Fraud triangle Study guides, Class notes & Summaries

ACCT 561 Final Exam Which of the following situations represents a risk factor that relates to misstatements arising from misappropriation of assets? Correct answer- b) lack of independent checks What outside parties must the auditor disclose the existence of fraud to? Correct answer- The SEC when client reports an auditor change, a successor auditor when they inquire, governmental agencies financially assisting client Which of the following procedures would least likely result in...

Certified Fraud Examiner (CFE) set 1 from ACFE Rated A+ According to The Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing, due professional care implies infallibility. A. True B. False ️False Which of the following is TRUE regarding organizational structure? A. Companies with departments that are isolated geographically have a reduced risk of fraud B. The existence of many specialized departments within a company genera...

1. Research has shown that ______ detect most frauds. a. Auditors b. Customers c. Vendors d. Employees ANSWER: d FEEDBACK: a. Incorrect. Auditors usually detect fraud when there are red flags in the financial statements. Usually by this time the fraud is large. b. Incorrect. Customers can also detect fraud, but they are not the most effective resource. c. Incorrect. Vendors can also detect fraud, but they are not the most effective resource. d. Correct. Emplo...

The fraud triangle plus inquiry paradigm is an effective way to understand the various types of investigative methods. - ANSWER-True One advantage of using a vulnerability chart is that it forces investigators to consider all aspects of a fraud. - ANSWER-True Electronic surveillance if often of limited value in the investigation of employee fraud because of concerns regarding employees' privacy rights - ANSWER-True Surveillance is a theft investigation technique that relies on the exam...

CPH Exam Practice Test Bank Prep_ Answered_2022. Many people do not attempt to decrease unhealthy behaviors such as overeating or smoking because they lack the confidence that they can successfully change. This is an example of: (A) Perceived susceptibility (B) Perceived severity (C) Perceived self-efficacy (D) Perceived response efficacy The construct of normative beliefs is from which model/theory? (A) Transtheoretical model (B) Theory of reasoned action/planned behavior (C) So...

Congestive Heart Failure - ANSWER-A chronic condition in which the heart doesn't pump blood as well as it should. Hypertension - ANSWER-A condition in which the force of the blood against the artery walls is too high. HEDIS - ANSWER-Healthcare Effectiveness Data and Information Set HIPAA - ANSWER-Health Insurance Portability and Accountability Act MPFS - ANSWER-Medicare National Physician Fee Schedule Multiple procedure rule - ANSWER-The highest value code is paid at 100%. The se...

CFA level 1 Exam Questions with Correct Answers Payables turnover = COGS/avg payables = 1969/(361+346)/2 = 5.57 Days in payables = 365/payables turnover = 65.6 CCC = DOH +DSO - Days in Pay = 49.4+39.4-65.6=23.2 - Answer-find the cash conversion cycle sales COGS Interest 123 110 Cash 108 105 receivables 318 286 inventories 248 285 Payables 361 346 notes payable 50 99 the deferred tax liability equals the difference between the value for accounting and tax purposes times t...

According to the financial statement fraud detection framework, fraud is rarely detected by which of the following: a. Analyzing the financial statements b. Understanding the inherent risks of a specific industry c. Learning management's motivations d. Breaking down and analyzing internal controls - Analyzing the Financial statements True or False Fearful of offending company personnel and being intimidated by company management are two reasons that an auditor could fail to react proper...

CSU ACT 205 EXAM 2 Questions and Answers Occupational fraud: - ANSWER Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources. Which element of the fraud triangle do companies have the greatest ability to eliminate? - ANSWER Opportunity. Under the Sarbanes-Oxley Act, management is responsible for: - ANSWER The reliability of financial statements The component of internal c...

ACC 450 Exam Questions With 100% Correct Answers 20x0 a company owes 25,000 for legal services, the invoice arrives in 20x1 for30,000, what would take place? - answerthey record 30,000 of A/P in 20x1 and debit accrued liability 25,000 in 20x0 what are not key documents in the inventory cycle - answerbilling for inventory is revenue receivables debit unearned revenue and credit revenue - answeradjusting journal entry valuation assertion - answerA/R aging following characteristics: sales,...