Question 1

Red flags exist when it comes to identifying financial statement fraud. Name and describe three of them.

Accepted Answer

The governance structure. Any lack of in

Question 2

What are some legitimate discretion choices that management can make?

Accepted Answer

Selection of depreciation meth

Question 3

The period from when fraud-related losses accrue to shareholders is between the date the fraudulent information is published and the date that the corrected information is published. What is this referred to?

Accepted Answer

A)  Limbo. 
B)  Fraud-related investor portfolio loss period. 
C)  Fraud-created insider information period. 
D)  Potential investor portfolio loss period. 
A)  Limbo. 
B)  Fraud-related investor portfolio loss period. 
C)  Fraud-created insider information period. 
D)  Potential investor portfolio loss period.

Question 4

Financial statement fraud is:

Accepted Answer

A)  Putting forth another company's financial statements as your own. 
B)  Any intentional or grossly-negligent violation of GAAP that is undisclosed and materially affects any financial statement. 
C)  Any intentional or grossly-negligent violation of GAAP that is undisclosed and affects any financial statement. 
D)  When the CEO and CFO do personally sign the financial statements. 
A)  Putting forth another company's financial statements as your own. 
B)  Any intentional or grossly-negligent violation of GAAP that is undisclosed and materially affects any financial statement. 
C)  Any intentional or grossly-negligent violation of GAAP that is undisclosed and affects any financial statement. 
D)  When the CEO and CFO do personally sign the financial statements.

Question 5

Most frauds span multiple fiscal periods, with the average fraud time being approximately:

Accepted Answer

A)  Two quarters. 
B)  Two years. 
C)  Three years. 
D)  Five years. 
A)  Two quarters. 
B)  Two years. 
C)  Three years. 
D)  Five years.

Question 6

What is financial statement fraud and what are its three elements?

Accepted Answer

Financial statement fraud is any intenti

Question 7

What is a motive for financial statement fraud?

Accepted Answer

A)  Covering up poor performance. 
B)  Capital acquisition. 
C)  Generic greed. 
D)  All of the above. 
A)  Covering up poor performance. 
B)  Capital acquisition. 
C)  Generic greed. 
D)  All of the above.

Question 8

The scheme where normally the books are "closed" at the end of each reporting period, and sales that occur after the closing date do not appear in the current-period income statement is called:

Accepted Answer

A)  Sham sales. 
B)  Recognition of conditional sales. 
C)  Improper cutoff of sales. 
D)  Consignment sales. 
A)  Sham sales. 
B)  Recognition of conditional sales. 
C)  Improper cutoff of sales. 
D)  Consignment sales.

Question 9

Financial statement fraud is typically committed when what type of conditions are present?

Accepted Answer

A)  Small cap stocks, those whose assets are less than $100 million. 
B)  In companies with lower earnings, in companies with earnings problems, or downward trends in earnings. 
C)  Has no audit committee, or none of the audit committee members is highly skilled, or the audit committee seldom meets. 
D)  All of the above. 
A)  Small cap stocks, those whose assets are less than $100 million. 
B)  In companies with lower earnings, in companies with earnings problems, or downward trends in earnings. 
C)  Has no audit committee, or none of the audit committee members is highly skilled, or the audit committee seldom meets. 
D)  All of the above.

Question 10

Which of the following is an example of improper accounting treatment?

Accepted Answer

A)  Transfers of goods from related companies might be improperly recorded as sales. 
B)  Sham transactions and legitimate transactions that are not properly recorded. 
C)  Transactions can be intentionally misprocessed in order to produce fraudulent account balances. 
D)  All of the above. 
A)  Transfers of goods from related companies might be improperly recorded as sales. 
B)  Sham transactions and legitimate transactions that are not properly recorded. 
C)  Transactions can be intentionally misprocessed in order to produce fraudulent account balances. 
D)  All of the above.

Red flags exist when it comes to identifying financial statement fraud. Name and describe three of them.

What are some legitimate discretion choices that management can make?

The period from when fraud-related losses accrue to shareholders is between the date the fraudulent information is published and the date that the corrected information is published. What is this referred to?

Financial statement fraud is:

Most frauds span multiple fiscal periods, with the average fraud time being approximately:

What is financial statement fraud and what are its three elements?

What is a motive for financial statement fraud?

The scheme where normally the books are "closed" at the end of each reporting period, and sales that occur after the closing date do not appear in the current-period income statement is called:

Financial statement fraud is typically committed when what type of conditions are present?

Which of the following is an example of improper accounting treatment?

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

Filters

Exam 14: Financial Statement Fraud

Red flags exist when it comes to identifying financial statement fraud. Name and describe three of them.

What are some legitimate discretion choices that management can make?

The period from when fraud-related losses accrue to shareholders is between the date the fraudulent information is published and the date that the corrected information is published. What is this referred to?

Financial statement fraud is:

Most frauds span multiple fiscal periods, with the average fraud time being approximately:

What is financial statement fraud and what are its three elements?

What is a motive for financial statement fraud?

The scheme where normally the books are "closed" at the end of each reporting period, and sales that occur after the closing date do not appear in the current-period income statement is called:

Financial statement fraud is typically committed when what type of conditions are present?

Which of the following is an example of improper accounting treatment?

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

Filters