Exam 14: Financial Statement Fraud

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Any lack of independence between management, internal auditors, and external auditors undermines the basic structure that prevents financial statement fraud. What type of red flag does this represent?

(Multiple Choice)

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Question 21

Management's routine use of non-fraudulent accounting and economic discretion to smooth earnings is called:

(Multiple Choice)

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Question 22

The enforcing agency for insider trading publishes its actions under what heading on its web site?

(Multiple Choice)

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Question 23

When Nortel announced that it was taking $18.4 billion in charges for restructuring costs, bad customer debts, and obsolete inventory, it was taking a(n):

(Multiple Choice)

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Question 24

In the majority of cases, an IRS enforcement action for FSF is associated with bankruptcy or a change in ownership.

(True/False)

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Question 25

What percentage of assets is typically involved in financial statement fraud?

(Multiple Choice)

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Question 26

Who performs enforcement actions for insider trading?

(Multiple Choice)

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Question 27

Nearly half of the audit reports indicate some type of anomaly, such as a change of auditors, doubts about the company's ability to continue as a going concern, a change in accounting principles, or a litigation issue.

(True/False)

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Question 28

Normally, managers will not hide good news because:

(Multiple Choice)

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Question 29

The general methods for financial statement fraud involve improper accounting treatment such as leaving liabilities off the balance sheet.

(True/False)

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Question 30

What are some consequences to companies and their managers for financial statement fraud?

(Essay)

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Question 31

By non-disclosure of bad news, management has:

(Multiple Choice)

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Question 32

When a company makes a very large one-time write off, it's said to take a(n):

(Multiple Choice)

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Question 33

The only way with withholding of goodnews/badnews hurts investors is if corporate management sells some of their own shares.

(True/False)

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Question 34

A CEO talks the CFO into depreciating new assets for 10 years instead of the 7 years it should be depreciated for. This is an example of:

(Multiple Choice)

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Question 35

Who is financial statement fraud harmful to?

(Multiple Choice)

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Question 36

The general philosophy behind SOX is to minimize financial statement fraud by promoting strong corporate governance and organizational oversight by 6 groups, which include management, the board of directors, the audit committee, management, internal auditors, external auditors, and public oversight groups.

(True/False)

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Question 37

What is a consequence of financial fraud for managers?

(Multiple Choice)

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Question 38

How do public oversight boards help prevent financial statement fraud?

(Multiple Choice)

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Question 39

The classic definition of fraud is:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 50

Any lack of independence between management, internal auditors, and external auditors undermines the basic structure that prevents financial statement fraud. What type of red flag does this represent?

Management's routine use of non-fraudulent accounting and economic discretion to smooth earnings is called:

The enforcing agency for insider trading publishes its actions under what heading on its web site?

When Nortel announced that it was taking $18.4 billion in charges for restructuring costs, bad customer debts, and obsolete inventory, it was taking a(n):

In the majority of cases, an IRS enforcement action for FSF is associated with bankruptcy or a change in ownership.

What percentage of assets is typically involved in financial statement fraud?

Who performs enforcement actions for insider trading?

Nearly half of the audit reports indicate some type of anomaly, such as a change of auditors, doubts about the company's ability to continue as a going concern, a change in accounting principles, or a litigation issue.

Normally, managers will not hide good news because:

The general methods for financial statement fraud involve improper accounting treatment such as leaving liabilities off the balance sheet.

What are some consequences to companies and their managers for financial statement fraud?

By non-disclosure of bad news, management has:

When a company makes a very large one-time write off, it's said to take a(n):

The only way with withholding of goodnews/badnews hurts investors is if corporate management sells some of their own shares.

A CEO talks the CFO into depreciating new assets for 10 years instead of the 7 years it should be depreciated for. This is an example of:

Who is financial statement fraud harmful to?

What is a consequence of financial fraud for managers?

How do public oversight boards help prevent financial statement fraud?

The classic definition of fraud is:

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

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