Question 1

Forensic accounting can be defined as:

Accepted Answer

A) Investigating possible fraud. 
B) Designing internal controls and other corporate governance mechanisms. 
C) Calculating estimates used in financial reports. 
D) Applying accounting and auditing skills in an action under civil law. 
A) Investigating possible fraud. 
B) Designing internal controls and other corporate governance mechanisms. 
C) Calculating estimates used in financial reports. 
D) Applying accounting and auditing skills in an action under civil law.

Question 2

When a financial auditor suspects financial reporting fraud, they should discuss their suspicions with the client to see if there is an alternative explanation.

Accepted Answer

A) True 
 B)False

Question 3

Unlike other auditors, fraud examiners think of materiality as a cumulative amount.

Accepted Answer

A) True 
 B)False

Question 4

A PA's audit client is a small charity which funds development projects in a small foreign country.Most of its donations come in the form of cash, with tax receipts issued to the donors.Included in the cash receipts are weekly donations by one person, Mr.X, whose last
Name is easily identifiable as coming from that foreign country.Some of these cash donations exceed $10,000.The PA once asked about Mr.X and accepted as an answer that Mr.X was a wealthy entrepreneur but the PA has done no other work.

Accepted Answer

A) Assuming the PA has performed all other necessary and appropriate procedures, he may provide a clean opinion. 
B) Assuming the PA does no further investigation of this matter, the PA may be considered willfully blind and complicit in an illegal act. 
C) The PA may be associated with misleading information and should withdraw from the audit. 
D) The PA should try to count the cash as it comes in in order to avoid issuing a scope limitation report. 
A) Assuming the PA has performed all other necessary and appropriate procedures, he may provide a clean opinion. 
B) Assuming the PA does no further investigation of this matter, the PA may be considered willfully blind and complicit in an illegal act. 
C) The PA may be associated with misleading information and should withdraw from the audit. 
D) The PA should try to count the cash as it comes in in order to avoid issuing a scope limitation report.

Question 5

Fraud is a difficult crime to stop entirely because:

Accepted Answer

A) People are basically untrustworthy. 
B) Management needs freedom to conduct its businesses as it sees fit. 
C) People see beating controls as a game. 
D) The rewards greatly exceed the probable penalties. 
A) People are basically untrustworthy. 
B) Management needs freedom to conduct its businesses as it sees fit. 
C) People see beating controls as a game. 
D) The rewards greatly exceed the probable penalties.

Forensic accounting can be defined as:

When a financial auditor suspects financial reporting fraud, they should discuss their suspicions with the client to see if there is an alternative explanation.

Unlike other auditors, fraud examiners think of materiality as a cumulative amount.

Fraud is a difficult crime to stop entirely because:

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Other Public Accounting Services and Reports

Filters

Exam 17: Fraud Awareness Auditing

Forensic accounting can be defined as:

When a financial auditor suspects financial reporting fraud, they should discuss their suspicions with the client to see if there is an alternative explanation.

Unlike other auditors, fraud examiners think of materiality as a cumulative amount.

Fraud is a difficult crime to stop entirely because:

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Other Public Accounting Services and Reports

Filters