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1. Which of the following is not a control to prevent check fraud?

MULTIPLE CHOICE

		a. Establish duties so the same person authorizes checks, signs them and reconciles the bank statement.
		b. Reconcile the bank account when you get the statement.
		c. Keep the check stock locked up.
		d. Perform background checks in the hiring process.

3. In a check tampering scheme the fraudster does not have to have physical access to the check.

MULTIPLE CHOICE

True or false

5. What is the purpose of a shell company?

MULTIPLE CHOICE

		a. It is a fictitious entity established for the purpose of committing fraud.
		b. It is an entity established to pay minimal taxes.
		c. It is an entity established to shield management from litigation.
		d. It is an entity established so consumers will not know from whom they are purchasing goods.

7. In order to accomplish a forged maker scheme an employee must do all of the following except:

MULTIPLE CHOICE

a. Have access to the blank checks.

b. Produce a convincing forgery of an authorized signature. c. be able to conceal his crime d. have access to the cash

9. True or false? In a forged maker scheme the check has already been written.

MULTIPLE CHOICE

True

False

11. Why do most shell company schemes involve the purchase of services rather than goods?

MULTIPLE CHOICE

		a. When the billing scheme involves fictitious goods, the defrauded company may be able to detect the fraud by comparing purchases to inventory levels.
		b. Services are more costly than goods.
		c. Normally services go through a less stringent approval process as goods.
		d. Most companies purchase more services than goods.

12. True or False? Banks are always required to reimburse customers for forged checks.

13. In a concealed check scheme an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review.

True

False

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