Question details

CIS430 Unit 2 Self Quiz C3 Latest 2017
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Question 1

All the following are factors in the fraud triangle except

Ethical behavior of an individual (rationalization)

Pressure exerted on an individual at home and job related

Materiality of the assets

Opportunity to gain access to assets

Question 2

0 out of 0 points

Which of the following best describes lapping?

applying cash receipts to a different customer’s account in an attempt to conceal previous thefts of funds

inflating bank balances by transferring money among different bank accounts

expensing an asset that has been stolen

creating a false transaction

Question 3

Skimming involves

Stealing cash from an organization before it is recorded

Stealing cash from an organization after it has been recorded

A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Manufacturing false purchase orders, receiving reports, and invoices

Question 4

Who is responsible for establishing and maintaining the internal control system?

internal auditor

accountant

management

external auditor

Question 5

Which of the following is not a limitation of the internal control system?

errors are made due to faulty judgement

fraud occurs because of collusion between two employees

the industry is inherently risky

management override when management instructs the bookkeeper to make fraudulent journal entries

Question 6

Cash larceny involves

Stealing cash from an organization before it is recorded

stealing cash from an organization after it has been recorded

manufacturing false purchase orders, receiving reports, and invoices

A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Question 7

What are the five internal control components described in SAS78/COSO?

Control environment

Risk assessment

Information and communication

Monitoring such as an effective internal audit function

Control activities which include separation of duties and a well designed accounting system

Question 8

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

True

False

Question 9

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

True

False

Question 10

Managers that perpetrate fraud often do so by overriding the internal control system.

True

False

Question 11

The control environment is the foundation for an organization's internal control.

True

False

 

 

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