Question 1

Which of the following is a typical symptom of a revenue-related fraud?

Accepted Answer

A) Significant new,unknown customers. 
B) Fall in gross profit percentage compared to the previous year. 
C) Purchases from suppliers not approved on vendor lists. 
D) The company having a huge customer base. 
A) Significant new,unknown customers. 
B) Fall in gross profit percentage compared to the previous year. 
C) Purchases from suppliers not approved on vendor lists. 
D) The company having a huge customer base.

Question 2

When a company understates the cost of goods sold,what is the effect on the inventory turnover ratio?

Accepted Answer

A) The ratio might increase or decrease depending upon the amount by which it is understated. 
B) The ratio will decrease. 
C) No effect. 
D) The ratio will increase. 
A) The ratio might increase or decrease depending upon the amount by which it is understated. 
B) The ratio will decrease. 
C) No effect. 
D) The ratio will increase.

Question 3

Which of the following is a potential revenue-related fraud scheme?

Accepted Answer

A) Cutoff problems 
B) Double counting 
C) Consigned inventory 
D) Partial shipment 
A) Cutoff problems 
B) Double counting 
C) Consigned inventory 
D) Partial shipment

Question 4

Inventory fraud often involves overstating inventory and/or understating cost of goods sold.The result is a decrease in the:

Accepted Answer

A) gross profit ratio. 
B) inventory turnover ratio. 
C) number of days sales in inventory. 
D) accounts receivable turnover ratio. 
A) gross profit ratio. 
B) inventory turnover ratio. 
C) number of days sales in inventory. 
D) accounts receivable turnover ratio.

Question 5

When using ratios to discover financial statement fraud,what is typically the most important aspect to evaluate?

Accepted Answer

A) The size of the ratio 
B) The direction of the ratio 
C) The change in the ratio 
D) The complexity of the ratio 
A) The size of the ratio 
B) The direction of the ratio 
C) The change in the ratio 
D) The complexity of the ratio

Which of the following is a typical symptom of a revenue-related fraud?

When a company understates the cost of goods sold,what is the effect on the inventory turnover ratio?

Which of the following is a potential revenue-related fraud scheme?

Inventory fraud often involves overstating inventory and/or understating cost of goods sold.The result is a decrease in the:

When using ratios to discover financial statement fraud,what is typically the most important aspect to evaluate?

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

Liability,asset,and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 12: Revenue- and Inventory-Related Financial Statement Frauds

Which of the following is a typical symptom of a revenue-related fraud?

When a company understates the cost of goods sold,what is the effect on the inventory turnover ratio?

Which of the following is a potential revenue-related fraud scheme?

Inventory fraud often involves overstating inventory and/or understating cost of goods sold.The result is a decrease in the:

When using ratios to discover financial statement fraud,what is typically the most important aspect to evaluate?

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

Liability,asset,and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters