Question 1

Which of the following situations is not a segregation of duties violation?

Accepted Answer

A)  The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine. 
B)  The warehouse clerk, who has the custodial responsibility over inventory in the warehouse, selects the vendor and authorizes purchases when inventories are low. 
C)  The sales manager has the responsibility to approve credit and the authority to write off accounts. 
D)  The department time clerk is given the undistributed payroll checks to mail to absent employees. 
E)  The accounting clerk who shares the record keeping responsibility for the accounts receivable subsidiary ledger performs the monthly reconciliation of the subsidiary ledger and the control account. 
A)  The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine. 
B)  The warehouse clerk, who has the custodial responsibility over inventory in the warehouse, selects the vendor and authorizes purchases when inventories are low. 
C)  The sales manager has the responsibility to approve credit and the authority to write off accounts. 
D)  The department time clerk is given the undistributed payroll checks to mail to absent employees. 
E)  The accounting clerk who shares the record keeping responsibility for the accounts receivable subsidiary ledger performs the monthly reconciliation of the subsidiary ledger and the control account. B

Question 2

Explain the purpose of the PCAOB

Accepted Answer

The PCAOB is empowered to set auditing,quality control,and ethics standards;to inspect registered accounting firms;to conduct investigations;and to take disciplinary actions.

Question 3

Which of the following is not a limitation of the internal control system?

Accepted Answer

A)  errors are made due to employee fatigue 
B)  fraud occurs because of collusion between two employees 
C)  the industry is inherently risky 
D)  management instructs the bookkeeper to make fraudulent journal entries 
A)  errors are made due to employee fatigue 
B)  fraud occurs because of collusion between two employees 
C)  the industry is inherently risky 
D)  management instructs the bookkeeper to make fraudulent journal entries C

Question 4

Explain the characteristics of management fraud.

Accepted Answer

Management fraud typically occurs at lev

Question 5

The concept of reasonable assurance suggests that

Accepted Answer

A)  the cost of an internal control should be less than the benefit it provides 
B)  a well-designed system of internal controls will detect all fraudulent activity 
C)  the objectives achieved by an internal control system vary depending on the data processing method 
D)  the effectiveness of internal controls is a function of the industry environment 
A)  the cost of an internal control should be less than the benefit it provides 
B)  a well-designed system of internal controls will detect all fraudulent activity 
C)  the objectives achieved by an internal control system vary depending on the data processing method 
D)  the effectiveness of internal controls is a function of the industry environment

Question 6

Use the internal control procedures listed below to complete the statements.
  
-Locking petty cash in a safe is an example of __________________________.

Accepted Answer

The answer of Use the internal control procedures listed below...

Question 7

Distinguish between skimming and cash larceny.Give an example of each

Accepted Answer

Skimming involves stealing cash from an

Question 8

Four principal types of corruption are discussed.Name all four and explain at least two.

Accepted Answer

Corruption involves an executive,manager

Question 9

Who is responsible for establishing and maintaining the internal control system?

Accepted Answer

A)  the internal auditor 
B)  the accountant 
C)  management 
D)  the external auditor 
A)  the internal auditor 
B)  the accountant 
C)  management 
D)  the external auditor

Question 10

Cash larceny involves

Accepted Answer

A)  stealing cash from an organization before it is recorded 
B)  stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor. 
A)  stealing cash from an organization before it is recorded 
B)  stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Question 11

Use the internal control procedures listed below to complete the statements.
  
-Not permitting the computer programmer to enter the computer room is an example of _______________________________.

Accepted Answer

segregatio

Question 12

All of the following are conditions for fraud except

Accepted Answer

A)  false representation 
B)  injury or loss 
C)  intent 
D)  material reliance 
A)  false representation 
B)  injury or loss 
C)  intent 
D)  material reliance

Question 13

For an action to be called fraudulent,all of the following conditions are required except

Accepted Answer

A)  poor judgment 
B)  false representation 
C)  intent to deceive 
D)  injury or loss 
A)  poor judgment 
B)  false representation 
C)  intent to deceive 
D)  injury or loss

Question 14

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Accepted Answer

A) True 
 B)False

Question 15

Defalcation is another word for financial fraud.

Accepted Answer

A) True 
 B)False

Question 16

In balancing the risks and benefits that are part of every ethical decision,managers receive guidance from each of the following except

Accepted Answer

A)  justice 
B)  self interest 
C)  risk minimization 
D)  proportionality 
A)  justice 
B)  self interest 
C)  risk minimization 
D)  proportionality

Question 17

Since all fraud involves some form of financial misstatement,how is Fraudulent Statement fraud different?

Accepted Answer

Fraudulent statements are associated wit

Question 18

Which ethical principle states that the benefit from a decision must outweigh the risks,and that there is no alternative decision that provides the same or greater benefit with less risk?

Accepted Answer

A)  minimize risk 
B)  justice 
C)  informed consent 
D)  proportionality 
A)  minimize risk 
B)  justice 
C)  informed consent 
D)  proportionality

Question 19

Which of the following is the best reason to separate duties in a manual system?

Accepted Answer

A)  to avoid collusion between the programmer and the computer operator 
B)  to ensure that supervision is not required 
C)  to prevent the record keeper from authorizing transactions 
D)  to enable the firm to function more efficiently 
A)  to avoid collusion between the programmer and the computer operator 
B)  to ensure that supervision is not required 
C)  to prevent the record keeper from authorizing transactions 
D)  to enable the firm to function more efficiently

Question 20

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

Accepted Answer

A) True 
 B)False

Which of the following situations is not a segregation of duties violation?

Explain the purpose of the PCAOB

Which of the following is not a limitation of the internal control system?

Explain the characteristics of management fraud.

The concept of reasonable assurance suggests that

Use the internal control procedures listed below to complete the statements. -Locking petty cash in a safe is an example of __________________________.

Distinguish between skimming and cash larceny.Give an example of each

Four principal types of corruption are discussed.Name all four and explain at least two.

Who is responsible for establishing and maintaining the internal control system?

Cash larceny involves

Use the internal control procedures listed below to complete the statements. -Not permitting the computer programmer to enter the computer room is an example of _______________________________.

All of the following are conditions for fraud except

For an action to be called fraudulent,all of the following conditions are required except

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Defalcation is another word for financial fraud.

In balancing the risks and benefits that are part of every ethical decision,managers receive guidance from each of the following except

Since all fraud involves some form of financial misstatement,how is Fraudulent Statement fraud different?

Which ethical principle states that the benefit from a decision must outweigh the risks,and that there is no alternative decision that provides the same or greater benefit with less risk?

Which of the following is the best reason to separate duties in a manual system?

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

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Exam 3: Ethics, Fraud, and Internal Control

Which of the following situations is not a segregation of duties violation?

Explain the purpose of the PCAOB

Which of the following is not a limitation of the internal control system?

Explain the characteristics of management fraud.

The concept of reasonable assurance suggests that

Use the internal control procedures listed below to complete the statements. -Locking petty cash in a safe is an example of __________________________.

Distinguish between skimming and cash larceny.Give an example of each

Four principal types of corruption are discussed.Name all four and explain at least two.

Who is responsible for establishing and maintaining the internal control system?

Cash larceny involves

Use the internal control procedures listed below to complete the statements. -Not permitting the computer programmer to enter the computer room is an example of _______________________________.

All of the following are conditions for fraud except

For an action to be called fraudulent,all of the following conditions are required except

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Defalcation is another word for financial fraud.

In balancing the risks and benefits that are part of every ethical decision,managers receive guidance from each of the following except

Since all fraud involves some form of financial misstatement,how is Fraudulent Statement fraud different?

Which ethical principle states that the benefit from a decision must outweigh the risks,and that there is no alternative decision that provides the same or greater benefit with less risk?

Which of the following is the best reason to separate duties in a manual system?

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters