evidence?

Copies of the document should be used during the investigation and trial and should be kept in the same file where the original is kept.

Audit is a _________ investigative method.

concealment

_______ are executed only by law enforcement officials and are generally used only in criminal cases.

Search warrants

When the document is in the custody of a public office:

it is permissible to obtain photocopies, which are considered secondary evidence, in a court of law.

Mark owns a 24-hour convenience store. Lately he has noticed that the liquor inventory purchases have gone up by huge amounts, although sales proceeds from this category haven't increased. He is doubting his two night-shift employees. Which is the best in

Concealment investigation

Which statistical sampling allows an auditor to generalize and make inferences from the sample to the population?

Discovery sampling

The most common way to obtain private documents is by _________, which can be either oral or written.

voluntary consent

Which aspect of documentary evidence should be kept in mind to ensure that the documents can be identified later and accessible for trial?

Marking of evidence

_______ is a popular program used to index and store evidence.

CaseCentral

________ is a simple, statistically based method of analyzing a subset of transactions from a larger pool.

Discovery sampling

In large cases that involve investigators, legal counsel, accountants, expert witnesses, and management representatives, coordination can be very difficult. ________ can be useful in such cases.

Analyst's Notebook

The least reliable method of obtaining documentary evidence is:

by accident.

Which of the following is NOT a characteristic of sampling risk?

Sampling risk cannot be quantified, and can only be slightly reduced by careful planning of the sampling procedure.

The four most common examples of documentary evidence which are valuable but difficult to obtain are:

Web-based e-mail accounts, private bank records, tax returns, and brokerage records.

Orders issued by a court or a grand jury to produce documents are called:

subpoenas.

Which of the following observations is true about discovery sampling?

It deals with the probability of discovering at least one error in a given sample size if the population error rate is a certain percentage.

The best way to obtain documentary evidence is:

through computer-based queries of full-population accounting and other databases.

Once investigators enter their indicators into the centralized database, the software performs _______ to find connections between people, places, and events.

link analysis

Which of the following observations is true about subpoenas?

Failure to honor a subpoena is punishable by law.

Which of the following is an alternative when original documents are too voluminous to permit careful examination?

A summary of its contents is acceptable.

Discovery sampling is sometimes referred to as _____ sampling.

stop-and-go