Which of the following is a pressure/motive to commit fraud? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Insufficient separation of duties b No physical or logical security system The fraudster believes he/she occupies a very important position of trust and is above the rules. d Employee owes massive debts to a loan shark What is the most prominent organizational weakness in fraud cases? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A lack of internal control b A lack of technological security measures A lack of data backup procedures d A lack of detective controls Which of these is NOT an Audit step as outlined in the lecture? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Planning b Risk Assessment Controls d Completion The number one red flag exhibited by fraud perpetrators is _. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Financial difficulties b Living beyond their means Wheeler-dealer attitude d Control issues Materiality can be based on which of the following benchmarks? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Total Assets b Net Income Revenue d All of the above Greg feels that taxation is theft and wants to lower the amount of taxes taken out of his paycheck. He falsely reports 9 dependents on his W4. This is an example of what? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Input fraud b Output fraud Data fraud Tom Cruise, a sales representative at Sake, Inc., feels that he is not paid enough to do the massive workload given to him every week. As such, he starts submitting fake sales orders to increase his commissions which he feels is justified given the circumstances. In terms of the fraud triangle, Tom is doing what? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Exploiting an Opportunity b Rationalizing his actions Succumbing to a Pressure d None of the above Which type of Fraud is most difficult to detect? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Misappropriation of Assets (Employee Fraud) b Fraudulent Financial Reporting (Management Fraud) What is the primary difference between fraud and errors in financial statement reporting? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The materiality of the misstatement. b The intent to deceive. The level of management involved. d The type of transaction affected. What is the most costly threat to companies on average? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Fraud b Unintentional Acts C Sabotage d Natural Disasters
