Which of the following actions did the Treadway Commission recommend to reduce
fraudulent financial reporting?
a. Establish financial incentives that promote integrity in the financial reporting
process.
b. Identify and understand the factors that lead to fraudulent financial reporting.
c. Assess the risk of corruption and misappropriation of assets within the company.
d. Design and implement internal controls to provide reasonable assurance of preventing
fraudulent financial reporting.
Which of the following statements is (are) TRUE?
a. Perpetrators who do not steal cash or use the stolen assets usually convert the assets to
a spendable form.
b. The biggest fraud opportunity arises from a company’s failure to design and enforce
its internal control system.
c. A huge fraud opportunity arises when a company has clear policies and procedures
and teaches and stresses honesty.
d. Strong, mutually beneficial personal relationships with suppliers is unlikely to result
in fraud.
e. Fraud is highly unlikely to occur when a crisis arises and normal controls are
suspended.
The number of incidents and the total dollar losses from computer fraud are increasing
rapidly for which of the following reasons?
a. Many instances of computer fraud go undetected and many computer frauds are not
reported.
Cyber sleuths need which of the following skills?
a. Ability to do complex programming, so they can develop their own software to examine
corporate data and records
b. Ability to follow a trail, think analytically, and be thorough
c. Ability to use their computer engineering experience to evaluate the hardware used by
the company
d. Ability to think like a fraud perpetrator and use hacking tools and techniques
e. Ability to use their legal training to properly prepare the evidence needed to prosecute
perpetrators
b. Many companies are moving to cloud services where there are few data security
controls.
c. Internet sites offer step-by-step instructions on how to perpetrate computer fraud and
abuse.
d. Law enforcement is not interested in preventing or prosecuting computer fraud.
e. There are no laws against computer fraud, so prosecution is difficult.
Which of the following statements is (are) TRUE?
a. The type of computer fraud that is the simplest and most common and that requires the
least amount of skill is data fraud.
b. The type of computer fraud that is the most difficult because it requires the most skill
is computer instructions fraud.
c. The biggest cause of data breaches is organized hacker groups.
d. Losses from the theft of physical assets are much greater than those from the electronic
theft of data.
e. In the absence of controls, it is not hard for a dishonest emplo
Which of the following actions did the Treadway Commission recommend to reduce
fraudulent financial reporting?
Answer : D
======================================================
Which of the following statements is (are) TRUE?
Answer : B. The biggest fraud opportunity arises from a company’s failure to design and enforce
its internal control system.
======================================================
Cyber sleuths need which of the following skills?
Answer : All of the Above
======================================================
Which of the following statements is (are) TRUE?
Answer : b. The type of computer fraud that is the most difficult because it requires the most skill
is computer instructions fraud.
c. The biggest cause of data breaches is organized hacker groups.
Which of the following actions did the Treadway Commission recommend to reduce fraudulent financial reporting? a. Establ...
The National Commission on Fraudulent Financial Reporting (the Treadway Commission) made recommendations to overcome fraudulent financial reporting. Which of the following was not one of the commission’s recommendations? A.More stringent regulation by the FASB. B.Better training by colleges and universities about the symptoms of fraud and fraudulent reporting. C.More emphasis on fraud detection by independent public accountants. D.A stronger internal auditing function.
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...
8) During the general ledger and financial reporting cycle: A. budgets are created and agreed upon. B. transactional level data is accumulated, summarised, adjusted and reported to internal users. C. transactional level data is accumulated, summarised, adjusted and reported to external users. D. all of the options are correct. 9) Reporting sales in the current period which have not yet shipped so that annual sales figures are inflated is an example of: A. inventory theft. B. non-existent sales. C. credit...
What is the most likely opportunity for theft or fraud by employees? Multiple Choice The belief that the theft is a common practice. Needlessly complex transactions. Access to assets that are easily traced. Stock options that expire soon after the release of financial statements. What objectives of controls are of primary interest to an auditor performing a financial statement audit? Multiple Choice Effective and efficient operations Accurate and reliable financial reporting Compliance with applicable laws and regulations Prevention or detection...
Paul Gray mentioned he was concerned about the security of his clients and their own management of passwords and accounts. Improper password management can lead to cases of fraud and misuse of the system. One such type fraud is that victims' account passwords can be stolen and their share trading accounts can be misused for making unauthorized transactions that result in the victims making losses. This crime can be executed by the suspect installing key loggers in public computers, such...
18. Which of the following is not a red flag for a scheme involving fraudulent invoices from non-accomplice vendors? MULTIPLE CHOICE a. Noting that paid was marked on every voucher that has been paid. b. Mailing addresses differing from the real vendor address. c. Deviations from the approved vendor list. d. An invoice number out of sequence. 19. For the small business, which of the following is a good way to prevent or detect fraud? MULTIPLE CHOICE a. Segregate duties. b....
5. Which of the following control procedures is designed to reduce the risk of check altera-tion fraud? a. ACH blocks on accounts not used for payments b. Use of dedicated computer and browser for online banking c. Establishing “Positive Pay” arrangements with banks d. Access controls for EFT terminals e. Prenumbering all checks 6. Which of the following control procedures is designed to reduce the risk of theft of inventory? a. Restriction of physical access to inventory b. Periodic physical...
0.00 Time Left:0:58:11 Ruth Bastien: Attempt 1 6.In the context of fraudulent financial reporting, which would most likely represent a risk factor? O A Low employee turnover at senior management levels B. High degree of competition in the particular industry C. The structure of the company includes subsidiary companies D. Revenue expectations from management have increased slightly from the prior year 9 12 Question 6 12 points) 13. Which of the following refers to measurements, agreed to beforehand, that can...
1. For each of the following situations, assume that you are reporting on a client’s financial statements. The company is a private company (not publicly held). Unless otherwise stated, assume that the matter involved is material and that the client has refused to make any required adjustments. Types of reports: Unmodified (Unqualified) Modified (Qualified) Disclaimer Adverse Types of paragraphs: A. No additional paragraph B. “Emphasis of matter” paragraph required C. “Basis for” paragraph required D. “Emphasis of matter” paragraph...
1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...