ACCT 2010 Exam 2 Review EXAM Questions &
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Terms in this set (53)
1. A weak internal control system is D.Opportunity
which element in the fraud triangle?
a. Rationalization
b. Attitude
c. Motive
d. Opportunity
2. Which of the following items is B.Its damages must exceed a threshold of
not true about fraud? $150,000
a. It is an intentional
misrepresentation of facts
b. Its damages must exceed a
threshold of $150,000
c. It is designed to persuade
another party to act in a way that
causes injury or damage to that
party
d. It can cause injury or damage to
another party
,3. Fictitious accounting entries are a. Fraudulent financial reporting
recorded that cause revenue to be
overstated by $5 million for the
year; the accounting manager was
trying to make the company's
income look better on the
company's upcoming loan
application. This type of fraud is:
a. Fraudulent financial reporting
b. GAAP disordering
c. IFRS misalignment
d. Asset misappropriation
4. Each of the following represents b. Clear lines of authority and communication
an internal control procedure
except for:
a. Limited access to both assets and
records
b. Clear lines of authority and
communication
c. Compliance monitoring
d. Separation of duties
5. As part of a strong internal d. Both A and C need to be separated from cash
control system, which of the handling
following accounting duties need
to be separated from cash
handling?
a. Record keeping
b. Filing
c. Transaction approval
d. Both A and C need to be
separated from cash handling
, 6. Having a corporate code of a. Control environment
ethics that prohibits employees
from accepting gifts from
customers or vendors is an example
of which component of internal
control?
a. Control environment
b. Control procedures
c. Information system
d. Risk Assessment
7. All of the following are objectives d. To maximize net income
of internal control except
a. To safeguard assets
b. To ensure accurate and reliable
accounting records
c. To comply with legal
requirements
d. To maximize net income
8. All of the following are internal b. Sarbanes-Oxley reforms
control procedures except
a. Adequate records
b. Sarbanes-Oxley reforms
c. Assignment of responsibility
d. Internal and external audits
9. Requiring that an employee with b. Separation of duties
no access to cash do the
accounting is an example of which
characteristic of internal control?
a. Monitoring of controls
b. Separation of duties
c. Assignment of responsibility
d. Competent and reliable
personnel
Answers | 100% Verified solutions | Latest!!
Save
Terms in this set (53)
1. A weak internal control system is D.Opportunity
which element in the fraud triangle?
a. Rationalization
b. Attitude
c. Motive
d. Opportunity
2. Which of the following items is B.Its damages must exceed a threshold of
not true about fraud? $150,000
a. It is an intentional
misrepresentation of facts
b. Its damages must exceed a
threshold of $150,000
c. It is designed to persuade
another party to act in a way that
causes injury or damage to that
party
d. It can cause injury or damage to
another party
,3. Fictitious accounting entries are a. Fraudulent financial reporting
recorded that cause revenue to be
overstated by $5 million for the
year; the accounting manager was
trying to make the company's
income look better on the
company's upcoming loan
application. This type of fraud is:
a. Fraudulent financial reporting
b. GAAP disordering
c. IFRS misalignment
d. Asset misappropriation
4. Each of the following represents b. Clear lines of authority and communication
an internal control procedure
except for:
a. Limited access to both assets and
records
b. Clear lines of authority and
communication
c. Compliance monitoring
d. Separation of duties
5. As part of a strong internal d. Both A and C need to be separated from cash
control system, which of the handling
following accounting duties need
to be separated from cash
handling?
a. Record keeping
b. Filing
c. Transaction approval
d. Both A and C need to be
separated from cash handling
, 6. Having a corporate code of a. Control environment
ethics that prohibits employees
from accepting gifts from
customers or vendors is an example
of which component of internal
control?
a. Control environment
b. Control procedures
c. Information system
d. Risk Assessment
7. All of the following are objectives d. To maximize net income
of internal control except
a. To safeguard assets
b. To ensure accurate and reliable
accounting records
c. To comply with legal
requirements
d. To maximize net income
8. All of the following are internal b. Sarbanes-Oxley reforms
control procedures except
a. Adequate records
b. Sarbanes-Oxley reforms
c. Assignment of responsibility
d. Internal and external audits
9. Requiring that an employee with b. Separation of duties
no access to cash do the
accounting is an example of which
characteristic of internal control?
a. Monitoring of controls
b. Separation of duties
c. Assignment of responsibility
d. Competent and reliable
personnel
