Question

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?

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