Questions from Fraud Examination

Q: 1. Financial statement fraud is usually committed by: a

1. Financial statement fraud is usually committed by: a. Executives. b. Managers. c. Stockholders. d. Outsiders. e. Both a and b. 2. Which officer in a company is most likely to be the perpetrat...

Q: 1. Most financial statement frauds occur in smaller organizations with simple

1. Most financial statement frauds occur in smaller organizations with simple management structures, rather than in large, historically profitable organizations. This is because: a. It is easier to i...

Q: 1. Which of the following is not a method of honesty

1. Which of the following is not a method of honesty testing? a. Graphology. b. Voice stress analysis. c. Body language test. d. Pencil-and-paper test. 2. Interviews should not be conducted with:...

Q: 1. The most common account(s) manipulated when perpetrating

1. The most common account(s) manipulated when perpetrating financial statement fraud are: a. Expenses. b. Inventory. c. Revenues. d. Accounts Payable. 2. Why might a company want to understate...

Q: 1. Which of the following is not an inventory-related

1. Which of the following is not an inventory-related documentary symptom? a. Duplicate purchase orders. b. Missing inventory during inventory counts. c. Unsupported inventory sales transactions....

Q: For each of the following red flags, identify which fraud exposure

For each of the following red flags, identify which fraud exposure the risk falls under: management and directors, relationships with others, organization and industry, or financial results and operat...

Q: 1. The asset turnover ratio measures: a. The

1. The asset turnover ratio measures: a. The average time an asset is used by the company. b. The average useful life of capital assets. c. Sales that are generated with each dollar of the assets....

Q: 1. Which of the following is a primary type of transaction

1. Which of the following is a primary type of transaction that can create liabilities for a company? a. Purchasing inventory. b. Borrowing money. c. Selling purchased goods. d. Leasing assets. e....

Q: 1. When focusing on changes, you should consider changes from

1. When focusing on changes, you should consider changes from period to period in: a. Recorded balances. b. Relationships between balances. c. Balances of other nonsimilar companies. d. Both a and...

Q: 1. Most frauds against organizations are perpetrated by: a

1. Most frauds against organizations are perpetrated by: a. Employees. b. Owners. c. Vendors. d. A collusion of two of the above. 2. What are the three major classes of asset misappropriation? a...