Question 1

Which of the following are accounting symptoms that may indicate cash or marketable security misstatements?

Accepted Answer

A)  Obtaining statements directly from financial institutions as of the date you are concerned about. 
B)  Differences between recorded amounts and amounts confirmed with banks, brokers, and other independent parties. 
C)  Having physical possession of marketable security certificates. 
D)  Comparing cash and marketable security balances with those of similar companies. 
A)  Obtaining statements directly from financial institutions as of the date you are concerned about. 
B)  Differences between recorded amounts and amounts confirmed with banks, brokers, and other independent parties. 
C)  Having physical possession of marketable security certificates. 
D)  Comparing cash and marketable security balances with those of similar companies.

Question 2

A form 1099 with no withholdings, where withholdings should exist, may be a fraud symptom for which liability account?

Accepted Answer

A)  Accounts payable 
B)  Unearned revenues 
C)  Contingent liabilities 
D)  Accrued liabilities 
A)  Accounts payable 
B)  Unearned revenues 
C)  Contingent liabilities 
D)  Accrued liabilities

Question 3

Which ratio should be examined while analyzing the balance sheet to detect underrecording of accounts payable?

Accepted Answer

A)  Long-term debt/Stockholder's equity 
B)  Warranty expense/Sales 
C)  Current assets/Current liabilities 
D)  Various accruals/Related expenses 
A)  Long-term debt/Stockholder's equity 
B)  Warranty expense/Sales 
C)  Current assets/Current liabilities 
D)  Various accruals/Related expenses

Question 4

All of the following observations concerning off-balance-sheet arrangements are true, EXCEPT:

Accepted Answer

A)  a common use is to allocate risks among third parties. 
B)  they might include structured finance or special purpose entities. 
C)  they are often used to engage in leasing, hedging, or research and development services. 
D)  they are considered illegal under SEC guidelines. 
A)  a common use is to allocate risks among third parties. 
B)  they might include structured finance or special purpose entities. 
C)  they are often used to engage in leasing, hedging, or research and development services. 
D)  they are considered illegal under SEC guidelines.

Question 5

What is the effect on the cost of goods sold account when the inventory account is overstated?

Accepted Answer

A)  It is overstated. 
B)  It is not affected. 
C)  It is increased disproportionately. 
D)  It is understated. 
A)  It is overstated. 
B)  It is not affected. 
C)  It is increased disproportionately. 
D)  It is understated.

Question 6

Asset frauds are often easier to detect than other types of financial statement fraud because:

Accepted Answer

A)  overstated assets are always included on the balance sheet. 
B)  of the off-book nature of asset frauds. 
C)  asset overstatements are almost always quite significant. 
D)  sufficient information will be provided in the notes to financial statements. 
A)  overstated assets are always included on the balance sheet. 
B)  of the off-book nature of asset frauds. 
C)  asset overstatements are almost always quite significant. 
D)  sufficient information will be provided in the notes to financial statements.

Question 7

What does the Financial Accounting Standards Board now call special purpose entities?

Accepted Answer

A)  Variable interest entities 
B)  Off-balance-sheet entities 
C)  Structured finance entities 
D)  Risk mitigation vehicles 
A)  Variable interest entities 
B)  Off-balance-sheet entities 
C)  Structured finance entities 
D)  Risk mitigation vehicles

Which of the following are accounting symptoms that may indicate cash or marketable security misstatements?

A form 1099 with no withholdings, where withholdings should exist, may be a fraud symptom for which liability account?

Which ratio should be examined while analyzing the balance sheet to detect underrecording of accounts payable?

All of the following observations concerning off-balance-sheet arrangements are true, EXCEPT:

What is the effect on the cost of goods sold account when the inventory account is overstated?

Asset frauds are often easier to detect than other types of financial statement fraud because:

What does the Financial Accounting Standards Board now call special purpose entities?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 13: Liability, Asset, and Inadequate Disclosure Frauds

Which of the following are accounting symptoms that may indicate cash or marketable security misstatements?

A form 1099 with no withholdings, where withholdings should exist, may be a fraud symptom for which liability account?

Which ratio should be examined while analyzing the balance sheet to detect underrecording of accounts payable?

All of the following observations concerning off-balance-sheet arrangements are true, EXCEPT:

What is the effect on the cost of goods sold account when the inventory account is overstated?

Asset frauds are often easier to detect than other types of financial statement fraud because:

What does the Financial Accounting Standards Board now call special purpose entities?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters