LSU ACCT 4235 FINAL TEST QUESTIONS Newest
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Fraud is considered to be:
Ans: A serious problem that continues to grow.
Quiz Karen, a friend of yours, recently started her own business, The Bike and Boulder Company (B&B).
B&B specializes in the sales of mountain bikes and rock-climbing equipment. Karen is putting the
finishing touches on her company policies and procedures. She knows you are taking a fraud class and
asks you to review what she has completed thus far. You quickly notice that Karen has neglected to
address fraud and fraud prevention in her policies and procedures. What policies and procedures would
you suggest Karen implement to prevent and detect fraud at B&B?Which of the following fraud
prevention policies or procedures would you recommend to Karen with respect to hiring employees?
a. Require all applicants to certify that they have never committed employee fraud.
b. Verify all information on each applicant's resume and/or application.
c. Train those involved in the hiring process to conduct thorough background checks.
d.
Ans: b. Verify all information on each applicant's resume and/or application.
,Quiz True or False
Because ABC Company suffered large losses from fraud last year, senior management has decided to be
more proactive in implementing a fraud prevention environment. In interviewing employees, they found
that many employees were unclear about which behaviors were ethical and which were not.
Management is considering ways to better educate employees about ethical behavior.ABC Company's
human resources staff should develop a code of ethics to be read and signed by each employee having
supervisory responsibilities.
Ans: False
Quiz True or False
Nellie works for a large manufacturing company. She heads the information systems department and
works closely with the accounting department. Nellie knows a lot about the company's database
systems and accounting practices. Her responsibilities include working with the company's vendors to
create data communication lines. The company works with many vendors, including a large number of
new vendors that have been added due to the company's rapid growth. Recently, Nellie has become
concerned about the effectiveness of the internal controls in ensuring the integrity of the purchasing
function. She expressed her concerns to senior management and has been asked to recommend
proactive steps the company can take to prevent fraud from collusion between employees and
vendors.A periodic letter to vendors explaining an organization's policy of not allowing employees to
accept gifts or gratuities is an effective t
Ans: True
Quiz Robert was the chief teller in a large New York bank. Over a period of three years, he embezzled
$1.5 million. He took the money by manipulating dormant accounts. Robert was responsible both for
handling dormant accounts and for dealing with complaints from customers. When a customer would
complain about his account, Robert was always the one to explain the discrepancy. He usually used the
excuse that "it's a computer error."Which of the following control activities would most likely have
prevented this fraud?
a. Proper authorizations.
b. Physical safeguards over customer accounts.
c. Documents and records.
,d. Segregation of duties.
Ans: d. Segregation of duties.
Quiz Developing and promoting a well-defined corporate code of conduct is related to which element of
the fraud-fighting model?
Ans: Tone at the top
Quiz Fraud perpetrators:
a. Look like other criminals.
b. Have profiles that look like most honest people.
c. Are usually very young.
d. Are none of the above.
Ans: b. Have profiles that look like most honest people.
Quiz Ture or False
Two of the three elements in creating a positive work environment include assistance and honesty.
Ans: False
Quiz Which of the following is not one of the three elements of fraud?
a. Perceived pressure.
b. Perceived opportunity.
c. Rationalization.
, d. Intelligence
Ans: d. Intelligence
Quiz Which of the following is a common perceived pressure?
a. The ability to outsmart others.
b. Opportunity to cheat others.
c. A financial need.
d. The ability to "borrow" money by committing fraud.
Ans: c. A financial need.
Quiz Opportunity involves:
a. Opportunity to conceal fraud.
b. Opportunity to avoid being punished for fraud.
c. Opportunity to commit fraud.
d. All of the above.
e. None of the above.
Ans: d. All of the above.
Quiz Which of the following is not true of civil litigation?
Ans: It must be heard by 12 jurors.
Update) Actual Exam Questions with Verified
Answers A+ Graded ||100% Guaranteed A+
Fraud is considered to be:
Ans: A serious problem that continues to grow.
Quiz Karen, a friend of yours, recently started her own business, The Bike and Boulder Company (B&B).
B&B specializes in the sales of mountain bikes and rock-climbing equipment. Karen is putting the
finishing touches on her company policies and procedures. She knows you are taking a fraud class and
asks you to review what she has completed thus far. You quickly notice that Karen has neglected to
address fraud and fraud prevention in her policies and procedures. What policies and procedures would
you suggest Karen implement to prevent and detect fraud at B&B?Which of the following fraud
prevention policies or procedures would you recommend to Karen with respect to hiring employees?
a. Require all applicants to certify that they have never committed employee fraud.
b. Verify all information on each applicant's resume and/or application.
c. Train those involved in the hiring process to conduct thorough background checks.
d.
Ans: b. Verify all information on each applicant's resume and/or application.
,Quiz True or False
Because ABC Company suffered large losses from fraud last year, senior management has decided to be
more proactive in implementing a fraud prevention environment. In interviewing employees, they found
that many employees were unclear about which behaviors were ethical and which were not.
Management is considering ways to better educate employees about ethical behavior.ABC Company's
human resources staff should develop a code of ethics to be read and signed by each employee having
supervisory responsibilities.
Ans: False
Quiz True or False
Nellie works for a large manufacturing company. She heads the information systems department and
works closely with the accounting department. Nellie knows a lot about the company's database
systems and accounting practices. Her responsibilities include working with the company's vendors to
create data communication lines. The company works with many vendors, including a large number of
new vendors that have been added due to the company's rapid growth. Recently, Nellie has become
concerned about the effectiveness of the internal controls in ensuring the integrity of the purchasing
function. She expressed her concerns to senior management and has been asked to recommend
proactive steps the company can take to prevent fraud from collusion between employees and
vendors.A periodic letter to vendors explaining an organization's policy of not allowing employees to
accept gifts or gratuities is an effective t
Ans: True
Quiz Robert was the chief teller in a large New York bank. Over a period of three years, he embezzled
$1.5 million. He took the money by manipulating dormant accounts. Robert was responsible both for
handling dormant accounts and for dealing with complaints from customers. When a customer would
complain about his account, Robert was always the one to explain the discrepancy. He usually used the
excuse that "it's a computer error."Which of the following control activities would most likely have
prevented this fraud?
a. Proper authorizations.
b. Physical safeguards over customer accounts.
c. Documents and records.
,d. Segregation of duties.
Ans: d. Segregation of duties.
Quiz Developing and promoting a well-defined corporate code of conduct is related to which element of
the fraud-fighting model?
Ans: Tone at the top
Quiz Fraud perpetrators:
a. Look like other criminals.
b. Have profiles that look like most honest people.
c. Are usually very young.
d. Are none of the above.
Ans: b. Have profiles that look like most honest people.
Quiz Ture or False
Two of the three elements in creating a positive work environment include assistance and honesty.
Ans: False
Quiz Which of the following is not one of the three elements of fraud?
a. Perceived pressure.
b. Perceived opportunity.
c. Rationalization.
, d. Intelligence
Ans: d. Intelligence
Quiz Which of the following is a common perceived pressure?
a. The ability to outsmart others.
b. Opportunity to cheat others.
c. A financial need.
d. The ability to "borrow" money by committing fraud.
Ans: c. A financial need.
Quiz Opportunity involves:
a. Opportunity to conceal fraud.
b. Opportunity to avoid being punished for fraud.
c. Opportunity to commit fraud.
d. All of the above.
e. None of the above.
Ans: d. All of the above.
Quiz Which of the following is not true of civil litigation?
Ans: It must be heard by 12 jurors.
