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Acc505 module 1 quiz (a++++ answer)

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Question 1

Predication, although important, is not required in a fraud examination.

True

False

Question 2

In a fraud examination, evidence is usually gathered in a manner that moves from general to specific.

True

False

Question 3

In the 2011 Global Fraud Survey, the median loss in schemes committed by males was higher than the median loss in schemes committed by females.

True

False

Question 4

Fraud examination differs from auditing in that fraud examination is:

Adversarial

General in scope

Recurring

All of the above

Question 5

Once sufficient predication has been established, what is the first step a fraud examiner following the fraud theory approach should take?

Interview witnesses.

Interview the suspect.

Analyze data.

Create a hypothesis.

Question 6

Which of the following is not a part of the fraud theory approach?

Analyze available data.

Identify who committed the fraud.

Develop “what-if” scenarios.

Refine the hypothesis.

Question 7

In order to prove that fraud occurred, four elements must be present. Which of the following is not one of those elements?

Reliance on the false statement by the victim

A material false statement

Intent to cause the victim damages

Knowledge that the statement was false

Question 8

Which of the following is not one of the legs of the Fraud Triangle?

Situational environment

Rationalization

Perceived non-sharable financial need

Perceived opportunity

Question 9

Research in the Hollinger-Clark study suggests that the best way to deter employee theft is by:

Communicating the organization’s fraud policies to employees

Increasing sanctions imposed on occupational fraudsters

Strengthening internal controls

Increasing the perception of detection

Question 10

Who developed the Fraud Scale?

Joseph T. Wells

Richard C. Hollinger

Donald R. Cressey

W. Steve Albrecht

Question 11

Which of the following best describes the objective of a fraud examination?

To determine whether a crime has been committed, and if so, who is responsible

To determine whether financial statements are free of misstatements due to fraud

To express an opinion on the guilt or innocence of a suspect

To make recommendations to management about how to prevent fraud

Question 12

According to the results of the Hollinger-Clark study, employees steal primarily because of:

Informal organizational structures

Job dissatisfaction

Economic pressures

Greed

Question 13

In the 2011 Global Fraud Survey, the category that committed the smallest percentage of occupational fraud was:

Employees

Managers

Owners/Executives

External Parties

Question 14

The basic tenet of Edwin Sutherland’s theory of differential association is that crime is passed on genetically; that is, the offspring of criminals commit crimes because their parents did.

True

False

Subsection

Question 15

Alice Durant works in the accounts payable department for the BC Group. She recently found out that Della Granger, another A/P clerk, received a bigger raise than she did, even though Durant has been with the company longer and frequently has to correct Granger’s errors. Which leg of the Fraud Triangle best applies to Durant’s situation?

Motive

Perceived opportunity

Rationalization

Non-sharable financial need

Question 16

Joel Baker, a customer of ABC Electronics, stole a box containing computer games while the sales associate waited on another customer. Which of the following could Joel be charged with?

Larceny

Embezzlement

Fraud

All of the above

Question 17

Skimming can be either an on-book scheme or an off-book scheme, depending on whether cash or a check is stolen.

True

False

Question 18

To a fraudster, the principle advantage of skimming is the difficulty with which the scheme is detected.

True

False

Question 19

The customer service department at JNC, Inc. has been receiving phone calls from customers for whom there is no record. This is a red flag of what type of scheme?

Receivables skimming

Unrecorded sales

Shell company

None of the above

Question 20

While conducting a routine internal audit, Sally Franks overheard one of the company’s purchasing agents bragging about receiving a substantial discount on a new SUV from the company’s supplier of fleet cars. Is there sufficient predication to initiate a fraud examination?

Yes

No

Question 21

To cover up a skimming scheme in which the employee takes cash from the register, the employee must make a voided sale in order for the register to balance.

True

False

Question 22

In the 2011 Global Fraud Survey, fraudulent financial statements schemes had a higher median loss than asset misappropriation and corruption schemes.

True

False

Question 23

Methods of skimming sales include which of the following?

Posting a sale for less than the amount collected

Rigging the cash register so that the sale is not recorded

Conducting unauthorized sales after hours

All of the above

Question 24

Skimming receivables is generally more difficult to conceal than skimming sales.

True

False

Question 25

In the 2011 Global Fraud Survey, most perpetrators of fraud had been previously charged with or convicted of a fraud-related offense.

True

False

Question 26

When Jill Michaels, an assistant to the director of procurement, moved into her new home, she used the company’s flat bed truck to move her furnishings on an afternoon when her boss was out of town. Which of the following best describes Michael’s act?

Larceny

Embezzlement

Fraud

Abuse

Question 27

Which of the following techniques is not used to conceal sales skimming schemes?

Recording false voids

Destroying records of transaction

Lapping

Inventory padding

Question 28

In one of the case studies in the textbook, Brian Lee, a top-notch plastic surgeon, collected payments from his patients without giving a cut to the clinic where he practiced. How was he punished?

He was terminated from the practice and was required to make full restitution in lieu of prosecution.

He was sued in civil court for the amount of the loss.

He was allowed to continue to practice at the clinic but was required to make full restitution.

He was convicted of grand larceny and sentenced to probation.

Question 29

According to the 2011 Global Fraud Survey, skimming schemes are both the most common and the most costly type of cash misappropriation scheme.

True

False

Question 30

In one of the case studies in the textbook, Brian Lee, a top-notch plastic surgeon, collected payments from his patients without giving a cut to the clinic where he practiced. What was his motivation for committing the fraud?

He was greedy.

He needed to repay his student loan.

He wanted to use the proceeds to fund his “doctors without borders” practice.

He felt that the clinic was taking too much of a cut from his income.

Question 31

Mandating supervisory approval for write-offs or discounts can help prevent receivables skimming schemes.

True

False

Question 32

Computing the percentage of assigned time to unassigned time for employees is one method to detect an employee skimming scheme.

True

False

Question 33

Myra Manning, CFE, was hired to investigate some suspicious activity at Arizona Medical Supply after one of the company’s largest customers complained several times that its account statements do not reflect all the payments it has made. While examining the accounts receivable activity, Myra noticed a significant rise in the volume of overdue accounts during the last 6 months. What type of scheme might this situation indicate?

Shell company

False refunds

Cash larceny

Receivables skimming

Question 34

In one of the case studies in the textbook, Stefan Winkler was the controller for a beverage company in south Florida. Money was collected by either the delivery drivers who brought in the cash and checks from their route customers (route deposits), or by credit customers who mailed in their payments (office deposits). Winkler stole cash from the route deposits and made up for it by using checks from the office deposits. How did Winkler conceal his crime?

He altered electronic files

He stole cash receipt journals, copies of customer checks, and deposit slips

He removed his personnel file

All of the above

Question 35

Jason Herman works part-time as a retail clerk at a local bookstore. One night while his manager was out of town, Jason decided to keep the store open for a few extra hours. He reset the cash registers at the normal closing time, but continued making sales. Two hours later, when he closed for the night, he reset the registers again, removing all evidence that any extra transactions had been made, and pocketed the money from the after-hours sales. What kind of scheme did Jason commit?

Receivables skimming

Register disbursement

Force balancing

Unrecorded sales

Question 36

A method of concealing receivables skimming by crediting one account while abstracting money from a different account is known as:

Account substitution

Plugging

Kiting

Lapping

Question 37

Asset misappropriations are broken down into two categories: cash schemes and non-cash schemes. According to the 2010 Report to the Nations on Occupational Fraud and Abuse, cash schemes are much more common than non-cash schemes.

True

False

Question 38

Sue Meyers was an accounts receivable clerk for an insurance broker. When premium payments were received, she would steal the check of every tenth customer and cash it at a liquor store. To conceal her scheme, she would credit the account of the customer that she stole from with a payment that was received from another customer’s account. This is an example of:

Understating sales

Force balancing

Lapping

A forged endorsement scheme

Question 39

Anne Mullens is the bookkeeper for DWG Refrigeration Repair. One afternoon while she was preparing the bank deposit, a customer came in to the office and paid his account in full with a $57 check. Rather than adding the check to the deposit, Anne pocketed $57 cash from the previously recorded amount and included the customer’s check in the money to be taken to the bank. What type of scheme did Anne commit?

Larceny

Kiting

Skimming

Currency balancing

Question 40 The concealment of receivables skimming can be difficult because:

Inventory must be padded to conceal shrinkage.

The audit trail must be destroyed.

The incoming payments are expected.

All of the above

 

 

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July 1, 2023
    

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

 

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

 

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

 

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

 

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

 

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

 

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

 

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.

 

 

 

default image
July 1, 2023
    

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

 

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

 

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

 

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

 

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

 

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

 

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

 

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.

 

 

 

default image
July 1, 2023
    

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

 

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

 

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

 

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

 

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

 

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

 

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

 

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.

 

 

 

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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