Question 1

The board of directors consists entirely of personal friends of the chief executive officer. This indicates a weakness in

Accepted Answer

A)  the accounting system 
B)  the control environment 
C)  control procedures 
D)  this is not a weakness 
A)  the accounting system 
B)  the control environment 
C)  control procedures 
D)  this is not a weakness

Question 2

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Accepted Answer

A) True 
 B)False

Question 3

Explain the grandfather-father-son backup technique.

Accepted Answer

GFS backup technique begins when the cur

Question 4

The Sarbanes-Oxley Act requires only that a firm keep good records.

Accepted Answer

A) True 
 B)False

Question 5

Explain the purpose of the PCAOB.

Accepted Answer

The PCAOB is empowered to set

Question 6

The most cost-effective type of internal control is

Accepted Answer

A)  preventive control 
B)  accounting control 
C)  detective control 
D)  corrective control 
A)  preventive control 
B)  accounting control 
C)  detective control 
D)  corrective control

Question 7

Since all fraud involves some form of financial misstatement, how is Fraudulent Statement fraud different?

Accepted Answer

Fraudulent statements are associated wit

Question 8

A clerk reorders 250 items when the inventory falls below 25 items. This is an example of __________________________.

Accepted Answer

general au

Question 9

Explain the shell company fraud.

Accepted Answer

A shell company fraud first requires tha

Question 10

The importance to the accounting profession of the Sarbanes-Oxley Act is that

Accepted Answer

A)  bribery will be eliminated 
B)  management will not override the company's internal controls 
C)  management are required to certify their internal control system 
D)  firms will not be exposed to lawsuits 
A)  bribery will be eliminated 
B)  management will not override the company's internal controls 
C)  management are required to certify their internal control system 
D)  firms will not be exposed to lawsuits

Question 11

Skimming involves

Accepted Answer

A)  stealing cash from an organization before it is recorded 
B)  Stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor. 
A)  stealing cash from an organization before it is recorded 
B)  Stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Question 12

Which of the following is not an element of the control environment?

Accepted Answer

A)  management philosophy and operating style 
B)  organizational structure of the firm 
C)  well-designed documents and records 
D)  the participation of the board of directors and the audit committee 
A)  management philosophy and operating style 
B)  organizational structure of the firm 
C)  well-designed documents and records 
D)  the participation of the board of directors and the audit committee

Question 13

Which input control check would detect a payment made to a nonexistent vendor?

Accepted Answer

A)  missing data check 
B)  numeric/alphabetic check 
C)  range check 
D)  validity check 
A)  missing data check 
B)  numeric/alphabetic check 
C)  range check 
D)  validity check

Question 14

For an action to be called fraudulent, all of the following conditions are required except

Accepted Answer

A)  poor judgment 
B)  false representation 
C)  intent to deceive 
D)  injury or loss 
A)  poor judgment 
B)  false representation 
C)  intent to deceive 
D)  injury or loss

Question 15

Give two examples of employee fraud and explain how the theft might occur.

Accepted Answer

Answers will vary but should involve (1)

Question 16

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

Accepted Answer

A)  access controls 
B)  segregation of functions 
C)  independent verification 
D)  accounting records 
A)  access controls 
B)  segregation of functions 
C)  independent verification 
D)  accounting records

Question 17

A run-to-run control is an example of an output control.

Accepted Answer

A) True 
 B)False

Question 18

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Accepted Answer

The Sarbanes-Oxley Act requires all audi

Question 19

Spooling is a form of processing control.

Accepted Answer

A) True 
 B)False

Question 20

What is the objective of SAS 99?

Accepted Answer

The objective of SAS 99 is to

The board of directors consists entirely of personal friends of the chief executive officer. This indicates a weakness in

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Explain the grandfather-father-son backup technique.

The Sarbanes-Oxley Act requires only that a firm keep good records.

Explain the purpose of the PCAOB.

The most cost-effective type of internal control is

Since all fraud involves some form of financial misstatement, how is Fraudulent Statement fraud different?

A clerk reorders 250 items when the inventory falls below 25 items. This is an example of __________________________.

Explain the shell company fraud.

The importance to the accounting profession of the Sarbanes-Oxley Act is that

Skimming involves

Which of the following is not an element of the control environment?

Which input control check would detect a payment made to a nonexistent vendor?

For an action to be called fraudulent, all of the following conditions are required except

Give two examples of employee fraud and explain how the theft might occur.

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

A run-to-run control is an example of an output control.

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Spooling is a form of processing control.

What is the objective of SAS 99?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting, and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

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Exam 3: Ethics, Fraud, and Internal Control

The board of directors consists entirely of personal friends of the chief executive officer. This indicates a weakness in

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Explain the grandfather-father-son backup technique.

The Sarbanes-Oxley Act requires only that a firm keep good records.

Explain the purpose of the PCAOB.

The most cost-effective type of internal control is

Since all fraud involves some form of financial misstatement, how is Fraudulent Statement fraud different?

A clerk reorders 250 items when the inventory falls below 25 items. This is an example of __________________________.

Explain the shell company fraud.

The importance to the accounting profession of the Sarbanes-Oxley Act is that

Skimming involves

Which of the following is not an element of the control environment?

Which input control check would detect a payment made to a nonexistent vendor?

For an action to be called fraudulent, all of the following conditions are required except

Give two examples of employee fraud and explain how the theft might occur.

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

A run-to-run control is an example of an output control.

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Spooling is a form of processing control.

What is the objective of SAS 99?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting, and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters