1) Collusion requires more than one person to override the system of internal
controls.
2) Mischaracterized expense schemes involve payment for legitimate expenditures.
3) The amount of damages proven under negligence may be relatively uncertain.
4) CAATTS (computer-aided auditing tools and techniques) are used primarily to select
samples and detect collusion .
5) ________ questions are those worded in a way that makes it difficult to answer yes
or no.
E.Accusatory
F.Closed
G.Open
H.Affirmative
6) Explain the differences between an audit, fraud examination, and forensic accounting
engagement.
7) Formal controls can be best described as the way an employee internalizes group
norms of the organization.