2
LSU ACCT 4235 - Midterm Exam (Ch. 1-9
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Quizzes) with verified answers || || ||
Investment scams most often include: || || || ||
A. an action by top management against employees
|| || || || || || ||
B. worthless investments or assets sold to unsuspecting investors
|| || || || || || || ||
C. an overcharge for purchased goods
|| || || || ||
D. nonpayment of invoices for goods purchased by customers - ✔✔B
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Which of the following is not a common type of fraud?
|| || || || || || || || || ||
A. direct employee embezzlement
|| || ||
B. employee bribes
|| ||
C. executives embezzling from petty cash
|| || || || ||
D. investment scams - ✔✔C
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Which of the following characters is least likely to be involved in a fraud?
|| || || || || || || || || || || || ||
A. a middle-aged person with a middle management position
|| || || || || || || ||
B. a long-haired teenager
|| || ||
C. a senior executive who has significant stock options
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D. a recent college graduate - ✔✔B
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Which of the following is required to become a CFE?
|| || || || || || || || ||
,2
A. an individual must commit to abide by a strict code of professional conduct
|| || || || || || || || || || || || || ||
and ethics ||
B. be an associate member, in good standing, of the ACFE
|| || || || || || || || || ||
C. be of high moral character
|| || || || ||
D. all of the above are required - ✔✔D
|| || || || || || || ||
Which of the following statements is true?
|| || || || || ||
A. All frauds that are detected by organizations are made public.
|| || || || || || || || || ||
B. One of the most common responses to fraud is disbelief by those around the
|| || || || || || || || || || || || || || ||
fraud.
C. Many companies choose to make their losses from fraud public rather than
|| || || || || || || || || || || || ||
try to hide them.
|| || ||
D. The only group/business that must report employee embezzlement is the
|| || || || || || || || || || ||
federal government. - ✔✔B || || ||
What is the best way to minimize fraud expense within an organization?
|| || || || || || || || || || ||
A. effective early detection of fraud
|| || || || ||
B. effective investigation of fraudulent behavior
|| || || || ||
C. effective prevention of fraud
|| || || ||
D. effective research of fraud - ✔✔C
|| || || || || ||
What is the most important element in successful fraud schemes?
|| || || || || || || || ||
A. promised benefits
|| ||
B. confidence in the perpetrator
|| || || ||
, 2
C. profitable activities
|| ||
D. complexity - ✔✔B
|| || ||
Which of the following is not an important element of fraud?
|| || || || || || || || || ||
A. confidence
||
B. deception
||
C. trickery
||
D. intelligence - ✔✔D
|| || ||
Which of the following statements is false?
|| || || || || ||
A. Manufacturing companies with a profit margin of 10 percent must usually
|| || || || || || || || || || || ||
generate about 10 times as much revenue as the dollar amount of the fraud in
|| || || || || || || || || || || || || || ||
order to restore net income to its pre-fraud level.
|| || || || || || || ||
B. Fraud losses generally reduce a firm's income on a dollar-for-dollar basis.
|| || || || || || || || || || ||
C. Unintentional errors in financial statements are a form of fraud.
|| || || || || || || || || ||
D. Companies that commit financial statement fraud are often experiencing net
|| || || || || || || || || || ||
losses or have profits that are significantly lower than expectations. - ✔✔C
|| || || || || || || || || || ||
Which of the following is the least reliable resource for fraud statistics?
|| || || || || || || || || || ||
A. FBI agencies
|| ||
B. health agencies
|| ||
C. insurance organizations
|| ||
D. fraud perpetrators - ✔✔D
|| || || ||
LSU ACCT 4235 - Midterm Exam (Ch. 1-9
|| || || || || || || ||
Quizzes) with verified answers || || ||
Investment scams most often include: || || || ||
A. an action by top management against employees
|| || || || || || ||
B. worthless investments or assets sold to unsuspecting investors
|| || || || || || || ||
C. an overcharge for purchased goods
|| || || || ||
D. nonpayment of invoices for goods purchased by customers - ✔✔B
|| || || || || || || || || ||
Which of the following is not a common type of fraud?
|| || || || || || || || || ||
A. direct employee embezzlement
|| || ||
B. employee bribes
|| ||
C. executives embezzling from petty cash
|| || || || ||
D. investment scams - ✔✔C
|| || || ||
Which of the following characters is least likely to be involved in a fraud?
|| || || || || || || || || || || || ||
A. a middle-aged person with a middle management position
|| || || || || || || ||
B. a long-haired teenager
|| || ||
C. a senior executive who has significant stock options
|| || || || || || || ||
D. a recent college graduate - ✔✔B
|| || || || || ||
Which of the following is required to become a CFE?
|| || || || || || || || ||
,2
A. an individual must commit to abide by a strict code of professional conduct
|| || || || || || || || || || || || || ||
and ethics ||
B. be an associate member, in good standing, of the ACFE
|| || || || || || || || || ||
C. be of high moral character
|| || || || ||
D. all of the above are required - ✔✔D
|| || || || || || || ||
Which of the following statements is true?
|| || || || || ||
A. All frauds that are detected by organizations are made public.
|| || || || || || || || || ||
B. One of the most common responses to fraud is disbelief by those around the
|| || || || || || || || || || || || || || ||
fraud.
C. Many companies choose to make their losses from fraud public rather than
|| || || || || || || || || || || || ||
try to hide them.
|| || ||
D. The only group/business that must report employee embezzlement is the
|| || || || || || || || || || ||
federal government. - ✔✔B || || ||
What is the best way to minimize fraud expense within an organization?
|| || || || || || || || || || ||
A. effective early detection of fraud
|| || || || ||
B. effective investigation of fraudulent behavior
|| || || || ||
C. effective prevention of fraud
|| || || ||
D. effective research of fraud - ✔✔C
|| || || || || ||
What is the most important element in successful fraud schemes?
|| || || || || || || || ||
A. promised benefits
|| ||
B. confidence in the perpetrator
|| || || ||
, 2
C. profitable activities
|| ||
D. complexity - ✔✔B
|| || ||
Which of the following is not an important element of fraud?
|| || || || || || || || || ||
A. confidence
||
B. deception
||
C. trickery
||
D. intelligence - ✔✔D
|| || ||
Which of the following statements is false?
|| || || || || ||
A. Manufacturing companies with a profit margin of 10 percent must usually
|| || || || || || || || || || || ||
generate about 10 times as much revenue as the dollar amount of the fraud in
|| || || || || || || || || || || || || || ||
order to restore net income to its pre-fraud level.
|| || || || || || || ||
B. Fraud losses generally reduce a firm's income on a dollar-for-dollar basis.
|| || || || || || || || || || ||
C. Unintentional errors in financial statements are a form of fraud.
|| || || || || || || || || ||
D. Companies that commit financial statement fraud are often experiencing net
|| || || || || || || || || || ||
losses or have profits that are significantly lower than expectations. - ✔✔C
|| || || || || || || || || || ||
Which of the following is the least reliable resource for fraud statistics?
|| || || || || || || || || || ||
A. FBI agencies
|| ||
B. health agencies
|| ||
C. insurance organizations
|| ||
D. fraud perpetrators - ✔✔D
|| || || ||
