Exam (elaborations)
C254 WGU Practice Review (Questions & Answers) Rated 100% Correct!!
- Course
- Institution
C254 WGU Practice Review (Questions & Answers) Rated 100% Correct!!
[Show more]
Content preview
Name: Score:262 Multiple choice questions
Term 1 of 262
Which of the following would not typically be used as potential sources of information regarding
inadequate disclosures?
Confirmations from tax authorities (e.g., the IRS)
Invoices from attorneys
Board of Director minutes
Loan agreements
Term 2 of 262
The Bre-X disclosure fraud involved promises that are conceptually similar to the promises made
in investment scams and Ponzi schemes.
True
False
Term 3 of 262
By increasing sample size, the auditor is decreasing the ________________ .
Professional skepticism
Chance to catch fraud
Confidence there is no fraud
Risking of missing fraud
,Term 4 of 262
What can indicate potential fraud related to an overstatement of inventory?
Cost of goods sold being the same for book and tax
Purchase returns that are too low
Documented cutoff procedures
Vendors not listed in telephone directory
Term 5 of 262
Which is the best example of effective inquiry of management?
Are you familiar and do you fully understand the inventory controls associated with your
department?
What internal control problems do you have in your department in relation to inventory?
Are your inventory controls functioning properly?
Do you regularly check and test your controls for deficiencies?
Term 6 of 262
Which of the following is the most efficient method to analyze recorded amounts from one
period to another?
Horizontal Analysis (compare percentages)
Statement of Changes in Stockholders' Equity
Compare dollar amount changes from period to period
Examine changes from period to period in study of statement of cash flows
,Term 7 of 262
The COSO definition of inappropriate disclosure fraud is fraud that involves the issuance of
fraudulent or misleading statements or press releases regarding financial statement line item
effects.
True
False
Term 8 of 262
Which standard recognizes that GAAS auditors are not required to detect all material financial
statement frauds, especially frauds involving forgery or collusion?
SAS 16
SAS 53
SAS 82
SAS 99
Term 9 of 262
Generating random numbers to select samples is not an ASB-certified auditing method.
True
False
Term 10 of 262
Which SAS instructs auditors how to document fraud risk?
SAS 16
SAS 53
SAS 82
SAS 99
, Term 11 of 262
When offsetting /inflating ending inventory amounts to the fraud, the fraudster needs to continue
inflating that amount from year to year to continue the farce.
True
False
Term 12 of 262
Having one person make bank deposits and another person reconcile the bank statements is an
example of:
Segregation of duties
Independent checks
A system of authorizations
Physical safeguards
Term 13 of 262
Which of the following ratios is not useful in detecting overstatement of asset fraud?
Individual fixed asset account balances/Total fixed assets.
Fixed asset/Total current liabilities.
Total deferred charges/Total assets.
Deferred charge write-offs (amortization)/Deferred charge balance.
Term 14 of 262
Which category of symptom does non-recording or under-recording contingent liabilities fit in?
Analytical
Complaints
Lifestyle
Documentary
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 americandocuments. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75391 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now