What approaches are used by investigators to obtain documents?
> Operating and transaction exposures can be partially managed by adopting operating or financing policies that offset anticipated foreign exchange exposures. What are four of the most commonly employed proactive policies?
> The objective of both operating and transaction exposure management is to anticipate and influence the effect of unexpected changes in exchange rates on a firm’s future cash flows. What strategic alternative policies exist to enable management to manage
> Explain how the concept of macroeconomic uncertainty expands the scope of analyzing operating exposure.
> If all national markets have market risk, is all market risk the same?
> How may improper asset valuation inflate the current ratio?
> What issues are generally involved in improper disclosures?
> In what types of cases may a forensic accountant serve as an expert witness?
> What are the four criteria necessary for a sale to be complete?
> What is the primary purpose of admission-seeking questions?
> Why shouldn’t an interviewer use closed or leading questions during the information-gathering phase of the interview?
> What is the purpose of timelines in an investigation?
> What are the two categories of data mining and knowledge discovery software?
> What is meant by the acronym CAATTs and what are they used for?
> Far off in the woods, there is a cabin. The cabin contains 3 people. Two are in one room; the other is alone in another room. All doors to the cabin are locked tight and have not been opened. All three people are dead. There was no sign of violence in th
> A married couple goes to a movie. During the movie the husband strangles the wife. He is able to get her body home without attracting attention. How is this possible?
> This is an unusual paragraph. I’m curious how quickly you can find out what is so unusual about it. It looks so plain you would think nothing was wrong with it. In fact, nothing is wrong with it! It is unusual though. Study it, and think about it, but yo
> What are the benefits of strong interviewing and interrogation skills?
> A murderer is condemned to death. He has to choose between three rooms. The first is full of raging fires, the second is full of assassins with loaded guns, and the third is full of lions that haven’t eaten in 3 years. Which room is safest for him?
> Five pieces of coal, a carrot and a scarf are lying on the lawn. Nobody put them on the lawn but there is a perfectly logical reason why they should be there. What happened? How do you explain this?
> What are some common virus carriers?
> What is meant by a conflict of interest?
> How do bribery and illegal gratuities differ?
> A woman had two sons who were born on the same hour of the same day of the same year, but they were not twins. How could this be so?
> Why are today’s viruses more difficult to detect?
> Why does collusion pose unique prevention and detection challenges?
> What is the difference between tax avoidance and tax evasion?
> What are the five classifications of financial statement fraud?
> What are the different types of schemes associated with complex frauds?
> A woman came home with a bag of groceries, got the mail, and walked into the house. On the way to the kitchen, she walked through the living room. In the living room, she glanced in her husband’s direction. Sadly, her husband had blown his brains out. Sh
> Describe corporate governance breakdowns in the facilitation of Enron’s fraudulent acts.
> Explain the relationship between an employee’s position and the level of theft (according to Hollinger and Clark’s research).
> Other than accounting, which disciplines do fraud examination and financial forensics encompass?
> Explain fraud examination methodology.
> Describe the fraud examiner/forensic accountant’s approach to investigations.
> Give examples of non-fraud forensic and litigation advisory engagements.
> Identify common fraud schemes.
> List the legal elements of fraud.
> What is the purpose of practice aids in forensic and valuation services?
> How do employees overstate legitimate expenses on their expense reports?
> What are the five principal categories of check tampering?
> What are the five major categories of fraudulent disbursements?
> What are the five major categories of fraudulent disbursements?
> Explain the theory of the fraud triangle.
> Identify the six situational categories that cause non-shareable problems from Cressey’s research.
> What role do fraud examination and financial forensic skills have in the corporate governance area?
> Why are manhole covers round?
> Anthony and Cleopatra are lying dead on the floor in a villa. Nearby on the floor is a broken bowl. There is no mark on either of their bodies and they were not poisoned. With this information, determine how they died.
> In the criminal justice system, how is probation different from parole?
> What are the different types of consulting and litigation support activities for fraud and forensic professionals?
> Under what circumstances would a Miranda Warning be required?
> What are some red flags that may indicate that fraud is occurring?
> What is meant by inventory “shrinkage?”
> In cash larceny schemes, what methods may be used to conceal these schemes at the point of sale?
> What techniques are generally used to conceal a receivables skimming scheme?
> Why is sales skimming called an “off- book” fraud?
> What is the role of the external auditor in the financial reporting process?
> What constitutes evidence?
> How can financial statement fraud be deterred?
> A woman shoots her husband. Then she holds him under water for over 5 minutes. Finally, she hangs him. But 5 minutes later they both go out together and enjoy a wonderful dinner together. How can this be?
> Match threats in the first column to appropriate control procedures in the second column. More than one control may be applicable. Threat Control Procedure Failing to take available purchase discounts for prompt payment. Only accept deliveries for
> Revlon hired Logisticon to install a real-time invoice and inventory processing system. Seven months later, when the system crashed, Revlon blamed the Logisticon programming bugs they discovered and withheld payment on the contract. Logisticon contended
> Match the terms in the left column with their definitions from the right column: 1. Bill of materials a. A factor that causes costs to change. 2. Operations list b. A measure of the number of good units produced in a period of time. 3. Master
> Use Table 14-1 to create a questionnaire checklist that can be used to evaluate controls for each of the basic activities in the production cycle (product design, planning and scheduling, production operations, and cost accounting). a. For each control i
> Use Table 13-2 to create a questionnaire checklist that can be used to evaluate controls for each of the basic activities in the expenditure cycle (ordering goods, receiving, approving supplier invoices, and cash disbursements). a. For each control issue
> (Hint: For help on steps b and c, see the article “Dial a Forecast,” by James A. Weisel, in the December 2006 issue of the Journal of Accountancy. The Journal of Accountancy is available in print or online at the AICPA’s Web site: www.aicpa.org Required
> Match the terms in the left column with their appropriate definition in the right column. Terms Definitions economic order quantity A document that creates a legal obligation to buy and pay for goods or services. materials requirements planning
> How would you respond to the treasurer of a small charity who tells you that the organization does not use a separate checking account for payroll because the benefits are not worth the extra monthly service fee?
> Match the term in the left column with its definition in the right column. 1. CRM system a. Document used to authorize reducing the balance in a customer account 2. Open-invoice method b. Process of dividing customer account master file into subset
> Why do you think that surveys continue to find that a sizable percentage of organizations either do not have formal disaster recovery and business continuity plans or have not tested and revised those plans for more than a year?
> What is the difference between authentication and authorization?
> In what situations would you expect to model a relationship between an agent and a resource?
> Identify the DFD elements in the following narrative: A customer purchases a few items from a local grocery store. Jill, a salesclerk, enters the transaction in the cash register and takes the customer’s money. At closing, Jill gives both the cash and th
> Although XBRL facilitates the electronic exchange of financial information, some external users do not think it goes far enough. They would like access to the entire general ledger, not just to XBRL-tagged financial reports that summarize general ledger
> Most DBMS packages contain data definition, data manipulation, and data query languages. For each of the following, indicate which language would be used and why.
> a. Identify three potential users and design a subschema for each. Justify your design by explaining why each user needs access to the subschema data elements. b. Use Microsoft Access or some other relational database product to create the schema tables.
> Required: Download the spreadsheet for this problem from the course website and perform the following tasks: 1. Explore Excel’s AutoFilter function. a. At the bottom of the table, in cell C79 enter the words “Total (sum)” and in cell D79 enter the SUM fu
> Answer all of the following multiple-choice questions. 1. Which of the following pairs of duties combines the functions of custody and authorization in a manner that would allow an employee to conceal the theft of a customer’s payment? a. Handling cash r
> Clint Grace has been business over 30 years and has definite ideas about how his ten retail stores should be run. He is financially conservative and is reluctant to make expenditures that do not have a clear financial payoff. Store profitability has decl
> Match the following terms with their definitions: 1. business continuity plan (BCP) a. A file used to store information for long periods of time. 2. completeness check b. A plan that describes how to resume IT functionality after a disaster. 3.
> Under what conditions (if any) should a company install a forced-distribution rating system for PFP?
> What would you say to those who argue that establishing attractive career programs for employees will only enhance their own marketability and enable them to leave the firm faster?
> Suppose you observe the following continuously compounded zero-coupon bond yields: 0.06766 (1-year), 0.05827 (2-year), 0.04879 (3-year), 0.04402 (4-year), 0.03922 (5-year). For each maturity year compute the zero-coupon bond prices, effective annual zero
> Suppose you observe the following 1-year implied forward rates: 0.050000 (1- year), 0.034061 (2-year), 0.036012 (3-year), 0.024092 (4-year), 0.001470 (5-year). For each maturity year compute the zero-coupon bond prices, effective annual and continuously
> Consider the expression in equation (26.6). What is the exact probability that, over a 1-day horizon, stock A will have a loss? V = $3m x e0.15-0.5x0.3)+0.3,z (26.6)
> Using the same assumptions as in Example 26.3, compute VaR with and without the mean, assuming correlations of −1, −0.5, 0, 0.5, and 1. Is risk eliminated with a correlation of −1? If not, why not?
> Assuming a $10m investment in one stock, compute the 95% and 99% VaR for stocks A and B over 1-day, 10-day, and 20-day horizons.
> Let S = $100, K = $105, r = 8%, T = 0.5, and δ = 0. Let u = 1.3, d = 0.8, and n =1. a. What are the premium, ∆, and B for a European call? b. What are the premium, ∆, and B for a European put?
> Suppose the exchange rate is 0.95 $/=C, the euro-denominated continuously compounded interest rate is 4%, the dollar-denominated continuously compounded interest rate is 6%, and the price of a 1-year 0.93-strike European call on the euro is $0.0571. What
> A stock currently sells for $32.00. A 6-month call option with a strike of $30.00 has a premium of $4.29, and a 6-month put with the same strike has a premium of $2.64. Assume a 4% continuously compounded risk-free rate. What is the present value of divi
> What is the price of a 3-year interest rate cap with an 11.5% (effective annual) cap rate? For the first three problems, use the following information: Bond maturity (years) 1 2 3 4. Bond price 0.9259 0.8495 0.7722 0.7020 1-year forward price volatil
> This problem builds on the previous problem using the same parameters, only valuing a call option instead of a bond. Using Monte Carlo, simulate the Vasicek process for 3 years. For each simulation trial, at the end of 3 years, use the Vasicek formula to
> Verify that the 1-year yield volatility of the 4-year zero-coupon bond price generated by the tree in Figure 25.5 is 0.14. FIGURE 25.5 Year O Year 1 Year 2 Year 3 20.03% Black-Derman-Toy interest rate tree constructed using the data in Table 25.1. Ea
> Suppose that 1- and 2-year oil forward prices are $22/barrel and $23/barrel. The 1-and 2-year interest rates are 6% and 6.5%. Show that the new 2-year swap price is $22.483.
> Using the assumptions in Tables 8.5 and 8.6, verify that equation (8.13) equals 6%. Equation (8.13) TABLE 8.5 Unhedged and hedged cash flows for a dollar-based firm with euro-denominated debt. Unhedged Euro Cash Flow Hedged Exchange Rate Dollar Cash
> Using the zero-coupon bond prices and oil forward prices in Table 8.9, what is the price of an 8-period swap for which two barrels of oil are delivered in even-numbered quarters and one barrel of oil in odd-numbered quarters? TABLE 8.9 Quarter 2 3 4
> Using the information in Table 8.9, what is the swap price of a 4-quarter oil swap with the first settlement occurring in the third quarter? TABLE 8.9 Quarter 1 2 3 4 5 7 8 Oil forward price 21 21.1 20.8 20.5 20.2 20 19.9 19.8 Gas swap price Zero-cou
> Suppose the stock price is $35 and the continuously compounded interest rate is 5%. a. What is the 6-month forward price, assuming dividends are zero? b. If the 6-month forward price is $35.50, what is the annualized forward premium? c. If the forward pr
> Suppose you observe the following effective annual zero-coupon bond yields: 0.030 (1-year), 0.035 (2-year), 0.040 (3-year), 0.045 (4-year), 0.050 (5-year). For each maturity year compute the zero-coupon bond prices, continuously compounded zero-coupon bo
> A stock currently sells for $32.00. A 6-month call option with a strike of $35.00 has a premium of $2.27. Assuming a 4% continuously compounded risk-free rate and a 6% continuous dividend yield, what is the price of the associated put option?
> What are comparative financial statements? What issue is introduced when entities present information in comparative format?
