Question 1

What is the easiest way to identify understatement of liability fraud exposures?

Accepted Answer

A) Analyze the trend of accounts payable for the company. 
B) By using the formula, assets = capital + liabilities. 
C) Investigate the various transactions that involve liabilities and can be understated. 
D) Compare the company's liabilities with those of other players in the industry. 
A) Analyze the trend of accounts payable for the company. 
B) By using the formula, assets = capital + liabilities. 
C) Investigate the various transactions that involve liabilities and can be understated. 
D) Compare the company's liabilities with those of other players in the industry.

Question 2

With liability fraud,which of the following is most likely to occur?

Accepted Answer

A) Liabilities will be overstated 
B) Balances in general that relate to this fraud will tend to be low 
C) Items will be expensed rather than capitalized 
D) Net income will be understated 
A) Liabilities will be overstated 
B) Balances in general that relate to this fraud will tend to be low 
C) Items will be expensed rather than capitalized 
D) Net income will be understated

Question 3

Which type of fraud will not have any analytical symptoms?

Accepted Answer

A) Inventory Fraud 
B) Revenue Fraud 
C) Liability Fraud 
D) Disclosure Fraud 
A) Inventory Fraud 
B) Revenue Fraud 
C) Liability Fraud 
D) Disclosure Fraud

Question 4

Analytical symptoms for unrecorded notes and mortgages payable include which of the following?

Accepted Answer

A) Significant increases in recorded debt 
B) Unreasonable relationships between interest expense and recorded liabilities 
C) Recorded amounts of notes payable, mortgages payable, and other debts that appear to be too high 
D) Significant sales of assets with not much cash flow 
A) Significant increases in recorded debt 
B) Unreasonable relationships between interest expense and recorded liabilities 
C) Recorded amounts of notes payable, mortgages payable, and other debts that appear to be too high 
D) Significant sales of assets with not much cash flow

Question 5

Asset frauds are often easier to detect than other types of financial statement fraud because:

Accepted Answer

A) overstated assets are always included on the balance sheet. 
B) of the off-book nature of asset frauds. 
C) asset overstatements are almost always quite significant. 
D) sufficient information will be provided in the notes to financial statements. 
A) overstated assets are always included on the balance sheet. 
B) of the off-book nature of asset frauds. 
C) asset overstatements are almost always quite significant. 
D) sufficient information will be provided in the notes to financial statements.

Question 6

If marketable securities increase,then cash should usually decrease by a similar amount,since cash was probably used to purchase the securities.An exception to this is:

Accepted Answer

A) when the company paid through a check. 
B) when the marketable securities are purchased through a broker. 
C) when the company incurred debt or traded an asset for the securities. 
D) when the transaction was not recorded in the books of accounts. 
A) when the company paid through a check. 
B) when the marketable securities are purchased through a broker. 
C) when the company incurred debt or traded an asset for the securities. 
D) when the transaction was not recorded in the books of accounts.

Question 7

What does the Financial Accounting Standards Board now call special purpose entities?

Accepted Answer

A) variable interest entities 
B) off-balance-sheet entities 
C) structured finance entities 
D) risk mitigation vehicles 
A) variable interest entities 
B) off-balance-sheet entities 
C) structured finance entities 
D) risk mitigation vehicles

What is the easiest way to identify understatement of liability fraud exposures?

With liability fraud,which of the following is most likely to occur?

Which type of fraud will not have any analytical symptoms?

Analytical symptoms for unrecorded notes and mortgages payable include which of the following?

Asset frauds are often easier to detect than other types of financial statement fraud because:

If marketable securities increase,then cash should usually decrease by a similar amount,since cash was probably used to purchase the securities.An exception to this is:

What does the Financial Accounting Standards Board now call special purpose entities?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 13: Liability, asset, and Inadequate Disclosure Frauds

What is the easiest way to identify understatement of liability fraud exposures?

With liability fraud,which of the following is most likely to occur?

Which type of fraud will not have any analytical symptoms?

Analytical symptoms for unrecorded notes and mortgages payable include which of the following?

Asset frauds are often easier to detect than other types of financial statement fraud because:

If marketable securities increase,then cash should usually decrease by a similar amount,since cash was probably used to purchase the securities.An exception to this is:

What does the Financial Accounting Standards Board now call special purpose entities?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters