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

See similar textbooks

Similar questions

Collusion is an intentional act of two or more employees to accomplish theft of company assets. Which control activity is designed to make fraud less likely because it would require collusion among employees? A. Adequate documents and records B. Clearly defined authority and responsibility C. Safeguards over assets and records D. Segregation of duties
Select the necessary words from the list of possibilities to complete the following statements. 1. The Foreign Corrupt Practices Act of 1977 prohibits 2. companies to maintain an effective system of internal control. Statements Under COSO, the control environment, risk assessment, the accounting information and communication system, control activities and monitoring are referred to as the of internal control. to foreign officials to obtain business and requires No single employee in a company should have incompatible 3. and conceal errors or fraud in the normal course of performing his or her job. 4. The two broad categories of information processing controls are 5. Controls that rely on segregation of duties may be circumvented by 6. A client's organizational structure. 9. allowing the employee to both perpetrate and application controls. environment includes such components as management philosophy and operating style, and 7. A form of insurance in which an insurance company agrees…
if a manager is incharge of the Credit Right Software Corp department which involves sells leading account sooftare product and two of his employess commited fraud. How should the manager prepare himself to understand what causes individuals to commit fraud and how it happens?
A good fraud prevention program should address employees’ motivation to steal from the company. The best method for doing this is toa. Establish employee assistance programs.b. Require a fidelity bond on all employees.c. Require reconciliations of all accounts to be reviewed by a supervisor.d. Ensure that all accounts with high inherent risk of fraud are audited.
The only way to prevent fraud in companies is strong corporate governance mechanism. The basic pillar of Corporate Governance is the auditor with no fear. Omani Law is against unjustified removal of auditors. Which authority has to be notified if a resolution for removal of auditor is passed? Non Regulatory Organizations Tax Authorities Regulatory Authority Management
Appraise the motivation of senior management (CEO and/or CFO) to commit financial statement fraud and how they go about to do so? Elaborate.
You need to answer the following question: What is the business cycle in the accounting information system? The importance to understanding the business operation flow. The impact of the fraud in business.
What is the primary role of internal controls in managing a business? a.To ensure that the financial statements are presented in such a manner as to provide relevant and reliable information for financial statement decision makers and the company's creditors. b.To constrain subordinates' activities in order to prevent employees from deviating from the scope of their responsibilities and encourage them to act in the best interest of the business. c.To encourage theft and to ensure that segregation of duties does not take place. d.To prevent cash from being stolen.
From pages 4-1 and 4-2 of the VLN, the COSO Framework describes 5 components of internal control. What is the purpose of internal controls from a financial accounting perspective? 1. To guarantee no fraud will occur in the organization. 2. To help safeguard the company's assets. 3. To help improve the accuracy and reliability of the accounting information. 4.To prevent collusion. Group of answer choices A. 1,2, and 3 B. 2 and 3 C. 2, 3, and 4 D.1, 2, 3, and 4