1-A fraud examiner is examining a subscription magazine company. Which of the following schemes are they MOST concerned about the company perpetrating, given its industry? A. Failure to record liabilities B. Reporting revenue rather than a liability C. Failing to record contingencies D. Reporting a liability rather than revenue

2. Which of the following is a method that might be used to detect omitted expenses and liabilities? A. Perform a cut-off test whereby invoices, receiving documents, and cash disbursements are examined to determine if liabilities and expenses are recorded in the proper period. B. Examine checks that have cleared prior to year-end. C. Send confirmation to vendors that have a balance over a certain amount. D. Examine vendor complaints.

3- Which of the following actions are often taken to detect unrecorded contingencies? A. Analytical procedures on liability accounts details B. Accounting staff inquiries C. Examination of legal expense account details D. Obtaining a list of items under warranty

4- Per the Fraud Examiners Manual, which of the following is a reason management might fail to record or misstate liabilities and expenses? A. Assets that outweigh liabilities tends to make financial statement users look unfavorably at the company. B. The company has a high amount of debt. C. Management wants to decrease net income. D. Management wants to reduce the companys equity

5-Which of the following involves prematurely recognizing revenues? A. Recording revenues when a service has been performed B. Holding the books open C. Recording revenue over a period of time to fulfill sales related to multiple deliverables D. Shipping merchandise that has been prepaid