WGU C254 - Fraud and Forensic Accounting Questions and answers, 100% Accurate, Rated A+ 2024

What are three ratios that are useful for detecting Overstatement of Asset Fraud? - -1. Individual FA account balances/Total FAs 2. Total Def Chgs/Total Assets 3. Def Chg W-offs (amort)/Def Chg Bal What are the three categories of Fixed Assets? - -Property, Plant, and Equipment. (PP&E) What are three common ways to overstate Fixed Assets? - -1. Inflated amounts are recorded in nonarm's-length purchase transactions. 2. Assets are not "written-down" to their appropriate Book, Market, or Residual values. 3. Assets that simply do not exist are fictitiously recorded in the Financial Statement accounts. With regard to deferred charges that are capitalized, the most important question to ask is: - - Whether the costs are being incurred to generate future revenues or whether there is likelihood that sufficient future revenue will be generated against these costs. Which of the following provides the best statement regarding the means by which financial statement fraud gets started - -Financial reporting fraud is like starting down a slippery slope - once started, it is hard to stop, especially if the organization needs profits. Which victims typically suffer the harshest outcomes associated with asset fraud: - -1. Stockholders