Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

C254 Pre assessment Fraud and Forensic Accounting with Answers.pdf, Exams of Nursing

University of Buckingham (UB)Nursing

C254 Pre assessment Fraud and Forensic Accounting with Answers.pdf

Typology: Exams

2024/2025

Available from 07/03/2025

kareey
kareey 🇬🇧

3.7

(12)

1.3K documents

1 / 10

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
C254 Pre assessment Fraud and
Forensic Accounting with Answers
Which action is potentially unethical because it understates COGS?
A. Understating purchases
B. Understating purchase returns
C. Understating ending inventory
D. Understating purchase discounts -A
Why is it unethical for a supervisor to ask an accountant to capitalize the marketing
research program?
A. this action overstates assets
B. this action overstates expenses
C. this action understates liabilities
D. this action understates net income -A
How can financial statement fraud impact stakeholders?
A. investors may experience lower interest rates
B. fraud can be an embarrassment to the audit profession
C. investors may be more willing to purchase new stock issues
D. fraud can lead to stock options decreasingly being used for executive compensation
-B
How do fraudulent financial statements impact stakeholders and the markets?
A. financial statement fraud leads to embezzlement
B. interest rates rise as a result of financial statement fraud
C. financial statement fraud leads investors to lose confidence
D. CEOs acquire additional company stock following financial statement fraud -C
What is a consequence of financial statement fraud?
A. the organization shows losses due to embezzlement
B. red flags prove that fraud occurred in the organization
C. suppliers are able to take advantage of the organization
D. the organization appears more profitable than it actually is -D
What are two potential consequences a company accused of financial statement fraud
can face?
A. the CEO might be indicted and convicted
pf3
pf4
pf5
pf8
pf9
pfa

Partial preview of the text

Download C254 Pre assessment Fraud and Forensic Accounting with Answers.pdf and more Exams Nursing in PDF only on Docsity!

C254 Pre assessment Fraud and

Forensic Accounting with Answers

Which action is potentially unethical because it understates COGS? A. Understating purchases B. Understating purchase returns C. Understating ending inventory D. Understating purchase discounts - A Why is it unethical for a supervisor to ask an accountant to capitalize the marketing research program? A. this action overstates assets B. this action overstates expenses C. this action understates liabilities D. this action understates net income - A How can financial statement fraud impact stakeholders? A. investors may experience lower interest rates B. fraud can be an embarrassment to the audit profession C. investors may be more willing to purchase new stock issues D. fraud can lead to stock options decreasingly being used for executive compensation

  • B How do fraudulent financial statements impact stakeholders and the markets? A. financial statement fraud leads to embezzlement B. interest rates rise as a result of financial statement fraud C. financial statement fraud leads investors to lose confidence D. CEOs acquire additional company stock following financial statement fraud - C What is a consequence of financial statement fraud? A. the organization shows losses due to embezzlement B. red flags prove that fraud occurred in the organization C. suppliers are able to take advantage of the organization D. the organization appears more profitable than it actually is - D What are two potential consequences a company accused of financial statement fraud can face? A. the CEO might be indicted and convicted

B. the SEC might relist and refinance the company C. company stock price might decline when news of fraud reaches the press D. the company may be required to issue new stock to provide needed funds - A and C What is motivation behind committing fraud through backdating of stock options? A. giving bonuses to employees B. increasing executive compensation C. ensuring a successful stock issuance D. preventing a violation of debt covenants - B What is a common motivator of financial statement fraud? A. greed B. intelligence C. health issues D. sense of entitlement - A What is the most common method used to commit financial statement fraud, according to the COSO study? A. capitalizing expenses B. overstating existing assets C. improperly recognizing revenue D. failing to give complete disclosure - C What was the auditor's responsibility to detect fraud under SAP 30? A. to thoroughly interview key employees B. to conduct statistical regression models C. to be aware of the possibility that irregularities may exist D. to determine if management was giving false statements - C What were auditors required to do under SAP 30? A. test for fraud until it is found B. design tests to detect fraud C. maintain a high level of mistrust in management D. assume increased responsibility to detect fraud - B Prior to the Sarbanes-Oxley regulations and according to SAS 16, under what circumstances can auditors rely upon the truthfulness of records obtained from the client? A. until there is evidence to suggest otherwise

D. Destroying source documents used in the evaluation of internal controls - C Who is required to certify a company's financial statements under the Sarbanes-Oxley Act? A. the board of directors B. CEO/CFO or management C. the audit committee of the board of directors D. the engagement audit partner or reviewing auditor - B What was the major purpose in creating the Sarbanes-Oxley Act? A. to protect the interest of investors B. to allow greater self-regulation of the audit profession C. to create new and more rigorous generally accepted audit standards D. to increase the responsibility of the Public Company Accounting Oversight Board to oversee the accounting profession - A What limits are put on accounting firms according to the Sarbanes-Oxley Act? A. accounting firms may offer valuation services but not external audit services B. accounting firms may perform valuation services and external audit services C. accounting firms may neither perform valuation services nor external audit services D. accounting firms may not perform valuation services if they perform external audit services - D How often must the lead audit partner and audit review partner be rotated under the Sarbanes-Oxley Act? A. every year B. every five years C. every two years D. every seven years - B Why did the Sarbanes-Oxley Act establish the PCAOB? A. to help protect the investing public B. to start regulating the auditing profession C. to create a court system for investor fraud D. to choose audit committee members for companies - A Why was the PCAOB established? A. to regulate the fees that auditors charge their clients B. to regulate the number of restatements provided each year C. to regulate the number of clients that any auditor can serve

D. to regulate the non-audit services that audit firms may offer to their audit clients - D What is a power of the PCAOB under the Sarbanes-Oxley Act? A. conduct inspections of public accounting firms B. conduct investigations of private accounting firms C. register any accounting firm that prepares an audit D. register private accounting firms that prepare audit reports - A Under the Sarbanes-Oxley Act, which statement is true regarding the PCAOB? A. it cannot sue or be sued in any U.S. court B. it can sue and be sued in any U.S. court with the approval of the SEC C. it cannot sue, but it can be sued in any U.S. court with the approval of the SEC D. it can sue with the approval of the SEC, but it cannot be sued in any U.S. court - B What is a specific scheme to commit revenue recognition fraud? A. record fictitious revenue B. improper use of merger resources C. failure to record asset impairments D. inappropriate application of purchase methods - A What is a rarely occurring type of financial statement fraud? A. inadequate disclosures B. fictitious recording of revenue C. failure to record asset impairments D. overstatement of ending inventory balances - C Which SAS instructs auditors how to document fraud risk? A. SAS 16 B. SAS 53 C. SAS 82 D. SAS 99 - C Which SAS or PCAOB number identifies ways for auditors to assess fraud risk? A. PCAOB 6 B. PCAOB 101 C. SAS 82 D. SAS 99 - D Which category of symptom does non-recording or under-recording contingent liabilities fit in?

Which fraud scheme is associated with the transaction of selling goods or services to customers? A. selling goods at inflated prices B. overstating the sale of fixed assets C. recording sales at overstated prices D. having customers pay accounts receivable early - C Which analytical symptom reflects revenue-related fraud? A. reporting sales discounts balances that appear too high B. reporting revenue or sales balances that appear too low C. reporting bad debt expense account balances that appear too high D. reporting allowance for doubtful account balances that appear too low - D Which statement is an analytical symptom of inventory fraud? A. there are three weeks of inventory records missing B. the shipping costs as a percentage of inventory are decreasing C. the company's method for counting inventory is poorly designed D. there is a large write-off of inventory after the end of the accounting period - B What is one way inventory can be overstated to commit fraud? A. overstate inventory returns B. understate obsolete inventory C. overstate inventory discounts D. understate inventory purchases - B What is one way to look for analytical symptoms of fraud related to cost of goods sold in a large corporation? A. investigate the lifestyle symptoms of the top executives B. check for changes an comparisons within financial statements C. divide the gross profit margin by the cots of goods sold minus net income D. confirm inventory and direct material documents pertaining to cost of goods sold - B What is a result of overstating purchase allowances? A. inventory is overstated B. net income is understated C. net purchases are overstated D. cost of goods sold is understated - D

Where should an auditor focus when looking for fraud within liability balances that are too low? A. the tangential axis B. liabilities that are recorded C. the vertical integration axis D. accounts receivable that are recorded - B Which scheme may indicate management fraud by the understatement of liabilities? A. borrowing from unrelated parties B. borrowing repurchase agreements C. recording payable in a subsequent period D. recording deposits as unearned revenues - C What are two examples of asset overstatement fraud? A. unauthorized asset-related transactions are recorded B. amounts recorded for assets between unrelated parties are inflated C. assets are overstated by capitalizing instead of expensing start-up costs D. assets through mergers are recorded at book value instead of market value - A and C Which item is an analytical symptom of asset overstatement fraud? A. missing documents related to assets B. unauthorized asset-related transactions C. asset-related ledgers that do not balance D. inappropriate capitalization of advertising costs - D Which type of financial statement fraud involves a company failing to reveal a possible but improbable judgment against them for a lawsuit? A. misleading disclosure B. inadequate disclosure C. understatement of liabilites D. overstatement of net income - B Which type of fraud is represented by a doctor's fictitious billing for nonexistent medical services? A. overall misrepresentation in the income statement B. overall misrepresentation through embezzlement C. misrepresentation in the footnotes to the financial statements D. misrepresentation in nonfinancial statements of annual reports - A

D. directors who have an insignificant amount of stock in the company - A and D Which two categories are part of control activities? A. fraud detection and prevention B. independent verification of errors C. independent checks on performance D. physical control over assets and records - C and D Which two investigative elements are predetermined in a firm's formal fraud policy? A. who will conduct the fraud investigation B. who will be in charge of the fraud hotline C. who will follow up o tips of suspected fraud D. who will contact law enforcement about the fraud - A and C What is a stage of a proactive fraud prevention approach? A. compilation B. interrogation C. investigation D. enumeration - C Which statement is true about the detection of disclosure fraud? A. disclosure fraud is easier to detect than financial fraud B. symptoms of disclosure fraud are the same as other types of fraud C. it is usually easier to detect misleading disclosures than missing disclosures - D