Attachments: No Attachments
1. Which of the following components of the control environment define the existing lines of responsibility and authority?
2. Which of the following is responsible for establishing a private company's internal control?
3. Reasonable assurance allows for:
4. Narratives, flowcharts, and internal control questionnaires are three common methods of:
5. Internal controls normally include procedures designed to provide reasonable assurance that:
6. Proper segregation of functional responsibilities calls for separation of:
7. When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be:
8. The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on:
9. When determining what type of report to issue on internal control under Section 404:
10. Internal controls:
11. Two key concepts that underlie management's design and implementation of internal control are:
12. The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:
13. A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:
14. Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the:
15. Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?
16. A company is concerned with the theft of cash after the sale has been recorded. One way in which fraudsters conceal the theft is by a process called "lapping." Which of the following best describes lapping?
17. Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:
18. Fictitious revenues:
19. Misappropriation of assets is normally perpetrated by:
20. When assessing the risk for fraud, the auditor must be cognizant of the fact that:
21. Two of the most useful warning signals that can indicate that revenue fraud is occurring are:
22. Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?
23. Most cases of fraudulent reporting involve:
24. Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?
25. Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?
26. Company management is often under pressure to increase revenue and/or net income. One approach is to use a "bill and hold" arrangement. This is an example of which of the following?
27. Which of the following is not a factor that relates to opportunities to misappropriate assets?
28. Who is most likely to perpetrate fraudulent financial reporting?
29. Which of the following is a factor that relates to incentives to misappropriate assets?
30. ________ is fraud that involves theft of an entity's assets.