Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer.

1) In a typical misappropriation, the perpetrator .

A)gains the trust or confidence of the entity being defrauded

B) buddiest uses trickery, cunning, or false or misleading information to commit fraud

C)does not make an attempts to conceal the fraud

D).terminates the fraud as soon as the desired amount of money is taken to avoid detection

E).saves a large portion of the stolen money

F).gets greedy and takes ever-larger amounts of money or grows careless or overconfident, leading to a mistake that leads to the frauds detection

2.Which of the following actions did the Treadway Commission recommend to reduce fraudulent financial reporting?

A)Establish financial incentives that promote integrity in the financial reporting process.

B)Identify and understand the factors that lead to fraudulent financial reporting.

C)Assess the risk of corruption and misappropriation of assets within the company.

D)Design and implement internal controls to provide reasonable assurance of preventing fraudulent financial reporting.

3.SAS No. 99 requires auditors to .

A)understand fraud and why it is committed

B)limit discussion among audit team members of how and where the companys financial statements have been susceptible to fraud in prior years, due to confidentiality concerns

C)identify, assess, and respond to risks by varying the nature, timing, and extent of audit procedures

D)evaluate the results of their audit tests to determine whether misstatements indicate the presence of fraud

E)document and communicate findings to the general public

F.Tlimit the use of technology in the audit due to managements ability to change or manipulate electronic records

(4) Which of the following statements is (are) TRUE about computer fraud perpetrators?

A)They are typically younger and are motivated by curiosity, the challenge of beating the system, and gaining stature in the hacking community.

B)They do not see themselves as criminals and rarely, if ever, seek to turn their actions into money.

C)They write and sell malicious software that infects computers with viruses or can be used to steal money or data that can be sold.

D)They are a top FBI priority because they organize fraud schemes targeted at specific individuals and businesses.

5)Which of the following statements is (are) TRUE?

A)To prevent detection when an asset is stolen, the perpetrator must inflate liabilities or decrease assets.

B)Committing a fraud almost always takes more effort and time than concealing it.

C}Perpetrators can hide an asset theft by charging the stolen item to an expense account.

D) lapping scheme is used to commit a fraud but not to conceal it.

E)An individual can hide the theft of cash using a check-kiting scheme.