Exam 5: Recognizing the Symptoms of Fraud

Fraud examiners must be able to recognize signals that a journal entry may have been manufactured to conceal a fraud. Which of the following is a common journal entry fraud symptom?

Which category of individuals is the least likely to detect fraud at the conversion stage?

Which of the following is a highly suspicious financial statement relationship?

Increased scrap, excessive purchases, and physical abnormalities are examples of:

Which of the following is an example of accounting anomaly fraud symptom?

In most organizations, coworkers and others have knowledge or suspicions that fraud is occurring but do not come forward with their information. There are several major reasons for this hesitancy. Which of the following is NOT one among them?

Which of the following fraud symptoms is often the easiest to detect?

involves the actual taking of cash, inventory, information, or other assets, whereas involves selling stolen assets or transferring them into cash and then spending the cash.

Which of the following is a true statement?

Document symptoms to some extent can signal that embezzlement is taking place. Which among the following usually does NOT point to some problem with the source documents?

Which of the following possible actions may discourage an employee from reporting suspected fraudulent activities?

fraud symptoms are procedures or relationships that are unusual or that do not make sense.

Transactions happening at odd times or places; being performed by people who would not normally participate; or including odd procedures are typically associated with which type of fraud symptom?

Which of the following is NOT an analytical fraud symptom?

Implementing a system of independent checks is one of the most effective ways to deter fraud. Which one of the following is NOT a way of providing independent checks on employees?

What does the following journal entry indicate? Legal Expense. 2,900 Cash. 2,900

Lifestyle changes of fraud perpetrators are related to which of the following fraud elements?

are relationships in financial or nonfinancial data that do not make sense, such as an unreasonable change in a volume, mix, or price.

Which of the following appears to be common to most embezzlers who are caught?

An auditor noticed that Company B had an exorbitant increase in sales and drastic decreases in its inventory and accounts receivables. This statement symbolizes which fraud symptom?