1-A company has entered into a contract that requires the purchase of 500 widgets at $5 per widget every month for the next three years. The company is: A. Not required to disclose this contract B. Not required to disclose this contract unless the market price of widgets drops below $5 C. Required to disclose this contract D. Only required to disclose this contract if the market price goes above $5

2- Which of the following is a means to detect unrecorded warranty, product, and environmental liabilities? A. Investigate employee complaints about a particular item. B. Ignore industry reports related to contamination. C. Examine inventory records to determine when an item was sold. D. Examine insurance coverage with third-party insurance carriers.

3-Approaches to detecting fraudulent off-balance sheet accounting arrangements include which of the following? A. Calculate the debt-to-equity ratio. B. Review related-party disclosures. C. Compare the relative usage of off-balance sheet entities to others in the industry. D. All of the above are correct.

4- The liquidity of a business is best observed through which of the following financial statements? A. Balance sheet B. Income statement C. Statement of retained earnings D. Statement of cash flows

5- In the notes to the financial statements, which of the following titles tells the reader what internal and external factors threaten a companys growth or existence? A. Investments B. Risk factors C. Business description D. Long-term debt and financing arrangements

6-Which of the following techniques might be used by fraud examiners to identify whether relationships among financial data appear reasonable? A. Compare current-period financial information to estimates based on future periods. B. Examine the relationships of line items in financial statements. C. Examine nonfinancial information with other sources of nonfinancial information. D. Compare information to that of dissimilar industries