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Certified Forensic Accountant (CRFA)


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Answer: C




Question: 355

Which of the following might constitute a breach of trust by the trustee of a PN or PC trust fund, resulting in potential fraud?


  1. Disclosing false information or not disclosing material information

  2. Disbursing funds in accordance with trust document

  3. Providing quarterly, rather than monthly trustee statements

  4. a and b




Answer: A




Question: 356

Insurance Funded Preneed Sales – the risk of fraud is low because:


  1. A third party is involved

  2. Operators can easily forge documents to deceive the third party service organization

  3. Sarbanes-Oxley does nothing to help tighten controls at publicly traded insurance companies

  4. Funeral providers collect premiums from customers




Answer: A




Question: 357

Forensic accountants may be involved in recovering proceeds of crime and in relation to confiscation proceedings concerning actual or assumed proceeds of crime or .


  1. Bank secrecy

  2. Money laundering

  3. Clearstream

  4. Offshore bank




Answer: B




Question: 358

Forensic accountants often assist in professional claims where they are assessing and commenting on the work of other professionals.


  1. Reasonable person

  2. Negligence

  3. Tort

  4. Product liability




Answer: A




Question: 359

In the , relevant legislation is contained in the Proceeds of Crime Act 2002.


  1. England

  2. Canada

  3. Wales

  4. United Kingdom




Answer: D




Question: 360

Forensic accounting is the specialty practice area of that describes engagements that result from actual or anticipated disputes or litigation.


  1. Accountancy

  2. Proto-Elamite

  3. Sarbanes–Oxley Act

  4. Balance sheet




Answer: A




Question: 361

Some forensic accountants are also Certified Forensic Accounting Professionals, Certified Fraud Examiners, , or Chartered Accountants.


  1. Management accounting

  2. Financial audit

  3. Certified Public Accountant




Answer: C




Question: 362

During the customer acceptance and identification activities, which of the following customers should be part of the enhanced due diligence ?


  1. Personal depositors with small deposits

  2. Traders dealing in cash

  3. Salaried employees maintaining zero minimum balance with bank

  4. Trustees, nominees and fiduciaries




Answer: D




Question: 363

Insurance company observed that in one instance there were Cash transactions for payment of premium and top ups over and above Rs. 5 lakhs per person per month by a group of professionals. What is the reporting obligation of the Insurance company in such case ?


  1. Insurance company should report this transaction under Cash Transaction Reports to IRDA

  2. Insurance company should report this transaction as suspicious to IRDA

  3. Insurance company should report this transaction under Cash Transaction Reports to FUI

  4. Insurance company should report this transaction as suspicious to FIU




Answer: D




Question: 364

Money Laundering is considered to be victimless crime unless supported by other offenses.


  1. True

  2. False




Question: 365

According to various estimates on money laundering, size of money laundering is $ 500 billion to $ 1.5 trillion and the same is expected to grow at :


  1. is less than or equal to 2.5 and is less than or equal to 2.8

  2. is greater than or equal to 2.5 and is less than or equal to 2.8

  3. is greater than or equal to 2.5 and is greater than or equal to 2.8

  4. None of these




Answer: B




Question: 366

Money Laundering has three stages. Which of the following is Not out of those?


  1. Placement

  2. Layering

  3. Integration

  4. All of these

  5. None of these




Answer: E




Question: 367

Under which stage of money laundering the funds are constantly moved or re- characterized to conceal the origin of the funds


  1. Layering

  2. Integration

  3. Placement

  4. Insulation




Answer: A




Question: 368

The Prevention of Money-laundering Act, 2002, and rule thereunder require every banking company, financial institution and intermediary, to furnish to FIU-IND information relating to:


  1. All cash transactions of the value of more than rupees ten lakhs in foreign currency

  2. All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency

  3. All cash transactions of the value of more than rupees five lakhs

  4. All transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency




Answer: B




Question: 369

Banker identified a set of transactions where large number of current accounts were having a common introducer. What do the banker need to do with such transactions?


  1. None of the above

  2. Identify the reason, if there is no prima facie reason then report it to FIU

  3. Nothing, it is a regular banking transaction

  4. Identify th reason behind the introduction and stop the investigation




Answer: B




Question: 370

Single money laundering transaction can combine the elements of Placement, Layering and Integration.


  1. True

  2. False




Answer: A


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