Chapter 5–Check Tampering
1. Check tampering is unique from other fraudulent disbursement schemes because in a check tampering scheme:
a. The perpetrator physically prepares the fraudulent check.
b. The perpetrator must have access to a signature stamp in order to conceal the crime.
c. The ...
1. Check tampering is unique from other fraudulent disbursement schemes
because in a check tampering scheme:
a. The perpetrator physically prepares the fraudulent check.
b. The perpetrator must have access to a signature stamp in order to
conceal the crime.
c. The perpetrator submits a phony document in order to generate the
fraudulent payment.
d. The perpetrator must endorse the check in order to cash or deposit it.
2. To successfully carry out and conceal a check tampering scheme, the fraudster
must have:
a. Access to the check stock
b. Access to the bank statements
c. The ability to forge signatures or alter other information on the check
d. All of the above
3. Which of the following choices is not a category of check tampering?
a. Forged maker schemes
b. Altered payee schemes
c. Unauthorized endorsement schemes
d. Concealed check schemes
4. The person who prepares and signs the check is known as the of
the check.
a. Author
b. Endorser
c. Payer
d. Maker
5. In which of the following schemes does the fraudster intercept and
convert a company check made payable to a third party?
a. Forged maker scheme
b. Authorized maker scheme
c. Altered payee scheme
d. Concealed check scheme
6. Which of the following is not an effective control mechanism to
safeguard an organization’s check stock?
a. Boxes of blank checks should be sealed with security tape.
b. Organizations should use check stock that is high-quality and distinctly
marked.
c. The employee in charge of the check preparation function
should periodically verify the security of unused checks.
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7. To prevent and detect forged maker schemes, an organization should:
a. Separate the duties of check preparation and check signing.
b. Rotate authorized check signers.
c. Maintain a usage log for the signature stamp.
d. All of the above
8. Which of the following procedures can help prevent and detect the
theft and conversion of outgoing company checks?
a. Train employees to look for dual endorsements on canceled checks.
b. Chart the date of mailing for every outgoing check.
c. Track changes made to vendor records.
d. All of the above
9. Which of the following is not a type of altered payee scheme?
a. “Tacking” on
b. Forged maker
c. Using erasable ink
d. Leaving the payee designation blank
10. Which of the following computer audit tests can be used to detect forged
maker schemes?
a. Extract checks that are out of sequence
b. Extract manual checks and summarize by vendor and issuer
c. Extract all checks payable to “cash” and summarize by issuer for
reasonableness
d. All of the above
11. Which type of check tampering scheme is usually the most difficult to
defend against?
a. Authorized maker
b. Forged endorsement
c. Concealed check
d. Altered payee
12. Methods used to conceal check tampering schemes include all of the
following except:
a. Falsifying the disbursements journal
b. Forced reconciliation
c. Check kiting
d. Re-altering the canceled checks
13. Methods used to manipulate electronic payments include which of the following?
a. Abusing legitimate access to the employer’s payment system
b. Gaining access to the employer’s payment system through social engineering
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