Question 1

Explain the shell company fraud.

Accepted Answer

A shell company fraud first requires tha...

Question 2

Para computer ethics is the exposure to stories and reports found in the popular media regarding the good or bad ramifications of computer technology.

Accepted Answer

A) True 
 B)False

Question 3

Business ethics involves

Accepted Answer

A)   how managers decide on what is right in conducting business
B)   how managers achieve what they decide is right for the business
C)   both a and b
D)   none of the above

Question 4

The trend toward distributed data processing increases the exposure to fraud from remote locations.

Accepted Answer

A) True 
 B)False

Question 5

The four principal types of fraud include all of the following except

Accepted Answer

A)   bribery
B)   gratuities
C)   conflict of interest
D)   economic extortion

Question 6

Business bankruptcy cases always involve fraudulent behavior.

Accepted Answer

A) True 
 B)False

Question 7

Of the three fraud factors (situational pressure,ethics,and opportunity),situational pressure is the factor that actually facilitates the act.

Accepted Answer

A) True 
 B)False

Question 8

The text discusses many questions about personal traits of executives which might help uncover fraudulent activity.What are three?

Accepted Answer

executives: with high personal debt,livi...

Question 9

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Accepted Answer

A) True 
 B)False

Question 10

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Accepted Answer

The Sarbanes-Oxley Act requires all audi...

Question 11

List the four broad objectives of the internal control system.

Accepted Answer

safeguard assets,
ensure the a...

Question 12

A well-designed purchase order is an example of a

Accepted Answer

A)   preventive control
B)   detective control
C)   corrective control
D)   none of the above

Question 13

What are the five internal control components described in the SAS 78 / COSO framework

Accepted Answer

the control environment,risk a...

Question 14

What are management responsibilities under section 302 and 404?

Accepted Answer

Section 302 requires that corporate mana...

Question 15

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

Accepted Answer

A)   reduced cost of an external audit.
B)   prevents employee collusion to commit fraud.
C)   availability of reliable data for decision-making purposes.
D)   some assurance of compliance with the Foreign Corrupt Practices Act of 1977.
E)   some assurance that important documents and records are protected.

Question 16

Employee fraud involves three steps.Of the following,which is not involved?

Accepted Answer

A)   concealing the crime to avoid detection
B)   stealing something of value
C)   misstating financial statements
D)   converting the asset to a usable form

Question 17

One characteristic of employee fraud is that the fraud

Accepted Answer

A)   is perpetrated at a level to which internal controls do not apply
B)   involves misstating financial statements
C)   involves the direct conversion of cash or other assets to the employee's personal benefit
D)   involves misappropriating assets in a series of complex transactions involving third parties

Question 18

The text describes six internal control activities.List four of them and provide a specific example of each one.

Accepted Answer

A pay-and-return scheme involves a clerk...

Question 19

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients,they are not prohibited from performing such services for non-audit clients or privately held companies.

Accepted Answer

A) True 
 B)False

Exam 3: Ethics, Fraud, and Internal Control

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

Correct Answer
verified

Explain the shell company fraud.

Correct Answer
verified
A shell company fraud first requires tha...
View Answer

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Correct Answer
verified

One characteristic of employee fraud is that the fraud

Correct Answer
verified

List the four broad objectives of the internal control system.

Correct Answer
verified
safeguard assets,
ensure the a...
View Answer

Para computer ethics is the exposure to stories and reports found in the popular media regarding the good or bad ramifications of computer technology.

Correct Answer
verified

Business ethics involves

Correct Answer
verified

The four principal types of fraud include all of the following except

Correct Answer
verified

A well-designed purchase order is an example of a

Correct Answer
verified

Of the three fraud factors (situational pressure,ethics,and opportunity),situational pressure is the factor that actually facilitates the act.

Correct Answer
verified

The trend toward distributed data processing increases the exposure to fraud from remote locations.

Correct Answer
verified

What are the five internal control components described in the SAS 78 / COSO framework

Correct Answer
verified
the control environment,risk a...
View Answer

Employee fraud involves three steps.Of the following,which is not involved?

Correct Answer
verified

The text describes six internal control activities.List four of them and provide a specific example of each one.

Correct Answer
verified
A pay-and-return scheme involves a clerk...
View Answer

Business bankruptcy cases always involve fraudulent behavior.

Correct Answer
verified

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Correct Answer
verified
The Sarbanes-Oxley Act requires all audi...
View Answer

The text discusses many questions about personal traits of executives which might help uncover fraudulent activity.What are three?

Correct Answer
verified
executives: with high personal debt,livi...
View Answer

What are management responsibilities under section 302 and 404?

Correct Answer
verified
Section 302 requires that corporate mana...
View Answer

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients,they are not prohibited from performing such services for non-audit clients or privately held companies.

Correct Answer
verified

Exam 3: Ethics, Fraud, and Internal Control

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

Correct AnswerverifiedShow Answer

Explain the shell company fraud.

Correct AnswerverifiedA shell company fraud first requires tha...View AnswerShow Answer

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Correct AnswerverifiedShow Answer

One characteristic of employee fraud is that the fraud

Correct AnswerverifiedShow Answer

List the four broad objectives of the internal control system.

Correct Answerverifiedsafeguard assets,ensure the a...View AnswerShow Answer

Para computer ethics is the exposure to stories and reports found in the popular media regarding the good or bad ramifications of computer technology.

Correct AnswerverifiedShow Answer

Business ethics involves

Correct AnswerverifiedShow Answer

The four principal types of fraud include all of the following except

Correct AnswerverifiedShow Answer

A well-designed purchase order is an example of a

Correct AnswerverifiedShow Answer

Of the three fraud factors (situational pressure,ethics,and opportunity),situational pressure is the factor that actually facilitates the act.

Correct AnswerverifiedShow Answer

The trend toward distributed data processing increases the exposure to fraud from remote locations.

Correct AnswerverifiedShow Answer

What are the five internal control components described in the SAS 78 / COSO framework

Correct Answerverifiedthe control environment,risk a...View AnswerShow Answer

Employee fraud involves three steps.Of the following,which is not involved?

Correct AnswerverifiedShow Answer

The text describes six internal control activities.List four of them and provide a specific example of each one.

Correct AnswerverifiedA pay-and-return scheme involves a clerk...View AnswerShow Answer

Business bankruptcy cases always involve fraudulent behavior.

Correct AnswerverifiedShow Answer

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Correct AnswerverifiedThe Sarbanes-Oxley Act requires all audi...View AnswerShow Answer

The text discusses many questions about personal traits of executives which might help uncover fraudulent activity.What are three?

Correct Answerverifiedexecutives: with high personal debt,livi...View AnswerShow Answer

What are management responsibilities under section 302 and 404?

Correct AnswerverifiedSection 302 requires that corporate mana...View AnswerShow Answer

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients,they are not prohibited from performing such services for non-audit clients or privately held companies.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A shell company fraud first requires tha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
safeguard assets,
ensure the a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
the control environment,risk a...
View Answer

Correct Answer
verified

Correct Answer
verified
A pay-and-return scheme involves a clerk...
View Answer

Correct Answer
verified

Correct Answer
verified
The Sarbanes-Oxley Act requires all audi...
View Answer

Correct Answer
verified
executives: with high personal debt,livi...
View Answer

Correct Answer
verified
Section 302 requires that corporate mana...
View Answer

Correct Answer
verified