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Question # 1
When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:
A. Forced Balance
B. Out-of-balance
C. False balance
D. None of all
Question # 2
Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:
A. Check disbursement
B. Bank confirmation
C. Bank confirmation
D. Cut-off statements
Question # 3
Which counts sometimes can give rise to inventory theft detection?
A. Perpetual inventory counts
B. Physical inventory counts
C. Concealment inventory counts
D. None of the above
Question # 4
Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?
A. Net realizable value
B. Going concern
C. Cost
D. Fair value
Question # 5
__________ are the amounts which are owned to other entities:
A. Supplies
B. Expenses
C. Assets
D. Liabilities
Question # 6
Inventory shrinkage is the unaccounted-for reduction in the company’s inventory that does not results from theft.
A. True
B. False
Question # 7
Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?
A. Net realizable value
B. Going concern
C. Cost
D. Fair value
Question # 8
Inventory shrinkage is the unaccounted-for reduction in the company’s inventory that does not results from theft.
A. True
B. False
Question # 9
Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.
A. True
B. False
Question # 10
___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees
A. Payable cash
B. Cash advances
C. counterfeit checks
D. Payable checks
Question # 11
Asset misappropriation schemes were the “middle children” of the study; they were more common than fraudulent statements and more costly than corruption.
A. True
B. False
Question # 12
Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?
A. Proper documentation, segregation of duties, independent checks and physical safeguards
B. Proper documentation, segregation of duties, independent checks and inventory control
C. Proper documentation, physical padding, independent checks and physical safeguards
D. prenumbered affiliations, segregation of duties, independent checks and physical safeguards
Question # 13
In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:
A. High-resolution sprays
B. Holographic safety inks
C. Watermark backers
D. Chrome coloring
Question # 14
Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.
A. True
B. False
Question # 15
Which of the following are the classifications for the Corruption?
A. Bribery, economic extortion, illegal gratuities and conflicts of interest
B. Corruption, bribery, economic extortion, conflicts of interest
C. Overbilling, bribery, bid-ridding and illegal gratuities
D. economic extortion, bribery, illegal gratuities and corruption
