Exam 3: Fraud, Ethics, and Internal Control

Customer fraud is a common problem for companies that sell merchandise online.

Independent checks on the performance of others is one of the categories of internal control.These independent checks would include all of the following, except:

The COSO report is also known as:

When discussing the security of assets and documents, there are many actions that can be taken.Which of the following would not be related to this category of internal control?

The types of concepts commonly found in a code of ethics would not include:

Auditing, a monitoring activity, takes place only on a periodic basis.

The difference between a general authorization and a specific authorization is that with a general authorization, a transaction is allowed if it falls within specified parameters, whereas with a specific authorization, explicit authorization is needed for that singe transaction to be completed.

The most difficult type of misstatement to discover is fraud that is concealed by:

Collusion between employees is one of the easiest frauds to detect and prevent.

The accounting profession has accepted this report as the standard definition and description of internal control.

When a person, using a computer system, pretends to be someone else, it is termed:

The range of actions that make up the component of internal control referred to as control activities includes each of the following, except:

There are many possible indirect benefits to management when management fraud occurs.Which of the following in not an indirect benefit of management fraud?

The most effective measure to prevent management fraud is to establish a professional internal audit staff that periodically checks up on management and reports directly to the audit committee of the board of directors.

A good system of internal control includes many types of documentation.Which of the following types of documentation is not part of the adequate records and documents category of internal control?

If an accounting supervisor were allowed to hire employees, approve the hours worked, prepare the paychecks, and deliver the paychecks, which of the categories of control activities would be violated?

According to the COSO report, there are five different interrelated components of internal control.Which of the following is not one of those five components?

Which of the following would be considered a vendor fraud?

The AICPA and the Canadian Institute of Chartered Accountants worked together to develop IT guidelines, commonly referred to as COBIT.

The acronym COBIT stands for Control Objectives for Information Technology, an extensive framework of information technology controls developed by Information Systems Audit and Control Association.