CBAD 201 - CHAPTER 4 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
The two most common types of fraud impacting financial statements are misappropriation of assets
and fraudulent financial reporting. - Answers True
Which of the following terms is not part of the fraud triangle? - Answers Conspiracy
The primary way that fraud is detected, prevented, or corrected is through a proper system of
internal control. - Answers True
Which of the following items is not an objective of an internal control system? (Select all that apply.) -
Answers Ensure maximum profitability
Payments by check or EFT represent an important internal control. - Answers True
When a company receives customers' checks by mail: - Answers all incoming mail containing checks
from customers should be opened by the mailroom.
How are outstanding checks handled in a bank reconciliation? - Answers Deducted from the bank
balance
How is interest revenue handled in a bank reconciliation? - Answers Added to the book balance
After changing the amount of a legitimate business expense receipt from $70 to $90, Sidney Block
submits the receipt for reimbursement from her company. This situation is an example of a(n) -
Answers overstated expense
Claire Nestor is reimbursed for office supplies by a nonprofit organization where she volunteers and
then submits the same office supplies expense for reimbursement by her employer, C & R
Corporation. - Answers multiple reimbursements
Frank Masterton submits a taxi receipt for reimbursement and writes in a larger tip on the receipt
than actually paid. - Answers overstated expense
Cassy Gerber visits fakereceipts.com and creates a receipt for dinner at a restaurant. She submits the
receipt for reimbursement by her employer. - Answers fictitious expense
Xavier Meyers submits a theme park admission receipt for reimbursement. Xavier claims that the visit
to the theme park was a business meeting. Xavier went to the park with family members, not with
business associates or customers. - Answers mischaracterized expense
Tina Stokar takes a receipt for office supplies that a friend bought and submits the receipt for
reimbursement as her own expense. - Answers fictitious expense
Danny Charleston took his company-owned vehicle in for an engine repair. Danny alters the
submitted receipt to be $450 rather than the actual $150. - Answers overstated expense
A fraud scheme in which an employee makes a claim for reimbursement for expenses that are not
legitimate is ___________________________. - Answers Expense reimbursement fraud
Fake receipts that appear to be genuine submitted for expense reimbursement are
_________________. - Answers Fictitious expenses
Personal expenses submitted for expense reimbursement as business expenses are
____________________. - Answers Mischaracterized expenses
Expenses that are submitted for reimbursement more than once are classified as
___________________. - Answers Multiple reimbursements
_________________________are receipts that have been inflated above the amount of the
legitimate expense. - Answers Overstated expenses
______________________ consists of highly organized data which follow the same pattern and are
easily searchable. - Answers Structured data
Data that have no pre-defined organization or format and are difficult to search are
____________________. - Answers Unstructured data
Identify the internal control weakness in each situation. State how the person can hurt the company. -
Answers Chen prepares the purchase order and also receives the goods. She can add some items to
the purchase order and have them shipped to a location she controls. When the goods come in, she
checks the incoming shipment, so
there is no outside party to learn of her dishonesty
Identify the internal control weakness in each situation. State how the person can hurt the company. -
Answers Frabotta has access to the cash collected, and she also prepares the cash report. With access
to the cash collected and reported, Frabotta can steal cash and falsify her cash report to conceal her
theft.
All of the following are internal control procedures except - Answers Sarbanes-Oxley reforms
The two most common types of fraud impacting financial statements are misappropriation of assets
and fraudulent financial reporting. - Answers True
Which of the following terms is not part of the fraud triangle? - Answers Conspiracy
The primary way that fraud is detected, prevented, or corrected is through a proper system of
internal control. - Answers True
Which of the following items is not an objective of an internal control system? (Select all that apply.) -
Answers Ensure maximum profitability
Payments by check or EFT represent an important internal control. - Answers True
When a company receives customers' checks by mail: - Answers all incoming mail containing checks
from customers should be opened by the mailroom.
How are outstanding checks handled in a bank reconciliation? - Answers Deducted from the bank
balance
How is interest revenue handled in a bank reconciliation? - Answers Added to the book balance
After changing the amount of a legitimate business expense receipt from $70 to $90, Sidney Block
submits the receipt for reimbursement from her company. This situation is an example of a(n) -
Answers overstated expense
Claire Nestor is reimbursed for office supplies by a nonprofit organization where she volunteers and
then submits the same office supplies expense for reimbursement by her employer, C & R
Corporation. - Answers multiple reimbursements
Frank Masterton submits a taxi receipt for reimbursement and writes in a larger tip on the receipt
than actually paid. - Answers overstated expense
Cassy Gerber visits fakereceipts.com and creates a receipt for dinner at a restaurant. She submits the
receipt for reimbursement by her employer. - Answers fictitious expense
Xavier Meyers submits a theme park admission receipt for reimbursement. Xavier claims that the visit
to the theme park was a business meeting. Xavier went to the park with family members, not with
business associates or customers. - Answers mischaracterized expense
Tina Stokar takes a receipt for office supplies that a friend bought and submits the receipt for
reimbursement as her own expense. - Answers fictitious expense
Danny Charleston took his company-owned vehicle in for an engine repair. Danny alters the
submitted receipt to be $450 rather than the actual $150. - Answers overstated expense
A fraud scheme in which an employee makes a claim for reimbursement for expenses that are not
legitimate is ___________________________. - Answers Expense reimbursement fraud
Fake receipts that appear to be genuine submitted for expense reimbursement are
_________________. - Answers Fictitious expenses
Personal expenses submitted for expense reimbursement as business expenses are
____________________. - Answers Mischaracterized expenses
Expenses that are submitted for reimbursement more than once are classified as
___________________. - Answers Multiple reimbursements
_________________________are receipts that have been inflated above the amount of the
legitimate expense. - Answers Overstated expenses
______________________ consists of highly organized data which follow the same pattern and are
easily searchable. - Answers Structured data
Data that have no pre-defined organization or format and are difficult to search are
____________________. - Answers Unstructured data
Identify the internal control weakness in each situation. State how the person can hurt the company. -
Answers Chen prepares the purchase order and also receives the goods. She can add some items to
the purchase order and have them shipped to a location she controls. When the goods come in, she
checks the incoming shipment, so
there is no outside party to learn of her dishonesty
Identify the internal control weakness in each situation. State how the person can hurt the company. -
Answers Frabotta has access to the cash collected, and she also prepares the cash report. With access
to the cash collected and reported, Frabotta can steal cash and falsify her cash report to conceal her
theft.
All of the following are internal control procedures except - Answers Sarbanes-Oxley reforms
