CBAD 201 EXAM 2 PRACTICE
QUESTIONS AND ANSWERS GRADED A+
2025/2026
A weak internal control system is which element in the fraud triangle
a. attitude
b. motive
c. opportunity
d. rationalization - ANS opportunity
which of the following is not true about fraud
a. it can cause injury or damage to another party
b. it is intentional misrepresentation of facts
c. its damages must exceed a threshold of 1$50000
d. it is designed to persuade another party that causes damage or injury to that party - ANS c
ficticious accounting entries are recorded that cause revenue to be overstated by 5 million for
the year; the accounting manager was trying to make the company's income look better on the
company's upcoming loan application. This type of fraud is;
a. asset appropriation
b. fraudulent financial reporting
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, c. GAAP disordering
d. IFRS misalignment - ANS b
each of the following represents an internal control procedure except
a. separation of duties
b. limited access to both assets and records
c. compliance monitoring
d. clear lined of authority and communication - ANS d
as part of a strong internal control system which of the following accounting duties needs to be
separated from cash handling
a. record keeping
b. filing
c. transaction approval
d. a and c - ANS d
having a corporate code of ethics that prohibits employees from accepting gifts from customers
or vendors is an example of which component of internal controls
a. control environment
b. risk assessment
c. control procedures
d. information environment - ANS a
which law or regulation requires that public companies must maintain strong internal control
systems
a. Dodd frank act
b. Sarbanes-Oxley act
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
A weak internal control system is which element in the fraud triangle
a. attitude
b. motive
c. opportunity
d. rationalization - ANS opportunity
which of the following is not true about fraud
a. it can cause injury or damage to another party
b. it is intentional misrepresentation of facts
c. its damages must exceed a threshold of 1$50000
d. it is designed to persuade another party that causes damage or injury to that party - ANS c
ficticious accounting entries are recorded that cause revenue to be overstated by 5 million for
the year; the accounting manager was trying to make the company's income look better on the
company's upcoming loan application. This type of fraud is;
a. asset appropriation
b. fraudulent financial reporting
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, c. GAAP disordering
d. IFRS misalignment - ANS b
each of the following represents an internal control procedure except
a. separation of duties
b. limited access to both assets and records
c. compliance monitoring
d. clear lined of authority and communication - ANS d
as part of a strong internal control system which of the following accounting duties needs to be
separated from cash handling
a. record keeping
b. filing
c. transaction approval
d. a and c - ANS d
having a corporate code of ethics that prohibits employees from accepting gifts from customers
or vendors is an example of which component of internal controls
a. control environment
b. risk assessment
c. control procedures
d. information environment - ANS a
which law or regulation requires that public companies must maintain strong internal control
systems
a. Dodd frank act
b. Sarbanes-Oxley act
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
