Question : Question Ellen an auditor working a single audit of a program : 1162087

Question

Ellen is an auditor working on a single audit of a program for underprivileged children. During the audit, she finds several cashed checks in large amounts made out to the program controller without supporting documentation. What should Ellen do?

Select one:

a. Contact the IRS.

b. Find as many similar checks as she can.

c. Confront the controller.

d. Hand the inquiry over to investigators if possible.

Question 2

Which of the following would be considered in a governmental audit under GAGAS but not in a corporate audit under SAS 99?

Select one:

a. Abuse.

b. Internal controls.

c. Fraud.

d. Material misstatement.

Question 3

How does materiality under GAGAS compare to materiality under AICPA standards?

Select one:

a. The same level of materiality applies.

b. The auditor must use a lower materiality level.

c. The auditor may consider a higher materiality level.

d. A lower materiality level may be appropriate.

Question 4

At a local water district that is audited under GAGAS, a manager has been personally taking money from certain customer payments. This is an element that triggers a finding. What type is it?

Select one:

a. Fraud.

b. Noncompliance.

c. Violation.

d. Abuse.

Question 5

What is included in the first step in designing an audit under GAGAS to detect fraud?

Select one:

a. Analyzing who is most likely committing fraud.

b. Designing procedures to ensure fraud is not happening.

c. Asking management how fraud might occur and if any fraud is occurring.

d. Assessing internal controls.

Using a vulnerability table, which of the following has the highest risk of fraud?

Select one:

a. High inherent risk, strong controls.

b. Low inherent risk, strong controls.

c. High inherent risk, weak controls.

d. Low inherent risk, weak controls.

Question 7

Overwhelming medical bills may lead an employee to fraud through what element of the fraud triangle?

Select one:

a. Opportunity.

b. Pressure.

c. Attitude.

d. Rationalization.

Question 8

Often, when money is stolen from an employer, what common control has not been used?

Select one:

a. Authorization of transactions.

b. Timely recording.

c. Documentation.

d. Segregation of duties.

Question 9

A business reporter holds stock options and acts as a paid spokesman for a company. He then mentions the company very favorably on his television news show without disclosing the compensation. What type of fraud is this?

Select one:

a. Fraudulent external documents.

b. Timing differences.

c. Conflict of interest.

d. Forged endorsement.

Question 10

The three largest local contractors secretly collude when submitting proposals for contracts for city work. They decide in advance who will win each contact and price their proposals accordingly. What type of fraud is this?

Select one:

a. Bid rigging.

b. Invoice kickbacks.

c. Fraudulent internal documents.

d. Conflict of interest purchasing scheme.

Question 11

Check lapping is a complex technique for what kind of fraud?

Select one:

a. Worker’s compensation.

b. False voids.

c. Multiple reimbursements.

d. Skimming.

Question 12

In asset misappropriation, what category of fraud is unique to inventory?

Select one:

a. Economic extortion.

b. Misuse.

c. Bribery.

d. Timing differences.

Question 13

When an executive signs a stack of accounts payable checks without looking at the payees, she provides a convenient opportunity for what kind of fraud?

Select one:

a. Concealed liabilities.

b. Falsified wages.

c. Concealed checks.

d. Overstated expenses.

Question 14

What kind of fraud uses a zapper?

Select one:

a. Overstated expenses.

b. Register disbursement schemes.

c. Improper disclosures.

d. Invoice kickbacks.

Question 15

What type of fraud is most associated with Medicaid?

Select one:

a. Illegal gratuities.

b. Fraudulent disbursements.

c. Fictitious revenue.

d. Write-off schemes.