D550 Ethics for Accountants Review questions with answers

D550 Ethics for Accountants Review |\ |\ |\ |\ |\




questions with answers |\ |\




a deliberate misrepresentation to gain an advantage over another party (or
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have them do something they might not ordinarily do) - CORRECT
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ANSWERS ✔✔Fraud |\




What are the different forms of fraud? - CORRECT ANSWERS ✔✔Fraud in
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the FS, the misappropriation of assets (theft) and subsequent cover up, and
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disclosure fraud |\




when an employee steals or misuses resources, such as charging personal
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expenses to the company card while traveling on business trips - CORRECT
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ANSWERS ✔✔Asset Misappropriatiion Schemes |\ |\ |\




include misusing one's position or influence in an organization for personal
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gain - CORRECT ANSWERS ✔✔Corruption Schemes
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What was the most common detection method reported in 2016 ACFE survey?
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- CORRECT ANSWERS ✔✔a tip (43% reported)
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What was the most common disciplinary method taken in occupational fraud
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cases was? - CORRECT ANSWERS ✔✔termination (66%)
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,Fraud red flags include: - CORRECT ANSWERS ✔✔- living beyond means
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(42%)

- financial difficulties (26%)
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- unusually close association with vendor/customer
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- control issues, unwillingness to share duties
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- no behavioral red flags
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- "wheeler-dealer" attitude
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- irritability, suspiciousness, or defensiveness
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- divorce/family problems
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- addiction problems
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- complained about inadequate pay
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- excessve pressure from within the org
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- refusal to take vacations
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- past employment-related problems
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- social isolation
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- past legal problems
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- complained about lack of authority
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- excessive family/peer pressure for success
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- other
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- instability in life circumstances
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found that payroll schemes accounted for 9% of the asset misappropriations,
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had a median cost of $62,000, and lasted a median of 2 years before being
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detected - CORRECT ANSWERS ✔✔ACFE Study
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,Factors that discourage the reporting of fraud according to report from anit-
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fraud collaboration include: - CORRECT ANSWERS ✔✔- poor tone at the top
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- dominating and intimidating personalities
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- mistrust
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- excessive team loyalty
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- management doesnt want to hear about problems
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- a lack of sound policies and procedures
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- the perception that wrongdoing will not be addressed if misconduct is
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reported



Factors that discourage employees from coming forward include: - CORRECT
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ANSWERS ✔✔- fear of the unknown |\ |\ |\ |\ |\




- fear that the report will not be handled anonymously or confidentially
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- fear that the reporters identity will be revealed to other in the organization
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- concern that the person perpetrating the misconduct will not be held
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responsible



What are the potential consequences for reporting suspected fraud? -
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CORRECT ANSWERS ✔✔- retaliation by coworkers|\ |\ |\ |\ |\




- termination
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- future reputation
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- impact on others
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- results of investigation determine that the misconduct unsustainable
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, - emotional cost
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occurs when an employee, typically a member of top management, causes a
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misstatement or omission of material in the organization's financial reports -
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CORRECT ANSWERS ✔✔FS Fraud |\ |\ |\




What are some examples of FS fraud? - CORRECT ANSWERS ✔✔recording
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ficticious revenues, understating reported expenses, artificially inflating
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reported assets, failing to accrue expenses at the end of the year, and
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accelerating the recording of revenue into an earlier period (timing
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differences)



What are the elements of the fraud triangle that explain why FS fraud occurs?
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- CORRECT ANSWERS ✔✔situational pressure, perceived opportunity, and
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rationalization



What does the organizations culture represent? - CORRECT ANSWERS
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✔✔"how we do things around here" |\ |\ |\ |\ |\




What does the ethical culture represent? - CORRECT ANSWERS ✔✔"how we
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do things around here in relation to ethics and ethical behavior in the
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organization"



"occurs when any organization has drifted from the basic principles of right
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and wrong" - CORRECT ANSWERS ✔✔Ethical Collapse (according to
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Marianne Jennings) |\