Fraud Examination Albrecht Ch 3 Questions and Complete Solutions 100% Correct
9 views 0 purchase
Course
Fraud 505
Institution
Fraud 505
Fraud Examination Albrecht Ch 3 Questions and Complete Solutions 100% Correct
According to the financial statement fraud detection framework, fraud is rarely detected by which of the following:
a. Understanding the inherent risks of a specific industry
b. Analyzing the financial statements
c....
Fraud Examination Albrecht Ch 3 Questions and Complete Solutions 100%
Correct
According to the financial statement fraud detection framework, fraud is rarely detected by which of the
following:
a. Understanding the inherent risks of a specific industry
b. Analyzing the financial statements
c. Breaking down and analyzing internal controls
d. Learning management's motivations - Ans: Analyzing the financial statements
Fearful of offending company personnel and being intimidated by company management are two reasons that an auditor could fail to react properly to negative evidence. - Ans: True
An active board of directors and audit committee drastically decreases the opportunity for management to commit fraud. - Ans: True
Of all the four corners of the fraud exposure rectangle, auditors traditionally focused on which part (and thus failed to evaluate the other three corners)?
a. Management and Directors
b. Organization and Industry
c. Financial Results and Operating Characteristics
d. Relationships with the entities - Ans: Financial Results and Operating Characteristics
Financial statement fraud occurs over 85 percent of the time, from collusion occurring among middle managers, to low management, thus fooling auditors and top management. - Ans: False
The importance of examining directors and management is to determine their exposure to, and motivation for committing fraud is immaterial - Ans: FALSE - Management always as access to all three corner of the fraud triangle (attitude, opportunity, and incentive)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YourExamplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
