1. LO 8.1 Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond one's means D. lack of an internal audit function 2. LO 8.2 Internal control is said to be the backbone of all businesses. Which of the description of internal controls? A. Internal controls ensure that the financial statements published are correct. B. The only role of internal controls is to protect customer data. C. Internal controls and company policies are important to protect and safegua company data and are designed to protect the company from fraud. D. Internal controls are designed to keep emplovees from committing fraud ada

1. LO 8.1 Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond one's means D. lack of an internal audit function 2. LO 8.2 Internal control is said to be the backbone of all businesses. Which of the description of internal controls? A. Internal controls ensure that the financial statements published are correct. B. The only role of internal controls is to protect customer data. C. Internal controls and company policies are important to protect and safegua company data and are designed to protect the company from fraud. D. Internal controls are designed to keep emplovees from committing fraud ada

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Give an example of how a CFO or Controller can fraudulently manipulate financial statements through the use of journal entries. Separately, give an example of a financial reporting practice that is subject to management estimates e.g. fair value measurements of assets, goodwill, transfer pricing - and discuss internal controls that can reduce the opportunities for unethical behavior.
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