Fraud Examination
6th Edition
ISBN: 9781337619677
Author: Albrecht, W. Steve, Chad O., Conan C., Zimbelman, Mark F.
Publisher: Cengage,
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Question
Chapter 4, Problem 5TF
To determine
To identify if the following statement is true or false: “When fraud is committed, the problem is often not a lack of controls, but the overriding of existing controls by management and others.”
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Why is internal controls important to prevent fraud? Why would a proper control system prevent fraud scandals?
Which one of the following is not an advantage of internal controls?
Select one:
a. It safeguards the assets
b. It increases the chance of fraud
c. It ensures compliance with laws
d. It enhances the reliability of accounting records
Opportunities for fraudulent reporting are present in circumstances when the fraud is easy to commit and when detection is difficult. An opportunity for fraud would least likely arise from the following situatio
Chapter 4 Solutions
Fraud Examination
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Why is it important to inform outside vendors of...Ch. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 1TFCh. 4 - Prob. 2TFCh. 4 - Prob. 3TFCh. 4 - Prob. 4TFCh. 4 - Prob. 5TFCh. 4 - Prob. 6TFCh. 4 - Prob. 7TFCh. 4 - Prob. 8TFCh. 4 - Prob. 9TFCh. 4 - Prob. 10TFCh. 4 - Prob. 11TFCh. 4 - Prob. 12TFCh. 4 - Creating an expectation of punishment causes firm...Ch. 4 - 1. People will often be dishonest if they are...Ch. 4 - Prob. 2MCQCh. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 1SCCh. 4 - Prob. 2SCCh. 4 - Prob. 3SCCh. 4 - Prob. 4SCCh. 4 - Case 5 While performing an audit of TCC...Ch. 4 - Prob. 6SCCh. 4 - Prob. 7SCCh. 4 - Prob. 8SCCh. 4 - Prob. 9SCCh. 4 - Prob. 10SCCh. 4 - Prob. 11SCCh. 4 - Prob. 12SCCh. 4 - Prob. 13SCCh. 4 - Prob. 14SC
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- Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond ones means D. lack of an internal audit functionarrow_forwardWhen assessing the danger of substantial falsification of the financial accounts, what is the ethical value of utilizing the Fraud Triangle?arrow_forwardGive specific examples of fraud risk factors - incentives, opportunities, and attitudes/rationalization.arrow_forward
- Which is NOT a source of fraud risk (from the Fraud Triangle)? a) Fraud Tip Hotline b) Perceived Opportunity c) Rationalization d) Financial Pressurearrow_forwardIf one of the three elements of the fraud triangle is not present, can fraud still be perpetrated? Explain. Identify factors (red flags) that would be strong indicators of opportunities to commit fraud. Is the ability to rationalize the fraud an important aspect to consider when analyzing a potentially fraudulent situation? What are some of the common rationalizations used by fraud perpetrators? Define and illustrate kiting. What controls should the client institute to prevent it?arrow_forwardOpportunity, is a fraud risk factor, that is within the control of the company. FALSE TRUEarrow_forward
- What is the fraud scale, and how does it relate to pressure, opportunity, and integrity?arrow_forwardWhy are related-party frauds more difficult to detect than frauds with no related parties?arrow_forwardWhich is not among the principles contained in the development of the science of internal control? * fraud prevention supervisory review preventive controls are the best forms of control ensure objectives are metarrow_forward
- Which of the following is NOT an element of the fraud triangle? a. ethics b. justifiable reliance c. situational pressure d. opportunityarrow_forwardWhat is the ethical value of applying the Fraud Triangle to assess the risk of material misstatements in the financial statements?arrow_forwardWell-designed internal control will prevent all fraud by top management. True or Falsearrow_forward
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