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Unformatted text preview: a. True b. False 35. Continuing presence of a firm's founder is a red flag of a poor management philosophy. a. True b. False 36. Obtaining national stock exchange listing status is not a major motive for fraud. a. True b. False 41. The FBI has developed a profile of a fraudster. a. True b. False 42. Firms sacrifice on the average 8 cents in additional income taxes per dollar by cooking their books. a. True b. False 45. The turmoil in the financial markets in 2008 and 2009 caused a number of pension funds to be underwater. a. True b. False 46. Behavioral psychologists call rationalizing white collar crime “reframing.” a. True b. False 47. Stamping down the desire to steal is an excellent way to prevent fraud. a. True b. False 48. Poor controls or missing controls cause loss of assets and poor business decisions. a. True b. False 52. Reconciliations of bank statements would be considered a detective control. a. True b. False 53. A drug testing program would be considered a preventive control. a. True b. False Page 7 of 44 ...
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This note was uploaded on 07/16/2010 for the course ACCOUNTING 2301 taught by Professor Norton during the Summer '10 term at Academy of Design Tampa.
- Summer '10