Unformatted text preview: c. Hard worker. d. Takes few or no vacations. e. All of the above are fraud identifiers. 74. Based upon KPMG studies, what factor is most likely to cause fraud? a. Management override. b. Employee collusion. c. High risk industry. d. Poor internal controls. e. Some other factor is most likely. 75. Employee fraud can be discovered by considering: a. Behavioral habits. b. Employee stress factors. c. Lifestyle of the employee. d. Assets owned by the employee. *e. All of the above. 76. COSO suggests which of the following are major motives for fraud? a. To obtain national stock exchange listing status. b. To cover up assets misappropriated for personal gain. c. To increase stock prices and benefit inside traders. d. All of the above. 78. What is an industry conditions risk factor? a. Company in a declining industry. b. Significant accounts based upon estimates. c. Significant related‐party transactions. d. Aggressive incentive programs. e. None of the above. 79. What is an operating and financial stability risk factor? a. New accounting requirements for the company. *b. Substance over form questions. c. Company declining in the industry. d. High degree of competition. e. All of the above. 80. What is an industry risk factor? a. Aggressive incentive programs. b. Significant related‐party transactions. c. New accounting requirements. d. Significant accounts based upon estimates. e. All of the above. Page 10 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