D550 Ethics for Accountants Review Exam
Questions With Correct Answers
a |deliberate |misrepresentation |to |gain |an |advantage |over |another |party |(or |have |them |do |
something |they |might |not |ordinarily |do) |- |CORRECT |ANSWER✔✔-Fraud
What |are |the |different |forms |of |fraud? |- |CORRECT |ANSWER✔✔-Fraud |in |the |FS, |the |
misappropriation |of |assets |(theft) |and |subsequent |cover |up, |and |disclosure |fraud
when |an |employee |steals |or |misuses |resources, |such |as |charging |personal |expenses |to |the |
company |card |while |traveling |on |business |trips |- |CORRECT |ANSWER✔✔-Asset |
Misappropriatiion |Schemes
include |misusing |one's |position |or |influence |in |an |organization |for |personal |gain |- |CORRECT |
ANSWER✔✔-Corruption |Schemes
What |was |the |most |common |detection |method |reported |in |2016 |ACFE |survey? |- |CORRECT |
ANSWER✔✔-a |tip |(43% |reported)
What |was |the |most |common |disciplinary |method |taken |in |occupational |fraud |cases |was? |- |
CORRECT |ANSWER✔✔-termination |(66%)
Fraud |red |flags |include: |- |CORRECT |ANSWER✔✔-- |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
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 |- |CORRECT |
ANSWER✔✔-ACFE |Study
Factors |that |discourage |the |reporting |of |fraud |according |to |report |from |anit-fraud |
collaboration |include: |- |CORRECT |ANSWER✔✔-- |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
Factors |that |discourage |employees |from |coming |forward |include: |- |CORRECT |ANSWER✔✔-- |
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
What |are |the |potential |consequences |for |reporting |suspected |fraud? |- |CORRECT |
ANSWER✔✔-- |retaliation |by |coworkers
- |termination |
- |future |reputation |
- |impact |on |others
- |results |of |investigation |determine |that |the |misconduct |unsustainable |
- |emotional |cost
occurs |when |an |employee, |typically |a |member |of |top |management, |causes |a |misstatement |or |
omission |of |material |in |the |organization's |financial |reports |- |CORRECT |ANSWER✔✔-FS |Fraud
What |are |some |examples |of |FS |fraud? |- |CORRECT |ANSWER✔✔-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)
What |are |the |elements |of |the |fraud |triangle |that |explain |why |FS |fraud |occurs? |- |CORRECT |
ANSWER✔✔-situational |pressure, |perceived |opportunity, |and |rationalization
What |does |the |organizations |culture |represent? |- |CORRECT |ANSWER✔✔-"how |we |do |things |
around |here"
, What |does |the |ethical |culture |represent? |- |CORRECT |ANSWER✔✔-"how |we |do |things |around |
here |in |relation |to |ethics |and |ethical |behavior |in |the |organization"
"occurs |when |any |organization |has |drifted |from |the |basic |principles |of |right |and |wrong" |- |
CORRECT |ANSWER✔✔-Ethical |Collapse |(according |to |Marianne |Jennings)
Who |wrote |"The |7 |signs |of |Ethical |Collapse"? |- |CORRECT |ANSWER✔✔-Marianne |Jennings
What |are |the |7 |signs |of |ethical |collapse? |- |CORRECT |ANSWER✔✔-1) |pressure |to |maintain |
numbers
2) |fear |and |silence
3) |young'uns |and |a |bigger |than |life |CEO |(loyalty |to |the |boss)
4) |weak |board |of |directors |
5) |conflicts |of |interest |overlooked |or |unaddresses
6) |innovation |like |no |other |company |(sometimes |too |much)
7) |goodness |in |the |some |areas |atones |for |evil |in |others
the |oldest |nonprofit |advancing |high |ethical |standards |and |practices |in |public |and |private |
institutions |- |CORRECT |ANSWER✔✔-Ethics |Resource |Center |(ERC)
a |memeber |driven |association |for |practitioners |responsible |for |their |organization's |ethics |and |
compliance |programs |- |CORRECT |ANSWER✔✔-Ethics |Compliance |and |Officer |Association |
(ECOA)
What |two |programs |joined |together |to |form |the |ECI |(Ethics |Compliance |Initiative)? |- |CORRECT |
ANSWER✔✔-ERC |(Ethics |Resource |Center) |and |ECOA |(Ethics |Compliance |and |Officer |
Association)
Questions With Correct Answers
a |deliberate |misrepresentation |to |gain |an |advantage |over |another |party |(or |have |them |do |
something |they |might |not |ordinarily |do) |- |CORRECT |ANSWER✔✔-Fraud
What |are |the |different |forms |of |fraud? |- |CORRECT |ANSWER✔✔-Fraud |in |the |FS, |the |
misappropriation |of |assets |(theft) |and |subsequent |cover |up, |and |disclosure |fraud
when |an |employee |steals |or |misuses |resources, |such |as |charging |personal |expenses |to |the |
company |card |while |traveling |on |business |trips |- |CORRECT |ANSWER✔✔-Asset |
Misappropriatiion |Schemes
include |misusing |one's |position |or |influence |in |an |organization |for |personal |gain |- |CORRECT |
ANSWER✔✔-Corruption |Schemes
What |was |the |most |common |detection |method |reported |in |2016 |ACFE |survey? |- |CORRECT |
ANSWER✔✔-a |tip |(43% |reported)
What |was |the |most |common |disciplinary |method |taken |in |occupational |fraud |cases |was? |- |
CORRECT |ANSWER✔✔-termination |(66%)
Fraud |red |flags |include: |- |CORRECT |ANSWER✔✔-- |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
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 |- |CORRECT |
ANSWER✔✔-ACFE |Study
Factors |that |discourage |the |reporting |of |fraud |according |to |report |from |anit-fraud |
collaboration |include: |- |CORRECT |ANSWER✔✔-- |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
Factors |that |discourage |employees |from |coming |forward |include: |- |CORRECT |ANSWER✔✔-- |
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
What |are |the |potential |consequences |for |reporting |suspected |fraud? |- |CORRECT |
ANSWER✔✔-- |retaliation |by |coworkers
- |termination |
- |future |reputation |
- |impact |on |others
- |results |of |investigation |determine |that |the |misconduct |unsustainable |
- |emotional |cost
occurs |when |an |employee, |typically |a |member |of |top |management, |causes |a |misstatement |or |
omission |of |material |in |the |organization's |financial |reports |- |CORRECT |ANSWER✔✔-FS |Fraud
What |are |some |examples |of |FS |fraud? |- |CORRECT |ANSWER✔✔-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)
What |are |the |elements |of |the |fraud |triangle |that |explain |why |FS |fraud |occurs? |- |CORRECT |
ANSWER✔✔-situational |pressure, |perceived |opportunity, |and |rationalization
What |does |the |organizations |culture |represent? |- |CORRECT |ANSWER✔✔-"how |we |do |things |
around |here"
, What |does |the |ethical |culture |represent? |- |CORRECT |ANSWER✔✔-"how |we |do |things |around |
here |in |relation |to |ethics |and |ethical |behavior |in |the |organization"
"occurs |when |any |organization |has |drifted |from |the |basic |principles |of |right |and |wrong" |- |
CORRECT |ANSWER✔✔-Ethical |Collapse |(according |to |Marianne |Jennings)
Who |wrote |"The |7 |signs |of |Ethical |Collapse"? |- |CORRECT |ANSWER✔✔-Marianne |Jennings
What |are |the |7 |signs |of |ethical |collapse? |- |CORRECT |ANSWER✔✔-1) |pressure |to |maintain |
numbers
2) |fear |and |silence
3) |young'uns |and |a |bigger |than |life |CEO |(loyalty |to |the |boss)
4) |weak |board |of |directors |
5) |conflicts |of |interest |overlooked |or |unaddresses
6) |innovation |like |no |other |company |(sometimes |too |much)
7) |goodness |in |the |some |areas |atones |for |evil |in |others
the |oldest |nonprofit |advancing |high |ethical |standards |and |practices |in |public |and |private |
institutions |- |CORRECT |ANSWER✔✔-Ethics |Resource |Center |(ERC)
a |memeber |driven |association |for |practitioners |responsible |for |their |organization's |ethics |and |
compliance |programs |- |CORRECT |ANSWER✔✔-Ethics |Compliance |and |Officer |Association |
(ECOA)
What |two |programs |joined |together |to |form |the |ECI |(Ethics |Compliance |Initiative)? |- |CORRECT |
ANSWER✔✔-ERC |(Ethics |Resource |Center) |and |ECOA |(Ethics |Compliance |and |Officer |
Association)
