Chapt 5 Graded Quiz Acc 4800

ACC-4800 → Quizzes → Chapter 5

Chapter 5

Instructions:

Score for this quiz: 40 out of 51

Submitted May 13 at 1:45pm

This attempt took about 21 hours.

Question 1: 1 pts

Fighting fraud calls for prevention as the first step and the preferred tactic.

0% of points

Often misappropriation is accomplished by false or misleading records or documents.

0% of points

Accountants are perhaps the most valuable employee-fraud fighters.

0% of points

None of the above.

100% of points

Government entities are generally not targets for fraudsters.

0% of points

0 / 1

Question 2: 1 pts

Tips.

100% of points

Accident.

0% of points

External auditors.

0% of points

Some other method.

0% of points

Internal auditors.

0% of points

1 / 1

Question 3: 1 pts

$720,000.

0% of points

$540,000.

0% of points

$820,000.

0% of points

$1,000,000.

100% of points

Some other amount.

0% of points

$1,000,000 ($220,000 / 0.22).

1 / 1

Question 4: 1 pts

$1,400,000.

0% of points

Some other amount.

0% of points

$280,000.

0% of points

$560,000.

0% of points

$7,000,000.

100% of points

Which statement is false?

The most common method of detecting occupational fraud is:

A company has a 22% profit margin and has employee fraud of $220,000. Calculate the additional revenue needed to offset this lost income.

You are told that a company has a 20% profit margin and the discovered fraud has caused $1,400,000 more needed revenue to cover the fraud. How much was

stolen?

Page 1 of 12Chapter 5: ACC-4800-001

5/17/2012https://learn-uvu.uen.org/courses/67279/quizzes/133631

.20 ($1,400,000).

0 / 1

Question 5: 1 pts

None of the above is incorrect.

0% of points

Cash flow analysis may indicate fraud and embezzlement.

0% of points

Theft is similar to embezzlement.

100% of points

Gross profit analysis may catch skimming and money laundering.

0% of points

Cash is the favorite target of fraudsters.

0% of points

Theft and larceny are different than embezzlement.

1 / 1

Question 6: 1 pts

Understated sales.

0% of points

Theft of incoming checks.

0% of points

Skimming.

0% of points

All of the above.

100% of points

Unrecorded sales.

0% of points

0 / 1

Question 7: 1 pts

Theft of incoming checks.

0% of points

All of the above.

100% of points

Understated sales.

0% of points

Swapping checks for cash.

0% of points

Unrecorded sales.

0% of points

0 / 1

Question 8: 1 pts

Skimming.

0% of points

Money laundering.

0% of points

Kiting.

100% of points

None of the above.

0% of points

Lapping.

0% of points

1 / 1

Question 9: 1 pts

Surprise cash counts.

0% of points

Investigating customers' complaints.

0% of points

Which is an incorrect statement?

Which technique is considered to be an "off-book" fraud?

Which scheme is considered to be skimming?

Building up balances in bank accounts based upon floating checks drawn against similar accounts in other banks is best called:

Skimming can be caught by:



Comparing receipts with deposits.

0% of points

Gross profit analysis.

0% of points

All of the above.

100% of points

1 / 1

Question 10: 1 pts

Large deposits on Fridays.

0% of points

Items a, b, and c.

100% of points

Only a and c.

0% of points

Frequent deposits and checks in the same amount.

0% of points

Short time lag between deposits and withdrawals.

0% of points

1 / 1

Question 11: 1 pts

Reviewing customer complaints.

100% of points

All of the above.

0% of points


0% of points

Gross profit analysis.

0% of points

A bank reconciliation audit.

0% of points

0 / 1

Question 12: 1 pts

Lapping.

0% of points

Ghost employee.

100% of points

None of the above.

0% of points

Missing employee.

0% of points

Kiting.

0% of points

1 / 1

Question 13: 1 pts

Bid rigging.

0% of points

All of the above.

0% of points

Land flip.

100% of points

A ghost scheme.

0% of points

Ponzi scheme.

0% of points

1 / 1

Question 14: 1 pts

What is a red flag of kiting?

What audit step would be most appropriate for finding accounts receivables fraud?

A person on the payroll who does not work for that company is generally called:

A person finds land, buys it, increases the price, and sells it to his company. What is this scheme?

Joseph Wells believes that the most powerful audit technique is:



Confirming account receivables.

0% of points


0% of points

Strong internal controls.

0% of points

Diligent inquiry.

100% of points

None of the above.

0% of points

1 / 1

Question 15: 1 pts

Develop a written code of ethics.

0% of points

Use background checks when hiring employees.

0% of points

Require an annual interview by internal auditors, security, or others of suspicious employees.

0% of points

Prosecute discovered fraud, as an example to other employees.

0% of points

All of the above are true.

100% of points

1 / 1

Question 16: 1 pts

Regular fraud audit.

0% of points

Some other techniques.

0% of points

Background checks of new employees.

0% of points

Strong internal controls.

100% of points

Ethical training for employees.

0% of points

1 / 1

Question 17: 1 pts

Deterioration of key ratio.

0% of points

Regular deferral of capital expenditures.

0% of points

Expense accounts are decreasing.

100% of points

Increase in amount owed to creditors.

0% of points

Non-payment of insurance premiums.

0% of points

The reverse of c would be a warning sign.

1 / 1

Question 18: 1 pts

No separation of check writing and check signing.

0% of points

Significant decline in turnover.

0% of points

Qualification in the auditor's report.

0% of points

Employee morale is high.

100% of points

Resignation of key staff member.

Select the true answer. To prevent fraud, the entity may choose to:

In a 2002 Wells Report, which was the most effective in preventing fraud?

Which factor would not indicate a fraud warning sign for not-for-profit organizations?

Which factor would not indicate a fraud warning sign for not-for-profit organizations?



0% of points

Warning sign is low morale.

1 / 1

Question 19: 1 pts

Chapter XI.

0% of points

Chapter 9.

100% of points

Both b and c.

0% of points

Chapter 11.

0% of points

Chapter 7.

0% of points

1 / 1

Question 20: 1 pts

The ratio of Cash and Investments divided by Current Liabilities is increasing over time.

0% of points

Unreserved Fund Balance divided by Gross Expenditures ratio is decreasing over time.

100% of points

Operating Surplus is increasing over time.

0% of points

All of the above.

0% of points

Fixed Costs less Personal Services and Debt Services is decreasing over time.

0% of points

1 / 1

Question 21: 1 pts

Long-term Debt divided by Assets ratio is increasing.

100% of points

Unrestricted Net Assets divided by Expenses ratio is increasing.

0% of points

Change in Net Assets divided by Total Net Assets ratio is increasing.

0% of points

General Revenues plus Transfers divided by Expenses ratio is increasing.

0% of points

All of the above.

0% of points

1 / 1

Question 22: 1 pts

Debt outstanding greater than 90% of the debt limit.

100% of points

None of the above is a negative trend.

0% of points

Property taxes greater than 65% of the tax limit.

0% of points

Short-term interest and current year-end service greater than 15% of total revenue.

0% of points

Unreserved fund balance percentages increasing over time.

0% of points

1 / 1

Question 23: 1 pts

External auditor.

0% of points

Forensic auditor.

100% of points

Which is a bankruptcy for municipalities?

Which would be considered a negative trend for a municipality?

Which would be considered a negative trend for a governmental unit?

Which would be considered a negative trend for a governmental unit?

Which of the following auditors is least interested in the materiality concept?



Internal auditor.

0% of points

All of the above.

0% of points

GAO auditor.

0% of points

1 / 1

Question 24: 1 pts

The quick ratio omits receivables and amounts due from other funds and governments.

0% of points

The combined financial statement is the main focus of the Comprehensive Annual Financial Report (CAFR).

0% of points

None of the above.

0% of points

The greater the fund balance as a percentage of revenue, the more likely the government will be able to overcome problems caused by revenue shortfalls.

0% of points

A large state government considers a quick ratio of more than 50% as an indicator of potential fiscal stress.

100% of points

1 / 1

Question 25: 1 pts

All of the above.

0% of points

Lapping.

0% of points

Kiting schemes.

0% of points

Ghost employees.

100% of points

Layering schemes.

0% of points

1 / 1

Question 26: 1 pts

The cash receipts journal was held open for a few days after the end of the year.

0% of points

The cash balances were overstated because of kiting.

100% of points

The last checks recorded before the year-end were really mailed by year-end.

0% of points

None of the above.

0% of points

Any unusual payments to or receipts from related parties occurred.

0% of points

1 / 1

Question 27: 1 pts

Observe the actual distribution of payroll checks to employees.

100% of points

None of the above.

0% of points

Review monthly bank reconciliations.

0% of points

Ascertain appropriate segregation of duties.

0% of points

Verify accounts receivable balances.

0% of points

1 / 1

Question 28: 1 pts

Which statement is false?

Forensic accountants should compare travel and expense vouchers to employment records and tax records in order to find:

You should trace bank transfers for the latter part of an audit period and the early part of the subsequent period to determine whether:

What audit procedures would not be highly effective for detecting fraud in the sales and collection cycle?

What audit procedure would not be highly effective for detecting fraud in the payroll cycle?



Sample personnel files and physically observe personnel.

0% of points

Observe the actual distribution of payroll checks to employees.

0% of points

Verify accounts receivable balances by positive confirmations.

100% of points

None of the above.

0% of points

Observe the duties of employees being performed.

0% of points

1 / 1

Question 29: 1 pts

Financial reporting fraud.

0% of points

The fraud triangle.

0% of points

Misappropriation of assets.

100% of points

Management fraud.

0% of points

None of the above.

0% of points

1 / 1

Question 30: 1 pts

More likely to be victims of economic crime.

100% of points

More likely to be perpetrators of corporate crime.

0% of points

More likely to systematically discover fraud in their organization.

0% of points

None of the above.

0% of points

More likely to be victims of computer crime.

0% of points

1 / 1

Question 31: 1 pts

Replacing new inventory with old.

0% of points

Taking kickbacks.

0% of points

False credits, discounts, and write-offs.

0% of points

None of the above.

0% of points

Stealing a customer's payment and concealing the theft by applying subsequent payments from other customers to the first customer's account.

100% of points

1 / 1

Question 32: 1 pts

Construction and property management companies.

0% of points

None of the above.

0% of points

Accounts receivable department records returns.

100% of points

Purchasing agent in charge of awarding contracts.

0% of points

Shipping department in which a customer pays an employee to ship a higher quality of goods than ordered.

0% of points

Cash fraud, inventory fraud, fixed asset fraud, payables and disbursement fraud, and payroll fraud are all examples of:

According to published research by PricewaterhouseCoopers, larger companies rather than smaller companies tend to be:

Lapping is defined as:

Kickbacks commonly occur in all of the following except:



0 / 1

Question 33: 1 pts

Requiring supervisory approval before customers are added to or deleted from the master file.

0% of points

Requiring supervisory approval for all credit memos and write-offs.

0% of points

Requiring investment documents to be sent only to upper management for safekeeping.

100% of points

Placing a credit limit on customer accounts to immediately flag when exceeded.

0% of points

None of the above.

0% of points

1 / 1

Question 34: 1 pts

All of the above.

100% of points

The suspicions of an internal auditor.

0% of points

Item found on the Internet.

0% of points

Laboratory analysis of physical evidence.

0% of points

Anonymous letter or e-mail about the crime.

0% of points

1 / 1

Question 35: 1 pts

Surveillance.

0% of points

Invigilation.

0% of points

Informants.

0% of points

All of the above.

100% of points

Interviewing.

0% of points

1 / 1

Question 36: 1 pts

Source documents to cross-referenced documents.

100% of points

Transaction documents to summary documents.

0% of points

Horizontal analysis to vertical analysis.

0% of points

Both b and c.

0% of points

Balances to payables and receivables.

0% of points

0 / 1

Question 37: 1 pts

Lost cash register tapes.

0% of points

Lacking supporting documents.

0% of points

Unexplained adjustments.

0% of points

Accounts receivable fraud prevention controls include all of the following except:

Which of the following might produce an investigative "lead" or "red flag"?

Which type of investigative technique works best at accumulating evidence to build a legal case against a financial fraudster?

The typical audit trail connects what to what?

Which is not a journal entry fraud symptom?



None of the above.

100% of points

Out-of-balance.

0% of points

0 / 1

Question 38: 1 pts

Availability of witnesses.

0% of points

Tracing of assets.

100% of points

Desires of victims.

0% of points

Financial losses.

0% of points

Both c and d.

0% of points

1 / 1

Question 39: 1 pts

Budget.

0% of points

Cash register receipts.

0% of points

Either a or b.

0% of points

Journal.

0% of points

Ledger.

100% of points

0 / 1

Question 40: 1 pts

Embezzling withholding.

0% of points

None of the above.

0% of points

Company credit card fraud.

0% of points

Ghost employees.

0% of points

Unauthorized borrowing.

100% of points

0 / 1

Question 41: 1 pts

None of the above.

0% of points

Analyzing the year-end bank reconciliation for outstanding checks.

0% of points

Increasing the integration of technology into the business process.

0% of points

Reconciling the accounts receivable subsidiary ledger to the general ledger.

0% of points

Calculating and analyzing the gross profit margin.

100% of points

0 / 1

Question 42: 1 pts

Tracing, entity.

0% of points

Which is a unique factor for solving a white-collar crime?

Which item would a forensic accountant go to first in order to investigate the source of a suspicious transaction?

Payroll and employee reimbursement fraud schemes include all of the following except:

Misappropriation of inventory may be detected by one of the following:

____________ requires keeping detailed records before and after the ____________ period to determine the amount of fraud.



Timeline, entity.

0% of points

Genogram, genogram.

0% of points

Entity, entity.

0% of points

Invigilation, invigilation.

100% of points

1 / 1

Question 43: 1 pts

Date.

0% of points

Check number.

0% of points

Amount.

0% of points

All are needed.

100% of points

Payee.

0% of points

1 / 1

Question 44: 1 pts

Invigilation.

0% of points

Link.

0% of points

Genogram.

100% of points

Entity.

0% of points

None of the above.

0% of points

1 / 1

Question 45: 1 pts

Motivation.

0% of points

Conviction.

0% of points

Timing.

0% of points

Some other event.

'

0% of points

Predication.

100% of points

1 / 1

Question 46: 1 pts

Customers.

0% of points

Employees.

100% of points

Competitors.

0% of points

Vendors.

0% of points

Shareholders/owners.

0% of points

1 / 1

What information is not needed to perform a check spread?

A ____________ chart is a pictorial display of personal relationships among related or unrelated parties.

A fraud investigation should not be commenced without proper ____________.

Which group is the source of more tips on a hotline?



Question 47: 1 pts

Operating.

0% of points

Marketing.

0% of points

Sales.

0% of points

Accounting.

100% of points

Purchasing.

0% of points

1 / 1

Question 48: 1 pts

Mining.

0% of points

Financial services.

100% of points

Global manufacturing.

0% of points

Computer.

0% of points

Petroleum.

0% of points

1 / 1

Question 49: 1 pts

Job rotation.

0% of points

Hotlines.

0% of points

Internal audits.

100% of points

Rewards to employees.

0% of points

Mandatory vacations.

0% of points

1 / 1

Question 50: 1 pts

Audit Committee.

0% of points

None of the above.

100% of points

Board of Directors.

0% of points

Internal Audit Department.

0% of points

Management.

0% of points

1 / 1

Question 51: 1 pts

Override of existing internal controls.

0% of points

Poor tone at the top.

0% of points

Lack of management review.

0% of points

Which department or division in an organization probably has more fraud?

Which is the highest fraud industry?

According to the ACFE group, which is the best fraud control?

Which group probably is not an important element of a fraud risk program?

According to 2008 CFEs, which was the primary reason for fraud in an organization?



Lack of internal controls.

100% of points

Lack of competent oversight.

0% of points

1 / 1

Quiz Score: 40 out of 51



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