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20. Which of the following is not a way to detect personal purchases on company credit cards.
MULTIPLE CHOICE
| | | a. Verify the business purpose for each expense. |
| | | b. Establish spending limits for each card holder. |
| | | c. Require original support for each expense. |
| | | d. Utilize credit cards from several different companies. |
21. Which of the following is the most difficult fraud to detect?
MULTIPLE CHOICE
| | | a. Cash skimming |
| | | b. Cash larceny. |
| | | c. Shell company billing scheme. |
| | | d. Use of company charge card for personal purchases. |
22. Which of the following is not a control for preventing/detecting an employee from stealing from the bank deposit?
MULTIPLE CHOICE
| | | a. Separating of duties for taking deposits to the bank and reconciling the bank account. |
| | | b. Examining the bank deposit slip for alterations. |
| | | c. Maintaining more than one copy of the bank deposit slip that is matched to the bank's receipt of the deposit. |
| | | d. Insuring that the same person who opens the mail and prepares the deposit also reconciles the bank account. |
23. Shell Company invoices may be identified by all of the following except:
MULTIPLE CHOICE
| | | a. Lack of a telephone number on the invoice. |
| | | b. Lack of a detailed description. |
| | | c. Use of a residential address. |
| | | d. Use of different colors for printing the invoice. |
24. In reference to billing schemes which of the following is false?
MULTIPLE CHOICE
| | | a. Separation of duties should not be considered a control used to prevent billing scheme frauds. |
| | | b. Prior approval for purchases made with a company credit card is normally not required. |
| | | c. In a pass through scheme merchandise is resold to the victim company at ahigher price. |
| | | d. Individuals who approve purchases are most likely to engage in a billing scheme. |
25. In a small business environment which of the following functions most likely would be done by the company's outside certified public accountant?
MULTIPLE CHOICE
| | | a. Prepare the deposit. |
| | | b. Prepare refund checks. |
| | | c. Prepare disbursement checks. |
| | | d. Maintain the general ledger. |
e. Review the bookkeeping
26. Most lapping schemes are detected:
MULTIPLE CHOICE
| | | a. By employee tips. |
| | | b. By audits. |
| | | c. Because they collapse under their own weight because of the complexity and volume of transactions. |
| | | d. Because they involve collusion between two employees. |
27. Which of the following is not a component of the fraud triangle?
MULTIPLE CHOICE
| | | a. Motive |
| | | b. Opportunity |
| | | c. Employee |
| | | d. Rationalization |
Answer & Explanation
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