Exam 2: The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

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According to the PCAOB,the detection of material fraud is a reasonable expectation of users of audited financial statements.

(True/False)

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Question 21

Which of the following best represents an example of fraud utilizing the lapping technique?

(Multiple Choice)

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Question 22

Successful corporate governance depends upon successful management of the company,as management has the primary responsibility for creating a culture of performance with integrity and ethical behavior.

(True/False)

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Question 23

When fraud risk is great in the organization under audit,procedures applied are likely to be more extensive.

(True/False)

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Question 24

Auditors need to consider fraud arising from misappropriation of assets and fraudulent financial reporting.

(True/False)

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Question 25

The auditor is responsible for actively considering fraud risks in order to obtain reasonable assurance that the financial statements are free of material fraud.

(True/False)

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Question 26

Which of the following best describes how corporate governance influences an organization?

(Multiple Choice)

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Question 27

The auditor can be satisfied with less than persuasive evidence in the audit process because of the belief that management is honest.

(True/False)

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Question 28

Audit committees of publicly traded companies must establish whistleblowing mechanisms within the company.

(True/False)

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Question 29

Who is responsible for operating an enterprise?

(Multiple Choice)

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Question 30

What type of fraud occurs when the deposits of current investors are used to pay returns on the deposits of previous investors with no real investment happening?

(Multiple Choice)

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Question 31

The auditor must perform a brainstorming session with client management in order to plan the procedures to be performed.

(True/False)

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Question 32

The most important lesson to be learned from The Great Salad Oil Swindle is that auditors can commit fraud by falsely including inventory that does not exist.

(True/False)

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Question 33

Which of the following statements about the Bernie Madoff ponzi scheme is false?

(Multiple Choice)

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(31)

Question 34

Which of the following represents fraud procedures used by auditors?

(Multiple Choice)

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(25)

Question 35

An example of fraudulent financial reporting is the treasurer's diversion of hundreds of thousands of dollars into a personal money market account.

(True/False)

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Question 36

Which of the following facts should be communicated by the auditor to the audit committee?

(Multiple Choice)

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Question 37

According to professional audit standards,the audit team should assemble early in the planning stages of an audit to conduct a fraud "brainstorming" session in order to determine the types of fraud that may occur with the client.

(True/False)

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(46)

Question 38

Internal controls are implemented in order to give perpetrators the impression that the risk of being caught is low.

(True/False)

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Question 39

Consideration of fraud in financial statement audits is a relatively new concept derived originally from the Sarbanes-Oxley Act.

(True/False)

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Question 40

Showing 21 - 40 of 120

According to the PCAOB,the detection of material fraud is a reasonable expectation of users of audited financial statements.

Which of the following best represents an example of fraud utilizing the lapping technique?

Successful corporate governance depends upon successful management of the company,as management has the primary responsibility for creating a culture of performance with integrity and ethical behavior.

When fraud risk is great in the organization under audit,procedures applied are likely to be more extensive.

Auditors need to consider fraud arising from misappropriation of assets and fraudulent financial reporting.

The auditor is responsible for actively considering fraud risks in order to obtain reasonable assurance that the financial statements are free of material fraud.

Which of the following best describes how corporate governance influences an organization?

The auditor can be satisfied with less than persuasive evidence in the audit process because of the belief that management is honest.

Audit committees of publicly traded companies must establish whistleblowing mechanisms within the company.

Who is responsible for operating an enterprise?

What type of fraud occurs when the deposits of current investors are used to pay returns on the deposits of previous investors with no real investment happening?

The auditor must perform a brainstorming session with client management in order to plan the procedures to be performed.

The most important lesson to be learned from The Great Salad Oil Swindle is that auditors can commit fraud by falsely including inventory that does not exist.

Which of the following statements about the Bernie Madoff ponzi scheme is false?

Which of the following represents fraud procedures used by auditors?

An example of fraudulent financial reporting is the treasurer's diversion of hundreds of thousands of dollars into a personal money market account.

Which of the following facts should be communicated by the auditor to the audit committee?

According to professional audit standards,the audit team should assemble early in the planning stages of an audit to conduct a fraud "brainstorming" session in order to determine the types of fraud that may occur with the client.

Internal controls are implemented in order to give perpetrators the impression that the risk of being caught is low.

Consideration of fraud in financial statement audits is a relatively new concept derived originally from the Sarbanes-Oxley Act.

Auditing: Integral to the Economy

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

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