20. Jim was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting a thorough investigation, he went and gave all the details to a local newspaper agency. The next day Jim read his own story, with his own name, in the newspaper. Which of the following is correct? a. The company did the right thing by publishing Jim's identity in the newspaper because it punished him for stealing as well as served a warning to his neighbors who might also be at the risk of being defrauded. b. The company should not have put Jim's name and story in the paper because when other employees will come to know about it, they might leave the organization. C. Jim may have been misrepresented in the story by the newspaper agency and the company might face legal consequences. d. Publishing the story in the newspaper was a wrong thing to do because Jim's family will be embarrassed. Implementing a system of independent checks is one of the most effective ways to deter fraud. Which one of the following is NOT a way of providing independent checks on employees? a. Employee transfers b. Audits 21. c. Mandatory vacations d. Authorization required for purchases of over $2,000 or more There are three simple procedures that small business owners should do on a timely basis to prevent fraud when they can't afford sufficient employees to guarantee effective segregation of duties. Which of the following is NOT one among them? a. Pay everything by check so that there is a record. b.Always open the bank statement and reconcile it themselves. c. Allow one key employee to operate the bank account personally. d. Sign every check themselves and not delegate the signing to anyone else. 22 Fraud examiners must be able to recognize signals that a journal entry may have been manufactured to conceal a fraud. Which of the following is a common journal entry fraud symptom? a. Journal entries with documentary support b. Journal entries that balance 23. c. Adjustments to receivables or payables that are made monthly d. Journal entries made near the end of an accounting period