1) Which is NOT a measure to reduce the opportunity to commit financial statement
fraud?
Q.Maintain accurate and complete internal accounting records
R.Maintain a security guard at each company location
S.Divide important functions among employees, sharing control of one area
T.Maintain accurate personnel records, including background checks on new employees
2) Financial forensics is the application of financial principles and theories to facts or
hypotheses at issue in a legal dispute and consists of two primary functions.
3) ________ is a process by which several bidders conspire to split up contracts and
ensure that each gets a certain amount of work.
M.Blind bidding
N.Bid pooling
O.Expropriation
P.Splitting the pot
4) List two commercial data extraction and analysis software and list four functions of
this software.
5) ________ value represents an assets balance sheet value, derived by subtracting
accumulated deprecation from historical (acquisition) cost.
U.Book
V.Liquidation
W.Market
X.Investment
6) Andy Jones creates a shell organization from which to buy supplies for his company.
This is a method to hide assets.
7) According to Mr. Sam E. Antar (former Crazy Eddie CFO and a convicted felon), too
many audit committee members have no formal educational background in accounting
and auditing, and no specialized training in fraud detection.
8) Ethics involves questions requiring reflective choice and their consequences to the
individual and others (decision problems).
9) Regulatory agencies such the Financial Accounting Standards Board would not
employ professionals with specialized knowledge, skills, training, education, and
experience in fraud examination and financial forensics.