1) A computer audit test for detecting cash larceny where employees have high dollar
differences between the cash count and sales register tape would include:
I.Summarize by employee the difference between the cash receipt report and the sales
register system
J.Summarize by store the difference between the cash receipt report and the sales
register system
K.Summarize by location the discounts and returns
L.Compare adjustments to inventory
2) One way to thwart a ghost employee scheme is for someone with no responsibility
for collection of time and attendance data to distribute the paychecks.
3) ________ questions contain the answer as a part of the question.
D.Open
E.Closed
F.Affirmative
G.Leading
4) A sales employee created a dummy customer record. The sales employee then
recorded phony refunds and then pocketed the cash. What procedure would likely catch
this fraud?
I.Extract customers with no telephone numbers or tax ID number
J.Summarize user access to accounts receivable
K.Summarize user access to the sales account
L.Review business logs for phone calls during non-business hours.
5) Three people check into a hotel. They pay $30 to the manager and go to their room.
The manager suddenly remembers that the room rate is $25 and gives $5 to the bellboy
to return to the people. On the way to the room, the bellboy reasons that $5 would be
difficult to share among three people so he pockets $2 and gives $1 to each person.
Now each person paid $10 and got back $1. So they paid $9 each, totaling $2 The
bellboy has $2, totaling $29. Where is the missing $1?”
6) ________ occur when a company does business with another entity whose
management or operating policies can be controlled or significantly influenced by the
company or by some other party in common.
Q.Related-party transactions
R.Illicit transactions
S.Family transactions
T.Adversarial transactions
7) What is meant by remediation?
8) What is meant by behavioral red flags?
9) Most audit committees have the authority to investigate any matters within the scope
of their responsibility, including internal control deficiencies, concerns about the
financial reporting process, suspected corruption, and alleged illegal acts.
10) To be successful in any specialized field like forensic accounting or fraud
examination, professionals must have characteristics that set them apart as a profession.
What are these five characteristics?