tif_ch11 - CHAPTER 11 Multiple-Choice Questions 1. easy b...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 11 Multiple-Choice Questions 1. easy Which of the following statements most appropriately defines fraud in a financial statement auditing context? b a. Fraud is an unintentional misstatement of the financial statements. b. Fraud is an intentional misstatement of the financial statements c. Fraud is either an intentional or unintentional misstatement of the financial statements. d. None of the above correctly defines fraud. 2. easy _____________ is an intentional misstatement or omission of amounts or disclosures with the intent to deceive others. a a. Fraudulent financial reporting b. Misappropriation of assets c. An error d. None of the above is correct 3. Which of the following is a category of fraud? easy a. Fraudulent financial reporting c b. Misappropriation of assets c. A and B d. Neither A nor B 4. _____________ is fraud that involves theft of an entity’s assets. easy a. Fraudulent financial reporting c b. A “cookie jar” reserve c. Misappropriation of assets d. Each of the above is correct 5. Which of the following is not one of the conditions for fraud as described in SAS No. 99? easy a. Attitudes/rationalization d b. Opportunities c. Incentives/pressures d. Each of the above is a condition for fraud. 6. Fraudulent financial reporting may be accomplished through the manipulation of easy a. assets d b. revenues c. liabilities d. all of the above 7. medium Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting? c a. Significant accounting estimates involving subjective judgments. b. Ineffective board of director oversight over financial reporting. c. Management’s practice of making overly aggressive forecasts. d. High turnover of accounting, internal audit and information technology staff. 11-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8. medium Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting? b a. Significant accounting estimates involving subjective judgments. b. Excessive pressure for management to meet debt repayment requirements. c. Management’s practice of making overly aggressive forecasts. d. High turnover of accounting, internal audit and information technology staff. 9. medium Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting? c a. Significant accounting estimates involving subjective judgments. b. Excessive pressure for management to meet debt repayment requirements. c. Management’s practice of making overly aggressive forecasts. d. High turnover of accounting, internal audit and information technology staff. 10. medium Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets? a
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

tif_ch11 - CHAPTER 11 Multiple-Choice Questions 1. easy b...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online