2. Which of the following is an advantage of skimming to the fraudster?

MULTIPLE CHOICE

		a. It results in large dollar amounts.
		b. It provides the fraudster with cash.
		c. It is difficult to detect.
		d. It is not considered a crime.

4. Requiring supervisory approval of writeoffs and discounts can help prevent accounts receivable skimming.

MULTIPLE CHOICE

True or False

6. The major weakness in a cash larceny scheme is:

MULTIPLE CHOICE

		a. The resulting imbalance in the organization's accounting records.
		b. It can be detected by trend analysis.
		c. The volume of cash transactions.
		d. The cash account is audited by the external audited.

7. John Post is the cashier and reconciles the bank account. He stole $2000 from a deposit. He may conceal this theft by:

MULTIPLE CHOICE

		a. Creating a false deposit in transit.
		b. Recording a false outstanding check.
		c. Recording a decrease in the inventory account.
		d. Removing a piece of equipment from the accounting records.

8. Which of the following is not a warning sign of a shell company scheme?

MULTIPLE CHOICE

		a. A vendor not listed in the phone book.
		b. Invoices lacking details of the items purchased.
		c. An unexpected and significant increase in consulting expense.
		d. An unreconciled bank account.

9. Which of the following is an internal control that could detect accounts receivable skimming through the use of a lapping scheme.

MULTIPLE CHOICE

		a. Using cash registers.
		b. All customers are given a receipt.
		c. A system of video cameras are used in the cash receipts area.
		d. All customers are sent a statement of their account.

10. If you suspect skimming of sales at the cash register which of the following would you check first?

MULTIPLE CHOICE

		a. Bank reconciliation.
		b. Check the cash register tape to note if there are many no sales.
		c. Balance the accounts receivable file to the control total.
		d. Examine the supporting documentation for the cash disbursements.

12. Which of the following is not a control that prevents/detects employees from stealing checks from the incoming mail.

MULTIPLE CHOICE

		a. Segregation of duties.
		b. Use of cameras.
		c. Proper authorization for credit memos and charge offs.
		d. Maintaining cash in a locked, secure area after it is counted.

13. In regard to skimming which of the following is true?

MULTIPLE CHOICE

		a. Skimming is easy to detect.
		b. Skimming is perpetrated after the cash is recorded.
		c. Skimming may be concealed by recording a fraudulent credit memo.
		d. Segregation of duties is not an effective control to prevent skimming.

14. Which of the following would be an indication of a possible accounts receivable lapping scheme?

MULTIPLE CHOICE

		a. Noting several large cash disbursements.
		b. Transfers between bank accounts near the year end date.
		c. Conducting a surprise count of cash on hand and noting an overage.
		d. Uncovering the fraudster's "second set" of books.

15. In reference to billing schemes which of the following is true?

MULTIPLE CHOICE

		a. Invoices that are submitted by shell companies are mostly for fictitious services.
		b. Most shell company schemes involve the purchase of goods rather than services.
		c. When a billing scheme is occurring, the company's expenses appear lower than they should, causing the financial statements to show inflated profits.