Podcast
Questions and Answers
Fraud is an unintentional act involving the use of deception that results in a material misstatement of the financial statements.
Fraud is an unintentional act involving the use of deception that results in a material misstatement of the financial statements.
False (B)
Misstatements arising from misappropriation of assets and misstatements arising from fraudulent financial reporting are the major types of misstatements.
Misstatements arising from misappropriation of assets and misstatements arising from fraudulent financial reporting are the major types of misstatements.
True (A)
The elements of a fraud triangle include pressure, rationalization, and opportunity.
The elements of a fraud triangle include pressure, rationalization, and opportunity.
True (A)
The risk factors that contribute to misappropriation of assets are primarily related to employees' financial difficulties and personal vices.
The risk factors that contribute to misappropriation of assets are primarily related to employees' financial difficulties and personal vices.
The prevention and detection of fraud in a business enterprise is primarily the responsibility of the internal auditors.
The prevention and detection of fraud in a business enterprise is primarily the responsibility of the internal auditors.
Errors in recording sales can include using a wrong piece or wrong quantity, but not recording sales in the wrong period (cutoff errors).
Errors in recording sales can include using a wrong piece or wrong quantity, but not recording sales in the wrong period (cutoff errors).
Fraud in sales generally relates to misappropriation of assets, while fraud in cash collections relates to fraudulent financial reporting.
Fraud in sales generally relates to misappropriation of assets, while fraud in cash collections relates to fraudulent financial reporting.
Frauds in cash collections are typically accomplished by clerks or management-level employees.
Frauds in cash collections are typically accomplished by clerks or management-level employees.
The prevention and detection of fraud in a business enterprise is primarily the responsibility of the internal auditors.
The prevention and detection of fraud in a business enterprise is primarily the responsibility of the internal auditors.
Risk factors that contribute to misappropriation of assets are primarily related to employees' financial difficulties and personal vices.
Risk factors that contribute to misappropriation of assets are primarily related to employees' financial difficulties and personal vices.
Flashcards
Fraud Definition
Fraud Definition
An act involving deception resulting in financial misstatement.
Types of Misstatements
Types of Misstatements
Major types include misappropriation of assets and fraudulent financial reporting.
Fraud Triangle
Fraud Triangle
Elements include pressure, rationalization, and opportunity.
Risk Factors for Misappropriation
Risk Factors for Misappropriation
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Internal Auditors' Role
Internal Auditors' Role
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Sales Recording Errors
Sales Recording Errors
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Fraud in Sales vs. Collections
Fraud in Sales vs. Collections
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Clerks in Cash Collection Fraud
Clerks in Cash Collection Fraud
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