Question 1

Which of the following is a duty of the Public Company Accounting Oversight Board?

Accepted Answer

A)  Registering accounting firms that audit publicly traded companies 
B)  Establishing or adopting standards relating to audits of publicly traded companies 
C)  Enforcing compliance with professional standards and securities laws relating to public company audits 
D)  All of the above 
A)  Registering accounting firms that audit publicly traded companies 
B)  Establishing or adopting standards relating to audits of publicly traded companies 
C)  Enforcing compliance with professional standards and securities laws relating to public company audits 
D)  All of the above

Question 2

According to COSO's study, Fraudulent Financial Reporting: 1998-2007, which of the following is the most likely to commit financial statement fraud?

Accepted Answer

A)  Organized criminals 
B)  Mid-level employees 
C)  The chief exective officer and/or chief financial officer 
D)  Lower-level employees 
A)  Organized criminals 
B)  Mid-level employees 
C)  The chief exective officer and/or chief financial officer 
D)  Lower-level employees

Question 3

Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a violation of which generally accepted accounting principle?

Accepted Answer

A)  Periodicity 
B)  Matching 
C)  Historical cost 
D)  Revenue recognition 
A)  Periodicity 
B)  Matching 
C)  Historical cost 
D)  Revenue recognition

Question 4

Which of the following is not a reason that senior management would overstate business performance to meet certain objectives?

Accepted Answer

A)  To meet a lender's criteria for granting/extending loan facilities 
B)  To meet or exceed the earnings or revenue growth expectations of stock market analysts 
C)  To reduce current expectations so that future growth will be better perceived and rewarded 
D)  To increase the amount of financing available from asset-based loans 
A)  To meet a lender's criteria for granting/extending loan facilities 
B)  To meet or exceed the earnings or revenue growth expectations of stock market analysts 
C)  To reduce current expectations so that future growth will be better perceived and rewarded 
D)  To increase the amount of financing available from asset-based loans

Question 5

The civil and criminal protections for whistleblowers under Sarbanes-Oxley apply only to employees of publicly traded companies.

Accepted Answer

A) True 
 B)False

Question 6

The term "financial statement" does not include a statement of cash receipts and disbursements, because this type of presentation violates the required use of accrual accounting under GAAP.

Accepted Answer

A) True 
 B)False

Question 7

Vanessa Armstrong was the chief financial officer for D&G Technologies, a publicly traded corporation. During the 20X1 fiscal year, she caused the company's financial statements to violate reporting requirements by including a significant overstatement of revenue so that she would receive a large performance bonus. When her transgression came to light, the company was required to issue restated financial statements for 20X1. Under the provisions of Sarbanes-Oxley, Vanessa must reimburse the company for any bonus she received during the 12 months after the 20X1 financials were initially filed.

Accepted Answer

A) True 
 B)False

Which of the following is a duty of the Public Company Accounting Oversight Board?

According to COSO's study, Fraudulent Financial Reporting: 1998-2007, which of the following is the most likely to commit financial statement fraud?

Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a violation of which generally accepted accounting principle?

Which of the following is not a reason that senior management would overstate business performance to meet certain objectives?

The civil and criminal protections for whistleblowers under Sarbanes-Oxley apply only to employees of publicly traded companies.

The term "financial statement" does not include a statement of cash receipts and disbursements, because this type of presentation violates the required use of accrual accounting under GAAP.

Introduction

Skimming

Cash Larceny Schemes

Billing Schemes

Check Tampering

Payroll Schemes

Expense Reimbursement Schemes

Register Disbursement Schemes

Non-Cash Assets

Corruption

Fraudulent Financial Statement Schemes

Fraud Risk Assessment

Conducting Investigations and Report Writing

Interviewing Witnesses

Occupational Fraud and Abuse: the Big Picture

Filters

Exam 11: Accounting Principles and Fraud

Which of the following is a duty of the Public Company Accounting Oversight Board?

According to COSO's study, Fraudulent Financial Reporting: 1998-2007, which of the following is the most likely to commit financial statement fraud?

Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a violation of which generally accepted accounting principle?

Which of the following is not a reason that senior management would overstate business performance to meet certain objectives?

The civil and criminal protections for whistleblowers under Sarbanes-Oxley apply only to employees of publicly traded companies.

The term "financial statement" does not include a statement of cash receipts and disbursements, because this type of presentation violates the required use of accrual accounting under GAAP.

Introduction

Skimming

Cash Larceny Schemes

Billing Schemes

Check Tampering

Payroll Schemes

Expense Reimbursement Schemes

Register Disbursement Schemes

Non-Cash Assets

Corruption

Fraudulent Financial Statement Schemes

Fraud Risk Assessment

Conducting Investigations and Report Writing

Interviewing Witnesses

Occupational Fraud and Abuse: the Big Picture

Filters