Int. ACCT 1 - UARK – Rowe Final
Exam 2025 Questions with100%
Correct Answers (Graded A+)
Occupational Fraud - the use of one's occupation for personal enrichment through the deliberate
misuse or misapplication of the employer's resources
Fraud Triangle - opportunity, motivation, rationalization
Fraud Triangle: Opportunity - the situation allows the fraud to occur
Fraud Triangle: Rationalization - justification for the deceptive act by the one committing the fraud
Fraud triangle: Motivation - someone feels the need to commit fraud, such as the need for money
Internal controls attempt to eliminate - the opportunity for fraud
Internal controls represent plans to: - 1. safeguard the company's assets
2. improve the accuracy and reliability of accounting information
Cases of fraud that caused the Sarbanes Oxley Act of 2002 - Enron and WorldCom
Who does the Sarbanes-Oxley Act apply to? - Publicly traded companies; Companies that file with
the SEC
Sarbanes-Oxley Act of 2002 established guidelines related to: - Internal controls, auditor-client
relations
The overall attitudes and actions of management greatly affect the : - Control environment
,risk assessment - careful consideration of internal and external risk factors
Control Activities - Policies and procedures used to protect a companies assets
Monitoring of... - Internal controls needs to occur on an ongoing basis
Information and communication depend on... - the reliability of the accounting information system
itself.
Separation of duties example and what kind of control? - Preventive control; When a customer
comes into the theatre to watch a movie, the employee selling the movie ticket should not also be
the employee in charge of collecting the tickets. The employee recording the cash sale should not
also have direct access to company cash by filling in as a ticket cashier or being responsible for the
daily cash deposits
Physical Controls example and what kind of control? - Preventive control; keeping sale receipts in a
lockbox to prevent it getting lost or stolen
proper authorization example and what kind of control? - Preventive control; •For example, only
management should be authorized to make purchases over certain amounts.
Employee Management example and what kind of control? - Preventive control; : Employees should
be made fully aware of the company's internal control procedures, ethical responsibilities, and
channels for reporting irregular activities..
E-Commerce example and what kind of control? - Preventive control; only authorized personnel
should have passwords to conduct electronic business transactions
Reconciliations example what kind of control? - Detective control; •For example, accounting
personnel should routinely reconcile the company's cash records with those of its bank, and any
discrepancy should be investigated.
Performance Reviews example and type of control ? - Detective control; For example, the amount of
concessions sold should be compared to the number of tickets sold over a period of time. If
, concession sales are lower than expected for a given number of tickets, employees could be wasting
food, stealing snacks, or giving it to their friends for free.
Audits example and type of control? - detective control;•Many companies, such as those companies
listed on a stock exchange, are required to have an independent auditor attest to the adequacy of
their internal control procedures. Other companies can voluntarily choose each year to have an
auditor assess their internal
Responsibitilities for internal controls - Top executives (CEOS/CFOS) who take final responsibility for
their business.
If a company places cash receipts from the day in a safe or bank deposit box, this would be an
example of:
a.Separation of duties
b.Physical control
c.Reconciliation
d.Performance review - b.Physical control
Collusion - Two or more people acting in coordination to circumvent internal controls
cash equivalents - investments with an original maturity of three months or less (money market
funds, treasury bills and certificates of deposits.
Which of the following would NOT be considered a cash equivalent?
a.Credit card sales for the day
b.Debit card sales for the day
c.Checks received from customers
d.Certificate of deposit (CD) that matures one year from now - d.Certificate of deposit (CD) that
matures one year from now
What asset is most susceptible to fraudulent activities? - Cash
Things that effect Banks cash balance - checks outstanding, deposits outstanding, bank errors
Exam 2025 Questions with100%
Correct Answers (Graded A+)
Occupational Fraud - the use of one's occupation for personal enrichment through the deliberate
misuse or misapplication of the employer's resources
Fraud Triangle - opportunity, motivation, rationalization
Fraud Triangle: Opportunity - the situation allows the fraud to occur
Fraud Triangle: Rationalization - justification for the deceptive act by the one committing the fraud
Fraud triangle: Motivation - someone feels the need to commit fraud, such as the need for money
Internal controls attempt to eliminate - the opportunity for fraud
Internal controls represent plans to: - 1. safeguard the company's assets
2. improve the accuracy and reliability of accounting information
Cases of fraud that caused the Sarbanes Oxley Act of 2002 - Enron and WorldCom
Who does the Sarbanes-Oxley Act apply to? - Publicly traded companies; Companies that file with
the SEC
Sarbanes-Oxley Act of 2002 established guidelines related to: - Internal controls, auditor-client
relations
The overall attitudes and actions of management greatly affect the : - Control environment
,risk assessment - careful consideration of internal and external risk factors
Control Activities - Policies and procedures used to protect a companies assets
Monitoring of... - Internal controls needs to occur on an ongoing basis
Information and communication depend on... - the reliability of the accounting information system
itself.
Separation of duties example and what kind of control? - Preventive control; When a customer
comes into the theatre to watch a movie, the employee selling the movie ticket should not also be
the employee in charge of collecting the tickets. The employee recording the cash sale should not
also have direct access to company cash by filling in as a ticket cashier or being responsible for the
daily cash deposits
Physical Controls example and what kind of control? - Preventive control; keeping sale receipts in a
lockbox to prevent it getting lost or stolen
proper authorization example and what kind of control? - Preventive control; •For example, only
management should be authorized to make purchases over certain amounts.
Employee Management example and what kind of control? - Preventive control; : Employees should
be made fully aware of the company's internal control procedures, ethical responsibilities, and
channels for reporting irregular activities..
E-Commerce example and what kind of control? - Preventive control; only authorized personnel
should have passwords to conduct electronic business transactions
Reconciliations example what kind of control? - Detective control; •For example, accounting
personnel should routinely reconcile the company's cash records with those of its bank, and any
discrepancy should be investigated.
Performance Reviews example and type of control ? - Detective control; For example, the amount of
concessions sold should be compared to the number of tickets sold over a period of time. If
, concession sales are lower than expected for a given number of tickets, employees could be wasting
food, stealing snacks, or giving it to their friends for free.
Audits example and type of control? - detective control;•Many companies, such as those companies
listed on a stock exchange, are required to have an independent auditor attest to the adequacy of
their internal control procedures. Other companies can voluntarily choose each year to have an
auditor assess their internal
Responsibitilities for internal controls - Top executives (CEOS/CFOS) who take final responsibility for
their business.
If a company places cash receipts from the day in a safe or bank deposit box, this would be an
example of:
a.Separation of duties
b.Physical control
c.Reconciliation
d.Performance review - b.Physical control
Collusion - Two or more people acting in coordination to circumvent internal controls
cash equivalents - investments with an original maturity of three months or less (money market
funds, treasury bills and certificates of deposits.
Which of the following would NOT be considered a cash equivalent?
a.Credit card sales for the day
b.Debit card sales for the day
c.Checks received from customers
d.Certificate of deposit (CD) that matures one year from now - d.Certificate of deposit (CD) that
matures one year from now
What asset is most susceptible to fraudulent activities? - Cash
Things that effect Banks cash balance - checks outstanding, deposits outstanding, bank errors
