CBA Fraud Examination and Prevention 2

Question 1

What is 'lapping' in the context of bank employee fraud?

Accepted Answer

Stealing cash receipts from one account and covering the shortage with subsequent customer payments

Answer

Overlapping audit periods to ensure no coverage gaps exist

Answer

Duplicating loan applications across multiple financial institutions simultaneously

Answer

Layering transactions through multiple accounts to obscure money laundering

Question 2

Which analytical technique is most useful for detecting fraudulent or manipulated transaction amounts in bank records?

Accepted Answer

Benford's Law analysis of the leading digits in transaction data

Answer

Ratio analysis of the bank's return on equity over multiple periods

Answer

Customer satisfaction survey correlation with transaction volume

Answer

Peer bank interest rate comparison across competing institutions

Question 3

Under the Bank Secrecy Act, within how many days of detecting a suspicious transaction must a bank file a Suspicious Activity Report (SAR)?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 4

According to ACFE Occupational Fraud studies, what is the most common category of fraud committed against financial institutions?

Accepted Answer

Asset misappropriation

Answer

Financial statement fraud

Answer

Corruption and bribery schemes

Answer

Cyber-enabled fraud

Question 5

Which control most effectively detects ghost employee schemes in a bank's payroll system?

Accepted Answer

Comparing payroll records against HR personnel files and conducting surprise physical headcounts

Answer

Requiring all employees to receive pay via direct deposit only

Answer

Implementing mandatory annual performance reviews for all staff

Answer

Outsourcing payroll processing entirely to a third-party administrator

Question 6

What does the term 'skimming' mean in the context of bank employee fraud?

Accepted Answer

Stealing cash or payments before they are recorded in the accounting system

Answer

Electronically reading customer card data without physical contact

Answer

Transferring small amounts from many customer accounts to a fraudster's account

Answer

Falsifying information on a loan application to obtain approval

Question 7

Which organizational structure best reduces fraud risk in a bank's lending department?

Accepted Answer

Separating loan origination, credit approval, and loan servicing into distinct functions

Answer

Centralizing all lending authority with a single senior credit officer

Answer

Requiring external auditors to approve all individual loan decisions

Answer

Limiting lending authority to a small group of long-tenured officers