Fraud Ch 12

What is the second most common financial statement fraud?

Which one of the following is not a commonly used inventory related fraud scheme

When inventory is understated, how is net income affected?

What effect does the carry forward nature of the over/understatement of inventory and COGS have on the fraud perpetrator?

What people in an organization provide investigators and auditors with the best information about inventory?

What are the most common account(s) manipulated when perpetrating financial statement fraud

What is the most common type of revenue related financial statement fraud?

Which is not a common revenue related fraud scheme

This fraud symptom is unexpected or unexplained economic events, accounting transactions or financial and nonfinancial relationships

This fraud symptom can involve missing documents, pohotocopies, ledgers that don't balance, or unusual journal entires

The most common account(s) manipulated when perpetrating financial statement fraud are

Why might a company want to understate net income

Reported revenue and sales account balances that appear too high are examples of

examines percent changes in account balances from peirod to period

Recording fictitious receivables will usually result in a

Comparing recorded amounts in the financial statements with the real world assets they are supposed to represent would be most effective in detecting

Lifestyle symptomps are most effective with

Which of the following is not an inventory related documentary symptom
duplicate purchase orders
missing inventory during inventory counts
unsupported inventory sales transactions

When looking for inventory fraud, an important question to ask is
what is the nature of inventory
what is the age of inventory
what is the salability of inventory

Which of the following ratios would not generally be used to look for inventory and COGS related frauds

In order to analyze financial statements for fraud an auditor or fraud examiner should consider all of the following execpt
the types of accounts that should be included
the types of fraud to which the company is susceptible
the nature of the company's business and industry

Last minute revenue adjustments, unsuported balance sheet amounts, and improperly recorded revenues are

Accounts that can be manipulated inrevenue fraud include all of the following except

Which financial ratio is not useful in detecting revenue related fraud
gross profit margin
account receivable turnover ratio
asset turnover ratio

The asset turnover ratio measures

The most common way to overstate revenues is to

Which of the following is a possible scheme for manipulating revenue when returned goods are accepted from customers

All of the following ratios are useful in detecting large revenue frauds except

Each of the following illicit revenue transactions is correctly linked with the financial statement accounts involved exccept

Indentify which ratio is correctly linked to the infromation it could reveal about the company's potential for revenue fraud

Which of the following is a common way to perform fianncial statement analysis whicle searing for revenue related analystical symptoms
look for unusual changes in reveue related account balances from period to period
look for unusual changes in revenue related relationships from period to period

Primarily occurring at the end of the year in an attempt to inflate sales the practice of shipping more items to distributors than they can sell in a reasonable time period is known as