MGMT 200 EXAM 2 2026 QUESTION BANK
AND FULL PREPARATION PACK A+
◉ Occupational fraud. Answer: Occurs when someone
INTENTIONALLY misuses or misrepresents their employers
resources for their own gain
causes economic damage to the company
◉ 3 elements of fraud. Answer: Financial pressure
Opportunity
Rationalization
◉ Financial pressure (fraud triangle). Answer: employees
sometimes commit fraud because of personal financial problems
caused by too much debt
◉ Opportunity (Fraud Triangle). Answer: Window to complete fraud
◉ Rationalization (Fraud Triangle). Answer: Their justification for
doing the crime
,◉ What of the 3 elements can a company most easily minimize.
Answer: opportunity
◉ Sarbanes Oxley Act. Answer: Corporate executives must
personally certify financial statements
Reduced the risk of conflicts of interest
7-year rule for workpaper retention
◉ Public Company Accounting Oversight Board (PCAOB). Answer:
The group charged with determining auditing standards and
reviewing the performance of auditing firms.
◉ Purpose of internal controls. Answer: A companys plan to
minimize fraud and enhance the accuracy of accounting information
◉ Internal controls. Answer: required by SOX act section 404
◉ Who is responsible for internal controls. Answer: Corporate
executives
◉ Components of internal control pyramid. Answer: Monitoring
(top)
, Control Activities
Risk Assessment
Control Environment (Bottom)
◉ Monitoring (Pyramid). Answer: reporting mechanism monitor
and report
◉ Control Activities (Pyramid). Answer: Mitigation policies that help
ensure management directives are carried out
◉ Risk Assessment (Pyramid). Answer: Threats identified that could
hurt objectives
◉ Control Environment (Pyramid). Answer: Tone of the company
with respect to internal control
◉ Cash. Answer: amount readily available to make purchases and
pay debts
◉ Cash Equivalents. Answer: High liquid very short term
investments
3 months or less AT TIME OF PURCHASE
AND FULL PREPARATION PACK A+
◉ Occupational fraud. Answer: Occurs when someone
INTENTIONALLY misuses or misrepresents their employers
resources for their own gain
causes economic damage to the company
◉ 3 elements of fraud. Answer: Financial pressure
Opportunity
Rationalization
◉ Financial pressure (fraud triangle). Answer: employees
sometimes commit fraud because of personal financial problems
caused by too much debt
◉ Opportunity (Fraud Triangle). Answer: Window to complete fraud
◉ Rationalization (Fraud Triangle). Answer: Their justification for
doing the crime
,◉ What of the 3 elements can a company most easily minimize.
Answer: opportunity
◉ Sarbanes Oxley Act. Answer: Corporate executives must
personally certify financial statements
Reduced the risk of conflicts of interest
7-year rule for workpaper retention
◉ Public Company Accounting Oversight Board (PCAOB). Answer:
The group charged with determining auditing standards and
reviewing the performance of auditing firms.
◉ Purpose of internal controls. Answer: A companys plan to
minimize fraud and enhance the accuracy of accounting information
◉ Internal controls. Answer: required by SOX act section 404
◉ Who is responsible for internal controls. Answer: Corporate
executives
◉ Components of internal control pyramid. Answer: Monitoring
(top)
, Control Activities
Risk Assessment
Control Environment (Bottom)
◉ Monitoring (Pyramid). Answer: reporting mechanism monitor
and report
◉ Control Activities (Pyramid). Answer: Mitigation policies that help
ensure management directives are carried out
◉ Risk Assessment (Pyramid). Answer: Threats identified that could
hurt objectives
◉ Control Environment (Pyramid). Answer: Tone of the company
with respect to internal control
◉ Cash. Answer: amount readily available to make purchases and
pay debts
◉ Cash Equivalents. Answer: High liquid very short term
investments
3 months or less AT TIME OF PURCHASE
