Explain some of the increased corporate responsibilities indicated in SOX.
Who performs enforcement actions for insider trading?
a.IRS.
b.SEC.
c.DHS.
d.U.S. District Courts.
Explain how a detection of fraud may not necessarily mean that fraud exists.
Which of the following is not a type of tax?
a.Individual.
b.Sales and Use.
c.Non-profit.
d.Corporate.
What is identity theft, how big is the problem and who is largely responsible for it?
Section 302 also charges the CEO and CFO with:
a.Designing an internal control system so that they become aware of all information
relevant to the reports.
b.Designing a financial statement system that exceeds GAAP.
c.Establishing a repository of comparative ratio analysis against their main competition.
d.Forming an ad-hoc committee to review the quarterly and annual financial statements
prior to submission to the SEC.
Who does the IRS recognize as tax practitioners and what are their continuing
education requirements?
The pre-announcement of a forensic accountants investigation might do what in a
business?
a.Make a guilty party confess.
b.Stop the fraud once and for all.
c.Force the guilty parties to stop their fraud, which will subsequently show up on the
financial statements.
d.All of the above.
Describe what segregation of duties means to you.
Red flags exist when it comes to identifying financial statement fraud. Name and
describe three of them.
Of all the SEC offices, which is the most important to the accounting industry and why?
Who was the founder of the Association of Certified fraud Examiners?
a.The 187th Congress of the United States.
b.President Bill Clinton.
c.Joseph Wells.
d.All of the above worked together to form the ACFE.
Which of the following is not a source of data for data-driven fraud detection?
a.Internal Control data.
b.Security Breach data.
c.United States Census data.
d.Pattern data.
Employees who are fired for fraud are entitled to which of the following unemployment
benefits?
a. None
b. 6 weeks
c. 12 weeks
d. 90 days
Which of the following is NOT a step for financial statement auditing concerning
fraud?
a.Gather information relevant to risks of misstatements in the financial reports.
b.Compare the financial statements to the owners personal assets.
c.Analyze and assess risks of misstatement in light of the entity’s programs and
controls.
d.Apply the information gathered to the structure and application of the audit.
If a company has poor pay, high pressure to perform and a hostile work environment,
they are said to have:
a.Poor corporate culture.
b.Increased morale.
c.Motivational management.
d.all of the above.
What is a typical penalty for committing a bankruptcy fraud crime?
a.5 years in prison; $250,000 fine or both.
b.10 years in prison; $250,000 fine or both.
c.5 years in prison; $500,000 fine or both.
d.10 years in prison; $500,000 fine or both.
Within the Scope paragraph of the audit report, the auditor provides __________ that
the financial statements are free from material misstatements.
a.Reasonable assurance.
b.Guaranteed assurance.
c.Auditing assurance.
d.Unqualified assurance.
Explain the elements of a fraud scheme and describe the who, what, how when where
and why of the investigation.