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MBA Forensic Accounting and Fraud Investigation - NFAT Mock Test

NFAT Entrance Exam Mock Test for MBA Forensic Accounting and Fraud Investigation 2025

General Knowledge, Logical Reasoning, Mathematical Reasoning, Data Interpretation, ICT, and Communication (60 Questions)

1. Which international body is responsible for combating money laundering and terrorist financing?

A) World Trade Organization (WTO)
B) International Monetary Fund (IMF)
C) Financial Action Task Force (FATF)
D) World Bank

2. In which year was the Sarbanes-Oxley Act enacted in the United States to enhance corporate governance?

A) 2000
B) 2002
C) 2004
D) 2006

3. What is the primary function of the Securities and Exchange Board of India (SEBI)?

A) Regulate the securities market
B) Control monetary policy
C) Manage international trade
D) Oversee tax collection

4. Which country is known as the "Land of the Rising Sun"?

A) China
B) South Korea
C) Japan
D) Thailand

5. What does IFRS stand for in the context of global accounting standards?

A) International Financial Review Standards
B) International Financial Reporting Standards
C) International Fiscal Regulation Standards
D) International Finance and Reporting System

6. Who is the current Secretary-General of the United Nations as of 2025?

A) António Guterres
B) Ban Ki-moon
C) Kofi Annan
D) Kristalina Georgieva

7. If P is Q’s wife, R is Q’s son, and S is P’s daughter, how is S related to R?

A) Mother
B) Wife
C) Sister
D) Daughter

8. Find the next number in the sequence: 2, 6, 12, 20, ?

A) 28
B) 30
C) 32
D) 34

9. In a code, if FLOW is written as OFDS, how is RAIN written?

A) ISBO
B) JSBO
C) IOBP
D) JSPB

10. If 8 workers can complete a task in 12 days, how many days will 6 workers take to complete the same task?

A) 14 days
B) 16 days
C) 18 days
D) 20 days

11. If the code for MANGO is written as FJHLTK, how is APPLE written in the same code?

A) FJHLTK
B) FJHLTK
C) ZKKAF
D) FJHLTK

12. If today is Monday, what day will it be after 100 days?

A) Sunday
B) Monday
C) Tuesday
D) Saturday

13. What is 18% of 450?

A) 72
B) 80
C) 81
D) 90

14. A product costs Rs. 400 after a 25% discount. What was its original price?

A) Rs. 533.33
B) Rs. 500
C) Rs. 450
D) Rs. 480

15. What is the compound interest on Rs. 10,000 at 10% per annum for 2 years, compounded annually?

A) Rs. 2,000
B) Rs. 2,100
C) Rs. 2,200
D) Rs. 2,300

16. If two numbers are in the ratio 4:7 and their difference is 36, what is the larger number?

A) 48
B) 60
C) 84
D) 96

17. What is the value of (3^2) * (4^2)?

A) 144
B) 128
C) 162
D) 108

18. If 2x + 3y = 15 and x - y = 1, what is the value of y?

A) 3
B) 4
C) 5
D) 6

19. A company’s revenue in 2023 was Rs. 80 lakh, and it increased by 15% in 2024. What was the revenue in 2024?

A) Rs. 88 lakh
B) Rs. 90 lakh
C) Rs. 92 lakh
D) Rs. 94 lakh

20. A pie chart shows expenses: Salaries (45%), Rent (25%), Others (30%). If total expenses are Rs. 20,000, how much is spent on Rent?

A) Rs. 4,000
B) Rs. 5,000
C) Rs. 6,000
D) Rs. 7,000

21. A bar graph shows sales of 4 products: A (150 units), B (250 units), C (300 units), D (200 units). What is the total number of units sold?

A) 900
B) 850
C) 950
D) 800

22. A company’s profit increased from Rs. 5 lakh to Rs. 7 lakh. What is the percentage increase?

A) 30%
B) 40%
C) 50%
D) 60%

23. A table shows employee salaries: 4 employees earn Rs. 25,000 each, and 6 earn Rs. 35,000 each. What is the average salary?

A) Rs. 30,000
B) Rs. 31,000
C) Rs. 31,000
D) Rs. 32,000

24. A line graph shows sales over 5 months: Jan (200), Feb (250), Mar (300), Apr (350), May (400). What is the average monthly sales?

A) 300
B) 280
C) 320
D) 340

25. What is blockchain technology primarily used for?

A) Secure and transparent record-keeping
B) Website development
C) Data compression
D) Network speed enhancement

26. Which software is commonly used for forensic accounting investigations?

A) Microsoft Excel
B) Adobe Illustrator
C) CaseWare IDEA
D) CorelDRAW

27. What is the purpose of two-factor authentication (2FA)?

A) To increase data storage
B) To enhance security with multiple verification steps
C) To optimize network performance
D) To create backups

28. What is ransomware in the context of cybersecurity?

A) Malware that locks data until a ransom is paid
B) A type of network protocol
C) A data compression tool
D) A software update system

29. Which protocol is used for sending emails securely?

A) HTTP
B) FTP
C) SMTP
D) SNMP

30. What is the purpose of a VPN in ICT?

A) To increase internet speed
B) To create a secure connection over the internet
C) To design websites
D) To store large datasets

31. Identify the grammatically correct sentence:

A) The auditors was unable to find discrepancies.
B) The auditors were unable to find any discrepancies.
C) The auditors is unable to find discrepancies.
D) The auditors were unable to finds discrepancies.

32. Choose the correct preposition: The report must be submitted ___ Friday.

A) on
B) at
C) in
D) by

33. Choose the word most similar to “Integrity”:

A) Dishonesty
B) Deception
C) Honesty
D) Negligence

34. Choose the correctly spelled word:

A) Forrensik
B) Forensic
C) Forensick
D) Forrensic

35. Fill in the blank: The investigation was ___ due to insufficient evidence.

A) completed
B) initiated
C) terminated
D) extended

36. Choose the correct article: ___ effective forensic accountant requires analytical skills.

A) A
B) An
C) The
D) No article

37. Identify the error: The company are launching a new fraud detection system.

A) company
B) are
C) launching
D) system

38. Choose the correct form of the verb: The team ___ analyzing the financial records.

A) is
B) are
C) were
D) was

39. Choose the word opposite to “Confidential”:

A) Secret
B) Private
C) Public
D) Secure

40. What is the purpose of an audit report in business communication?

A) To advertise services
B) To communicate audit findings
C) To negotiate contracts
D) To train employees

41. What is the chemical symbol for silver?

A) Au
B) Fe
C) Ag
D) Cu

42. If 4 books cost Rs. 240, how much will 7 books cost?

A) Rs. 400
B) Rs. 420
C) Rs. 360
D) Rs. 480

43. What does SaaS stand for in ICT?

A) Software as a Service
B) System as a Service
C) Security as a Service
D) Storage as a Service

44. In a code, if SUN is written as TVO, how is MOON written?

A) NPOQ
B) OQPR
C) NQPO
D) PQOR

45. A company’s expenses are: Salaries (60%), Rent (20%), Others (20%). If Rent is Rs. 10,000, what is the total expense?

A) Rs. 50,000
B) Rs. 40,000
C) Rs. 45,000
D) Rs. 55,000

46. Choose the correct sentence: The forensic team ___ the evidence thoroughly.

A) analyze
B) analyzed
C) analyzing
D) analyzes

47. Which is the longest river in the world?

A) Amazon
B) Mississippi
C) Nile
D) Yangtze

48. What is the value of 30% of 120?

A) 36
B) 30
C) 40
D) 45

49. What is a DDoS attack in cybersecurity?

A) A data encryption technique
B) An attempt to overwhelm a server with traffic
C) A software update mechanism
D) A data storage system

50. A bar graph shows sales: Product A (200), Product B (300), Product C (500). What percentage of total sales is Product B?

A) 20%
B) 25%
C) 30%
D) 35%

51. Choose the word most similar to “Fraudulent”:

A) Honest
B) Deceptive
C) Transparent
D) Ethical

52. Find the next term in the sequence: 1, 8, 27, 64, ?

A) 125
B) 100
C) 144
D) 216

53. What does BI stand for in business technology?

A) Business Integration
B) Business Innovation
C) Business Intelligence
D) Business Infrastructure

54. If a product’s price increases from Rs. 500 to Rs. 625, what is the percentage increase?

A) 20%
B) 25%
C) 30%
D) 35%

55. What is the purpose of a hash function in cybersecurity?

A) To create a fixed-length data fingerprint
B) To increase network speed
C) To store large datasets
D) To design user interfaces

56. Choose the correct sentence: The committee ___ its findings last week.

A) publish
B) published
C) publishing
D) publishes

57. A company’s revenue grew from Rs. 15 lakh to Rs. 18 lakh. What is the percentage growth?

A) 15%
B) 18%
C) 20%
D) 25%

58. What is the capital of Australia?

A) Canberra
B) Sydney
C) Melbourne
D) Perth

59. If X is older than Y, and Y is older than Z, who is the youngest?

A) X
B) Z
C) Y
D) Cannot determine

60. What is the purpose of data analytics in forensic accounting?

A) To design websites
B) To encrypt data
C) To identify patterns in financial data
D) To increase hardware storage

Fundamentals of Management (40 Questions)

61. Who developed the 14 Principles of Management?

A) Henri Fayol
B) Frederick Taylor
C) Max Weber
D) Elton Mayo

62. What is the purpose of the controlling function in management?

A) To recruit employees
B) To market products
C) To monitor and evaluate performance
D) To design products

63. What is span of control in management?

A) The time taken to complete tasks
B) The number of subordinates a manager supervises
C) The budget allocation process
D) The marketing strategy

64. Which principle of management emphasizes that each employee should report to only one supervisor?

A) Unity of command
B) Division of work
C) Scalar chain
D) Esprit de corps

65. What is the primary objective of working capital management?

A) Maximizing long-term investments
B) Ensuring liquidity for daily operations
C) Reducing employee salaries
D) Increasing marketing expenses

66. What is an income statement?

A) A summary of revenues and expenses over a period
B) A snapshot of assets and liabilities
C) A record of cash inflows
D) A marketing budget

67. What is the formula for Net Profit Margin?

A) Revenue / Cost
B) Cost / Revenue
C) Net Profit / Revenue
D) Revenue - Cost

68. What is amortization in financial accounting?

A) Allocation of intangible asset costs over time
B) Increase in asset value
C) Reduction in liabilities
D) Increase in revenue

69. What is the role of forensic accounting in litigation support?

A) Designing marketing campaigns
B) Providing financial evidence for legal cases
C) Recruiting employees
D) Developing products

70. What is the purpose of a financial audit?

A) To market products
B) To hire employees
C) To verify the accuracy of financial statements
D) To design software

71. What is the purpose of market research in marketing management?

A) To calculate profits
B) To understand consumer needs and preferences
C) To manage inventory
D) To train employees

72. What is a target market?

A) A specific group of consumers a company aims to serve
B) All potential customers in a region
C) The entire market for a product
D) A group of competitors

73. What is the BCG Matrix used for in marketing?

A) Calculating profits
B) Managing employee performance
C) Analyzing product portfolio performance
D) Designing advertisements

74. What is customer lifetime value (CLV)?

A) The total revenue expected from a customer over time
B) The cost of acquiring a customer
C) The number of products sold to a customer
D) The company’s total revenue

75. What is succession planning in HRM?

A) Designing marketing strategies
B) Preparing employees for future leadership roles
C) Calculating profits
D) Managing inventory

76. What is the purpose of a job description in HRM?

A) To market products
B) To calculate salaries
C) To outline job duties and qualifications
D) To design software

77. What is employee engagement?

A) Employees’ commitment to organizational goals
B) Reducing employee salaries
C) Increasing production costs
D) Eliminating jobs

78. What is the 360-degree feedback method in HRM?

A) A marketing strategy
B) Collecting performance feedback from multiple sources
C) A financial audit tool
D) A product design method

79. What is the purpose of a PESTEL analysis in strategic management?

A) To calculate profits
B) To hire employees
C) To evaluate external environmental factors
D) To design products

80. What is a core competency in strategic management?

A) A unique capability that provides competitive advantage
B) A financial report
C) A marketing campaign
D) An employee handbook

81. What is a value chain analysis used for?

A) Calculating employee salaries
B) Identifying activities that create value for customers
C) Managing inventory
D) Designing software

82. What is corporate governance?

A) Marketing strategy development
B) Employee training programs
C) Systems for directing and controlling a company
D) Product pricing decisions

83. What is the mean of the numbers: 5, 10, 15, 20, 25?

A) 14
B) 15
C) 16
D) 17

84. What is the median of the numbers: 4, 8, 2, 10, 6?

A) 4
B) 6
C) 6
D) 8

85. What is the probability of drawing a red card from a standard deck of 52 cards?

A) 1/2
B) 1/4
C) 1/3
D) 1/6

86. What is the mode of the dataset: 3, 4, 4, 5, 6?

A) 3
B) 4
C) 5
D) 6

87. What is regression analysis used for in business statistics?

A) Measuring data variability
B) Calculating the mean
C) Predicting relationships between variables
D) Determining the median

88. What is the purpose of hypothesis testing in statistics?

A) To make inferences about population parameters
B) To calculate profits
C) To design products
D) To hire employees

89. What is the purpose of a press release in business communication?

A) To negotiate contracts
B) To announce company news to the public
C) To train employees
D) To calculate profits

90. What is cross-cultural communication in business?

A) Communicating within a single department
B) Communicating with competitors
C) Communicating across different cultures
D) Communicating with suppliers only

91. What is the purpose of a business email?

A) To facilitate professional communication
B) To design products
C) To calculate profits
D) To manage inventory

92. What is verbal communication in a business context?

A) Written reports
B) Spoken interactions and presentations
C) Financial statements
D) Marketing campaigns

93. What is the purpose of a cash budget in financial management?

A) To design products
B) To hire employees
C) To forecast and manage cash flows
D) To market products

94. What is product differentiation in marketing?

A) Making a product unique to attract customers
B) Reducing product quality
C) Increasing production costs
D) Eliminating competitors

95. What is the purpose of employee onboarding in HRM?

A) To reduce employee salaries
B) To integrate new employees into the organization
C) To design products
D) To market products

96. What is a balanced scorecard in strategic management?

A) A financial report
B) A marketing plan
C) A tool to measure organizational performance
D) An employee handbook

97. What is the purpose of liquidity ratios in financial management?

A) To assess a company’s ability to meet short-term obligations
B) To design products
C) To hire employees
D) To market products

98. What is the purpose of a customer satisfaction survey in marketing?

A) To calculate profits
B) To measure customer feedback and experience
C) To manage inventory
D) To train employees

99. What is the purpose of time-series analysis in business statistics?

A) To design products
B) To market products
C) To analyze trends over time
D) To hire employees

100. What is the purpose of a whistleblower policy in business communication?

A) To encourage reporting of unethical behavior
B) To design products
C) To calculate profits
D) To reduce employee salaries

Test Results

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