wonderful dinner. How can ISO proper disse REVIEW QUESTIONS 1. Why might senior manament owerstate or understate performance? 2. What are some of the ways in which financial statement committed? What is the conceptual framework for financial reporting? 4. What are the five classifications of financial statement fraud? 5. How are fictitious revenue schemes committed? What are the four chilera necessary for a sale How can understating liabilities and expenses more profitable? What issues are generally involved in improper How may improper asset valuation inflate the 10. How can financial statement fraud be deterred five major die MULTIPLE CHOICE QUESTIONS 1. Which of the following is a common reson why senior manageme might overstate or understate business performance? A. Pressures to boost revenues or expenses R. Improperly designed incentive (eg., bonus) packages C. High levels of personal det leading to a need for the executive to generate cash D. Desire to manage carnings until conditions improve Which of the following is nor one of the five mai financial statement fraud? A. Fictitious revenues B. Improper disclosures C. Concealed liabilities D. Channel stuffing 2. Which of the following is not a methodology by which financial statement fraud is committed? A. Manipulation of revenue B. Manipulation of asset valuations C. Manipulation of disclosures D. Manipulation of accounting regulations Which of the following is not a fictitious revenue sch A. Matching expenses to revenues B. Premature revenue recognition C. Conditional sales D. Channel stuffing 3. From the conceptual framework for financial reporting, which concept permits management to account for transactions in any manner they please? A. Materiality B. Consistency C. Historical cost D. None of the above 6. Given the four criteria necessary for a sale to become complete, whic following is not one of those conditions? A. Delivery has occurred or services rendered B. Cash has been collected. C. The sales price is fixed or determinable D. Documentation exists that can serve as evidence of 7. Or the following, choose the one that depicts a situation where and expenses are manipulated to make a company appear more A. Liabilities are capitalized to increase revenues B. Adelphia Communications fraud Module 5: Deterrence of Financial Statement Fraud c. Plure to record employee payroll carned but not paid as of periodend Failure to record warranty costs when the facts suggest that disclosure is more appropriate accounting treatment Related to financial reporting disclosures, even when reported, which the following still requires careful examination by the antifraud professional? A. Omitted liability disclosures B. Related party transactions C Accounting changes D. Management fraud Failing to record valuation impairment to property, plant, and equipment D. Capitalizing expenses as property, plant, and equipment 10. Which of the following is not likely to deter financial statement fraud? A. Reducing the amount of inventory on hand B. Establishing Board of Directors and Audit Committee oversight in line with antifraud best practices C. Segregation of duties for acquisition, payment, recordation, stewardship, and reporting of assets D. Establishing a whistleblower hotline and protections for whistleblowers Which improper asset valuation may inflate the current ratio? A. Valing inventory at current retail prices B. Accounting for declines in fair market value of inventory Chapter 7 All multiple choice please, thanks questions