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Unformatted text preview: a. True b. False 68. Which statement is false? a. Accountants are perhaps the most valuable employee‐fraud fighters. b. Fighting fraud calls for prevention as the first step and the preferred tactic. c. Government entities are generally not targets for fraudsters. d. Often misappropriation is accomplished by false or misleading records or documents. e. None of the above. 69. The most common method of detecting occupational fraud is: a. External auditors. b. Internal auditors. c. Accident. d. Tips. e. Some other method. 70. A company has a 22% profit margin and has employee fraud of $220,000. Calculate the additional revenue needed to offset this lost income. a. $540,000. b. $720,000. c. $820,000. d. $1,000,000. e. Some other amount. 71. You are told that a company has a 20% profit margin and the discovered fraud has caused $1,400,000 more needed revenue to cover the fraud. How much was stolen? a. $280,000. b. $560,000. c. $1,400,000. d. $7,000,000. e. Some other amount. 72. Which is an incorrect statement? a. Cash flow analysis may indicate fraud and embezzlement. b. Cash is the favorite target of fraudsters. c. Gross profit analysis may catch skimming and money laundering. d. Theft is similar to embezzlement. e. None of the above is incorrect. 73. Which technique is considered to be an "off‐book" fraud? a. Skimming. Page 32 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