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ACCT 4235 Final exam with correct
answers
which of the following is a characteristic of a good interview? a. make the interview as concise as possible b. the interviewer should announce his or her bias at the outset, because the interviewee will cooperate better when the interviewee knows the type of info the interviewer is seeking c. friendly interviewees appear helpful, but may have hidden motives and may provide bad information d. it is important to schedule the interviews ahead of time, especially if you are planning to interview a potentially hostile interviewee - CORRECT ANSWERS โโa information questions are designed to: I. Establish the interview theme II. Establish rapport III. Assess culpability a. I, II, and III b. I and II only c. II and III only
d. Neither I,II, and III - CORRECT ANSWERS โโd arrange in order the stages that people generally go through in reaction to a crisis I. Anger II. Denial III. Acceptance IV. Depression V. Rationalization a. I, II, III, IV, V b. I, II, V, III, IV c. II, V, IV, I, III d. II, I, V, IV, III - CORRECT ANSWERS โโd which of the following is not a method of honesty testing a. graphology b. voice stress analysis c. body language test d pencil and paper test - CORRECT ANSWERS โโc
interviewing as discussed in the textbook is: a. the systematic questioning of individuals who have knowledge of events, people, and evidence involved in a case under investigation b. the process of answering questions from an interviewer for the purpose of finding a job c. by far the least common technique used in investigation and resolving fraud d. similar to ordinary conversation - CORRECT ANSWERS โโa which of the following honesty testing techniques deals with the study of handwriting for the purpose of character analysis? a. polygraph b. graphology c. pencil and paper test d. voice stress - CORRECT ANSWERS โโb which of the following is not a good thing to do during an interview a. conduct the interview in private b. establish the purpose of the interview c. interview more than one person at once d. do not invade body space - CORRECT ANSWERS โโc the three aspects of management fraud that a fraud examiner needs to be aware of include all of the following except: a. their backgrounds
b. their religious convictions c. their motivations d. their influence in making decisions for the organization - CORRECT ANSWERS โโb during an audit, an auditor considers the conditions of the auditee and plans the audit accordingly. This is an example of which of the following? a. zero order reasoning b. high order reasoning c. first order reasoning d. fraudulent reasoning - CORRECT ANSWERS โโc management fraud is usually committed on behalf of the organization rather than against it. Which of the following would not be a motivation of fraud on behalf of the organization a. a CEO needs a new car b. a highly competitive industry c. pressure to meet expected earnings d. restructure debt covenants that cannot be met - CORRECT ANSWERS โโa when looking for financial statement fraud, auditors should look for indicators of fraud by:
a. backdrafting stock options b. backdating stock options c. stock option reversals d. stock option extensions - CORRECT ANSWERS โโb most financial statements fraud occurs in smaller organizations with simple management structures, rather than in large, historically profitable organizations. This is because: a. it is easier to implement good internal controls in a small organization b. smaller organizations do not have investors c. management fraud is more difficult to commit when there is a more formal organizational structure of management d. people in large organizations are more honest - CORRECT ANSWERS โโc without a confession, forged documents ,or repeated fraudulent acts that establish a pattern of dishonesty, convicting someone of fraud is often difficult true false - CORRECT ANSWERS โโtrue in the phar-more fraud case, several different methods were used to manipulate the financial statements. These included all of the following except
a. funneling losses into an unaudited subsidiaries b. overstating inventors c. recognizing revenue that should have been deferred d. manipulating accounts - CORRECT ANSWERS โโa overstating cash is usually difficult because: a. cash balances can be easily confirmed with banks and other financial institutions b. cash is hard to steal c. cash is normally not a fraudulent account d. cash is usually a small asset - CORRECT ANSWERS โโa which of the following is not a type of transaction that can create liabilities for a company a. purchasing inventory b. borrowing money c. selling purchased goods d. paying a loan - CORRECT ANSWERS โโd financial statement frauds most often occur in large, well-established companies true
which of the following is not a positive effect on the financial statements due to recognizing something as revenue instead of as a liability a. understates liabilities b. it overstates revenues c. it overstates net income d. it overstates assets - CORRECT ANSWERS โโd analytical symptoms of accounts payable fraud most often relate to reported "accounts payable" balances that appear: a. too low b. too high c. too perfect d. unchanged - CORRECT ANSWERS โโa each of the following assets is correctly linked with how it can be overstated except; a. inventory can be overstated by improperly capitalizing these assets b. marketable securities can be overstated because they aren't widely traded, and it's difficult to assign an accurate value to the securities c. fixed assets can be overstated by leaving expired assets on the books d. assets can be inflated in mergers, acquisitions, and restructurings by having the wrong entity act as the acquirer - CORRECT ANSWERS โโa in liability fraud, liabilities are most often a. understated
b. overstated c. recorded as assets d. recorded as expenses - CORRECT ANSWERS โโa consumers should provide credit card numbers or bank information over the phone only when: a. they initiated the call and are purchasing a legitimate product b. they are asked to give the information c. the entity receiving this information is a legitimate company d. they feel confident that the receiving entity will protect such information
- CORRECT ANSWERS โโa which of the following institutions would not be very helpful to call in the event of identity theft? a. IRS b. social security administration c. local chamber of commerce d. a credit reporting agency - CORRECT ANSWERS โโc out of all the types of fraud discussed in this chapter, which type is perpetrated least often a. skimming
a. wait to see where the perpetrator is spending your money, then using this info, plan an investigation with the local FBI organization b. contact friends and neighbors to inquire if they have any useful information about the perpetrator c. contact the federal trade commission for assistance and advice d. do none of the suggestions provided - CORRECT ANSWERS โโc which of the following types of disbursement fraud occurs least frequently? a. expense tampering b. payroll schemes c. register disbursement schemes d. billing schemes - CORRECT ANSWERS โโc which of the following is not listed in the chapter as a common characteristic of Nigerian scam letters? a. the promise of money to lure victims b. urgency to invest quickly c. picture of perpetrator to assure victims d. strong ties to high ranking foreign officials to lure victims - CORRECT ANSWERS โโc which of the following results in the highest loss per case?
a. expense tampering b. payroll schemes c. register disbursement schemes d. billing schemes - CORRECT ANSWERS โโd what is the best defense against consumer fraud a. signing up with the national do not call registry b. purchasing credit card insurance c. educating yourself about credit card risks d. calling the federal trade commission - CORRECT ANSWERS โโc which of the following is not a way that individuals can commit tax fraud a. overstating the amount of deductions b. keeping two sets of books c. paying the least amount of taxes the individual owes d. making false entries in books and records - CORRECT ANSWERS โโc which of the following describes a chapter 13 bankruptcy a. all assets are liquidated and used to pay creditors b. reorganizations can be used by individuals with debts less than $ million
the retention of a fraud investigator in bankruptcy proceeding must be approved by the bankruptcy judge unless: a. the debtor's estate pays the investigator b. the trustee pays the investigator c. the creditors' committee pays the investigator d. an individual creditor or shareholder pays the investigator - CORRECT ANSWERS โโd which of the following is the major reason why there is so much divorce fraud a. assets are being taken away from one divorce partner and given to another b. divorce proceedings usually take a long time c. states make divorce very difficult d. children usually get most assets in divorce cases - CORRECT ANSWERS โโa to work as an entry level CI special agent a. you must be a US citizen b. you must be not older than 37 c. you must have completed a 4 year course of study or earned a bachelor's degree
d. you must meet all the conditions provided - CORRECT ANSWERS โโd which of the following is an indicator of possible hiding of assets in a divorce a. assets transferred to an off-site location b. changing the title to assets c. payments made to fictitious individuals d. all of the answers - CORRECT ANSWERS โโd the person appointed by a bankruptcy judge in a chapter 11 proceeding who investigates allegations of fraud or misconduct is a. creditor b. adjuster c. auditor d. examiner - CORRECT ANSWERS โโd most email users understand the importance of encrypted mail messages and use one of the easily accessible encryption protocols for their emails true false - CORRECT ANSWERS โโfalse
wartrapping is: a. using a key to lock a message and another key to unlock it b. a signature sent over the internet c. a free internet access point set up by hackers and used to steal passwords and other important information d. illegal or unauthorized viewing of information as it passes along a network communication channel - CORRECT ANSWERS โโc which of the following is not an element of a company's control environment a. audit committee particiaption b. management philosophy c. hiring policies d. independent checks - CORRECT ANSWERS โโd the value of data lies in its ability to be easily a. converted to money b. replicated c. transferred d. all the above - CORRECT ANSWERS โโd a trojan horse:
a. sends email or pop up messages to users asking for personal information in inventive ways b. is a program that claims to do something useful, but which also contains hidden behavior c. changes information in an email header or an IP address to hide identities d. all of the choices are correct - CORRECT ANSWERS โโb which of the following fraud risks involves changing IP addresses a. spoofing b. sniffing c. false web sites d. customer impersonation - CORRECT ANSWERS โโa secure web connections are based on a. DNS b. FTP c. HTTPS d. FTPS - CORRECT ANSWERS โโc which of the following is not one of the common stages of a criminal case a. filing a criminal charge b. filing a complaint c. discovery
