Question

3. The two most common ways that commissions may be fraudulently increased are: MULTIPLE CHOICE a....

3. The two most common ways that commissions may be fraudulently increased are:

MULTIPLE CHOICE

a. Skimming and theft of non cash assets.    

b. Larceny and bribing.    

c. False sales and increasing the rate of the commission.

d. Misuse of non cash assets and shorting company purchases.

5. Which of the following is not a strong control for protecting blank checks?

MULTIPLE CHOICE

a. Blank checks should be kept under lock and key.

b. The key to the blank checks should be closely guarded.

c. Access to computer generated check software should be controlled by password.

d. Blank check should be under the control of the cashier.

6. Which of the following is the main reason why the fraudster may be detected in a scheme where an outgoing check made out to a third party is stolen by the fraudster?

MULTIPLE CHOICE

A. The inventory will be overstated.

B. The bank account will not be able to be properly reconciled.

C. The third party will question why they haven't received the check.

D. The forged endorsement may be detected by the bank.

7. Which of the following is not a way to prevent employees from charging their personal expenses to the company?

MULTIPLE CHOICE

A. Insure that checks are signed by an authorized signer.

B. Require detailed expense reports for all reimbursable expenses.

C. All reimbursed expenses should be reviewed by an employees immediate supervisor.

D. Incorporate a policy that clearly explains what types of expenses are reimbursable.

8. Which of the following is a method to detect expense reimbursement fraud?

MULTIPLE COICE

A. Establishment of travel and entertainment budgets and examination of variances.

B. Completing a monthly bank reconciliation.

C. Use of an authorized check signer.

D. Insuring that all blank checks are adequately secured.

10. A register disbursement false refund scheme normally causes inventory shrinkage because:

MULTIPLE CHOICE

A. The item stolen must be destroyed.

B. The fraudster will continue the theft until caught.

C. The item is returned to the inventory on the books only.

D. The item is physically returned to the inventory.

11. Which of the following is false?

MULTIPLE CHOICE

A. Employees sometimes create fictitious sales to justify the shipment of merchandise, steal the merchandise and then write off the sale.

B. Employees may designate inventory as damaged and then steal it when it is written off.

C. Employees may record sales to dormant customer accounts, steal the merchandise and then write off the sale.

D. A comparison of the sales register to the shipment register will not identify inventory that was fraudulently shipped without a corresponding sale.

28. To prevent fraudulent shipments of merchandise organizations should match every outgoing shipment to a sales order.

True or False?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

ans 3) C.False sales and increasing the rate of the commision.

ans 5 ) D. Blank check should be under the control of the cashier

ans 6 ) C. The third party will question why they haven't received the check.

ans 7 ) A. Insure that checks are signed by an authorized signer.

ans 8 ) A. Establishment of travel and entertainment budgets and examination of variances.

ans 10 ) C. The item is returned to the inventory on the books only.

ans 11 ) D. A comparison of the sales register to the shipment register will not identify inventory that was fraudulently shipped without a corresponding sale.
ans 28 ) true
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
6. Lapping almost always goes beyond robbing Peter to pay Paul. Once the first attempt is...
6. Lapping almost always goes beyond robbing Peter to pay Paul. Once the first attempt is successful, lapping tends to increase at exponential rates. Now, the fraudster has to steal from other customers. Then, there are many accounts to keep track of. The more lapping occurs, the greater the chance of making a mistake. MULTIPLE CHOICE True or false 7. True of false?   Lapping is a skimming method that is doomed to failure over time. MULTIPLE CHOICE True or false 9....
11. Why do most shell company schemes involve the purchase of services rather than goods? MULTIPLE...
11. Why do most shell company schemes involve the purchase of services rather than goods? MULTIPLE CHOICE a. When the billing scheme involves fictitious goods, the defrauded company may be able to detect the fraud by comparing purchases to inventory levels. b. Services are more costly than goods. c. Normally services go through a less stringent approval process as goods. d. Most companies purchase more services than goods. 12. True or False?  Banks are always required to reimburse customers for forged...
25 Ways Fraud Happens Here’s a list of common company thefts: 1. Collection clerk steals cash...
25 Ways Fraud Happens Here’s a list of common company thefts: 1. Collection clerk steals cash prior to recording it 2. Collection clerk steals cash after recording a customer receipt; he voids the receipt and adjusts (writes down) the customer’s account 3. Collection clerk places a personal check (for $5,000) in the cash drawer and takes an equivalent amount of cash; the clerk leaves the check in the drawer for months—in effect the clerk has an unauthorized loan 4. The...
25 Ways Fraud Happens Here’s a list of common company thefts: 1. Collection clerk steals cash...
25 Ways Fraud Happens Here’s a list of common company thefts: 1. Collection clerk steals cash prior to recording it 2. Collection clerk steals cash after recording a customer receipt; he voids the receipt and adjusts (writes down) the customer’s account 3. Collection clerk places a personal check (for $5,000) in the cash drawer and takes an equivalent amount of cash; the clerk leaves the check in the drawer for months—in effect the clerk has an unauthorized loan 4. The...
   Which of the following choices is not used to modify the chart of accounts? a.       Deleting accounts...
   Which of the following choices is not used to modify the chart of accounts? a.       Deleting accounts with balances b.      Adding new accounts c.       Editing accounts d.      Deleting unused accounts 2.      All of the following task may be completed in the banking section of the Home page except: a.       Receive Items b.      Write Checks c.       Reconcile Accounts d.      Make Deposit The one-step approach should not be used to pay the following: Sales Taxes Expenses, such as rent, utilities and insurance Bills for non-inventory items such as office supplies Bills...
1. Based upon the following data, estimate the cost of ending inventory using the gross profit...
1. Based upon the following data, estimate the cost of ending inventory using the gross profit method. Sales $882,000 Estimated gross profit rate 32% Beginning inventory $75,700 Purchases (net) 794,000 Merchandise available for sale $869,700 2. Multiple-Step Income Statement On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows: Accounts Receivable $170,000 Inventory $1,019,950 Accumulated Depreciation—Building 762,600 Notes Payable 273,300 Administrative Expenses 559,700 Office Supplies 19,950 Building...
Multiple Choice The unemployment rate is high in the city in which a company has a...
Multiple Choice The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which variance is directly impacted? Materials price variance Materials efficiency variance Labour price variance Labour efficiency variance Thomas Corporation produces stopwatches. According to company standards, it should take 1 hour of direct labour to produce a stopwatch....
II. Multiple Choice 12. Which of the following entries records the acquisition of equipment on account?...
II. Multiple Choice 12. Which of the following entries records the acquisition of equipment on account? Equipment, debit; Accounts payable, credit Equipment, debit; cash, credit Accounts payable, debit; Equipment, credit Accounts payable, debit; Notes payable, credit 13. Which of the following entries records the payment of rent for the current month? Cash, debit; Rent Expense, credit Rent Expense, debit; Cash, credit Rent expense, debit; Accounts Receivable, credit Accounts Payable, debit; Rent Expense, credit 14. Which of the following entries records...
Items 1 through 10 represent possible errors and fraud that an auditor suspects are present. The...
Items 1 through 10 represent possible errors and fraud that an auditor suspects are present. The accompanying List of Auditing Procedures that the auditor would consider performing to gather evidence concerning possible errors and fraud. For each item, select one or two procedures, as indicated, that the auditor most likely would perform to gather evidence in support of that item and explain why you choose. Possible misstatements due to error and fraud 1. The auditor suspects that the controller wrote...
Question 1 of 15 Linsay’s Landscaping wants to make notes in QuickBooks each time she services...
Question 1 of 15 Linsay’s Landscaping wants to make notes in QuickBooks each time she services a client to streamline the invoicing process at the end of the month. She does not want these records to affect any month or year to date financial reports throughout the month until she invoices the client. Which of the following transaction types do you recommend she uses to achieve this goal? A. Invoice B. Credit Memo C. Sales Receipt D. Delayed Charge E....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT