1) List five assertions of management in respect to financial statements.
2) Line employees are the principle perpetrators in approximately 39 percent of
schemes, yielding company losses of approximately $150,000.
3) Which of the following is NOT a red flag associate with improper asset valuation?
P.Using lower-of-cost or market inventory valuation
Q.Recurring negative cash flows from operations or an inability to generate cash flows
from operations while reporting earnings and earnings growth
R.Significant declines in customer demand and increasing business failures in either the
industry or the overall economy
S.Unusual increase in gross margin or margin in excess of industry peers
4) List four red flags associated with improper disclosure.
5) What are the four criteria necessary for a sale to be complete?
6) How does the legal system differentiate between following versus tracing the
money?
7) Identify common fraud schemes.
8) The nonshareable problems, Cressey investigated, threatened the status of the
subjects, or threatened to prevent them from achieving a higher status than the one they
occupied at the time of their violation.