Unformatted text preview: e. None of the above. 68. The proving guilt pyramid does not contain this factor: a. Motive. b. Rationalization. c. Opportunity. d. Means. e. Both c and d. 69. The older fraud pyramid does not contain this factor: a. Means. b. Motive. c. Rationalization. d. Opportunity. e. Both c and d. 70. Which is not a factor, according to Professor Razaee, present in a company that explains the fraud triangle with respect to financial statement fraud? a. Conditions. b. Transparency. c. Corporate structure. d. Choice. e. Factors a and d. 71. COSA defines "internal controls" as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories except: a. A reasonable degree of transparency. b. Effectiveness and efficiency of operations. c. Reliability of financial reporting. d. Compliance with applicable laws and regulations. e. All of the above. 72. Which statement is false? a. The flexibility in GAAP gives management discretion to use its professional opinion to choose from a range of guidelines and standards in selecting those that suit the needs of a company (e.g., FIFO or LIFO inventory methods). b. Nonfraudulent earnings management is accomplished within the GAAP framework. c. Fraudulent earnings management does not follow GAAP. d. Transparency is one of the five interrelated components of internal controls. e. All of the above are true. 73. Which item would not be a fraud identifier to spot fraudsters? a. Large ego. b. Gambling addiction. Page 9 of 44 ...
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- Summer '10
- older fraud pyramid, d. Means. e., d. Opportunity. e., a. Motive. b., d. Choice. e.