AIMA solved assignments for PA06
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Subject Code: PA06
Subject Name: FORENSICS ACCOUNTING
Component name: ASSIGNMENT 1
PA06 FORENSICS ACCOUNTING Solved Assignments for AIMA
Question 1:- The most important aspect in the definition of Forensic Accounting is:
a) Financial Accounting
b) Fraud
c) Legal Evidence
d) Audit
Question 2:- The most important aspect in the definition of Fraud as per Companies Act (Section 447) is:
a) Action of culprit
b) Intent to deceive
c) Wrongful gain
d) Concealment
Question 3:- The Fraud Deterrence Cycle includes the following:
a) Corporate Governance
b) Transaction Controls
c) Problem Remediation
d) All of the above
Question 4:- Forensic Accounting is a means to do an investigation in order to________.
a) discover evidence for court of law
b) book transactions properly
c) establish accounting treatment
d) None of the above
Question 5:- Forensic Accounting and Investigation Standards are:
a) Issued by the ICAI
b) applicable to all CAs
c) apply to forensic accounting work
d) All of the above
Question 6:- Main role of a Forensic Accountant is to___________.
a) crack a fraud case
b) present evidence to court
c) issue a report of guilt or innocence
d) All of the above
Question 7:- Which are the three key elements of the Fraud Triangle?
a) Motive, Intent, Opportunity
b) Motive, need/greed, Rationalisation
c) Motive, Opportunity, Rationalisation
d) Need/greed, opportunity, Intent
Question 8:- Accounting error is not a fraud because___________.
a) Intent is missing
b) gain is missing
c) error is rationalised
d) None of the above
Question 9:- If an employee steals the customer list of the company, what type of fraud is it?
a) Corruption
b) Asset misappropriation
c) Conflict of Interest
d) Financial Statement fraud
Question 10:- What is the single most important ingredient of a fraud?
a) unlawful gain
b) Internal Control opportunity
c) A person (individual)
d) Forensic accounting skills
Question 11:- The one behaviour most of the fraudsters display is_________.
a) Living beyond means
b) Very aged and quite
c) expertise in computers
d) bad attitude
Question 12:- Corporate culture refers to which characteristics displayed by members of an organization?
a) Values
b) Beliefs
c) Attitudes
d) All of the above
Question 13:- “Tone at the top” is a strong anti-fraud measure because__________.
a) It sets the culture of the company
b) it includes anti-fraud slogans
c) tone is important in communication
d) frauds happen at the top
Question 14:- Principle of natural justice in fraud investigation is important because___________.
a) Forensic Accounting is principle based
b) Fraud investigations are principle driven
c) everyone has a right to defend themselves
d) Investigator should render natural justice
Question 15:- No fraud investigation should start without predication because____________.
a) Fraud indicators are usually the starting points
b) some probable cause has to be the trigger
c) its required to develop hypotheses
d) All of the above
Question 16:- Since more that 40% of frauds are concealed in documents, forensic accounting is most effectivebecause_________________.
a) it is focused on scrutinising documents
b) documents help establish the accounting
c) audit trail can be easily discovered
d) not relevant in digital era
Question 17:- In some of the large frauds, the top guy displayed a domineering culture, meaning that hewas___________.
a) very dominating
b) highly authoritative
c) sole decision maker
d) All of the above
Question 18:- Forensic accounting is most effective for investigating fund diversions because__________.
a) Fund diversion is an important accounting technique
b) Other type of investigations don’t work in accounting frauds
c) each transaction can be traced by the forensic accountant
d) None of the above
Question 19:- Main difference between phase 1 and Phase 2 of an investigation is:
a) Phase 2 involves people
b) Phase 1 involves interrogation
c) phase 1 includes digital analysis
d) phase 2 can be done before phase 1
Question 20:- The investigator develops a hypothesis in order to
a) Prove it
b) Disprove it
c) unable to prove it
d) Any of the above
Subject Code: PA06
Subject Name: FORENSICS ACCOUNTING
Component name: ASSIGNMENT 2
PA06 FORENSICS ACCOUNTING Solved Assignments for AIMA
Question 1:- The biggest Financial Crimes are usually one of the following:
a) Financial kidnapping
b) Crimes by Financial Institutions
c) Financial Statement Frauds
d) None of the above
Question 2:- Financial Statement frauds are almost impossible to investigate without_______.
a) Data Analysis
b) Forensic Accounting
c) Tech experts
d) All of the above
Question 3:- What are the two types of Financial Crimes
a) Wealth Generation & Protection
b) Wealth theft & protection
c) Wealth Generation & Concealment
d) Wealth theft & concealment
Question 4:- Cybercrime has grown exponentially in India because:
a) Indians are very ignorant about cyber vulnerabilities
b) It`s actually a global phenomenon
c) Laws in India are inadequate to control this problem
d) All of the above
Question 5:- One of the biggest impact of Technology on Cybercrime is_________.
a) Sharp reduction in Crime
b) A big impact on Prevention of crime
c) The fast speed of action now possible
d) Not much impact of Technology at all
Question 6:- A ransomware attack is a type of Cybercrime which relies heavily on encryption because:
a) Victim`s lack of expertise in encryption technology
b) Victim`s inability to access his data due to encryption
c) The key to encryption is very high-tech
d) Police are not geared to deal with encryption
Question 7:- As per data from the National Crime Records Bureau, almost 60% of Cybercrimes in India relatedto the motive of_________.
a) Cheating
b) ATM break-in
c) Obscene material
d) Fraud
Question 8:- Liabilities treated as Contingencies is an example of what type of Financial Statement Fraud?
a) Overstatement of Revenue
b) Understatement of Expenses
c) Understatement of Liabilities
d) Overstatement of Liabilities
Question 9:- Sales with conditions are an indication of Revenue Overstatement because:
a) Customer can return goods if condition is not met
b) Sales with conditions are always a normal part of business
c) Revenue cannot be overstated if Sales has conditions
d) None of the above
Question 10:- Predictive Data Analysis is_________.
a) Analysis done to estimate the current status
b) Analysis which helps to predict future based on past
c) Analysis done to predict data inter-relationships
d) All of the above
Question 11:- Digital Forensics allows evidence to be extracted from___________.
a) The suspects
b) Third parties
c) Electronic devices
d) Physical devices
Question 12:- Data files thought to be deleted/removed on the system may still be available becauseof________.
a) Clusters in Hard Drive
b) Partitions in Hard Drive
c) Slack space
d) All of the above
Question 13:- As more people work from home, Cybercrime is going up because:
a) People are more complacent at home
b) Attackers target interconnected systems
c) Too many unemployed attackers
d) None of the above
Question 14:- Money Laundering involves the processing of money for what reason?
a) To disguise their illegal origin
b) Transfer it to other culprits
c) To invest it was exceptional gains
d) To properly comply with the law
Question 15:- The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. Why is it required?
a) Issue Standards on ML
b) Suffocate the financial lifeline of criminals
c) Monitor and reform financial aspects of criminal activity
d) All of the above
Question 16:- One way to reduce the Motive to commit Fraud is_________.
a) Identify high risk suspects
b) Promoting the right culture
c) Conduct back-ground checks of employees
d) Implement strong internal controls
Question 17:- Companies can establish a culture of compliance by implementing________.
a) Data Analysis
b) Digital Forensics
c) Control Self Assessment and Certification
d) Internal Audit Department
Question 18:- Which is the most important role of the Forensic Accountant?
a) Scrutinise every transaction and balances
b) Be an expert in all accounting, technology and legal matters
c) Interrogate suspects
d) Gather relevant and reliable evidence
Question 19:- Digital Forensics may require the need for tech experts because:
a) They understand Chain of Custody requirements
b) Required as per law
c) They know what they are doing
d) Legal restrictions do not apply to them
Question 20:- In India, Money Laundering is being controlled by whom?
a) Ministry of Finance
b) Reserve Bank of India
c) Securities and Exchange Board of India
d) All of the above