QUESTION 39

As the bookkeeper for Somewhat Healthy Foods, Inc., Ted stole $250,000 over four years (using an intricate lapping scheme). In cases such as this, it is common for the perpetrator to have developed a reputation as a/an ________________.

	a.	Substandard employee because they have a bad attitude and are disliked by co-workers
	b.	Average employee because they do what theyre supposed to do, but will not go the extra mile or put in overtime if needed
	c.	Model employee because they put in a lot of overtime and rarely take vacations
	d.	Dangerous individual because they often threaten people around them

2 points

QUESTION 40

The fraud scheme where a company ship products to customers too early or ships products that its customers in order to record additional revenue is known as

	a.	channel stuffing
	b.	improper capitalization
	c.	roundtripping
	d.	none of the above

2 points

QUESTION 41

Which of the following features in Excel can one use to summarize and present large amounts of data in order to see comparisons, patterns, and trends in the data?

	a.	Pivot table
	b.	Filter
	c.	Sorting
	d.	VLOOKUP

QUESTION 43

Companies can inflate income by decreasing depreciation expense. Companies can maniputate depreciation expense by:

	a.	increasing the useful life of the asset
	b.	decreasing the residual value of the asset
	c.	decreasing the useful life of the asset
	d.	increasing the cost of the asset

2 points

QUESTION 44

Whereas skimming schemes involve the theft of ___________, cash larceny schemes involve the theft of money ___________.

	a.	Checks only; and checks
	b.	Off-book funds; that has already appeared on a victim companys books
	c.	Cash at the point of sale; during the bookkeeping process
	d.	Company assets; with criminal intent

2 points

QUESTION 45

Many of the process controls applicable to paper-based information systems are analogous to the internal controls surrounding digital information systems. An information technology system (IT) audit consists of (1) planning, (2) test of controls, and (3) _____________.

	a.	Auditor training on specific systems with which the fraud examiner may be unfamiliar
	b.	Substantive tests
	c.	An audit plan whose scope limitations receive buy-in from the company
	d.	Establish a materiality threshold for IT errors that may be encountered

2 points

QUESTION 46

If the accounting duties associated with accounts receivable are properly __________ so that there are independent checks of all transactions, skimming payments is very difficult to commit and very easy to detect.

	a.	Regulated
	b.	Separated
	c.	Ordered
	d.	Documented

2 points

QUESTION 47

James, a Spanish citizen, works in the United States as the head of marketing for SpainCorp, a large Spanish company traded on NASDAQ. He learns that SpainCorp will win a large contract in North Africa if he approves a $200,000 payment to the responsible government official. What can Juan do under the FCPA?

	a.	Nothing Juan must refuse to send the payment.
	b.	Send the payment, because the FCPA doesn't cover foreign individuals or companies.
	c.	Telephone a SpainCorp representative in North Africa and tell him to handle the deal, because the FCPA doesn't apply outside the United States.
	d.	Document the payment as a miscellaneous expense before approving the deal.

QUESTION 49

Under current accounting guidance, which is the first step in the revenue recognition process?

	a.	Identify the contract with a customer
	b.	Identify the performance obligations in the contract
	c.	Determine the transaction price
	d.	Allocate the transaction price