WGU D550 TASK TWO ETHICS FOR
ACCOUNTANTS ACTUAL CERTIFICATION
ASSESSMENT 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⩥ Fraud in the FS, the misappropriation of assets (theft) and subsequent
cover up, and disclosure fraud. Answer: What are the different forms of
fraud?
⩥ Asset Misappropriatiion Schemes. Answer: when an employee steals
or misuses resources, such as charging personal expenses to the
company card while traveling on business trips
⩥ Corruption Schemes. Answer: include misusing one's position or
influence in an organization for personal gain
⩥ a tip (43% reported). Answer: What was the most common detection
method reported in 2016 ACFE survey?
⩥ termination (66%). Answer: What was the most common disciplinary
method taken in occupational fraud cases was?
⩥ - living beyond means (42%)
,- financial difficulties (26%)
- unusually close association with vendor/customer
- control issues, unwillingness to share duties
- no behavioral red flags
- "wheeler-dealer" attitude
- irritability, suspiciousness, or defensiveness
- divorce/family problems
- addiction problems
- complained about inadequate pay
- excessve pressure from within the org
- refusal to take vacations
- past employment-related problems
- social isolation
- past legal problems
- complained about lack of authority
- excessive family/peer pressure for success
- other
- instability in life circumstances. Answer: Fraud red flags include:
⩥ ACFE Study. Answer: found that payroll schemes accounted for 9%
of the asset misappropriations, had a median cost of $62,000, and lasted
a median of 2 years before being detected
,⩥ - poor tone at the top
- dominating and intimidating personalities
- mistrust
- excessive team loyalty
- management doesnt want to hear about problems
- a lack of sound policies and procedures
- the perception that wrongdoing will not be addressed if misconduct is
reported. Answer: Factors that discourage the reporting of fraud
according to report from anit-fraud collaboration include:
⩥ - fear of the unknown
- fear that the report will not be handled anonymously or confidentially
- fear that the reporters identity will be revealed to other in the
organization
- concern that the person perpetrating the misconduct will not be held
responsible. Answer: Factors that discourage employees from coming
forward include:
⩥ - retaliation by coworkers
- termination
- future reputation
- impact on others
- results of investigation determine that the misconduct unsustainable
, - emotional cost. Answer: What are the potential consequences for
reporting suspected fraud?
⩥ FS Fraud. Answer: occurs when an employee, typically a member of
top management, causes a misstatement or omission of material in the
organization's financial reports
⩥ recording ficticious revenues, understating reported expenses,
artificially inflating reported assets, failing to accrue expenses at the end
of the year, and accelerating the recording of revenue into an earlier
period (timing differences). Answer: What are some examples of FS
fraud?
⩥ situational pressure, perceived opportunity, and rationalization.
Answer: What are the elements of the fraud triangle that explain why FS
fraud occurs?
⩥ "how we do things around here". Answer: What does the
organizations culture represent?
⩥ "how we do things around here in relation to ethics and ethical
behavior in the organization". Answer: What does the ethical culture
represent?
ACCOUNTANTS ACTUAL CERTIFICATION
ASSESSMENT 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⩥ Fraud in the FS, the misappropriation of assets (theft) and subsequent
cover up, and disclosure fraud. Answer: What are the different forms of
fraud?
⩥ Asset Misappropriatiion Schemes. Answer: when an employee steals
or misuses resources, such as charging personal expenses to the
company card while traveling on business trips
⩥ Corruption Schemes. Answer: include misusing one's position or
influence in an organization for personal gain
⩥ a tip (43% reported). Answer: What was the most common detection
method reported in 2016 ACFE survey?
⩥ termination (66%). Answer: What was the most common disciplinary
method taken in occupational fraud cases was?
⩥ - living beyond means (42%)
,- financial difficulties (26%)
- unusually close association with vendor/customer
- control issues, unwillingness to share duties
- no behavioral red flags
- "wheeler-dealer" attitude
- irritability, suspiciousness, or defensiveness
- divorce/family problems
- addiction problems
- complained about inadequate pay
- excessve pressure from within the org
- refusal to take vacations
- past employment-related problems
- social isolation
- past legal problems
- complained about lack of authority
- excessive family/peer pressure for success
- other
- instability in life circumstances. Answer: Fraud red flags include:
⩥ ACFE Study. Answer: found that payroll schemes accounted for 9%
of the asset misappropriations, had a median cost of $62,000, and lasted
a median of 2 years before being detected
,⩥ - poor tone at the top
- dominating and intimidating personalities
- mistrust
- excessive team loyalty
- management doesnt want to hear about problems
- a lack of sound policies and procedures
- the perception that wrongdoing will not be addressed if misconduct is
reported. Answer: Factors that discourage the reporting of fraud
according to report from anit-fraud collaboration include:
⩥ - fear of the unknown
- fear that the report will not be handled anonymously or confidentially
- fear that the reporters identity will be revealed to other in the
organization
- concern that the person perpetrating the misconduct will not be held
responsible. Answer: Factors that discourage employees from coming
forward include:
⩥ - retaliation by coworkers
- termination
- future reputation
- impact on others
- results of investigation determine that the misconduct unsustainable
, - emotional cost. Answer: What are the potential consequences for
reporting suspected fraud?
⩥ FS Fraud. Answer: occurs when an employee, typically a member of
top management, causes a misstatement or omission of material in the
organization's financial reports
⩥ recording ficticious revenues, understating reported expenses,
artificially inflating reported assets, failing to accrue expenses at the end
of the year, and accelerating the recording of revenue into an earlier
period (timing differences). Answer: What are some examples of FS
fraud?
⩥ situational pressure, perceived opportunity, and rationalization.
Answer: What are the elements of the fraud triangle that explain why FS
fraud occurs?
⩥ "how we do things around here". Answer: What does the
organizations culture represent?
⩥ "how we do things around here in relation to ethics and ethical
behavior in the organization". Answer: What does the ethical culture
represent?
