Question 1

The LIBOR scandal was primarily caused by:

Accepted Answer

A)  Bad debt losses on bank loans that were biased downward to avoid inquiry by European banking regulators 
B)  Excessive reliance by banks on loans the bear adjustable loan interest rates 
C)  A lack of candor by certain banks 
D)  A lack of integrity by large corporate borrowers 
A)  Bad debt losses on bank loans that were biased downward to avoid inquiry by European banking regulators 
B)  Excessive reliance by banks on loans the bear adjustable loan interest rates 
C)  A lack of candor by certain banks 
D)  A lack of integrity by large corporate borrowers

Question 2

A "side agreement":

Accepted Answer

A)  Allows a company to charge a lower selling price to attract a new customer, without existing customers discovering this reduction 
B)  A secondary agreement that overrides a primary agreement, for the purposes of committing accounting fraud 
C)  An comparatively minor agreement that forensic investigators set aside during the course of conducting a fraud examination of major improprieties 
D)  A technique used by Certified Fraud Examiners and others to deter potentially fraudulent actions 
A)  Allows a company to charge a lower selling price to attract a new customer, without existing customers discovering this reduction 
B)  A secondary agreement that overrides a primary agreement, for the purposes of committing accounting fraud 
C)  An comparatively minor agreement that forensic investigators set aside during the course of conducting a fraud examination of major improprieties 
D)  A technique used by Certified Fraud Examiners and others to deter potentially fraudulent actions

Question 3

When a person's net cash flow exceeds his or her reported taxable income, the IRS:

Accepted Answer

A)  Has an automated system that identifies a taxpayer as a possible tax cheater 
B)  Presumes, upon examination, that the taxpayer is underreporting his or her income 
C)  Conclusively recognizes that the taxpayer is underreporting his or her income 
D)  Conclusively recognizes that the taxpayer has underreported both income and tax payments 
A)  Has an automated system that identifies a taxpayer as a possible tax cheater 
B)  Presumes, upon examination, that the taxpayer is underreporting his or her income 
C)  Conclusively recognizes that the taxpayer is underreporting his or her income 
D)  Conclusively recognizes that the taxpayer has underreported both income and tax payments

Question 4

The Fraud Triangle refers to:

Accepted Answer

A)  The three acts of accounting deception that led to Enron's downfall 
B)  The three alternative causes of fraud in large organizations 
C)  The three alternative causes of financial fraud in business enterprises 
D)  The three elements that collectively must be present for fraud to occur 
A)  The three acts of accounting deception that led to Enron's downfall 
B)  The three alternative causes of fraud in large organizations 
C)  The three alternative causes of financial fraud in business enterprises 
D)  The three elements that collectively must be present for fraud to occur

The LIBOR scandal was primarily caused by:

A "side agreement":

When a person's net cash flow exceeds his or her reported taxable income, the IRS:

The Fraud Triangle refers to:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue, Justice, and Social Responsibility

Why We Cheat

Greed, Corruption, and Collusion

Discreditable Acts: Discrimination, Deceit, and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners, Trustees, and Executors

Duties in the Accounting Workplace Online Only

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Exam 7: Fraud and Earnings Management

The LIBOR scandal was primarily caused by:

A "side agreement":

When a person's net cash flow exceeds his or her reported taxable income, the IRS:

The Fraud Triangle refers to:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue, Justice, and Social Responsibility

Why We Cheat

Greed, Corruption, and Collusion

Discreditable Acts: Discrimination, Deceit, and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners, Trustees, and Executors

Duties in the Accounting Workplace Online Only

Filters