1. (TCO D) The review team should be aware of various management and operational techniques, which includes all of the following except:
2. (TCO F) Manually altering entries in an organization‘s books in order to conceal fraud is called:
3. (TCO F) During an interview, when an interviewee repeatedly fiddles with a pen or picks lint from her clothing, he/she is giving nonverbal clues called:
4. (TCO F) When the subject of an investigation has been accused of misconduct, establishing a morally acceptable rationalization might allow the accused to reconcile his actions with his conscience. Which of the following is not an example of an acceptable rationalization?
5. (TCO F) In one of the case studies in the Wells textbook (page 49), Brian Lee, a topnotch plastic surgeon, collected payments from his patients without giving a cut to the clinic where he practiced. What was his motivation for committing the fraud?
6. (TCO F) Nicolette Garrison works parttime at an independent record store. Whenever her friend, Jacob Barker, comes into the store during one of her shifts, he picks up a CD and brings it to the register where Nicolette is stationed. After ringing a no sale transaction on the cash register, Nicolette pretends to swipe Jacob's credit card for payment. She puts the CD in a bag and gives it to Jacob, who walks out without actually paying for the merchandise. What kind of scheme is being committed?
7. (TCO F) Which of the following is not a method used to conceal false shipments of inventory?
8. (TCO F) According to the 2009 Global Fraud Survey, the theft of which type of noncash asset was the least common but caused the highest median loss?
9. (TCO A) Benefits derived from operational reviews include
10. (TCO B) Financial ratios used in planning include:
11. (TCO AD) Creating staff assignment, budgets, specific audit steps is part of the _____ phase.
12. (TCO A) Operational areas eligible for review include:
13. (TCO F) Richard Moore is the controller for Ajax Company. Recently, he has suffered several large losses at the race track, causing him to incur enormous personal debts. Which type of nonsharable financial problem best describes Richard’s situation?
14. (TCO F) Research in the HollingerClark study suggests that the best way to deter employee theft is by:
15. (TCO F) Which of the following is not part of the fraud theory approach?
16. (TCO F) The technique for analyzing the percentage change in individual financial statement items from one accounting period to the next is known as:
17. (TCO F) In the Fraud Tree, asset misappropriations are broken down into cash and noncash schemes. Which of the following is not considered a misappropriation of cash?
18. (TCO A) _____ and converting cash allow a business to survive.
19. (TCO F) Which of the following is a method for concealing larceny of receivables?
20. (TCO F) Jeff Lewis is an accounts receivable clerk for FTB Industries. As customers pay off their balances, Lewis posts the payments but pockets the money. He can conceal his theft by
21. (TCO F) Which of the following is a reason that a Chief Executive Officer might commit financial statement fraud?
22. (TCO B) Information obtained during the course of planning includes:
1. (TCO A) Operational review procedures embrace the concept of conducting operations for economy, efficiency, and effectiveness. Provide a brief description of the ECONOMY aspect, and provide an example.
2. (TCO F) The 2010 Report to the Nations on Occupational Fraud and Abuse covered a number of factors that are related to occupational fraud. List and explain at least three of these factors.
3. (TCO F) Albrecht, in his research, developed the “fraud scale” and furnished a list of the reasons employees and executives commit occupational fraud. How are Albrecht’s conclusions similar to Cressey’s? How are they different?
4. (TCO F) How can fictitious revenue be created through the use of false sales to shell companies? Discuss the method and result of committing this fraud.