AUDITING A RISK BASED APPROACH 11TH BY EDITION KARLA M - Test Bank - UPDATED

Chapter 02

True / False

1. An example of fraudulent financial reporting is the CFO intentionally overstating sales to boost profits.

a. True

a. True

b. False

b. False

United States - BUSPROG: Comprehension

United States - AK - AICPA BB - Critical thinking

ANSWER: True

POINTS: 1

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: AUDI.JOHN.18.02.01

NATIONAL STANDARDS: STATE STANDARDS: TOPICS: Types of Fraud

DATE CREATED: 1/17/2018 3:00 AM

DATE MODIFIED: 1/20/2018 6:38 AM

2. Asset misappropriations are the primary fraud scheme in small businesses, and the perpetrators are usually the

owners.

a. True

a. True

b. False

b. False

ANSWER: False

POINTS: 1

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: AUDI.JOHN.18.02.01

NATIONAL STANDARDS: STATE STANDARDS: TOPICS: Types of Fraud

DATE CREATED: 1/17/2018 3:02 AM

DATE MODIFIED: 1/20/2018 6:38 AM

United States - BUSPROG: Comprehension

United States - AK - AICPA BB - Critical thinking

Copyright Cengage Learning. Powered by Cognero. Page 1Chapter 02

b. False

ANSWER: True

POINTS: 1

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: AUDI.JOHN.18.02.01

NATIONAL STANDARDS: STATE STANDARDS: United States - AK - TOPICS: Types of Fraud

DATE CREATED: 1/17/2018 3:04 AM

DATE MODIFIED: 1/20/2018 6:38 AM

3. Auditors need to consider fraud arising from misappropriation of assets and fraudulent financial reporting.

a. True

a. True

b. False

United States - BUSPROG: Comprehension

AICPA BB - Critical thinking

4. Fraud is an intentional act involving the use of deception that results in a misstatement of the financial statements.

a. True

a. True

b. False

b. False

ANSWER: True

POINTS: 1

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: AUDI.JOHN.18.02.01

NATIONAL STANDARDS: STATE STANDARDS: TOPICS: Definition of Fraud

DATE CREATED: 1/17/2018 3:06 AM

DATE MODIFIED: 1/20/2018 6:38 AM

United States - BUSPROG: Comprehension

United States - AK - AICPA BB - Critical thinking

Copyright Cengage Learning. Powered by Cognero. Page 2Chapter 02

b. False

ANSWER: False

POINTS: 1

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: AUDI.JOHN.18.02.01

NATIONAL STANDARDS: STATE STANDARDS: TOPICS: Types of Fraud

DATE CREATED: 1/17/2018 3:07 AM

DATE MODIFIED: 1/20/2018 6:38 AM

5. An example of fraudulent financial reporting is the treasurer's diversion of hundreds of thousands of dollars into a

personal money market account.

a. True

United States - BUSPROG: Comprehension

United States - AK - AICPA BB - Critical thinking

6. BruceCo. has accounted for the revenue of Jiffy Mac, Inc., one of its suppliers, as though it were its subsidiary.

BruceCo. has probably committed fraud because of its misapplication of consolidation principles.

a. True

b. False

ANSWER: True

POINTS: 1

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: AUDI.JOHN.18.02.01

NATIONAL STANDARDS: United States - BUSPROG: Comprehension

STATE STANDARDS: United States - AK - AICPA BB - Critical thinking

TOPICS: Types of Fraud

DATE CREATED: 1/17/2018 3:08 AM

DATE MODIFIED: 1/20/2018 6:38 AM