Latest Exam Prep

Q23. Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company’s profits.

Q24. ________ increase assets and expenses and/or decrease liabilities and/or equity

Q25. A shell company scheme in which actual goods or services are sold to the victim company is known as:

Q26. Accounting records are designed to be kept on subjective rather than objective evidence.

Q27. A typical issue involving material and fraud would be:

Q28. _________ normally are carried on an organization’s books as expenses because they tend to be consumed by the organization within a year of purchase.

Q29. The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

Q30. Entering a sales total lower than the amount actually paid by the customer is called:

Q31. The fraudsters’ interest lies with an employer other than a company.

Q32. In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.

Q33. What is sometimes used to overcome well-designed internal controls of a victim company?

Q34. Which of the following are used in a short term skimming scheme?

Q35. __________ can be defined as conduct detrimental to the organization and to the employee.

Q36. In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Q37. Skimming is:

Q38. Another way to eliminate competition in the solicitation phase of the selection process is to:

Q39. Which sale occurs when the accomplice of the employee-fraudster “buys” merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Q40. Employees with the authority to grant discounts in order to skim revenues may use which authority?

Q41. In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Q42. ________ increase assets and expenses and/or decrease liabilities and/or equity

Q43. Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

Q44. Fill in the Blanks
___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Q45. When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

Q46. The fraudsters’ interest lies with an employer other than a company.