A) most often red flags that indicate fraud is present. B) part of the day-to-day operations for most companies. C) seldom seen in companies with good internal controls and procedures. D) Both "A" and "C" are correct. A) most often red flags that indicate fraud is present. B) part of the day-to-day operations for most companies. C) seldom seen in companies with good internal controls and procedures. D) Both "A" and "C" are correct.

Exam 7: Fraud Detection: Red Flags and Targeted Risk Assessment

Most audit committees have the authority to investigate any matters within the scope of their responsibility, including internal control deficiencies, concerns about the financial reporting process, suspected corruption, and alleged illegal acts.

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(True/False)

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Question 1

Correct Answer:

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True

What are the main components of the fraud risk assessment process?

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(Essay)

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Question 2

Correct Answer:

Verified

An overview of the fraud risk assessment process includes the following components:
•Evaluate the fraud risk factors
•Identify possible fraud schemes and scenarios
•Prioritize individual fraud risks
•Evaluate mitigating controls for those fraud schemes that are reasonably possible or probable of occurrence and are more than inconsequential or material.

A fraudster, aided by the digital age, can easily minimize the amount of information captured concerning his nefarious activities.

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(True/False)

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Question 3

Correct Answer:

Verified

False

As related to operations, the internal auditors evaluate:

(Multiple Choice)

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Question 4

Common tipsters for fraud are employees, co-workers, managers, and outside colleagues who interact with the fraudster daily, weekly, or monthly.

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Question 5

The main deterrent for fraud in the corporate environment:

(Multiple Choice)

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Question 6

It is said the nonfinancial numbers are powerful tools for the fraud examiner. Explain why and provide examples of how.

(Essay)

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Question 7

How is materiality determined?

(Essay)

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Question 8

Provide at least five examples of typical internal control weaknesses.

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Question 9

Data mining software such as Access, ACL, or IDEA allow a large amount of data to be evaluated quickly for symptoms of fraud and provide evidence of the fraud act or concealment of the fraud..

(True/False)

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Question 10

The fraud examiner categorizes schemes in three ways, Category 1, Category 2, and Category 3. Explain each category.

(Essay)

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Question 11

As a result of its significant concern with financial statement fraud, the accounting profession responded in 2002 with:

(Multiple Choice)

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Question 12

The second step to develop an approach to fraud detection is to:

(Multiple Choice)

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Question 13

Anomalies are:

(Multiple Choice)

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Question 14

A major difference between auditors and fraud examiners is that most auditors match documents to numbers to see whether support exists and is adequate, whereas fraud examiners determine whether the documents are real or fraudulent..

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Question 15

Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued because:

(Multiple Choice)

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Question 16

CAATTS computer-aided auditing tools and techniques are used primarily to select samples and detect collusion .

(True/False)

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Question 17

Earnings management may:

(Multiple Choice)

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Question 18

What are the primary responsibilities of management?

(Essay)

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Question 19

Upon discovering fraud, internal auditors:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 71

Most audit committees have the authority to investigate any matters within the scope of their responsibility, including internal control deficiencies, concerns about the financial reporting process, suspected corruption, and alleged illegal acts.

What are the main components of the fraud risk assessment process?

A fraudster, aided by the digital age, can easily minimize the amount of information captured concerning his nefarious activities.

As related to operations, the internal auditors evaluate:

Common tipsters for fraud are employees, co-workers, managers, and outside colleagues who interact with the fraudster daily, weekly, or monthly.

The main deterrent for fraud in the corporate environment:

It is said the nonfinancial numbers are powerful tools for the fraud examiner. Explain why and provide examples of how.

How is materiality determined?

Provide at least five examples of typical internal control weaknesses.

Data mining software such as Access, ACL, or IDEA allow a large amount of data to be evaluated quickly for symptoms of fraud and provide evidence of the fraud act or concealment of the fraud..

The fraud examiner categorizes schemes in three ways, Category 1, Category 2, and Category 3. Explain each category.

As a result of its significant concern with financial statement fraud, the accounting profession responded in 2002 with:

The second step to develop an approach to fraud detection is to:

Anomalies are:

A major difference between auditors and fraud examiners is that most auditors match documents to numbers to see whether support exists and is adequate, whereas fraud examiners determine whether the documents are real or fraudulent..

Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued because:

CAATTS computer-aided auditing tools and techniques are used primarily to select samples and detect collusion .

Earnings management may:

What are the primary responsibilities of management?

Upon discovering fraud, internal auditors:

Core Foundation Related to Fraud Examination and Financial Forensics

Careers in Fraud Examination and Financial Forensics

Who Commits Fraud and Why: Criminology and Ethics

Complex Frauds and Financial Crimes

Cybercrime: Computer and Internet Fraud

Legal, Regulatory, and Professional Environment

Detection and Investigations

Effective Interviewing and Interrogation

Using Information Technology for Fraud Examination and Financial Forensics

Cash Receipt Schemes and Other Asset Misappropriations

Cash Disbursement Schemes

Corruption and the Human Factor

Financial Statement Fraud

Consulting, Litigation Support, and Expert Witnesses: Damages, Valuations, and Other Engagements

Remediation and Litigation Advisory Services

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