Telemarketing fraud is an example of employee embezzlement. (F) 3. When perpetrators are convicted of fraud, they often serve jail sentences and/ or pay fines. (T) 4. Many companies hide their losses from fraud rather than make them public. (T) 5. Advances in technology have had no effect on the size or frequency of fraud. (F) 6. Fraud losses generally reduce a firm’s income on a dollar-for-dollar basis. (T) 7. Fraud perpetrators are often those who are least suspected and most trusted. (T) 8. Unintentional errors in financial statements are a form of fraud. (F) 9. Companies that commit financial statement fraud are often experiencing net losses or have profits less than expectations. (T) 10. Indirect fraud occurs when a company’s assets go directly into the perpetrator’s pockets without the involvement of third parties. (F) 11. In vendor fraud, customers don’t pay for goods purchased. (F) 12. A fraud may be perpetrated through an unintentional mistake. (F) 13. It is most often people who are not trusted that commit fraud. (F) 14. Management fraud is when managers intentionally deceive their employees about the potential of raises, vacations, and other perks. (F) 15. There is no difference between a Certified Fraud Examiner (CFE) and a Certified Public Accountant