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Unformatted text preview: d. Adverse. e. Disclaimer. 116. Once a fraud is discovered, what is probably not a likely action? a. Pursue criminal prosecution. b. Bring civil action against the perpetrator. c. Internal disciplinary action. d. Pursue an insurance claim. e. None of the above. 117. Which is not an entity‐level control? a. Controls related to the control environment. b. Controls over management override. c. Controls to monitor results of operations. d. Controls over the period‐end financial reporting process. e. None of the above. 118. Which statement is false? a. Older employees are more likely to report fraudulent activities. b. Skepticism means that even trusted employees or executives may be a fraudster. c. Controls over management overrides are entity‐level controls. d. Auditors should use a bottom‐up approach to determine which controls to test. e. None of the above. 119. Which would not be a behavioral red flag? a. Close association with a vendor. b. Executive has a wheeler‐dealer attitude. c. Material weakness not corrected. d. Employee does not take vacations. e. None of the above. Chapter 5:
1. Misappropriation of assets means obtaining something of value or avoiding an obligation by deception. a. True b. False 2. The most common method of detecting occupational fraud is by internal auditors. a. True b. False 3. The second most common method of detecting occupational fraud is by accident. Page 25 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