Fraud Ch 13

Which of the following is Not a fraud scheme involving inventory purchases?
Not recording purchases
Overstating purchase returns and purchase discounts
Recording unearned revenues as earned
Recording payables in subsequent period

A contingent liability should be disclosed, but not recorded on the books if the likelihood of loss is

Which of the following is an analytical symptom of liability fraud

Which of the following is not a ratio examined to determine the underreording of notes, mortgages, leases, and pensions

Which categories of costs can be inappropriately capitalized as intangible assets
marketing costs
startup costs
advertising costs

Which of the following does not relate to overstatement of assets in mergers and acquistions?

Which of these asset frauds can be difficult to detect by analytical symptoms

Which of the following methods would be best to detect cash fraud

Which misrepresentation or omission in the footnotes occurs most frequently

Which of the following questions are useful in determining the legitimacy of a company's products
does the company's performance make sense when compared with the performance of similar companies
is the company cash poor and desperate for immediate investors
is there anything that cannot be disclosed because it is purported to be the company's unique success factor

Which of the following is a primary type of transaction that can create liabilities for a company
purchasing inventory
borrowing money
selling purchased goods
leasing assets

When accounts payable related liabilities are understated, purchases and invetory are often, or the financial statements don't balance

Recognizing something as revenue instead of as a liability has a positive effect on the reported financial statements because
it understates liabilities
it overstates revenues
it overstates net income

The most common fraud involving car companies and the warranties they offer would most likely be

FAS 5 requires contingent liabilities to be recorded as liabilities on the balance sheet if the likelihood of loss or payment is

Analytical sypmtoms of accounts payble fraud most often relate to reported ap balanes that appear

proactively searching for analytical symptoms related to financial statment fraud means that we are looking for accounts that appear too low, high or unusual?

When focusing on changes you hsould consider changes from period to period in recorded balance, relationships between balances, balances of other nonsimilar companies

Overstating cash is usualy difficult because

Inadequate disclosure fraud usually involves
statements in the footnotes that are wrong but do not impact the financial statement
disclosures that should have been made in the footnotes but were not

when examining whether a company has underrecorded accounts payable, each of the following ratios is helpful exept

each of the followign is a symptom relating to understatement of liability fraud excetp

Each of the following assets is correctly linked with how it can be overstated execpt

Which of the following factors does not make fraud more difficult to detect

A form 1099 with missing witholdings may be a fraud symptom for which liability account

In liability fraud, liabilities are most often

Which of the following is usually the hardest fraud to detect

Of the following, the most difficult account for managemtn to intentinonallu misstate is

Which of the following is not a way to underrecord liabilities

when looking for accounting or documentary symptoms of fraud when a merger occurs on of the first steps should be to

Which of the following is a good place to look for inadequate disclosures
BOD minutes
correspondence and invoices from attorneys
confirmations with banks and other
loan agreements