Accounting assignment questions with answers

3) Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

1. A) revenge against the company
2. B) intent to repay "borrowed" funds in the future
3. C) sense of entitlement as compensation for receiving a lower than average raise
4. D) belief that the company won't suffer because an insurance company will reimburse losses

Answer: A

4) Identify the opportunity below that could enable an employee to commit fraud.

1. A) An employee's spouse loses her job.
2. B) An employee has a close association with suppliers or customers.
3. C) An employee suddenly acquires lots of credit cards.
4. D) An employee is upset that he was passed over for a promotion.

Answer: B

5) Why is computer fraud often much more difficult to detect than other types of fraud?

1. A) because massive fraud can be committed in only seconds, leaving little-to-no evidence
2. B) because most perpetrators invest their illegal income rather than spend it, concealing key evidence
3. C) because most computer criminals are older and more cunning than perpetrators of other types of fraud
4. D) because perpetrators usually only steal very small amounts of money at a time, requiring a long period of time to pass before discovery

Answer: A

6) Which of the following will not reduce the likelihood of an occurrence of fraud?

1. A) encryption of data and programs
2. B) use of forensic accountants
3. C) adequate insurance coverage
4. D) required vacations and rotation of duties

Answer: C

7) Which of the following is not a way to reduce fraud losses?

1. A) Conduct periodic external and internal audits.
2. B) Maintain adequate insurance.
3. C) Use software to monitor system activity.
4. D) Store backup copies of program and data files.

Answer: A

8) _____ is a simple, yet effective, method for catching or preventing many types of employee fraud.

1. A) Requiring all employees to take annual vacations
2. B) Monitoring employee bank accounts and net worth
3. C) Monitoring employee behavior using video cameras
4. D) Explaining that fraud is illegal and will be severely punished to employees

Answer: A

9) Intentional or reckless conduct that results in materially misleading financial statements is called

1. A) financial fraud.
2. B) misstatement fraud.
3. C) fraudulent financial reporting.
4. D) audit failure fraud.

Answer: C

10) Excessive heat is an example of a(n) ________ threat.

1. A) natural and political disasters
2. B) software errors and equipment malfunctions
3. C) unintentional acts
4. D) system inefficiency

Answer: A