A bank teller is experiencing pressure at home, with mortgage payments rapidly approaching and credit cards nearing their limit. The teller has the opportunity to borrow some of the banks cash to place a bet on a sure thing at the Saturday races with the intention of returning the cash to the bank on Monday morning.

This is an example of:

(i) pressure for fraud.

ii) Opportunity for fraud.

a. Only (i)

b. Only (ii)

c. Both (i) and (ii)

d. Neither (i) nor (ii)

There are three risk factors known as the fraud triangle that are generally present when a fraud is committed. Which of the following is not one of them?

a. Incentive or pressure to commit fraud.

b. Perceived opportunity to commit fraud.

c. Ability to rationalise the fraudulent action.

d. Ability to avoid being discovered.

The revenue cycle commences when:

a. a payment is received.

b. a sale is recorded.

c. a customer indicates they wish to purchase a good or service. d. a customer is billed.

The objective of the revenue cycle is to effectively:

a. conduct sales and arrange the prompt supply of goods and services.

b. conduct sales.

c. conduct, record, and monitor sales and arrange the prompt supply of goods and services.

d. conduct, record, and monitor sales.

The expenditure cycle commences when:

a. a section of the organisation signals a need for goods or services to be provided.

b. the goods or services that are acquired by a section of the organisation have been paid for.

c. purchase orders are appropriately authorised.

d. delivered goods are received.

Which of the following is NOT a concern of the expenditure cycle?

a. Only verified and high-quality suppliers are selected for purchases.

b. Payments match supplier invoice, purchase order and delivery docket.

c. Payments to suppliers are made by authorised employees

d. There are sufficient goods in the finished goods inventory to fulfil the customers order.

Within the payroll process of Hanks Ltd, which one of these combinations would be acceptable from the perspective of segregation of duties?

a. A payroll clerk is in charge of approving timesheets and reconciling payroll bank accounts.

b. A payroll clerk is in charge of processing and approving timesheets.

c. A payroll clerk is in charge of calculating total wages payable and calculating payroll liabilities.

d. A payroll clerk is in charge of approving timesheets and disbursing pay via direct debit.

AtoZRetail is a small organisation where it is not possible to completely segregate incompatible duties. Within the sales process of AtoZRetail Ltd, which one of these combinations would form the LEAST acceptable combination of duties?

a. A sales clerk is in charge of approving new cash customers and processing new sales orders.

b. A sales clerk is in charge of processing sales orders and maintaining the sales ledger.

c. A sales clerk is in charge of processing sales orders and changing unit prices within certain limits.

d. A sales clerk is in charge of processing sales orders and approving customer credit limits.

Before XBRL, external users of financial information:

a. manipulated PDF documents to obtain the information they wanted.

b. used decoding tools to obtain the information they wanted.

c. had to identify and re-input data before undertaking financial analysis.

d. all of the options are correct.

Common reports produced in the general ledger and financial reporting cycle include:

a. profitability analysis for the organisation or a division.

b. cost management analysis for decision-making.

c. analysis of profitability potential to guide future investment decisions.

d. all of the options are correct.