WGU D550 ETHICS FOR ACCOUNTANTS
EXAM SCRIPT VERIFIED QUESTIONS WITH
ACCURATE ANSWERS
●● 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
EXAM SCRIPT VERIFIED QUESTIONS WITH
ACCURATE ANSWERS
●● 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
