Question

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail? a. Income statement b. Balance sheet c. Statement of cash flows d. Statement of retained earnings d. The employees know who has responsibility for each business activity. Procedures to follow are in place. Which of the following is NOT a common rationalization of fraud perpetrators? a. The organization owes me. b. I'm only borrowing the money. c. No one will get hurt. d. No one will care. Which of the following observations is true? a. Research shows that only people with a criminal mindset commit fraud. b. Fraud perpetrators usually can be distinguished from others based on psychological characteristics. c. Most fraud perpetrators have profiles that are similar to those of other people. d. When fraud does occur, the most common initial reaction by those involved in the fraud is confession. When management fraud occurs, companies usually: a. overstate assets and net income. b. understate assets and net income. C. overstate assets and understate net income. d. understate assets and overstate net income. An employee who has the responsibilities of both writing checks and making bank deposits would have to commit fraud. a. financial pressure b. a perceived opportunity c. the rationalization d. validation

Answer 1

Answer to question 6 is option c

Because it is veryyy easy to hide the facts of cash flow soo their is no record of petty cash expenses done and easily fraud can be done by a smart fraudster.

Answer to question 7 is option b

The fraudster will never have the rationalize that i am borrowing the money from the organization, if he will have this thinking then he will never do the fraud. Because their is no point in snatching money from someone and having the thought to return it someday.

Answer to question 8 is option b

The fraud preprators usually have that thing in their mind or it is in their rationalize they may commit fraud when situation is suitable for them. This type.of thinking can be revealed with the help of detection of psychological characteristics of the person or fraudster

Answer to question 9 is option d

When the management fraud is done, the main motive is to show more income so they overstate income and less asset is shown in order to make less payments to its other members

Answer to question 10 is b

Because a person who is making the important financial work of making checks and deposited in bank can have easy opportunity to do the fraud as everythng related to bank is in his hands so it will be easy to loot or launder the cash.