1)

Most cases of fraudulent financial reporting involve:

A)

overstatement of assets.

B)

omission of expenses.

C)

omission of liabilities.

D)

all of the above

2)

An intentional misstatement or omission of amounts or disclosures with the intent to deceive users is known as:

A)

erroneous financial reporting.

B)

fraudulent financial reporting.

C)

negligent auditing practice.

D)

fraudulent audit practice.

3)

Fraud that involves theft of an entity's assets is called:

A)

asset stripping.

B)

management fraud.

C)

employee fraud.

D)

misappropriation of assets.

4)

'Earnings management' involves deliberate actions taken by management to meet earnings objectives. 'Profit smoothing' is:

A)

an acceptable accounting policy, just like earnings management.

B)

an acceptable accounting policy, unlike earnings management.

C)

the reverse of earnings management.

D)

a form of earnings management aimed at reducing periodic fluctuations in earnings