FRAUD EXAMINATION EXAM 2 09/21/2026
Fraud Examination Exam 2 latest 2027/2026 |
VERIFIED QUESTIONS & CORRECT ANSWERS,
GRADED A+
Some complaints and tips turn out to be unjustified.
True
Analytical anomalies are present in every fraud.
False
Fraud is usually detected by recognizing and pursuing:
A. Synonyms
B. Symptoms
C.Equity
D. Legends
Because of the nature of fraud, auditors are often in the best position to detect its occurrence.
False
Recording an expense is a possible way to conceal the theft of cash.
True
9/21/2026
1
, FRAUD EXAMINATION EXAM 2 09/21/2026
Auditors can best help detect fraud in conversion.
False
Which of the following is not a common internal control fraud symptom or problem?
A. Lack of segregation of duties
B.Unexplained adjustments to receivables, payables, revenues, or expenses
C. Lack of independent checks
D. Overriding of existing controls
Which of the following is not a reason people are hesitant to come forward with knowledge or
suspicions of fraud.
A. They often think that squealing on someone is wrong
B. They fear reprisal for being a whistle-blower
C.It is usually impossible to know for sure that a fraud is taking place
D. People who report fraud are often rewarded monetarily.
A check is an example of a source document
True
Nearly all individuals and organizations are subject to pressures and can rationalize
True
9/21/2026
Most people who commit fraud:
A. Use embezzled funds to build a savings account
2
, FRAUD EXAMINATION EXAM 2 09/21/2026
B. Give the embezzled funds to charity
C. Experience no change in their lifestyle
D. Use the embezzled funds to improve their lifestyle
E. None of the above
Fraud perpetrators often live beyond their means since their income does not support their lifestyle
True
Most people who commit fraud are under financial pressure
True
Internal control is composed of the control environment, the accounting system, and control procedures
(activities)
True
Which of the following is not a fraud symptom related to journal entries?
A. Unexplained adjustments to receivables, payables, revenues, or expenses
B. Journal entries that do not balance
C. Journal entries without documentary support
D. Journal entries made near the beginning of accounting periods
9/21/2026
A letter is most likely to be fraudulent if:
A. It is signed by only one person.
3
, FRAUD EXAMINATION EXAM 2 09/21/2026
B. It is addressed to an individual, rather than a department.
C. It is a photocopy of an original letter.
D. It is written on outdated company letterhead.
If a perpetrator has stolen assets, which of the following is the easiest method of concealing the theft?
A. Reduce liabilities (such as payables)
B. Manipulate dividend or stock accounts
C. Increase other assets (such as receivables)
D. Increase expenses
Most people who commit fraud use the embezzled funds to save for retirement.
False
Which of the following is a fraud syptom related to an internal control weakness?
A. Lack of proper authorization
B. Lack of independent checks
C. Inadequate accounting system
D. Lack of physical safeguards
E. All of the above
In the three elements of fraud (theft act, concealment, and conversion), who is usually in the best
position to detect the fraud?
A. Coworkers and managers
9/21/2026
B. Customers
C. Owners
4
Fraud Examination Exam 2 latest 2027/2026 |
VERIFIED QUESTIONS & CORRECT ANSWERS,
GRADED A+
Some complaints and tips turn out to be unjustified.
True
Analytical anomalies are present in every fraud.
False
Fraud is usually detected by recognizing and pursuing:
A. Synonyms
B. Symptoms
C.Equity
D. Legends
Because of the nature of fraud, auditors are often in the best position to detect its occurrence.
False
Recording an expense is a possible way to conceal the theft of cash.
True
9/21/2026
1
, FRAUD EXAMINATION EXAM 2 09/21/2026
Auditors can best help detect fraud in conversion.
False
Which of the following is not a common internal control fraud symptom or problem?
A. Lack of segregation of duties
B.Unexplained adjustments to receivables, payables, revenues, or expenses
C. Lack of independent checks
D. Overriding of existing controls
Which of the following is not a reason people are hesitant to come forward with knowledge or
suspicions of fraud.
A. They often think that squealing on someone is wrong
B. They fear reprisal for being a whistle-blower
C.It is usually impossible to know for sure that a fraud is taking place
D. People who report fraud are often rewarded monetarily.
A check is an example of a source document
True
Nearly all individuals and organizations are subject to pressures and can rationalize
True
9/21/2026
Most people who commit fraud:
A. Use embezzled funds to build a savings account
2
, FRAUD EXAMINATION EXAM 2 09/21/2026
B. Give the embezzled funds to charity
C. Experience no change in their lifestyle
D. Use the embezzled funds to improve their lifestyle
E. None of the above
Fraud perpetrators often live beyond their means since their income does not support their lifestyle
True
Most people who commit fraud are under financial pressure
True
Internal control is composed of the control environment, the accounting system, and control procedures
(activities)
True
Which of the following is not a fraud symptom related to journal entries?
A. Unexplained adjustments to receivables, payables, revenues, or expenses
B. Journal entries that do not balance
C. Journal entries without documentary support
D. Journal entries made near the beginning of accounting periods
9/21/2026
A letter is most likely to be fraudulent if:
A. It is signed by only one person.
3
, FRAUD EXAMINATION EXAM 2 09/21/2026
B. It is addressed to an individual, rather than a department.
C. It is a photocopy of an original letter.
D. It is written on outdated company letterhead.
If a perpetrator has stolen assets, which of the following is the easiest method of concealing the theft?
A. Reduce liabilities (such as payables)
B. Manipulate dividend or stock accounts
C. Increase other assets (such as receivables)
D. Increase expenses
Most people who commit fraud use the embezzled funds to save for retirement.
False
Which of the following is a fraud syptom related to an internal control weakness?
A. Lack of proper authorization
B. Lack of independent checks
C. Inadequate accounting system
D. Lack of physical safeguards
E. All of the above
In the three elements of fraud (theft act, concealment, and conversion), who is usually in the best
position to detect the fraud?
A. Coworkers and managers
9/21/2026
B. Customers
C. Owners
4
