midterm exam - 1. Question: (TCO A) Peremptory refers to:...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Question: (TCO A) Peremptory refers to: Your Answer: Be there first. Not requiring any cause to be shown. One who strives to be the best. Take the place of. None of the above. Instructor Explanation: Chapter 1, page 1-4 Points Received: 0 of 4 Comments: 2. Question: (TCO A) Forensic accountants need an understanding of: Your Answer: Accounting. Law. Criminology. Investigative auditing. All of the above. Instructor Explanation: Chapter 2, page 2-3 Points Received: 4 of 4 Comments: 3. Question: (TCO A) Which would not be useful in searching for hidden assets? Your Answer: Looking at lifestyles of major players. Computing industry ratios. Comparing cash flow with income. Using the net worth method. None of the above. Instructor Explanation: Chapter 2, page 2-12 - they are all useful Points Received: 0 of 4 Comments: 4. Question: (TCO A) Which statement is false with respect to Howard M. Schilit's financial shenanigans? Your Answer: Five of the shenanigans boost current-yea earnings. Two of the shenanigans shift current-year
Background image of page 1

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

View Full DocumentRight Arrow Icon
earnings into the future. Recognizing current revenues as deferred revenues is one of the shenanigans. He suggested nine financial shenanigans. None of the above. Instructor Explanation: Chapter 3, page 3-14 Points Received: 4 of 4 Comments: 5. Question: (TCO A) Which of the following is a red flag for forensic accountants? Your Answer: Complex financial products. Recurring charges. Aggressive revenue recognition policies. Both a and c. None of the above. All of the above. Instructor Explanation: Chapter 3, page 3-29 Points Received: 4 of 4 Comments: 6. Question: (TCO A) What is an investigative technique used by the SEC to investigate specific companies for cooking the books? Your Answer: Lapping. Kiting. Wildcatting. CORRECT ANSWER Ghosting. Channeling. ( ) INCORRECT Instructor Explanation: Chapter 3, page 3-13 Points Received: 0 of 4 Comments: 7. Question: (TCO A) Which would be a detective control? Your Answer: Required approvals. Job rotation. Passwords. Surprise cash account. All of the above.
Background image of page 2
Instructor Explanation: Chapter 3, page 3-23 Points Received: 4 of 4 Comments: 8. Question: (TCO A) Which statement is false? Your Answer: SAS No. 99 indicates that auditors must be skeptical. Skepticism is an attitude that includes a questioning mind and a critical assessmen audit evidence. SAS No. 99 instructs auditors to question management about possible fraud. Tests of controls by auditors are sufficient auditors to catch fraud. None of the above. Instructor Explanation: Chapter 4, page 4-7 Points Received: 4 of 4 Comments: 9.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/01/2011 for the course ACCOUNTING ac574 taught by Professor Larson during the Spring '11 term at Everest University.

Page1 / 11

midterm exam - 1. Question: (TCO A) Peremptory refers to:...

This preview shows document pages 1 - 4. Sign up to view the full document.

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