Question 1

What are the three main types of revenue manipulations fraud perpetrated by organisations or their employees?

Accepted Answer

There are three main types of

Question 2

Premature revenue recognition is the recognition of revenue before accounting standard requirements for recording revenue have been met.An example of this is creating fictitious customers.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following has been the most successful method of uncovering fraud?

Accepted Answer

A)  notification by employee 
B)  notification by external party 
C)  internal audit 
D)  anonymous letter/call 
A)  notification by employee 
B)  notification by external party 
C)  internal audit 
D)  anonymous letter/call

Question 4

What is an example of a business activity management may outsource in order to reduce incentives and opportunities for fraud?

Accepted Answer

A)  general ledger record keeping 
B)  marketing 
C)  cash collections and transfers 
D)  manufacturing 
A)  general ledger record keeping 
B)  marketing 
C)  cash collections and transfers 
D)  manufacturing

Question 5

Fraud is more prevalent in smaller businesses because it is more difficult to maintain adequate separation of duties.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a condition of the fraud triangle?

Accepted Answer

A)  incentives/pressures to commit fraud 
B)  attitudes/rationalisation for committing fraud 
C)  opportunities to commit fraud 
D)  all of the above 
A)  incentives/pressures to commit fraud 
B)  attitudes/rationalisation for committing fraud 
C)  opportunities to commit fraud 
D)  all of the above

Question 7

Discuss the role internal auditing can play in fraud prevention and detection.

Accepted Answer

Internal auditing plays a key role in mo

Question 8

The primary responsibility to oversee the organisation's financial reporting and internal control processes lies with the internal auditors.

Accepted Answer

A) True 
 B)False

Question 9

Personal financial obligations create a risk factor relating to:

Accepted Answer

A)  misappropriation of assets. 
B)  fraudulent financial reporting. 
C)  both A and B 
D)  none of the above 
A)  misappropriation of assets. 
B)  fraudulent financial reporting. 
C)  both A and B 
D)  none of the above

Question 10

ASA 240 states that in exercising professional scepticism, 'the auditor makes a critical assessment, with a questioning mind, of the validity of audit evidence obtained and is alert to audit evidence that contradicts or brings into question the reliability of documents and responses to inquiries and other information obtained from management and those charged with governance'.

Accepted Answer

A) True 
 B)False

Question 11

Misappropriation of assets is perpetrated by:

Accepted Answer

A)  employees. 
B)  top management. 
C)  both A and B 
D)  none of the above 
A)  employees. 
B)  top management. 
C)  both A and B 
D)  none of the above

Question 12

Lapping refers to applying:

Accepted Answer

A)  payments from one customer to another customer's account. 
B)  fictitious credit adjustments to a customer's account. 
C)  fictitious receipts to a customer's account. 
D)  none of the above 
A)  payments from one customer to another customer's account. 
B)  fictitious credit adjustments to a customer's account. 
C)  fictitious receipts to a customer's account. 
D)  none of the above

Question 13

Applying the payment from one customer to another customer's account to cover up the theft of cash is known as 'lapping.'

Accepted Answer

A) True 
 B)False

Question 14

Who is responsible for implementing corporate governance and control procedures to minimise fraud?

Accepted Answer

A)  the audit committee 
B)  the internal auditors 
C)  the external auditors 
D)  management 
A)  the audit committee 
B)  the internal auditors 
C)  the external auditors 
D)  management

Question 15

Which of the following is NOT a source of information used to assess fraud risk?

Accepted Answer

A)  responses to auditor inquiries of management about their views of the risks of fraud 
B)  analytical procedure results obtained during planning 
C)  information obtained from communications among audit team members 
D)  all of the above 
A)  responses to auditor inquiries of management about their views of the risks of fraud 
B)  analytical procedure results obtained during planning 
C)  information obtained from communications among audit team members 
D)  all of the above

What are the three main types of revenue manipulations fraud perpetrated by organisations or their employees?

Premature revenue recognition is the recognition of revenue before accounting standard requirements for recording revenue have been met.An example of this is creating fictitious customers.

Which of the following has been the most successful method of uncovering fraud?

What is an example of a business activity management may outsource in order to reduce incentives and opportunities for fraud?

Fraud is more prevalent in smaller businesses because it is more difficult to maintain adequate separation of duties.

Which of the following is a condition of the fraud triangle?

Discuss the role internal auditing can play in fraud prevention and detection.

The primary responsibility to oversee the organisation's financial reporting and internal control processes lies with the internal auditors.

Personal financial obligations create a risk factor relating to:

Misappropriation of assets is perpetrated by:

Lapping refers to applying:

Applying the payment from one customer to another customer's account to cover up the theft of cash is known as 'lapping.'

Who is responsible for implementing corporate governance and control procedures to minimise fraud?

Which of the following is NOT a source of information used to assess fraud risk?

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters

Exam 9: Fraud auditing

What are the three main types of revenue manipulations fraud perpetrated by organisations or their employees?

Premature revenue recognition is the recognition of revenue before accounting standard requirements for recording revenue have been met.An example of this is creating fictitious customers.

Which of the following has been the most successful method of uncovering fraud?

What is an example of a business activity management may outsource in order to reduce incentives and opportunities for fraud?

Fraud is more prevalent in smaller businesses because it is more difficult to maintain adequate separation of duties.

Which of the following is a condition of the fraud triangle?

Discuss the role internal auditing can play in fraud prevention and detection.

The primary responsibility to oversee the organisation's financial reporting and internal control processes lies with the internal auditors.

Personal financial obligations create a risk factor relating to:

Misappropriation of assets is perpetrated by:

Lapping refers to applying:

Applying the payment from one customer to another customer's account to cover up the theft of cash is known as 'lapping.'

Who is responsible for implementing corporate governance and control procedures to minimise fraud?

Which of the following is NOT a source of information used to assess fraud risk?

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters