MGMT 642 Chapter 5

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hsafcik8
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55040
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MGMT 642 Chapter 5
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2010-12-11 16:56:31
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  1. which of the following is true regarding fraud?
    b. it is seldom observed
  2. which of the following is not a fraud symptom relatd to source documents?
    c. a tip from an employee
  3. 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)
  4. 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
  5. when a person commits a crime:
    a. he or she usually becomes engulfed by emotions of fear and guilt
  6. most people who commit fraud:
    d. use the embezzled funds to improve their lifestyle
  7. 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
  8. which of the following is not one of the categories of employee fraud symptoms?
    d. firm structure
  9. 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
  10. which of the following is not a fraud symptoms related to journal entries?
    d. journal entries made near the beginning of the accounting period
  11. once in a while, someone commits fraud or another crime and does not feel stress. Such people are referred to as:
    a. psychopathic
  12. which of the following is not a common internal control fraud symptom or problem?
    b. unexplained adjustments to receivables, payables, revenues or expenses
  13. fraud is usually detected by recognizing and pursuing:
    b. symptoms
  14. a letter is most likely to be fraudulent if:
    c. is it a photocopy of the original letter
  15. if a perp has stolen assets, which of the following is the easiest method for concealing the theft?
    d. increase expenses
  16. 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)
  17. which element is not a common element of fraud?
    b. coercion
  18. analytical anomolies are present in every fraud
    false
  19. recording an expense is a possible way to conceal a theft of cash
    True
  20. a check is an example of a source document
    True
  21. internal control weaknesses give employees opportunities to commit fraud
    True
  22. internal control is composed of teh control environment, the accounting system, and control procedures (activities)
    True
  23. analytical fraud symptoms are the least effective way to detect fraud
    False
  24. most people who commit fraud use the embezzled funds to save for retirement
    False
  25. as fraud perps become more confident in their fraud schemes, they steal and spend increasingly larger amounts
    true
  26. first-time offenders usually exhibit no psychological changes
    false
  27. psychopaths feel no guilt because they have no conscience
    true
  28. it is safe to assume that fraud has not occurred if one or more elements of the fraud triangle cannot be observed
    false
  29. the fraud elements consiste of concealment, conversion, and completion
    false
  30. auditors can best help detect fraud in conversion
    False
  31. some complaints and tips turn out to be unjustified
    true
  32. fraud is a crime that is seldom observed
    true
  33. because of the nature of fraud, auditors are often in the best position to detect its occurance
    false
  34. most people who commit fraud are under financial pressure
    true
  35. studies have found that the most common internal control problem when frauds occur is having lack of proper authorizations
    False
  36. fraud perps who manipulate accounting records to conceal embezzlement often attempt to balance the accounting equation by recording expenses
    true
  37. employee transfers, audits, and mandatory vacations are all ways to provide independent checks on employees
    true
  38. new whistle -blowing laws have helped make tips and complaints more effective
    true
  39. coworkers are usually in the best position to detect fraud
    true
  40. fraud perps often live beyond their means since their income does not support their lifestyle
    true
  41. nearly all individuals and orgs are subject to pressures and can rationalize
    true

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