Question 1

Which method is NOT used to overstate assets?

Accepted Answer

A) Inappropriately capitalizing costs that should be expensed. 
B) Recording newly acquired assets at cost instead of fair market value in a healthy economy. 
C) Overstating accounts receivable or inventory to hide thefts. 
D) Inflating assets through mergers and acquisitions by manipulation of intercompany accounts and transactions. 
A) Inappropriately capitalizing costs that should be expensed. 
B) Recording newly acquired assets at cost instead of fair market value in a healthy economy. 
C) Overstating accounts receivable or inventory to hide thefts. 
D) Inflating assets through mergers and acquisitions by manipulation of intercompany accounts and transactions.

Question 2

Which of the following are the best accounting symptoms for discovering cash or marketable security misstatements?

Accepted Answer

A) Obtaining statements directly from financial institutions as of the date you are concerned about. 
B) Differences between recorded amounts and amounts confirmed with banks,brokers,and other independent parties. 
C) Having physical possession of marketable security certificates. 
D) Comparing cash and marketable security balances with those of similar companies. 
A) Obtaining statements directly from financial institutions as of the date you are concerned about. 
B) Differences between recorded amounts and amounts confirmed with banks,brokers,and other independent parties. 
C) Having physical possession of marketable security certificates. 
D) Comparing cash and marketable security balances with those of similar companies.

Question 3

Which of the following will NOT understate liabilities?

Accepted Answer

A) Understate accounts payable 
B) Understate accrued liabilities 
C) Recognize earned revenue as unearned revenue 
D) Underrecord future obligations 
A) Understate accounts payable 
B) Understate accrued liabilities 
C) Recognize earned revenue as unearned revenue 
D) Underrecord future obligations

Question 4

A______ is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management.

Accepted Answer

A) sinking fund 
B) provident fund 
C) reserve fund 
D) pension fund 
A) sinking fund 
B) provident fund 
C) reserve fund 
D) pension fund

Question 5

Asset frauds are often easier to detect than other types of financial statement fraud because:

Accepted Answer

A) overstated assets are always included on the balance sheet. 
B) of the off-book nature of asset frauds. 
C) asset overstatements are almost always quite significant. 
D) sufficient information will be provided in the notes to financial statements. 
A) overstated assets are always included on the balance sheet. 
B) of the off-book nature of asset frauds. 
C) asset overstatements are almost always quite significant. 
D) sufficient information will be provided in the notes to financial statements.

Question 6

Which asset is probably the most difficult to overstate under normal audit procedures?

Accepted Answer

A) Fixed assets 
B) Marketable securities 
C) Cash 
D) Accounts receivable 
A) Fixed assets 
B) Marketable securities 
C) Cash 
D) Accounts receivable

Which method is NOT used to overstate assets?

Which of the following are the best accounting symptoms for discovering cash or marketable security misstatements?

Which of the following will NOT understate liabilities?

A______ is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management.

Asset frauds are often easier to detect than other types of financial statement fraud because:

Which asset is probably the most difficult to overstate under normal audit procedures?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 13: Liability,asset,and Inadequate Disclosure Frauds

Which method is NOT used to overstate assets?

Which of the following are the best accounting symptoms for discovering cash or marketable security misstatements?

Which of the following will NOT understate liabilities?

A______ is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management.

Asset frauds are often easier to detect than other types of financial statement fraud because:

Which asset is probably the most difficult to overstate under normal audit procedures?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters