CFE Free Resources

The investment of a company's owner plus accumulate profits.

Asset= Liabilities + Owner's Equity

Debits increase assest and expense account while credits decrease them.

Shows a snapshot of a company's financial situation at a specific point in time, generally the last day of the accounting period.

1. Cash flows from operations
2. Cash flows from investing activities
3. Cash flows from financing activities

Fictitious sales most often involve fake customers but can also involve legitimate customers.

1. Liability/expense omissions
2. Improperly capitalized costs
3. Failure to disclose or Contingent liability

Compares the most liquid assests to current liabilities

An employee sells goods or service to a customer and collects the customer's payment but makes no record of the sale.

It is a effective method for larceny but not of Skimming

1. Conference speeches and papers
2. Publications
3. Company websites

Written agreements provinding that signatory must keep confidential all trade secrets and proprietory information learned during their employment.

1. Shredding sensitive documentary waste
2. Using a bonded waste disposal company
3. Receiving and sending mail at a secure site
4. Using an alarm system
5. Providing locks for doors and windows

Plastic, credit card-sized cards that are embedded with a microchip

1. Unbundling charges and fragmentation
2. Mutually exclusive procedures
3. Upcoding

Initial investors are paid with subsequent investors money. There is little or no legitimate commerce

It is a form of spear phising attack that directly targets employees who have the ability to make large payments or who have access to sensitive proprietary information. BEC schemes typically involve fraudulent emails that appear to be from the company's own chief executive officer (CEO)

A type of phishing attack in which a user is fooled into entering sensitive data such as a password or credit card number into a malicious website that imitates a legitimate website.

1. Confidentiality of data
2. Integrity of data
3. Availability of data
4. Authentication 5. Non- repudiation

1. Firewall
2. Intrusion detection systems
3. Intrusion prevention systems
4. Network access controls

1. The pre-solicitation phase
2. The soliciation phase
3. The bid evaluation and award phase
4. The post-award and administration phase

1. Employee Education 2. Internal controls 3. Monitoring activities 4. Vendor management

Creating fake social media accounts and asking for money/sensetive information from the connections.

Is a form of malware that locks a user's operating system and restricts access to data files until a ransom is paid. While some ransomware simply prevents acccess to files, other forms encrypt user's files or steal data

Physical access controls prevents unauthorised access to computer hardware while other prevents access to computer software.

Judge-made law

Any judgement made by higher court is known as precedant

Substantive law

Simultaneous criminal and civil actions against the same defendant that are based upon a single set of facts.

Courts areby an accepted set of codified principles or compiled statutes and are not bound by previous court decisions

The Presiding Judge

Monetary fines and penalties, license suspension or revocation and debarment

If only custody is given then larceny and if lawfulis there then embezzlement

The governmental entity was not actually deceived by the falsity, did not rely on it, or dit not suffer a loss in reliance on it

1. Liquidation
2. Reorganization
3. Debt adjustment

1. Placement
2. Layering
3. Integration

Designated nonfinancial business and professions

No deficiency

LIBEL,SLANDER

1. Intrusion into an individual's private matters
2. Public disclosure of private facts

Whether criminal cases are brought to trial generally depends on prosecutorial discretion, meaning that the decision to prosecute is left to the discretion of the appropriate juridictional authority

Claims filed by a defendant against the plaintiff in a civil action is called counterclaims, also known as countersuits.

1. Damages (monetary remedies)
2. Declaratory remedies
3. Equitable remedies
4. Prejudgement attachments

1. Testimonial evidence
2. Real evidence
3. Demonstrative evidence

Propensity evidence

Fraud Examination is a process of resolving allegations of fraud from inception to disposition.

Predication is totality of circumstances that would lead a reasonable, professionaly trained, and prudent individual to believe that a fraud has occurred, is occuring, and/or will occur.

I. Documentary
II. Testimonial
III. Digital Evidence.

Indented writing is the impression a writing leaves on sheets of paper below the piece of paper that contain writing.

The more intelligent the respondent, the more reliable verbal and nonverbal clues will be.

Can be obtained through-
I. Consent
II. A subpoena
III. A search warrant.

Pretexting is the act of impersonating someone else or making false or misleading statements to obtain, sell, or buy information about a person or organization.

1. Planning Phase
2. Preparation Phase
3. Testing and Interpretation Phase
4. Post- analysis Phase.

Visual representations of data from multiple data sources to track the movement of money, demonstrate complex networks, and discover communications, patterns, trends, and relationships.

Any information stored or transmitted in binary form (i.e., ones and zeroes) that can be used to prove something.

Digital evidence is more volatile than tangible evidence because data can be altered or destroyed more easily than tangible information.

1. Metadata
2. Registry
3. Event Logs
4. Internet activity
5. Temporary files
6. Deleted Data.

Financial Intelligence Units( FIUS) are national centres that are responsible for receiving and analysing information on suspicious or unusual financial activity in order to combat international financial crimes.

Comparision of a person's assets or expenditures for a given period or admitted legitimate sources of income.

1. Liquid
2. Untraceable
3. Secure
4. Accessible
(But not transparent)

A cryptocurrency is a type of digital currency that uses public or private key encryption in the currency's creation and transfer.

1. Accuracy
2. Clarity
3. Impartiality and relevance
4. Timeliness

1. No False Imprisonment
2. No distractions
3. Proper Visibilty
4. Privacy to the extent affordable.

1. Chronologically
2. By transaction
3. By Event

A covert operation is an investigation technique designed to obtain evidence( legal & admissible) by use of agents whose true intentions are not communicated to the target.

1. Least effective method
2. Works only with constant supervision.
3.Temporary suppression of an undesirable behaviour.

A positive reinforcement presents a positive stimulus in exchange for the desired response.

A negative reinforcement withdraws a negative stimulus in exchange for the response.

1. Be white males with a moderate social status.
2. Live beyond Means

1. Perceived non- shareable financial need
2. Perceived opportunity
3. Rationalization

1. Accountability
2. Transparency
3. Fairness
4. Responsibility

The prinicples are nonbinding, however as their implementation must be adapted to different legal, economic, and cultural circumstances.

1. Mistatements arising from fraudulent financial reporting.
2. Misstatements arising from misappropriation of assets.

No, most experts agree that it is much easier to prevent fraud than to detect it.

Risks that are present before management actions are taken as inherent risks.

Risks that remain after management action are taken as residual risks.

1. Interviews
2. Focus groups
3. Surveys
4. Anonymous feedback mechanism.

Preventive controls are intended to prevent fraud before it occurs.

1. Avoid
2. Transfer
3. Mitigate
4. Assume

Stick to the facts and keep all opinions and biases out of the report.

Management ( not the board) holds the responsibility for success of fraud risk management program.

1. Simplified CDD
2. Standard CDD
3. Enhanced CDD

Privileged information is information that cannot be demanded, even by a court; it is information that is protected by law from evidence.

Confidential information is the information that is confidential in nature. Whather an infomation is confidential or not depends upon norms of company or goverment's legislation.

Information is material if having knowledge of such information night reasonably be expected to influence a client's or employer's decisions based on a fraud examiner's report.