Fraud Examination
5th Edition
ISBN: 9781305079144
Author: W. Steve Albrecht, Chad O. Albrecht, Conan C. Albrecht, Mark F. Zimbelman
Publisher: Cengage Learning
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Chapter 4, Problem 13MCQ
To determine
The correct option for alerting vendor and contractors to company policies often results in:
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Explain one gap the company has in internal control procedures in which fraud or errors could occur? What can the company do to prevent or detect this fraud or error?
In your own words, explain the importance of internal control procedures.
How to prevent and detect fraud, and make it less likely to occur in organization?
1. A threat to the expenditure cycle that involves an employee creating and approving fictitious purchase orders is known as:
A. Inventory theft
B. Unauthorized access
C. Check tampering
D. Billing schemes
2. Purchase orders are used to initiate a payment in the disbursement cycle. True or False
3.Vendor audits are conducted to address the threat of unauthorized access in the disbursement cycle. True or false
Chapter 4 Solutions
Fraud Examination
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Why is it important to inform outside vendors of...Ch. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 1TFCh. 4 - Prob. 2TFCh. 4 - Prob. 3TFCh. 4 - Prob. 4TFCh. 4 - Prob. 5TFCh. 4 - Prob. 6TFCh. 4 - Prob. 7TFCh. 4 - Prob. 8TFCh. 4 - Prob. 9TFCh. 4 - Prob. 10TFCh. 4 - Prob. 11TFCh. 4 - Prob. 12TFCh. 4 - Creating an expectation of punishment causes firm...Ch. 4 - 1. People will often be dishonest if they are...Ch. 4 - Prob. 2MCQCh. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 1SCCh. 4 - Prob. 2SCCh. 4 - Prob. 3SCCh. 4 - Prob. 4SCCh. 4 - Case 5 While performing an audit of TCC...Ch. 4 - Prob. 6SCCh. 4 - Prob. 7SCCh. 4 - Prob. 8SCCh. 4 - Prob. 9SCCh. 4 - Prob. 10SCCh. 4 - Prob. 11SCCh. 4 - Prob. 12SCCh. 4 - Prob. 13SCCh. 4 - Prob. 14SC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.arrow_forwardFraudulent reporting by management could include a. Fictitious revenues from a fake customer. b. Improper asset valuation. c. Mismatching revenues and expenses. d. All of the above.arrow_forwardWhich of the following is not included in a vulnerability chart? a. Internal controls that a company plans to institute in the future. b. Breakdowns in key internal controls that may have created fraud opportunities. c. Theft investigation methods d. Explanations of the fraud triangle in relation to suspects of fraud.arrow_forward
- Companies set up internal controls to protect against fraud and waste. true or falsearrow_forwardWhich of the following statements is not true? a. The auditor’s main duty is the detection and prevention of fraud b. Management fraud is more difficult to detect than employee fraud c. All of these statements are true. d. Internal control system reduces the errors and fraudarrow_forwardFrauds are often detected through the receipt of an anonymous tip, by management review, by internal audit, by external audit, by any employee, or by accident. -True or falsearrow_forward
- A serious exposure for an organization that is connnected with the revenue cycle is the loss of assets. What is the related threat and applicable contrtol procudure associated with this exposure? A. receiving unordered goods; compare to valid order B. billing errors; reconciliation of shipping documents to sales order C. shipping errors, data entry controls D. theft of inventory; documentation of all internal transfers of inventoryarrow_forwardThe impact of weak internal controls can affect an employee’s fraud behavior. The role of information technology (IT) controls facilitate and help detect fraud. Design a method from the accounting information system (AIS) readings to help eliminate such employee fraud activity. Chapter 3 in your textbook discusses the need for a code of ethics and internal controls.arrow_forwardThe kickback is a form of fraud often associated with purchasing. Most organizations expect their purchasing agents to select the vendor that provides the best products at the lowest price. To influence the purchasing agent in his or her decision, vendors may grant the agent financial favors (cash, presents, football tickets, and so on). This activity can result in ordersbeing placed with vendors that supply inferior products or charge excessive prices.Required;i) Describe two preventive controls that an organization can employ to deal withkickbacks fraud ii) Describe two detective controls that an organization can employ to deal with kickbacksfraud iii) Describe two corrective controls that an organization can employ to deal with kickbacks fraudarrow_forward
- To guard against fraud and waste, businesses use internal controls. correct or incorrectarrow_forwardResearch a company that had a fraud event happen due to inadequate accounting procedures. Review the fraud event that happened in the company in detail and identify at least two accounting control procedures that were deficient in this event. Propose an internal control system that would have eliminated the fraud, using the ERP system.arrow_forwardWhich one of the following is not an objective of a system of internal controls? Select one: 1. Overstate liabilities in order to be conservative 2. Enhance the accuracy and reliability of accounting records 3. Safeguard company assets 4. Reduce the risks of errorsarrow_forward
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