The terms pass-through fraud and shell company fraud are interchangeable.

 *
TRUE
FALSE

Adding newly hired employees to valid employee file (for payroll purposes) is an example of a
financial transaction. *
TRUE
FALSE

Financial and non-financial transactions must be processed by a separate physical system.  *

TRUE
FALSE

It is a must to collect data redundantly to have more copies for backup. *

TRUE
FALSE

The fraud scheme that is similar to the concept of “borrowing from Peter to pay Paul” is cash
larceny. *
TRUE
FALSE

Periodic job rotation can help employers deter lapping even if collusion exists. *
TRUE
FALSE

A transaction will be considered fraudulent as long as one party has the intent to deceive another
party whether or not it caused injury or loss to the party deceived. *
TRUE
FALSE

Selling company’s confidential information to third party is considered non-cash misappropriation.  *

TRUE
FALSE

Managing and reporting on the status of financial investments is a function of the Management
Reporting System (MRS). *
TRUE
FALSE

Management fraud is perpetrated at a level to which internal controls do not apply. *

TRUE
FALSE