Describe the parameters set forth in Section 203 of SOX in regards to the Rotation of
Auditing Partners.
Describe the fraud detection process.
Which of the types of filings would most likely indicate a financial need that might
motivate financial statement fraud?
a.Bankruptcy.
b.Luxury vehicle loan.
c.Statement of net loss.
d.Divorce.
In regards to total destruction that occurs during a disaster, when does most of the
damage occur?
a.During the disaster.
b.After the disaster, but before the recovery.
c.During the recovery.
d.When employees overreact.
Which of the following is NOT a component of internal control?
a.Promoting strategic, tactical, and operational efficiency and effectiveness.
b.The control environment.
c.Risk assessment.
d.All of the above are objectives of internal control.
List the four ways documentary evidence is obtained.
Where are most restricted databases maintained in each state?
a.At the public safety headquarters.
b.At the secretary of state’s office.
c.At the state information management computer backup location.
d.Within the department of vital statistics office.
What are the three phases of money laundering and how do they work?
Who are some types of individuals posing active and passive threats?
Multiple-filing schemes are when:
a.An individual takes on multiple identities in multiple states, acquires debt under those
identities and then files bankruptcy under all of them.
b.An individual takes on debt from multiple states and then files bankruptcy in each
state under their own name.
c.Multiple individuals take on the same debt and then file bankruptcy under each
persons name for the same debt.
d.Multiple individuals take on multiple names in several states and acquire debt under
all those names, then file bankruptcy in one state attempting to flood the courts with
cases and confuse the court system.
When did the Social Security Administration begin tracking the SSDI?
a. 1984
b. 1962
c. 1944
d. 1876
Security engineering refers to what?
a.The physical design of a security system.
b.The application of engineering concepts to the development of security processes.
c.The GAAP standards that apply to protecting accounting records.
d.All of the above.
How are carryback or carryforward treated when calculating penalties for civil fraud?
a.They are included as if they were calculated under normal circumstances.
b.They are deducted at twice the rate that they were originally added into the
calculations.
c.They cannot be used when calculating civil penalties.
d.It is up to the courts to pass judgment as to their treatment.
What does Section 206 of Title II prevent a public-accounting firm from doing?
a.Auditing a client if the CEO, chief accountant, or chief financial officer of the client
worked for the public accounting firm and participated in auditing if that client in the
previous 12 months from the beginning of the audit.
b.Hiring the CEO, chief accountant, or chief financial officer if the client worked for
the public accounting firm and participated in auditing of that client in the 12 months
after the beginning of the audit.
c.Having direct telephonic or E-mail communications with the CEO, chief accountant,
or chief financial officer if the client worked for the public accounting firm and
participated in auditing of that client in the previous 12 months from the beginning of
the audit.
d.Publishing their findings in the audit to the SEC for public inspection by other
corporations.
Normally, managers will not hide good news because:
a.It typically gives them raises and bonuses.
b.Good news travels fast.
c.This type of news is not required to be disclosed.
d.Managers can buy stock at a lower price by executing their stock options.
Why would a suspect be interviewed in a neutral environment?
a. To move them closer to a police station.
b. To assist them with memory recall.
c. To purposefully place him in a setting that isn”t familiar to him.
d. All of the above
Which of the following is a benefit of online dispute resolution?
a.Asynchronicity.
b.High cost.
c.The parties are forced to meet face to face.
d.All of the above.
Name at least three schemes for overstating revenues.
Describe the evolution of the internal revenue code.