1) A major difference between auditors and fraud examiners is that most auditors match
documents to numbers to see whether support exists and is adequate, whereas fraud
examiners determine whether the documents are real or fraudulent..
2) Service employees that are completing transactions during non-business hours could
possibly use the non-business hours to sell company assets to their own benefit. This
fraud could be caught by:
I.Comparing sales by employee on a year-to-year basis
J.Review company telephone logs for calls made during non-business hours
K.Comparing utility bills on a month-to-month basis
L.Comparing sales per location on a year-to-year basis
3) Forensic and Litigation Advisory Services (FLAS) professionals may either work to
bolster (if hired by the defendant) or to undercut (if hired by the plaintiff) a case.
4) Events occurring or becoming known after the close of the period may have a
significant effect on the financial statements and should be disclosed are called:
Q.Reportable events
R.Subsequent events
S.Proximate events
T.Known events
5) Give examples of behavioral indications of fraud.
6) Barney Fife keeps bank accounts in Switzerland. This is a method for hiding assets.
7) What are the similarities and differences between analytical and accounting
anomalies?