Question 1

What is the most important element in a control environment?

Accepted Answer

A)  Management's communication 
B)  Management's role and example 
C)  The hiring process 
D)  The internal audit department 
A)  Management's communication 
B)  Management's role and example 
C)  The hiring process 
D)  The internal audit department

Question 2

According to COSO, the following are all elements of an organization's internal control framework except:

Accepted Answer

A)  =The control Environment 
B)  Management integrity 
C)  Risk assessment 
D)  Control activities 
A)  =The control Environment 
B)  Management integrity 
C)  Risk assessment 
D)  Control activities

Question 3

Which of the following is not a common rationalization of fraud perpetrators?

Accepted Answer

A)  The organization owes me 
B)  I'm only borrowing the money 
C)  No one will get hurt 
D)  All of the above are common rationalizations for fraud. 
A)  The organization owes me 
B)  I'm only borrowing the money 
C)  No one will get hurt 
D)  All of the above are common rationalizations for fraud.

Question 4

When fraud occurs, the most common reaction to those affected by the fraud is:

Accepted Answer

A)  Anger 
B)  Acceptance 
C)  Denial 
D)  Nervousness 
E)  All of the above 
A)  Anger 
B)  Acceptance 
C)  Denial 
D)  Nervousness 
E)  All of the above

Question 5

Which of the following elements does not make up the fraud triangle?

Accepted Answer

A)  Perceived Pressure 
B)  Greed 
C)  Perceived Opportunity 
D)  Rationalization 
A)  Perceived Pressure 
B)  Greed 
C)  Perceived Opportunity 
D)  Rationalization

Question 6

Which of the following is not a common financial pressure associated with fraud?

Accepted Answer

A)  Living beyond one's mean's 
B)  High bills or personal debt 
C)  Personal financial losses 
D)  All of the above are common financial pressures associated with fraud 
A)  Living beyond one's mean's 
B)  High bills or personal debt 
C)  Personal financial losses 
D)  All of the above are common financial pressures associated with fraud

Question 7

Poor credit could become a ________ that could lead to fraud.

Accepted Answer

A)  Financial pressure 
B)  Perceived opportunity 
C)  Rationalization 
A)  Financial pressure 
B)  Perceived opportunity 
C)  Rationalization

Question 8

What are some of the vices closely related to financial pressures?

Accepted Answer

A)  Gambling 
B)  Drugs & alcohol 
C)  Expensive extramarital relationships 
D)  All of the above 
A)  Gambling 
B)  Drugs & alcohol 
C)  Expensive extramarital relationships 
D)  All of the above

Question 9

Fraud perpetrators are closer to which of the following groups?

Accepted Answer

A)  College students 
B)  Property offenders 
C)  Politicians 
D)  Accountants 
A)  College students 
B)  Property offenders 
C)  Politicians 
D)  Accountants

Question 10

Which of the following people is most likely to have opportunities to commit fraud?

Accepted Answer

A)  Rob is a convicted bank robber who has been out of jail for 7 years 
B)  Jane is a recent high school graduate who loves going shopping. 
C)  Steve was just hired by his company but he is always acting suspicious 
D)  62 year old Dave has loyally worked up his company's corporate ladder for the past 24 years 
A)  Rob is a convicted bank robber who has been out of jail for 7 years 
B)  Jane is a recent high school graduate who loves going shopping. 
C)  Steve was just hired by his company but he is always acting suspicious 
D)  62 year old Dave has loyally worked up his company's corporate ladder for the past 24 years

Question 11

Which of the following is not an element of a good control environment?

Accepted Answer

A)  Trust 
B)  Modeling 
C)  Appropriate hiring 
D)  Management's communication 
A)  Trust 
B)  Modeling 
C)  Appropriate hiring 
D)  Management's communication

Question 12

Which of the following is a Non-control Factor?

Accepted Answer

A)  Ability to judge the quality of performance 
B)  Ignorance, apathy, & Incapacity 
C)  Access to Information 
D)  None of the above 
A)  Ability to judge the quality of performance 
B)  Ignorance, apathy, & Incapacity 
C)  Access to Information 
D)  None of the above

Question 13

The fraud triangle includes all of the following except for:

Accepted Answer

A)  Validation 
B)  Perceived opportunity 
C)  Rationalization 
D)  Perceived pressure 
A)  Validation 
B)  Perceived opportunity 
C)  Rationalization 
D)  Perceived pressure

Question 14

Generally, internal controls are implemented in a corporation to help prevent which element of the fraud triangle?

Accepted Answer

A)  Perceived opportunity 
B)  Perceived pressure 
C)  Rationalization 
D)  None of the above 
A)  Perceived opportunity 
B)  Perceived pressure 
C)  Rationalization 
D)  None of the above

Question 15

Which of the following is not a control activity?

Accepted Answer

A)  Dual custody 
B)  Systems of authorization 
C)  Internal audit department 
D)  Documents and records 
A)  Dual custody 
B)  Systems of authorization 
C)  Internal audit department 
D)  Documents and records

Question 16

Which of the following most correctly represents how the fraud triangle elements are interrelated?

Accepted Answer

A)  The greater the pressure, the more opportunity and the less rationalization is needed for fraud to occur 
B)  The greater the pressure, the less opportunity and the less rationalization is needed for fraud to occur 
C)  The greater the opportunity, the more rationalization is needed for fraud to occur 
D)  The greater the rationalization, the more pressure is needed for fraud to occur. 
A)  The greater the pressure, the more opportunity and the less rationalization is needed for fraud to occur 
B)  The greater the pressure, the less opportunity and the less rationalization is needed for fraud to occur 
C)  The greater the opportunity, the more rationalization is needed for fraud to occur 
D)  The greater the rationalization, the more pressure is needed for fraud to occur.

Question 17

Which of the following is not one of the components of a company's control structure?

Accepted Answer

A)  The control environment 
B)  Control procedures or activities 
C)  Management being in charge of control procedures 
D)  The accounting system 
A)  The control environment 
B)  Control procedures or activities 
C)  Management being in charge of control procedures 
D)  The accounting system

Question 18

In order to set a good "tone at the top," management must ______________proper behaviors.

Accepted Answer

A)  Label 
B)  Expect 
C)  Model 
D)  All of the above 
A)  Label 
B)  Expect 
C)  Model 
D)  All of the above

Question 19

Which of the following is not a component of control activities?

Accepted Answer

A)  Segregation of Duties 
B)  Adequate Documents and Records 
C)  Effective Hiring Procedures 
D)  Independent Checks on Performance 
A)  Segregation of Duties 
B)  Adequate Documents and Records 
C)  Effective Hiring Procedures 
D)  Independent Checks on Performance

Question 20

Which of the following is not considered a control environment issue?

Accepted Answer

A)  Management philosophy and operating style 
B)  Effective hiring procedures 
C)  Clear organizational structure 
D)  High debt to equity ratio 
A)  Management philosophy and operating style 
B)  Effective hiring procedures 
C)  Clear organizational structure 
D)  High debt to equity ratio

What is the most important element in a control environment?

According to COSO, the following are all elements of an organization's internal control framework except:

Which of the following is not a common rationalization of fraud perpetrators?

When fraud occurs, the most common reaction to those affected by the fraud is:

Which of the following elements does not make up the fraud triangle?

Which of the following is not a common financial pressure associated with fraud?

Poor credit could become a ________ that could lead to fraud.

What are some of the vices closely related to financial pressures?

Fraud perpetrators are closer to which of the following groups?

Which of the following people is most likely to have opportunities to commit fraud?

Which of the following is not an element of a good control environment?

Which of the following is a Non-control Factor?

The fraud triangle includes all of the following except for:

Generally, internal controls are implemented in a corporation to help prevent which element of the fraud triangle?

Which of the following is not a control activity?

Which of the following most correctly represents how the fraud triangle elements are interrelated?

Which of the following is not one of the components of a company's control structure?

In order to set a good "tone at the top," management must ______________proper behaviors.

Which of the following is not a component of control activities?

Which of the following is not considered a control environment issue?

The Nature of Fraud

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

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 2: Why People Commit Fraud

What is the most important element in a control environment?

According to COSO, the following are all elements of an organization's internal control framework except:

Which of the following is not a common rationalization of fraud perpetrators?

When fraud occurs, the most common reaction to those affected by the fraud is:

Which of the following elements does not make up the fraud triangle?

Which of the following is not a common financial pressure associated with fraud?

Poor credit could become a ________ that could lead to fraud.

What are some of the vices closely related to financial pressures?

Fraud perpetrators are closer to which of the following groups?

Which of the following people is most likely to have opportunities to commit fraud?

Which of the following is not an element of a good control environment?

Which of the following is a Non-control Factor?

The fraud triangle includes all of the following except for:

Generally, internal controls are implemented in a corporation to help prevent which element of the fraud triangle?

Which of the following is not a control activity?

Which of the following most correctly represents how the fraud triangle elements are interrelated?

Which of the following is not one of the components of a company's control structure?

In order to set a good "tone at the top," management must ______________proper behaviors.

Which of the following is not a component of control activities?

Which of the following is not considered a control environment issue?

The Nature of Fraud

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

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters