ACCTG 432 Ch 3 - Assessment

1.

Multiple Choice

45 sec

1 pt

Which is not one of the three M's of financial statement fraud?

Missing general ledger.

Manipulation.

Misrepresentation.

Intentional misapplication.

2.

Multiple Choice

45 sec

1 pt

Which group is not one of the members of corporate governance in the six-legged stool as outlined by Professor Zab Razaee?

BOD

Audit Committee.

Internal auditors.

Employees of the company.

3.

Multiple Choice

45 sec

1 pt

Which quality or characteristic is not outlined in Statement of Financial Concepts No. 2?

Relevance.

Materiality.

Timeliness.

Transparency.

4.

Multiple Choice

45 sec

1 pt

Which would be an example of the bill-and-hold strategy?

Books are kept open beyond the appropriate time.

Sell products and hold them, with an agreement to bill customers later.

Combine restricted fund account with the general fund account.

Inflate revenues with phony software sales.

5.

Multiple Choice

45 sec

1 pt

An example of "channel stuffing" would be:

Keeping books open beyond the appropriate time.

Combining restricted fund account with the general fund account.

Booking income before receiving payments.

Inflating revenues with phony software sales.

6.

Multiple Choice

45 sec

1 pt

Under the KPMG categories of fraud, what would probably not be an employer internal fraud?

False insurance claims.

Ghost vendors.

Check forgery.

False financial statements.

7.

Multiple Choice

1 min

1 pt

COSA defines "internal controls" as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories except:

A reasonable degree of transparency.

Effectiveness and efficiency of operations.

Reliability of financial reporting.

Compliance with applicable laws and regulations.

8.

Multiple Choice

45 sec

1 pt

Which of the following is a red flag for forensic accountants?

Complex financial products.

Aggressive revenue recognition policies.

All of the above

None of the above

9.

Multiple Choice

45 sec

1 pt

What is an industry conditions risk factor?

Company in a declining industry.

Significant accounts based upon estimates.

Significant related-party transactions.

Aggressive incentive programs.

10.

Multiple Choice

45 sec

1 pt

What is an operating and financial stability risk factor?

New accounting requirements for the company.

Substance over form questions.

Company declining in the industry.

High degree of competition.

11.

Multiple Choice

45 sec

1 pt

What is an investigative technique used by the SEC to investigate specific companies for cooking the books?

Lapping.

Kiting.

Wildcatting.

Channeling.

12.

Multiple Choice

45 sec

1 pt

Elements in the fraud triangle can be restated as all of the following except:

Individual is either dishonest or able to rationalize theft.

Notices or creates an opportunity to commit fraud.

Generally acts alone, out of embarrassment.

Feels some sort of pressure or incentive to commit fraud.

13.

Multiple Choice

45 sec

1 pt

Which is not one of the classic "red flags" of "cooking the books"?

Double billing a customer.

Personal expenses paid with company funds.

Sudden raises or bonuses to employees.

Unnecessary use of collection services.

14.

Multiple Choice

30 sec

1 pt

Which would be a good name for the scheme of listing investment income as operating revenue?

Period shift.

Expense manipulation.

Liability trap.

Revenue trick.

15.

Multiple Choice

30 sec

1 pt

What is an equitable remedy that allows a person to win a dispute against a company that does not have standing to suit?

Equity doctrine.

Alter ego.

Division analysis.

Dominance doctrine.

Explore this activity with a free account