Fraud HW 2 - Chapters 4-5.11 - Homework #2 Chapters 4 5, 11...

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Homework #2 Name: _______________________ Chapters 4 – 5, 11 Section: ___________________ True/False 1. Not prosecuting fraud perpetrators is cost-effective both in the short run and the ` long run 2. Employee transfers, audits, and mandatory vacations are all ways to provide independent checks on employees 3. Because of the nature of fraud, auditors are often in the best position to detect its occurrence 4. According to the 1999 COSO study of fraudulent financial reporting, the most common method used to perpetrate financial statement fraud includes overstating of liabilities 5. The Chief Executive Officer (CEO) of a company is most likely to be the perpetrator of financial statement fraud Multiple Choice 1. The “tone at the top” is an important element in fighting fraud. This tone at the top involves: a) Doing a good job of integrity risk assessment b) Having a positive organization where effective fraud teaching and training is conducted c) Setting a proper example or modeling appropriate management behavior d) Both b and c 2. is usually the single most effective tool in preventing and detecting fraud a) Monitoring employees b) Having a good system of internal controls c) Having a well-written company code of ethics d) Strict hiring procedures
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Fraud HW 2 - Chapters 4-5.11 - Homework #2 Chapters 4 5, 11...

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