PCI Study Guide

1. PCIStudy Guide

2. Sample Questions

3. 1. Business crime losses are typically the result of: • a. Non-violent acts committed by insiders. • b. Non-violent acts committed by outsiders. • c. Violent acts committed by insiders. • d. Violent acts committed by outsiders.

4. 1. Business crime losses are typically the result of: • a. Non-violent acts committed by insiders. • b. Non-violent acts committed by outsiders. • c. Violent acts committed by insiders. • d. Violent acts committed by outsiders.

5. 2. Competitive intelligence acquisition is a process of the collection of information using: • a. Open sources and interviews. • b. Radio frequency transmitters. • c. Wiretaps. • d. Manipulation of safes and locks to gain access to the information.

6. 2. Competitive intelligence acquisition is a process of the collection of information using: • a. Open sources and interviews. • b. Radio frequency transmitters. • c. Wiretaps. • d. Manipulation of safes and locks to gain access to the information.

7. 3. The most important and generally the most expensive type of countermeasure is: • a. Hardware. • b. Software. • c. People. • d. Competitive Intelligence

8. 3. The most important and generally the most expensive type of countermeasure is: • a. Hardware. • b. Software. • c. People. • d. Competitive Intelligence

9. 4. A fraud called “lapping” that is committed in the accounts receivable unit involves: • a. Posting the payment twice to the same customer account. • b. Delaying the posting of a cash payment to cover a prior theft. • c. Posting a cash payment to the account of a confederate. • d. Posting a cash payment to a customer account only on a date that is agreeable to the customer.

10. 4. A fraud called “lapping” that is committed in the accounts receivable unit involves: • a. Posting the payment twice to the same customer account. • b. Delaying the posting of a cash payment to cover a prior theft. • c. Posting a cash payment to the account of a confederate. • d. Posting a cash payment to a customer account only on a date that is agreeable to the customer.

11. 5. Studies of workplace theft have shown that approximately: • a. One-third of the employees reported stealing company property, but a small number of employees take large amounts of property. • b. Three-fourths of the employees reported stealing company property and the vast majority take small amounts of property. • c. Less than one-fourth of the employees reported stealing company property but the vast majority take large amounts of property. • d. Less than ten percent of the employees reported stealing company property but the vast majority take large amounts of property.

12. 5. Studies of workplace theft have shown that approximately: • a. One-third of the employees reported stealing company property, but a small number of employees take large amounts of property. • b. Three-fourths of the employees reported stealing company property and the vast majority take small amounts of property. • c. Less than one-fourth of the employees reported stealing company property but the vast majority take large amounts of property. • d. Less than ten percent of the employees reported stealing company property but the vast majority take large amounts of property.

13. 6. The Clark and Hollinger studies of workplace theft are instructive in formulating loss prevention policies and procedures particularly in the finding that the single most predictor of theft was the employee’s: • a. Need for the assets. • b. Relative rank in the organizational hierarchy. • c. Perceived chance of being detected. • d. Marital status.

14. 6. The Clark and Hollinger studies of workplace theft are instructive in formulating loss prevention policies and procedures particularly in the finding that the single most predictor of theft was the employee’s: • a. Need for the assets. • b. Relative rank in the organizational hierarchy. • c. Perceived chance of being detected. • d. Marital status.

15. 7. Studies have found that, for employees who engaged in theft, the most important consideration was the: • a. Organizational sanctions • b. Informal social controls such as peer group gossip, ridicule and ostracism. • c. Familial social sanctions. • d. Media exposure.

16. 7. Studies have found that, for employees who engaged in theft, the most important consideration was the: • a. Organizational sanctions • b. Informal social controls such as peer group gossip, ridicule and ostracism. • c. Familial social sanctions. • d. Media exposure.

17. 8. As a result of the Clark and Hollinger studies, the overall message to organizations attempting to deter theft by employees is: • a. Installing multiple levels of security devices to control theft will instill a sense of satisfaction among employees. • b. Providing major security systems creates an environment in which theft is all but impossible. • c. Showing sincere concern for the individual’s contribution to the organization instills a sense of ownership and feelings of belonging. • d. Creating strong control systems of internal control instills a sense of well being in employees.

18. 8. As a result of the Clark and Hollinger studies, the overall message to organizations attempting to deter theft by employees is: • a. Installing multiple levels of security devices to control theft will instill a sense of satisfaction among employees. • b. Providing major security systems creates an environment in which theft is all but impossible. • c. Showing sincere concern for the individual’s contribution to the organization instills a sense of ownership and feelings of belonging. • d. Creating strong control systems of internal control instills a sense of well being in employees.

19. 9. Cressy’s theory holds that the following three elements must be present before a fraud or similar crime takes place: • a. A lack of administrative controls, inadequate supervision, and the ability to rationalize the behavior. • b. Substance abuse, opportunity for a trust violation, and inadequate supervision. • c. A non-sharable problem, an opportunity for a trust violation, and a series of rationalizations for the behavior. • d. An opportunity for a trust violation, a lack of administrative controls, and the ability to rationalize the trust violation.

20. 9. Cressy’s theory holds that the following three elements must be present before a fraud or similar crime takes place: • a. A lack of administrative controls, inadequate supervision, and the ability to rationalize the behavior. • b. Substance abuse, opportunity for a trust violation, and inadequate supervision. • c. A non-sharable problem, an opportunity for a trust violation, and a series of rationalizations for the behavior. • d. An opportunity for a trust violation, a lack of administrative controls, and the ability to rationalize the trust violation.

21. 10. Which of the following is NOT an attribute of an effective theft and fraud prevention program: • a. A process for screening all applicants for past trust violations. • b. Control consciousness fostered throughout the organization including written policies describing prohibited activities and the action required if violations are noted. • c. Periodic employee communications that include case histories, avoiding the use of names or other descriptors, demonstrating vulnerabilities and management actions against those who commit theft or fraud. • d. Periodic publicity throughout the organization of case histories of theft and fraud including the names and departments of the violators and the actions, including prosecution, taken against them.

22. 10. Which of the following is NOT an attribute of an effective theft and fraud prevention program: • a. A process for screening all applicants for past trust violations. • b. Control consciousness fostered throughout the organization including written policies describing prohibited activities and the action required if violations are noted. • c. Periodic employee communications that include case histories, avoiding the use of names or other descriptors, demonstrating vulnerabilities and management actions against those who commit theft or fraud. • d. Periodic publicity throughout the organization of case histories of theft and fraud including the names and departments of the violators and the actions, including prosecution, taken against them.

23. 11. Which of the following is not relevant in determining physical protection for a cargo handling facility? • a. Cargo packaging. • b. Cargo volume. • c. Cargo value. • d. Place of cargo origin.

24. 11. Which of the following is not relevant in determining physical protection for a cargo handling facility? • a. Cargo packaging. • b. Cargo volume. • c. Cargo value. • d. Place of cargo origin.

25. 12. Pilferage involves: • a. Extensive planning. • b. Little planning or technique. • c. Complex theft techniques. • d. Access to the shipping and storage documents for a particular shipment.

26. 12. Pilferage involves: • a. Extensive planning. • b. Little planning or technique. • c. Complex theft techniques. • d. Access to the shipping and storage documents for a particular shipment.

27. 13. The sole purpose of seals is to: • a. Prevent entry. • b. Indicate tampering. • c. Determine the honesty of employees. • d. Provide a record of asset movement.

28. 13. The sole purpose of seals is to: • a. Prevent entry. • b. Indicate tampering. • c. Determine the honesty of employees. • d. Provide a record of asset movement.

29. 14. The type of lock specifically designed to secure a truck trailer which is parked unattended overnight is: • a. A shrouded padlock. • b. A trailer pin or kingpin lock. • c. A double laminated lock. • d. A seven pin lock with a hardened shackle.

30. 14. The type of lock specifically designed to secure a truck trailer which is parked unattended overnight is: • a. A shrouded padlock. • b. A trailer pin or kingpin lock. • c. A double laminated lock. • d. A seven pin lock with a hardened shackle.

31. 15. The best rule to follow in the event of a loss or mysterious disappearance of goods when a transportation carrier is involved is: • a. Report the condition by telephone and confirm the report in writing within 24 hours to the appropriate carrier. • b. Notify the Department of Transportation immediately and request a conformation of the report. • c. Report the condition by telephone to the appropriate insurance agency and confirm the report in writing within 24 hours. • d. For an intrastate shipment, notify the state transportation authorities within 24 hours of the discovery; for interstate shipments, notify the Federal Bureau of Investigation within 24 hours of the discovery.

32. 15. The best rule to follow in the event of a loss or mysterious disappearance of goods when a transportation carrier is involved is: • a. Report the condition by telephone and confirm the report in writing within 24 hours to the appropriate carrier. • b. Notify the Department of Transportation immediately and request a conformation of the report. • c. Report the condition by telephone to the appropriate insurance agency and confirm the report in writing within 24 hours. • d. For an intrastate shipment, notify the state transportation authorities within 24 hours of the discovery; for interstate shipments, notify the Federal Bureau of Investigation within 24 hours of the discovery.

33. 16. In a marine terminal, the stevedore is accountable for the cargo until: • a. The terminal operator’s agent signs for the goods. • b. The intermodal carrier moves the goods from the dock. • c. The cargo reaches a “point of rest”. • d. The complete shipment is delivered to the terminal warehouse.

34. 16. In a marine terminal, the stevedore is accountable for the cargo until: • a. The terminal operator’s agent signs for the goods. • b. The intermodal carrier moves the goods from the dock. • c. The cargo reaches a “point of rest”. • d. The complete shipment is delivered to the terminal warehouse.

35. 17. When a seal is applied to a truck or a railroad car the seal number should: • a. Be noted on the bill of lading or other shipping document including the control copy. • b. Be noted on the bill of lading or other shipping document but not on the control copy. • c. Never be noted on any shipping document as this is sensitive information. • d. Be recorded only in the shipping log maintained at the originating point of the shipment.

36. 17. When a seal is applied to a truck or a railroad car the seal number should: • a. Be noted on the bill of lading or other shipping document including the control copy. • b. Be noted on the bill of lading or other shipping document but not on the control copy. • c. Never be noted on any shipping document as this is sensitive information. • d. Be recorded only in the shipping log maintained at the originating point of the shipment.

37. 18. A property pass is used to authorize: • a. Large movements of material in the normal course of business. • b. Regular movements of small shipments of materials. • c. Irregular or unusual movements of company or personal property. • d. The movement of scrap material.

38. 18. A property pass is used to authorize: • a. Large movements of material in the normal course of business. • b. Regular movements of small shipments of materials. • c. Irregular or unusual movements of company or personal property. • d. The movement of scrap material.

39. 19. The irregular or nonstandard movement of company property, personal property of employees of visitors, and customer property generally requires manual or paper processing. Which of the following is NOT a basic concept for this process: • a. All asset movements and all changes in asset control or responsibility must be in accordance with the policies and procedures of the organization. • b. The movements and control of responsibility must have prior authorization and be properly recorded. • c. With the exception of personal property, documents that authorize the movement of property must be pre-numbered. • d. The identity of the person moving the assets or assuming control of, or responsibility for, the as sets must be positively verified.

40. 19. The irregular or nonstandard movement of company property, personal property of employees of visitors, and customer property generally requires manual or paper processing. Which of the following is NOT a basic concept for this process: • a. All asset movements and all changes in asset control or responsibility must be in accordance with the policies and procedures of the organization. • b. The movements and control of responsibility must have prior authorization and be properly recorded. • c. With the exception of personal property, documents that authorize the movement of property must be pre-numbered. • d. The identity of the person moving the assets or assuming control of, or responsibility for, the as sets must be positively verified.

41. 20. The activities of private sector security organizations are measured in terms of: • a. Numbers of arrests and convictions. • b. Funds expended and funds or assets recovered. • c. The ration of uniformed to plain clothes security employees. • d. The number of management employees in the organization.

42. 20. The activities of private sector security organizations are measured in terms of: • a. Numbers of arrests and convictions. • b. Funds expended and funds or assets recovered. • c. The ration of uniformed to plain clothes security employees. • d. The number of management employees in the organization.

43. 21. The information provided by personal references in the course of a pre-employment investigation: • a. Is of no value because they are friends and would only say good things about the subject. • b. Can be relied upon without further corroboration. • c. Should be accepted at face value without consideration that the reference is a relative or friend. • d. Although apparently neutral, is often helpful indirectly as collateral information.

44. 21. The information provided by personal references in the course of a pre-employment investigation: • a. Is of no value because they are friends and would only say good things about the subject. • b. Can be relied upon without further corroboration. • c. Should be accepted at face value without consideration that the reference is a relative or friend. • d. Although apparently neutral, is often helpful indirectly as collateral information.

45. 22. A competent investigator writes a report so that the reader can readily understand: • a. What the investigator did, why it was done, and the results of the action. • b. The personal prejudices of the investigator. • c. The identity of all sources of information gathered in the course of the investigation.. • d. What disciplinary action the organization had taken in past similar cases.

46. 22. A competent investigator writes a report so that the reader can readily understand: • a. What the investigator did, why it was done, and the results of the action. • b. The personal prejudices of the investigator. • c. The identity of all sources of information gathered in the course of the investigation.. • d. What disciplinary action the organization had taken in past similar cases.

47. 23. The general rule in writing a summary or synopsis of a report of investigation is that: • a. Supporting facts are supplied for every major point covered by the report. • b. Each source used is fully identified. • c. Every major point covered by the report requires at least one sentence in the synopsis. • d. Conclusions are not permitted in the synopsis.

48. 23. The general rule in writing a summary or synopsis of a report of investigation is that: • a. Supporting facts are supplied for every major point covered by the report. • b. Each source used is fully identified. • c. Every major point covered by the report requires at least one sentence in the synopsis. • d. Conclusions are not permitted in the synopsis.

49. 24. In the narrative section of a report of investigation: • a. Technical terms are normally used extensively. • b. Lengthy explanations are used in order to completely report the actions taken. • c. Each step in the investigation should be covered in a separate paragraph. • d. Multiple steps in the investigation should be covered in a single paragraph to avoid a lengthy report.

50. 24. In the narrative section of a report of investigation: • a. Technical terms are normally used extensively. • b. Lengthy explanations are used in order to completely report the actions taken. • c. Each step in the investigation should be covered in a separate paragraph. • d. Multiple steps in the investigation should be covered in a single paragraph to avoid a lengthy report.