Question 1

Using IFRS,book value typically ________ market value.

Accepted Answer

A) is closer to 
B) is lower than 
C) is higher than 
D) bears no relationship to 
A) is closer to 
B) is lower than 
C) is higher than 
D) bears no relationship to

Question 2

Which of the following would NOT be considered part of monitoring in an internal control system?

Accepted Answer

A) Having an audit trail 
B) Assessing performance of the system 
C) Locating weakness of the system 
D) Management involvement 
A) Having an audit trail 
B) Assessing performance of the system 
C) Locating weakness of the system 
D) Management involvement

Question 3

Many states require CPAs to participate in continuing education that deals with ethics.

Accepted Answer

A) True 
 B)False

Question 4

An employee believes that getting away with a fraud without being detected is unlikely.This best relates to which part of the Fraud Triangle?

Accepted Answer

A) Realization 
B) Perceived opportunity 
C) Rationalization 
D) Perceived pressure 
A) Realization 
B) Perceived opportunity 
C) Rationalization 
D) Perceived pressure

Question 5

If an employee has a low incentive to commit fraud,the employee does NOT have:

Accepted Answer

A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure. 
A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure.

Question 6

Which element of internal control deals with a company having large amounts of cash on hand?

Accepted Answer

A) Control environment 
B) Control activities 
C) Information and communication 
D) Risk assessment 
A) Control environment 
B) Control activities 
C) Information and communication 
D) Risk assessment

Question 7

US GAAP uses the cost principle and is less conservative than international standards.

Accepted Answer

A) True 
 B)False

Question 8

In response to a large number of high profile cases involving accounting fraud,the U.S.Congress in 2002 passed the:

Accepted Answer

A) Internal Revenue Fraud Act. 
B) Securities and Exchange Commission Fraud Act. 
C) Sarbanes-Oxley Act. 
D) Federal Reserve Act. 
A) Internal Revenue Fraud Act. 
B) Securities and Exchange Commission Fraud Act. 
C) Sarbanes-Oxley Act. 
D) Federal Reserve Act.

Question 9

Committing a fraud because of a drug habit or living beyond your means is an example of:

Accepted Answer

A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure. 
A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure.

Question 10

Committing a fraud because the employee feels that it will be easy to do is related to what part of the Fraud Triangle?

Accepted Answer

A) Realization 
B) Perceived opportunity 
C) Rationalization 
D) Perceived pressure 
A) Realization 
B) Perceived opportunity 
C) Rationalization 
D) Perceived pressure

Question 11

Persons who report unethical behavior are known as:

Accepted Answer

A) snitches. 
B) whistleblowers. 
C) enforcers. 
D) writers of codes of ethics. 
A) snitches. 
B) whistleblowers. 
C) enforcers. 
D) writers of codes of ethics.

Question 12

________ embezzlement is a form of fraud committed against an organization.

Accepted Answer

A) Management 
B) Employee 
C) Stockholder 
D) Board of directors 
A) Management 
B) Employee 
C) Stockholder 
D) Board of directors

Question 13

Risk assessment:

Accepted Answer

A) is an ongoing process. 
B) identifies and analyzes risk. 
C) varies from company to company. 
D) includes all of the above. 
A) is an ongoing process. 
B) identifies and analyzes risk. 
C) varies from company to company. 
D) includes all of the above.

Question 14

The chance to commit a fraud,conceal it,and avoid punishment is an example of:

Accepted Answer

A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure. 
A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure.

Question 15

Establishing a hierarchy to let all management and employees know what is going on in a company would be an example of what element of internal control?

Accepted Answer

A) Risk assessment 
B) Monitoring 
C) Information and communication 
D) Control environment 
A) Risk assessment 
B) Monitoring 
C) Information and communication 
D) Control environment

Question 16

Which of the following is NOT part of the Fraud Triangle?

Accepted Answer

A) Realization 
B) Perceived opportunity 
C) Rationalization 
D) Perceived pressure 
A) Realization 
B) Perceived opportunity 
C) Rationalization 
D) Perceived pressure

Question 17

Details that support business transactions make up what is called:

Accepted Answer

A) internal control. 
B) monitoring. 
C) risk assessment. 
D) an audit trail. 
A) internal control. 
B) monitoring. 
C) risk assessment. 
D) an audit trail.

Question 18

Internal control is a comprehensive system that helps an organization do all of the following EXCEPT:

Accepted Answer

A) safeguard assets. 
B) safeguard liabilities. 
C) operate efficiently and effectively. 
D) ensure compliance with applicable laws and regulations. 
A) safeguard assets. 
B) safeguard liabilities. 
C) operate efficiently and effectively. 
D) ensure compliance with applicable laws and regulations.

Question 19

Another name for an "except for" audit opinion is a(n):

Accepted Answer

A) disclaimer of opinion. 
B) qualified opinion. 
C) adverse opinion. 
D) unqualified opinion. 
A) disclaimer of opinion. 
B) qualified opinion. 
C) adverse opinion. 
D) unqualified opinion.

Question 20

"I didn't steal the money,I only borrowed it until I can pay it back" is an example of:

Accepted Answer

A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure. 
A) realization. 
B) perceived opportunity. 
C) rationalization. 
D) perceived pressure.

Using IFRS,book value typically ________ market value.

Which of the following would NOT be considered part of monitoring in an internal control system?

Many states require CPAs to participate in continuing education that deals with ethics.

An employee believes that getting away with a fraud without being detected is unlikely.This best relates to which part of the Fraud Triangle?

If an employee has a low incentive to commit fraud,the employee does NOT have:

Which element of internal control deals with a company having large amounts of cash on hand?

US GAAP uses the cost principle and is less conservative than international standards.

In response to a large number of high profile cases involving accounting fraud,the U.S.Congress in 2002 passed the:

Committing a fraud because of a drug habit or living beyond your means is an example of:

Committing a fraud because the employee feels that it will be easy to do is related to what part of the Fraud Triangle?

Persons who report unethical behavior are known as:

________ embezzlement is a form of fraud committed against an organization.

Risk assessment:

The chance to commit a fraud,conceal it,and avoid punishment is an example of:

Establishing a hierarchy to let all management and employees know what is going on in a company would be an example of what element of internal control?

Which of the following is NOT part of the Fraud Triangle?

Details that support business transactions make up what is called:

Internal control is a comprehensive system that helps an organization do all of the following EXCEPT:

Another name for an "except for" audit opinion is a(n):

"I didn't steal the money,I only borrowed it until I can pay it back" is an example of:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 6: The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Using IFRS,book value typically ________ market value.

Which of the following would NOT be considered part of monitoring in an internal control system?

Many states require CPAs to participate in continuing education that deals with ethics.

An employee believes that getting away with a fraud without being detected is unlikely.This best relates to which part of the Fraud Triangle?

If an employee has a low incentive to commit fraud,the employee does NOT have:

Which element of internal control deals with a company having large amounts of cash on hand?

US GAAP uses the cost principle and is less conservative than international standards.

In response to a large number of high profile cases involving accounting fraud,the U.S.Congress in 2002 passed the:

Committing a fraud because of a drug habit or living beyond your means is an example of:

Committing a fraud because the employee feels that it will be easy to do is related to what part of the Fraud Triangle?

Persons who report unethical behavior are known as:

________ embezzlement is a form of fraud committed against an organization.

Risk assessment:

The chance to commit a fraud,conceal it,and avoid punishment is an example of:

Establishing a hierarchy to let all management and employees know what is going on in a company would be an example of what element of internal control?

Which of the following is NOT part of the Fraud Triangle?

Details that support business transactions make up what is called:

Internal control is a comprehensive system that helps an organization do all of the following EXCEPT:

Another name for an "except for" audit opinion is a(n):

"I didn't steal the money,I only borrowed it until I can pay it back" is an example of:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters