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QUESTION NO: 1
Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?
A. Voided checks
B. Payable checks
C. Missing checks
D. Duplicate checks
Answer: C
QUESTION NO: 2
"Anticipate possible losses and omit potential profits", this results in:
A. Asymmetrical accounting
B. Symmetrical accounting
C. Playing accounting
D. Bearing accounting
Answer: A
QUESTION NO: 3
Bid-rigging scheme occurs when:
A. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.
B. an employee does not assist a vendor in winning a contract through the competitive bidding process.
C. an employee once assists a vendor in winning a contract through a single competitive bidding process.
D. an employee once assists a vendor in winning a contract through a single competitive bidding process.
Answer: A
QUESTION NO: 4
_________ assumes the business will go on indefinitely in the future.
A. Materiality
B. Going concern
C. Cost
D. Fair value
Answer: B
QUESTION NO: 5
Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.
A. Single employee
B. Two employees
C. More then two employees
D. None of the above
Answer: A
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Updated: May 27, 2022