Practice Fraud Detection MCQ Quiz with free online test questions. Useful for Forensic Accounting, Fraud Detection, CA, CS, CMA, MBA, and competitive exams and B.COM students. Improve your concepts with expert-designed practice questions.
Fraud Detection MCQ QUIZ is Here
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Above quiz is based on following Multiple choice question of Fraud Detection.
Fraud Detection MCQ QUIZ | Free Online Test | Practice Questions
1. The term forensic is derived from the Latin word forensis, which means
(a) Of the law
(b) Of the forum
(c) Of the records
(d) Of the truth
2. In the Indian historical context, Kautilya identified distinct methods of embezzlement in his work Arthashastra.
(a) Twenty
(b) Thirty
(c) Forty
(d) Fifty
3. While traditional auditors are described as “watchdogs,” forensic accountants function as
(a) Guardians
(b) Bloodhounds
(c) Gatekeepers
(d) Analysts
4. Forensic Accounting and Investigation Standards (FAIS) in India became effective from
(a) 1 April 2022
(b) 1 July 2023
(c) 1 January 2024
(d) 15 August 2023
5. A ______ is developed on the basis of preliminary facts and red flags.
(a) Conclusion
(b) Hypothesis
(c) Mandate
(d) Finding
6. Fraud is characterized by three essential elements: an act or omission, objective, and (mens rea).
(a) Capability
(b) Intent
(c) Arrogance
(d) Opportunity
7. Under Section 3 of the Indian Evidence Act, statements made by witnesses before the court are called evidence.
(a) Primary
(b) Documentary
(c) Oral
(d) Secondary
8. The ethical foundation of forensic engagements series of FAIS establishes the conceptual and
(a) 100
(b) 200
(c) 300
(d) 500
9. Fraud indicators are commonly referred to as
(a) Green lights
(b) Red flags
(c) Checkpoints
(d) Roadblocks
10. The original signed contract itself constitutes
(a) Secondary
(b) Digital
(c) Primary
(d) Oral
11. ______ refers to the totality of circumstances that would lead a prudent professional to conclude that a fraud has occurred or is likely to occur.
(a) Fraud Predication
(b) Fraud Indicator
(c) Fraud Risk
(d) Fraud Prevention
12. The model of interviewing is favored in forensic practice because it is ethical, reliable, and less likely to produce false confessions.
(a) Reid
(b) 5W
(c) PEACE
(d) Benford
13. According to ______, smaller digits occur as the leading digit in naturally occurring numerical datasets more frequently than larger ones.
(a) The Fraud Diamond
(b) Benford’s Law
(c) The 100 Series
(d) Stratification Law
14. The analytical technique of dividing a large population of data into smaller, homogeneous subgroups to identify hidden anomalies involves
(a) Gap Analysis
(b) Duplicate Testing
(c) Stratification
(d) Regression
15. The ______ provides a chronological record showing who collected the evidence and how it was handled to ensure its integrity.
(a) Audit Trail
(b) Chain of Custody
(c) 5W Framework
(d) Hashing Fingerprint
16. When a forensic accountant uses “Fuzzy Logic” to find payments made to “IBM” and “L.B.M. Inc.”, they are performing
(a) Benford’s Analysis
(b) Gap Analysis
(c) Duplicate Testing
(d) Ratio Analysis
17. The Fraud Diamond model adds ______ as a fourth element to the traditional Fraud Triangle.
(a) Arrogance
(b) Competence
(c) Capability
(d) Rationalization
18. To ensure digital data remains unaltered after extraction, forensic practitioners use a technique to generate a digital fingerprint called
(a) Coding
(b) Hashing
(c) Layering
(d) Smurfing
19. In the PEACE model of interviewing, the “P” stands for
(a) Probing and Proving
(b) Planning and Preparation
(c) Professionalism and Peace
(d) Presentation and Politeness
20. A ______ approach to fraud detection involves the deliberate search for fraud indicators to generate predication before a specific loss is known.
(a) Reactive
(b) Historical
(c) Proactive
(d) Compliance
Conclusion | Fraud Detection MCQ QUIZ
This Fraud Detection MCQ Quiz is designed to help students and professionals test their understanding of key concepts in forensic accounting and fraud detection. By practicing these questions, you can strengthen your basics, improve exam readiness, and gain confidence in identifying fraud-related issues. Regular practice of such MCQs will help you perform better in university exams, professional courses, and competitive examinations.
Career Tip base on Fraud Detection
Certificate Course on Forensic Accounting and Fraud Detection
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Frequently Asked Questions
1. What is the Fraud Detection MCQ Quiz?
The Fraud Detection MCQ Quiz is a free online practice test designed to help students and professionals understand key concepts of forensic accounting and fraud detection through multiple-choice questions.
2. Who should attempt this Fraud Detection MCQ Quiz?
This quiz is useful for students of B.Com, M.Com, MBA, CA, CS, CMA, and those preparing for forensic accounting, fraud detection, and competitive exams.
3. Is this Fraud Detection quiz free to attempt?
Yes, this is a 100% free online quiz. You can attempt it anytime without any registration or payment.
4. Does this quiz show answers immediately?
No, this quiz is designed for self-practice. Answers can be checked separately or evaluated through the quiz plugin score system. It will show after submission of test.
5. What topics are covered in this quiz?
The quiz covers topics such as forensic accounting basics, fraud indicators, fraud predication, evidence, interviewing techniques, data analysis, laws related to fraud, and digital forensics.