chapt 5 graded quiz acc 4800
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ACC-4800 → Quizzes → Chapter 5
Chapter 5
Instructions:
Score for this quiz: 40 out of 51
Submitted May 13 at 1:45pm
This attempt took about 21 hours.
Question 1: 1 pts
Fighting fraud calls for prevention as the first step and the preferred tactic.
0% of points
Often misappropriation is accomplished by false or misleading records or documents.
0% of points
Accountants are perhaps the most valuable employee-fraud fighters.
0% of points
None of the above.
100% of points
Government entities are generally not targets for fraudsters.
0% of points
0 / 1
Question 2: 1 pts
Tips.
100% of points
Accident.
0% of points
External auditors.
0% of points
Some other method.
0% of points
Internal auditors.
0% of points
1 / 1
Question 3: 1 pts
$720,000.
0% of points
$540,000.
0% of points
$820,000.
0% of points
$1,000,000.
100% of points
Some other amount.
0% of points
$1,000,000 ($220,000 / 0.22).
1 / 1
Question 4: 1 pts
$1,400,000.
0% of points
Some other amount.
0% of points
$280,000.
0% of points
$560,000.
0% of points
$7,000,000.
100% of points
Which statement is false?
The most common method of detecting occupational fraud is:
A company has a 22% profit margin and has employee fraud of $220,000. Calculate the additional revenue needed to offset this lost income.
You are told that a company has a 20% profit margin and the discovered fraud has caused $1,400,000 more needed revenue to cover the fraud. How much was
stolen?
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.20 ($1,400,000).
0 / 1
Question 5: 1 pts
None of the above is incorrect.
0% of points
Cash flow analysis may indicate fraud and embezzlement.
0% of points
Theft is similar to embezzlement.
100% of points
Gross profit analysis may catch skimming and money laundering.
0% of points
Cash is the favorite target of fraudsters.
0% of points
Theft and larceny are different than embezzlement.
1 / 1
Question 6: 1 pts
Understated sales.
0% of points
Theft of incoming checks.
0% of points
Skimming.
0% of points
All of the above.
100% of points
Unrecorded sales.
0% of points
0 / 1
Question 7: 1 pts
Theft of incoming checks.
0% of points
All of the above.
100% of points
Understated sales.
0% of points
Swapping checks for cash.
0% of points
Unrecorded sales.
0% of points
0 / 1
Question 8: 1 pts
Skimming.
0% of points
Money laundering.
0% of points
Kiting.
100% of points
None of the above.
0% of points
Lapping.
0% of points
1 / 1
Question 9: 1 pts
Surprise cash counts.
0% of points
Investigating customers' complaints.
0% of points
Which is an incorrect statement?
Which technique is considered to be an "off-book" fraud?
Which scheme is considered to be skimming?
Building up balances in bank accounts based upon floating checks drawn against similar accounts in other banks is best called:
Skimming can be caught by:
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Comparing receipts with deposits.
0% of points
Gross profit analysis.
0% of points
All of the above.
100% of points
1 / 1
Question 10: 1 pts
Large deposits on Fridays.
0% of points
Items a, b, and c.
100% of points
Only a and c.
0% of points
Frequent deposits and checks in the same amount.
0% of points
Short time lag between deposits and withdrawals.
0% of points
1 / 1
Question 11: 1 pts
Reviewing customer complaints.
100% of points
All of the above.
0% of points
Surprise cash counts.
0% of points
Gross profit analysis.
0% of points
A bank reconciliation audit.
0% of points
0 / 1
Question 12: 1 pts
Lapping.
0% of points
Ghost employee.
100% of points
None of the above.
0% of points
Missing employee.
0% of points
Kiting.
0% of points
1 / 1
Question 13: 1 pts
Bid rigging.
0% of points
All of the above.
0% of points
Land flip.
100% of points
A ghost scheme.
0% of points
Ponzi scheme.
0% of points
1 / 1
Question 14: 1 pts
What is a red flag of kiting?
What audit step would be most appropriate for finding accounts receivables fraud?
A person on the payroll who does not work for that company is generally called:
A person finds land, buys it, increases the price, and sells it to his company. What is this scheme?
Joseph Wells believes that the most powerful audit technique is:
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Confirming account receivables.
0% of points
Surprise cash counts.
0% of points
Strong internal controls.
0% of points
Diligent inquiry.
100% of points
None of the above.
0% of points
1 / 1
Question 15: 1 pts
Develop a written code of ethics.
0% of points
Use background checks when hiring employees.
0% of points
Require an annual interview by internal auditors, security, or others of suspicious employees.
0% of points
Prosecute discovered fraud, as an example to other employees.
0% of points
All of the above are true.
100% of points
1 / 1
Question 16: 1 pts
Regular fraud audit.
0% of points
Some other techniques.
0% of points
Background checks of new employees.
0% of points
Strong internal controls.
100% of points
Ethical training for employees.
0% of points
1 / 1
Question 17: 1 pts
Deterioration of key ratio.
0% of points
Regular deferral of capital expenditures.
0% of points
Expense accounts are decreasing.
100% of points
Increase in amount owed to creditors.
0% of points
Non-payment of insurance premiums.
0% of points
The reverse of c would be a warning sign.
1 / 1
Question 18: 1 pts
No separation of check writing and check signing.
0% of points
Significant decline in turnover.
0% of points
Qualification in the auditor's report.
0% of points
Employee morale is high.
100% of points
Resignation of key staff member.
Select the true answer. To prevent fraud, the entity may choose to:
In a 2002 Wells Report, which was the most effective in preventing fraud?
Which factor would not indicate a fraud warning sign for not-for-profit organizations?
Which factor would not indicate a fraud warning sign for not-for-profit organizations?
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0% of points
Warning sign is low morale.
1 / 1
Question 19: 1 pts
Chapter XI.
0% of points
Chapter 9.
100% of points
Both b and c.
0% of points
Chapter 11.
0% of points
Chapter 7.
0% of points
1 / 1
Question 20: 1 pts
The ratio of Cash and Investments divided by Current Liabilities is increasing over time.
0% of points
Unreserved Fund Balance divided by Gross Expenditures ratio is decreasing over time.
100% of points
Operating Surplus is increasing over time.
0% of points
All of the above.
0% of points
Fixed Costs less Personal Services and Debt Services is decreasing over time.
0% of points
1 / 1
Question 21: 1 pts
Long-term Debt divided by Assets ratio is increasing.
100% of points
Unrestricted Net Assets divided by Expenses ratio is increasing.
0% of points
Change in Net Assets divided by Total Net Assets ratio is increasing.
0% of points
General Revenues plus Transfers divided by Expenses ratio is increasing.
0% of points
All of the above.
0% of points
1 / 1
Question 22: 1 pts
Debt outstanding greater than 90% of the debt limit.
100% of points
None of the above is a negative trend.
0% of points
Property taxes greater than 65% of the tax limit.
0% of points
Short-term interest and current year-end service greater than 15% of total revenue.
0% of points
Unreserved fund balance percentages increasing over time.
0% of points
1 / 1
Question 23: 1 pts
External auditor.
0% of points
Forensic auditor.
100% of points
Which is a bankruptcy for municipalities?
Which would be considered a negative trend for a municipality?
Which would be considered a negative trend for a governmental unit?
Which would be considered a negative trend for a governmental unit?
Which of the following auditors is least interested in the materiality concept?
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Internal auditor.
0% of points
All of the above.
0% of points
GAO auditor.
0% of points
1 / 1
Question 24: 1 pts
The quick ratio omits receivables and amounts due from other funds and governments.
0% of points
The combined financial statement is the main focus of the Comprehensive Annual Financial Report (CAFR).
0% of points
None of the above.
0% of points
The greater the fund balance as a percentage of revenue, the more likely the government will be able to overcome problems caused by revenue shortfalls.
0% of points
A large state government considers a quick ratio of more than 50% as an indicator of potential fiscal stress.
100% of points
1 / 1
Question 25: 1 pts
All of the above.
0% of points
Lapping.
0% of points
Kiting schemes.
0% of points
Ghost employees.
100% of points
Layering schemes.
0% of points
1 / 1
Question 26: 1 pts
The cash receipts journal was held open for a few days after the end of the year.
0% of points
The cash balances were overstated because of kiting.
100% of points
The last checks recorded before the year-end were really mailed by year-end.
0% of points
None of the above.
0% of points
Any unusual payments to or receipts from related parties occurred.
0% of points
1 / 1
Question 27: 1 pts
Observe the actual distribution of payroll checks to employees.
100% of points
None of the above.
0% of points
Review monthly bank reconciliations.
0% of points
Ascertain appropriate segregation of duties.
0% of points
Verify accounts receivable balances.
0% of points
1 / 1
Question 28: 1 pts
Which statement is false?
Forensic accountants should compare travel and expense vouchers to employment records and tax records in order to find:
You should trace bank transfers for the latter part of an audit period and the early part of the subsequent period to determine whether:
What audit procedures would not be highly effective for detecting fraud in the sales and collection cycle?
What audit procedure would not be highly effective for detecting fraud in the payroll cycle?
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Sample personnel files and physically observe personnel.
0% of points
Observe the actual distribution of payroll checks to employees.
0% of points
Verify accounts receivable balances by positive confirmations.
100% of points
None of the above.
0% of points
Observe the duties of employees being performed.
0% of points
1 / 1
Question 29: 1 pts
Financial reporting fraud.
0% of points
The fraud triangle.
0% of points
Misappropriation of assets.
100% of points
Management fraud.
0% of points
None of the above.
0% of points
1 / 1
Question 30: 1 pts
More likely to be victims of economic crime.
100% of points
More likely to be perpetrators of corporate crime.
0% of points
More likely to systematically discover fraud in their organization.
0% of points
None of the above.
0% of points
More likely to be victims of computer crime.
0% of points
1 / 1
Question 31: 1 pts
Replacing new inventory with old.
0% of points
Taking kickbacks.
0% of points
False credits, discounts, and write-offs.
0% of points
None of the above.
0% of points
Stealing a customer's payment and concealing the theft by applying subsequent payments from other customers to the first customer's account.
100% of points
1 / 1
Question 32: 1 pts
Construction and property management companies.
0% of points
None of the above.
0% of points
Accounts receivable department records returns.
100% of points
Purchasing agent in charge of awarding contracts.
0% of points
Shipping department in which a customer pays an employee to ship a higher quality of goods than ordered.
0% of points
Cash fraud, inventory fraud, fixed asset fraud, payables and disbursement fraud, and payroll fraud are all examples of:
According to published research by PricewaterhouseCoopers, larger companies rather than smaller companies tend to be:
Lapping is defined as:
Kickbacks commonly occur in all of the following except:
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0 / 1
Question 33: 1 pts
Requiring supervisory approval before customers are added to or deleted from the master file.
0% of points
Requiring supervisory approval for all credit memos and write-offs.
0% of points
Requiring investment documents to be sent only to upper management for safekeeping.
100% of points
Placing a credit limit on customer accounts to immediately flag when exceeded.
0% of points
None of the above.
0% of points
1 / 1
Question 34: 1 pts
All of the above.
100% of points
The suspicions of an internal auditor.
0% of points
Item found on the Internet.
0% of points
Laboratory analysis of physical evidence.
0% of points
Anonymous letter or e-mail about the crime.
0% of points
1 / 1
Question 35: 1 pts
Surveillance.
0% of points
Invigilation.
0% of points
Informants.
0% of points
All of the above.
100% of points
Interviewing.
0% of points
1 / 1
Question 36: 1 pts
Source documents to cross-referenced documents.
100% of points
Transaction documents to summary documents.
0% of points
Horizontal analysis to vertical analysis.
0% of points
Both b and c.
0% of points
Balances to payables and receivables.
0% of points
0 / 1
Question 37: 1 pts
Lost cash register tapes.
0% of points
Lacking supporting documents.
0% of points
Unexplained adjustments.
0% of points
Accounts receivable fraud prevention controls include all of the following except:
Which of the following might produce an investigative "lead" or "red flag"?
Which type of investigative technique works best at accumulating evidence to build a legal case against a financial fraudster?
The typical audit trail connects what to what?
Which is not a journal entry fraud symptom?
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None of the above.
100% of points
Out-of-balance.
0% of points
0 / 1
Question 38: 1 pts
Availability of witnesses.
0% of points
Tracing of assets.
100% of points
Desires of victims.
0% of points
Financial losses.
0% of points
Both c and d.
0% of points
1 / 1
Question 39: 1 pts
Budget.
0% of points
Cash register receipts.
0% of points
Either a or b.
0% of points
Journal.
0% of points
Ledger.
100% of points
0 / 1
Question 40: 1 pts
Embezzling withholding.
0% of points
None of the above.
0% of points
Company credit card fraud.
0% of points
Ghost employees.
0% of points
Unauthorized borrowing.
100% of points
0 / 1
Question 41: 1 pts
None of the above.
0% of points
Analyzing the year-end bank reconciliation for outstanding checks.
0% of points
Increasing the integration of technology into the business process.
0% of points
Reconciling the accounts receivable subsidiary ledger to the general ledger.
0% of points
Calculating and analyzing the gross profit margin.
100% of points
0 / 1
Question 42: 1 pts
Tracing, entity.
0% of points
Which is a unique factor for solving a white-collar crime?
Which item would a forensic accountant go to first in order to investigate the source of a suspicious transaction?
Payroll and employee reimbursement fraud schemes include all of the following except:
Misappropriation of inventory may be detected by one of the following:
____________ requires keeping detailed records before and after the ____________ period to determine the amount of fraud.
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Timeline, entity.
0% of points
Genogram, genogram.
0% of points
Entity, entity.
0% of points
Invigilation, invigilation.
100% of points
1 / 1
Question 43: 1 pts
Date.
0% of points
Check number.
0% of points
Amount.
0% of points
All are needed.
100% of points
Payee.
0% of points
1 / 1
Question 44: 1 pts
Invigilation.
0% of points
Link.
0% of points
Genogram.
100% of points
Entity.
0% of points
None of the above.
0% of points
1 / 1
Question 45: 1 pts
Motivation.
0% of points
Conviction.
0% of points
Timing.
0% of points
Some other event.
'
0% of points
Predication.
100% of points
1 / 1
Question 46: 1 pts
Customers.
0% of points
Employees.
100% of points
Competitors.
0% of points
Vendors.
0% of points
Shareholders/owners.
0% of points
1 / 1
What information is not needed to perform a check spread?
A ____________ chart is a pictorial display of personal relationships among related or unrelated parties.
A fraud investigation should not be commenced without proper ____________.
Which group is the source of more tips on a hotline?
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Question 47: 1 pts
Operating.
0% of points
Marketing.
0% of points
Sales.
0% of points
Accounting.
100% of points
Purchasing.
0% of points
1 / 1
Question 48: 1 pts
Mining.
0% of points
Financial services.
100% of points
Global manufacturing.
0% of points
Computer.
0% of points
Petroleum.
0% of points
1 / 1
Question 49: 1 pts
Job rotation.
0% of points
Hotlines.
0% of points
Internal audits.
100% of points
Rewards to employees.
0% of points
Mandatory vacations.
0% of points
1 / 1
Question 50: 1 pts
Audit Committee.
0% of points
None of the above.
100% of points
Board of Directors.
0% of points
Internal Audit Department.
0% of points
Management.
0% of points
1 / 1
Question 51: 1 pts
Override of existing internal controls.
0% of points
Poor tone at the top.
0% of points
Lack of management review.
0% of points
Which department or division in an organization probably has more fraud?
Which is the highest fraud industry?
According to the ACFE group, which is the best fraud control?
Which group probably is not an important element of a fraud risk program?
According to 2008 CFEs, which was the primary reason for fraud in an organization?
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