Questions from Fraud Examination

Q: Fraud losses generally reduce a firm's income on a dollar-for

Fraud losses generally reduce a firm's income on a dollar-for-dollar basis.

Q: You are a staff auditor on a very important audit engagement.

You are a staff auditor on a very important audit engagement. You are assigned to audit two parts of your client's purchasing department. After several days of studying purchase orders and sales invoi...

Q: You have been hired by a small firm to analyze its accounts

You have been hired by a small firm to analyze its accounts receivable department and assess how susceptible it is to fraud. The company operates a table manufacturing facility. The only employee in a...

Q: Many people feel that it is the job of auditors to detect

Many people feel that it is the job of auditors to detect fraud. What circumstances make it difficult for auditors to detect fraud? Who is more likely to be in a better position than auditors to detec...

Q: 1. According to the chapter, which groups (auditors,

1. According to the chapter, which groups (auditors, managers, co-workers, company accountants, or friends) are in the best position to observe fraud symptoms in each of the three elements of fraud?...

Q: Sally was aware of a fraud being committed by one of her

Sally was aware of a fraud being committed by one of her co-workers, but she never reported it. What are some possible reasons for her hesitancy to come forward?

Q: Boxer Incorporated has hired you as a consultant to implement a data

Boxer Incorporated has hired you as a consultant to implement a data-driven fraud detection program in the company. One of the owners, Priscilla Boxer, asks you to give a presentation to several execu...

Q: Large frauds can often be detected by performing financial statement analysis.

Large frauds can often be detected by performing financial statement analysis. Although such analysis can raise areas of concern, not all red flags are the result of fraudulent activities. Reasonable...

Q: By examining first digits, Company XXX suspects fraud. You are

By examining first digits, Company XXX suspects fraud. You are asked to review the sample of invoices shown on the previous page to see if they make sense. You are familiar with several fraud detectio...

Q: A large manufacturing business has hired you as a fraud detection specialist

A large manufacturing business has hired you as a fraud detection specialist. The first day on the job your boss asks you the following questions: 1. What is Benford's Law? 2. In what situations is...