One key element of skimming is that cash is taken:

One key element of skimming is that cash is taken:  A. Directly from the cash register B. When no one is watching C. By someone who does not...

"Putting someone on the payroll who does not actually work for the victim company" is an example of a(n):

"Putting someone on the payroll who does not actually work for the victim company" is an example of a(n):  A. Expense scheme B. Payroll scheme C....

Which of the following is not one of the ACFE's types of fraudulent disbursement?

Which of the following is not one of the ACFE's types of fraudulent disbursement?  A. Check-tampering schemes B. Skimming disbursement schemes C....

Which of the following is not true of billing schemes?

Which of the following is not true of billing schemes?  A. The perpetrator takes physical possession of his/her employer's cash B. The perpetrator...

Which of the following is not considered a misappropriation of assets?

Which of the following is not considered a misappropriation of assets?  A. Payroll disbursement schemes B. Kickbacks C. Expense schemes D. Skimming Answer:...

Which of the following results in the highest loss per case?

Which of the following results in the highest loss per case?  A. Expense tampering B. Payroll schemes C. Register disbursement schemes D. Billing...

Which of the following types of disbursement fraud occurs least frequently?

Which of the following types of disbursement fraud occurs least frequently?  A. Expense tampering B. Payroll schemes C. Register disbursement...

Which of the following is a major difference between larceny and skimming?

Which of the following is a major difference between larceny and skimming?  A. Larceny is committed before the cash is entered into the accounting...

The most affected party in a workers' compensation fraud case is which of the following?

The most affected party in a workers' compensation fraud case is which of the following?  A. Employer B. Employer's insurance carrier C. Other...

Which of the following is not one of the most common billing schemes?

Which of the following is not one of the most common billing schemes?  A. Setting up dummy companies to submit invoices to the victim organization B....

Out of all the types of frauds discussed in this chapter, which type is perpetrated least often?

Out of all the types of frauds discussed in this chapter, which type is perpetrated least often? A. Skimming schemes B. Larceny C. Check schemes D....

What are the three major classes of asset misappropriation?

What are the three major classes of asset misappropriation?  A. Stealing receipts, purchasing fraud, and disbursement fraud B. Stealing receipts,...

Most frauds against organizations are perpetrated by:

Most frauds against organizations are perpetrated by:  A. Employees B. Owners C. Vendors D. A collusion of two of the above Answer: ...

Which of the following is a good place to look for inadequate disclosures?

Which of the following is a good place to look for inadequate disclosures? A. Board of directors' minutes B. Correspondence and invoices from attorneys C....

When looking for accounting or documentary symptoms of fraud when merger occurs, one of the first steps should be to:

When looking for accounting or documentary symptoms of fraud when merger occurs, one of the first steps should be to:  A. Make sure that the...

Which of the following is not a way to under record liabilities?

Which of the following is not a way to under record liabilities?  A. Borrowing but not disclosing debt incurred on existing lines of credit B....

Of the following, the most difficult account for management to intentionally misstate is:

Of the following, the most difficult account for management to intentionally misstate is:  A. Income Taxes Payable B. Cash C. Securities D. Prepaid...

You observe that a company's current ratio is dramatically increasing. This may indicate fraud in that:

You observe that a company's current ratio is dramatically increasing. This may indicate fraud in that:  A. Contingent liabilities are not recorded B....

Which of the following is usually the hardest fraud to detect?

Which of the following is usually the hardest fraud to detect? A. Liability fraud B. Revenue fraud C. Asset fraud D. Disclosure fraud Answer:...

In liability fraud, liabilities are most often:

In liability fraud, liabilities are most often:  A. Understated B. Overstated C. Recorded as assets D. Recorded as expenses Answer: ...

A form 1099 with missing withholdings (where they should be reported) may be a fraud symptom for which liability account?

A form 1099 with missing withholdings (where they should be reported) may be a fraud symptom for which liability account?  A. Accounts Payable B....

Which of the following factors does not make fraud more difficult to detect?

Which of the following factors does not make fraud more difficult to detect?  A. Collusion with outsiders B. Forgery, which GAAS auditors are...

Each of the following assets is correctly linked with how it can be overstated except:

Each of the following assets is correctly linked with how it can be overstated except:  A. Inventory can be overstated by improperly capitalizing...

Each of the following is a symptom relating to understatement of liability frauds except:

Each of the following is a symptom relating to understatement of liability frauds except:  A. Original purchase-related records where copies...

When examining whether a company has under recorded accounts payable, each of the following ratios is helpful except:

When examining whether a company has under recorded accounts payable, each of the following ratios is helpful except:  A. Acid-test ratio B....

Inadequate disclosure fraud usually involves:

Inadequate disclosure fraud usually involves:  A. Statements in the footnotes that are wrong but do not impact the financial statement. B. Disclosures...

Overstating cash is usually difficult because:

Overstating cash is usually difficult because:  A. Cash balances can be easily confirmed with banks and other financial institutions. B. Cash...

When focusing on changes, you should consider changes from period to period in:

When focusing on changes, you should consider changes from period to period in:  A. Recorded balances B. Relationships between balances C. Balances...

Proactively searching for analytical symptoms related to financial statement fraud means that we are looking for accounts that appear:

Proactively searching for analytical symptoms related to financial statement fraud means that we are looking for accounts that appear:  A. Too...

Analytical symptoms of accounts payable fraud most often relate to reported "accounts payable" balances that appear:

Analytical symptoms of accounts payable fraud most often relate to reported "accounts payable" balances that appear:  A. Too low B. Too high C....

FAS 5 requires contingent liabilities to be recorded as liabilities on the balance sheet if the likelihood of loss or payment is:

FAS 5 requires contingent liabilities to be recorded as liabilities on the balance sheet if the likelihood of loss or payment is:  A. Remote B....

The most common fraud involving car companies and the warranties they offer would most likely be:

The most common fraud involving car companies and the warranties they offer would most likely be:  A. Understating accrued liabilities B. Recognizing...

Recognizing something as a revenue instead of as a liability has a positive effect on the reported financial statements because:

Recognizing something as a revenue instead of as a liability has a positive effect on the reported financial statements because:  A. It understates...

When accounts payable-related liabilities are understated, purchases and inventory are often ______, or the financial statements don't balance.

When accounts payable-related liabilities are understated, purchases and inventory are often ______, or the financial statements don't balance. A....

Which of the following is a primary type of transaction that can create liabilities for a company?

Which of the following is a primary type of transaction that can create liabilities for a company?  A. Purchasing inventory B. Borrowing money C....

Primarily occurring at the end of the year in an attempt to inflate sales, the practice of shipping more items to distributors than they can sell in a reasonable time period is known as:

Primarily occurring at the end of the year in an attempt to inflate sales, the practice of shipping more items to distributors than they can sell in...

Which of the following is a common way to perform financial-statement analysis while searching for revenue-related analytical symptoms?

Which of the following is a common way to perform financial-statement analysis while searching for revenue-related analytical symptoms?  A. Look...

Identify which ratio is correctly linked to the information it could reveal about the company's potential for revenue fraud.

Identify which ratio is correctly linked to the information it could reveal about the company's potential for revenue fraud.  A. Gross profit...

Each of the following illicit revenue transactions is correctly linked with the financial statement accounts involved except:

Each of the following illicit revenue transactions is correctly linked with the financial statement accounts involved except:  A. Recognizing...

All of the following ratios are useful in detecting large revenue frauds except:

All of the following ratios are useful in detecting large revenue frauds except:  A. Gross profit margin. B. Current ratio. C. Working capital...

Which of the following is a possible scheme for manipulating revenue when returned goods are accepted from customers?

Which of the following is a possible scheme for manipulating revenue when returned goods are accepted from customers?  A. Understate allowance...

The most common way to overstate revenues is to:

The most common way to overstate revenues is to:  A. Record revenues prematurely. B. Abuse the cutoff line for recording revenues. C. Create...

The asset turnover ratio measures:

The asset turnover ratio measures:  A. The average time an asset is used by the company. B. The average useful life of capital assets. C. Sales...

Which financial ratio is not useful in detecting revenue-related fraud?

Which financial ratio is not useful in detecting revenue-related fraud?  A. Gross profit margin ratio B. Account receivable turnover ratio C....

Accounts that can be manipulated in revenue fraud include all of the following except:

Accounts that can be manipulated in revenue fraud include all of the following except:  A. Accounts Receivable. B. Bad Debt Expense. C. Inventory D....

Last-minute revenue adjustments, unsupported balance sheet amounts, and improperly recorded revenues are examples of:

Last-minute revenue adjustments, unsupported balance sheet amounts, and improperly recorded revenues are examples of:  A. Analytical symptoms B....

In order to analyze financial statements for fraud, an auditor or fraud examiner should consider all of the following except:

In order to analyze financial statements for fraud, an auditor or fraud examiner should consider all of the following except:  A. The types of...

Which of the following ratios would not generally be used to look for inventory and cost of goods sold related frauds?

Which of the following ratios would not generally be used to look for inventory and cost of goods sold related frauds?  A. Accounts payable turnover B....

When looking for inventory fraud, an important question to ask is:

When looking for inventory fraud, an important question to ask is:  A. What is the nature of inventory? B. What is the age of inventory? C....

Which of the following is not an inventory-related documentary symptom?

Which of the following is not an inventory-related documentary symptom?  A. Duplicate purchase orders B. Missing inventory during inventory counts C....

Lifestyle symptoms are most effective with:

Lifestyle symptoms are most effective with:  A. Revenue-related financial statement frauds. B. Inventory-related financial statement frauds. C....

Comparing recorded amounts in the financial statements with the real-world assets they are supposed to represent would be most effective in detecting:

Comparing recorded amounts in the financial statements with the real-world assets they are supposed to represent would be most effective in detecting:  A....

Adding fictitious receivables will usually result in a(n):

Adding fictitious receivables will usually result in a(n):  A. Sales return percentage that remains constant B. Increased sales discount percentage C....

Horizontal analysis is a method that:

Horizontal analysis is a method that:  A. Examines financial statement numbers from period to period. B. Examines percent changes in account...

Reported revenue and sales account balances that appear too high are examples of:

Reported revenue and sales account balances that appear too high are examples of: A. Analytical symptoms B. Documentary symptoms C. Lifestyles symptoms D....

Why might a company want to understate net income?

Why might a company want to understate net income?  A. To increase profits B. To increase stock price C. To gain consumer confidence D. To pay...

The most common account(s) manipulated when perpetrating financial statement fraud are:

The most common account(s) manipulated when perpetrating financial statement fraud are:  A. Expenses B. Inventory C. Revenues D. Accounts Payable Answer:...