Strayer University, Washington DC ACC 403 Quiz 5 Chp 10-11

 Question 1
 
  Which of the following components of the control environment define the existing lines of responsibility and authority?
   
 Question 2
 
  Which of the following is responsible for establishing a private company's internal control?
   
 Question 3
 
  Reasonable assurance allows for:
   
 Question 4
 
  Narratives, flowcharts, and internal control questionnaires are three common methods of:
   
 Question 5
 
  Internal controls normally include procedures designed to provide reasonable assurance that:
   
 Question 6
 
  Proper segregation of functional responsibilities calls for separation of:
   
 Question 7
 
  When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be:
   
 Question 8
 
  The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on:
   
 Question 9
 
  When determining what type of report to issue on internal control under Section 404:
   
 Question 10
 
  Internal controls:
   
 Question 11
 
  Two key concepts that underlie management's design and implementation of internal control are:

   
 Question 12
 
  The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:
   
 Question 13
 
  A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:
   
 Question 14
 
  Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the:
   
 Question 15
 
  Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?
   
 Question 16
 
  A company is concerned with the theft of cash after the sale has been recorded. One way in which fraudsters conceal the theft is by a process called "lapping." Which of the following best describes lapping?
   
 Question 17
 
  Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:
   
 Question 18
 
  Fictitious revenues:
   
 Question 19
 
  Misappropriation of assets is normally perpetrated by:
 Question 20
 
  When assessing the risk for fraud, the auditor must be cognizant of the fact that:
   
 Question 21
 
  Two of the most useful warning signals that can indicate that revenue fraud is occurring are:
 Question 22

  Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?
   
 Question 23
 
  Most cases of fraudulent reporting involve:
   
 Question 24
 
  Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?
   
 Question 25
 
  Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?
   
 Question 26
 
  Company management is often under pressure to increase revenue and/or net income. One approach is to use a "bill and hold" arrangement. This is an example of which of the following?
   
 Question 27
 
  Which of the following is not a factor that relates to opportunities to misappropriate assets?
   
 Question 28
 
  Who is most likely to perpetrate fraudulent financial reporting?
   
 Question 29
 
  Which of the following is a factor that relates to incentives to misappropriate assets?
   
 Question 30
 
  ________ is fraud that involves theft of an entity's assets.