ACCT 562 Midterm 2 exam

(TCO D) The review team should be aware of various management and operational techniques, which includes all of the following except:

(TCO F) Manually altering entries in an organization‘s books in order to conceal fraud is called:

(TCO F) Which of the following is not one of the primary purposes of asking introductory questions during an interview?

(TCO F) When the subject of an investigation has been accused of misconduct, establishing a morally acceptable rationalization might allow the accused to reconcile his actions with his conscience. Which of the following is not an example of an acceptable rationalization?

(TCO F) In one of the case studies in the Wells textbook (page 49), Brian Lee, a top-notch plastic surgeon, collected payments from his patients without giving a cut to the clinic where he practiced. How was he punished?

(TCO F) Nicolette Garrison works part-time at an independent record store. Whenever her friend, Jacob Barker, comes into the store during one of her shifts, he picks up a CD and brings it to the register where Nicolette is stationed. After ringing a no sale transaction on the cash register, Nicolette pretends to swipe Jacob’s credit card for payment. She puts the CD in a bag and gives it to Jacob, who walks out without actually paying for the merchandise. What kind of scheme is being committed?

(TCO F) A(n) _____________ interview is one that has the potential to bring about strong emotional reactions in the respondent.

(TCO F) Running a computer program that identifies shipping documents with no associated sales order can detect which of the following non-asset cash misappropriation schemes?

(TCO A) All are benefits of the operational reviews to management except

(TCO B) Liquidity ratios such as current and quick are used in which phase of the review:

(TCO A-D) Interviewing, financial analysis, observing processes are all part of the _____ phase

(TCO A) Operational areas eligible for review include

(TCO F) Samantha Lewis, CFE, is conducting an investigation into possible skimming of the accounts receivable at Southwest Paint and Supply Co. If Lewis plans to interview all of the following parties, whom should she interview first?

(TCO F) Non-shareable secret, rationalization, and opportunity are all part of the _____.

(TCO F) Which of the following is not part of the fraud theory approach?

(TCO F) In the Fraud Tree, asset misappropriations are broken down into cash and non-cash schemes. Which of the following is not considered a misappropriation of cash?

(TCO A) Businesses do not exist to:

(TCO F) Reversing entries are a method for concealing larceny of ___________?

(TCO F) Senior management is most likely to understate business performance in the financial statements for which of the following reasons?

(TCO F) Which of the following is a reason that a Chief Executive Officer might commit financial statement fraud?

(TCO B) One of the primary purposes of the planning is to: