Exam 6: The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

When an employee overbills the company for business related expenses, this is an example of a disbursement scheme.

In large companies, it may not be cost effective to properly segregate duties.

Marla has a gambling addiction. She may have a perceived pressure to commit fraud.

Ron notices that there are no safeguards over company inventory, and tells himself that the company is probably going to write the inventory off as obsolete anyway. However, he doesn't really need the inventory. Because there is no ________, Ron is less likely to commit fraud.

Certified public accountants are licensed by the:

Book value and market value refer to the same thing in regards to a company's stock.

If an employee overbills a company for travel, this would be considered a(n):

Fraud is most likely to occur when 2 of the 3 elements of the fraud triangle are present.

The government agency that approves U.S. GAAP is the:

Removing any of the components of the Fraud Triangle:

In order to overstate earnings, a company can:

The process CPAs use to confirm that financial reports conform to GAAP is called a review.

The audit opinion issued when there are material misstatements in the financial statements is the:

According to the text, there are three key elements that affect an organization's internal control system.

An overstatement of earnings can inflate a company's stock price and may also be used to:

IFRS are developed by the:

A requirement that employees go on vacation is an example of:

A requirement that customers receive a receipt is an example of:

________ represents what a business was paid for its stock plus the profits that have been retained in the business.

The audit opinion issued when the auditors are taking exception to a specific treatment of accounting information is the: