final exm - Grade Details 1. Question: (TCO A) Which...

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Grade Details 1. Question: (TCO A) Which statement is false? Your Answer: The Public Oversight Board was an independent private sector body created in 1977. The Public Oversight Board's report recommended a number of forensic techniques to be included in audits. The Public Oversight Board's report occurred after the issuance of SAS No. 99. CORRECT ANSWER The Public Oversight Board's report suggested converting a traditional audit to a "fraud audit." All of the above are true. INCORRECT Instructor Explanation: Chapter 1, page 1-12 - report issued in 2000 Points Received: 0 of 4 2. Question: (TCO A) Peremptory refers to: Your Answer: Be there first. CORRECT 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: 4 of 4 3. Question: (TCO A) Which organization or group controls forensic accounting? Your Answer: ACFEI. Association of Certified Fraud Specialists. ACFE. NACVA. None of the above. CORRECT Instructor Explanation: Chapter 2, page 2-14. None of the current certification groups have been able to control forensic accountants. To an extent, forensic accounting is business's orphan, being pushed and pulled by the accounting, economics, finance, and valuation professions. Points Received: 4 of 4 4. Question: (TCO A) Which statement is false? Your Answer: The flexibility in GAAP gives management discretion to use its professional opinion to choose from a range of guidelines and standards in selecting those that suit the needs of a company (e.g., FIFO or LIFO inventory methods). Nonfraudulent earnings management is accomplished within the GAAP framework. Fraudulent earnings management does not follow GAAP. Transparency is one of the five interrelated components of internal controls. CORRECT ANSWER All of the above are true. INCORRECT Instructor Explanation: Chapter 3, page 3-28. Points Received: 0 of 4 5. Question: (TCO A) Control risk is: Your Answer:
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A risk that a material error in the balance or transaction class will not be prevented or detected. CORRECT The risk that an account or transactions contain material misstatements before the effects or the controls. 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. The risk that audit procedures will not turn up material error when it exists. None of the above. Instructor Explanation: Chapter 4, page 4-4. Points Received: 4 of 4 6. Question: (TCO A) Horizontal analysis typically involves what? Your Answer: Comparison of companies by market share in the industry. Comparison of cash value at a predictable moment in liquidity.
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final exm - Grade Details 1. Question: (TCO A) Which...

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