which of the following is not a fraud symptom relatd to source documents?
c. a tip from an employee
which of the following is a fraud symptom related to an internal control weakness?
e. all of the above (lack of authorization, independent checks, inadequate accounting system, and lack of physical safeguards)
in the three elements of fraud (theft act, concealment, conversion), who is usually in the best position to detect the fraud?
a. co-workers and manager
when a person commits a crime:
a. he or she usually becomes engulfed by emotions of fear and guilt
most people who commit fraud:
d. use the embezzled funds to improve their lifestyle
which of the following is not a reason people are hesitant to come forward with knowledge or suspicions of fraud?
d. people who report fraud are often rewarded monetarily
which of the following is not one of the categories of employee fraud symptoms?
d. firm structure
embezzlement of assets reduces the left side of the accounting equation. To conceal teh theft, the embezzler must find a way to reduce the right side of the accounting equation. A perp would most likely reduce the right side by:
c. increasing expenses
which of the following is not a fraud symptoms related to journal entries?
d. journal entries made near the beginning of the accounting period
once in a while, someone commits fraud or another crime and does not feel stress. Such people are referred to as:
which of the following is not a common internal control fraud symptom or problem?
b. unexplained adjustments to receivables, payables, revenues or expenses
fraud is usually detected by recognizing and pursuing:
a letter is most likely to be fraudulent if:
c. is it a photocopy of the original letter
if a perp has stolen assets, which of the following is the easiest method for concealing the theft?
d. increase expenses
which of the following is a common fraud symptom relating to ledgers?
d. both a and c (ledger that does not balance, and master acct balances that do not equal the sum of the individual customer or vendor balances)
which element is not a common element of fraud?
analytical anomolies are present in every fraud
recording an expense is a possible way to conceal a theft of cash
a check is an example of a source document
internal control weaknesses give employees opportunities to commit fraud
internal control is composed of teh control environment, the accounting system, and control procedures (activities)
analytical fraud symptoms are the least effective way to detect fraud
most people who commit fraud use the embezzled funds to save for retirement
as fraud perps become more confident in their fraud schemes, they steal and spend increasingly larger amounts
first-time offenders usually exhibit no psychological changes
psychopaths feel no guilt because they have no conscience
it is safe to assume that fraud has not occurred if one or more elements of the fraud triangle cannot be observed
the fraud elements consiste of concealment, conversion, and completion
auditors can best help detect fraud in conversion
some complaints and tips turn out to be unjustified
fraud is a crime that is seldom observed
because of the nature of fraud, auditors are often in the best position to detect its occurance
most people who commit fraud are under financial pressure
studies have found that the most common internal control problem when frauds occur is having lack of proper authorizations
fraud perps who manipulate accounting records to conceal embezzlement often attempt to balance the accounting equation by recording expenses
employee transfers, audits, and mandatory vacations are all ways to provide independent checks on employees
new whistle -blowing laws have helped make tips and complaints more effective
coworkers are usually in the best position to detect fraud
fraud perps often live beyond their means since their income does not support their lifestyle
nearly all individuals and orgs are subject to pressures and can rationalize