Unformatted text preview: a. True b. False 66. Control related to the control environment is an entry‐level control. a. True b. False 68. Older women are more likely to report fraudulent activities. a. True b. False 69. An employee complaining about inadequate pay is a behavioral red flag for possible fraud. a. True b. False 70. Control risk is: a. A risk that a material error in the balance or transaction class will not be prevented or detected. b. The risk that an account or transactions contain material misstatements before the effects or the controls. c. The measure of whether something is significant enough to change an investor's investment decision is a prime consideration in how the audit is conducted. d. The risk that audit procedures will not turn up material error when it exists. e. None of the above. 71. Which is not one of the factors in SAS No. 99's pyramid of fraud? a. Incentives. b. Pressures. c. Opportunities. d. Attitudes/rationalization. e. All of the above are SAS No. 99 factors. 75. Which statement is false regarding SAS No. 99? a. SAS No. 99 places more emphasis on misappropriation of assets. b. SAS No. 82 was replaced by SAS No. 99. c. Three conditions are generally present when fraud occurs. d. Fraud is an intentional act that results in a material misstatement in financial statements. e. None of the above. 76. An example of rationalization, an essential element of fraudulent activity (e.g., the fraud triangle), would be: Page 18 of 44 ...
View Full Document
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