This quiz works best with JavaScript enabled. Home > Finance > Accounting > Forensic Accounting > Forensic Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Forensic Accounting Quiz 1 (17 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which prevention method is most effective for preventing a non-cash asset misappropriation scheme? A) Analyze trends on inventory write-offs. B) Conducting three way match verification method (PO, DN, Invoice). C) Segregation of Duties of key personnel. D) None of above. Show Answer Correct Answer: C) Segregation of Duties of key personnel. 2. Which of the following statements best describes forensic accounting? A) Forensic accounting is an accounting discipline that deals with the preparation and analysis of company financial reports. B) Forensic accounting relates to the use of accounting principles to consolidate the financial reports of banking, financial institutions and insurance companies. C) Forensic accounting is a scientific discipline that is mainly concerned with the method of preparing a company's financial budget. D) Forensic accounting is an accounting discipline that uses an approach to accounting principles, analysis in legal actions, and is often used to provide testimony/expert witnesses in a trial process related to acts of financial fraud. Show Answer Correct Answer: D) Forensic accounting is an accounting discipline that uses an approach to accounting principles, analysis in legal actions, and is often used to provide testimony/expert witnesses in a trial process related to acts of financial fraud. 3. Regarding the three elements in the fraud triangle (fraudulent acts, concealment and diversion/alteration), who is usually in the best position to detect fraud: A) Customers. B) Seller. C) Co-workers and direct superiors. D) Government. Show Answer Correct Answer: C) Co-workers and direct superiors. 4. There are several requirements for audit evidence that can be used as an adequate basis to support audit conclusions, except: A) The evidence must be relevant to the point at issue. B) Evidence must be sufficient. C) Evidence is obtained from competent parties. D) Evidence must be compelling. Show Answer Correct Answer: D) Evidence must be compelling. 5. The purpose of preparing a fraud hypothesis in planning an investigation is in order to: A) To conduct interviews with cooperative witnesses. B) As temporary information that can explain facts/conditions that are suspected to contain irregularities as a reference for determining the next audit steps. C) To provide reasons for confiscating documents. D) To determine whether an investigative audit can be carried out or not. Show Answer Correct Answer: B) As temporary information that can explain facts/conditions that are suspected to contain irregularities as a reference for determining the next audit steps. 6. Which of the following statements is the best method for discovering internal fraud: A) Surprise audit. B) Periodic employee transfers. C) Employees are required to take leave periodically. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 7. One way to detect a financial statement fraud is by conducting a comparison of company's financial data over the years. What method of detection is this called? A) Vertical Analysis. B) Vouching and Tracing. C) Horizontal Analysis. D) Recalculations. Show Answer Correct Answer: C) Horizontal Analysis. 8. Bobi as the purchasing staff of a company tend too inflate the company's purchase order of an item which Bobi will assume the excess items for himself.What kind of fraud scheme is this? A) Sales skimming. B) Billing Schemes. C) Non-cash asset Misappropriation. D) None of above. Show Answer Correct Answer: B) Billing Schemes. 9. The comprehensive fraud combat program includes: A) Prevention, development of control systems, detection and investigation. B) Prevention, detection, investigation and legal action. C) Prevention, outreach, investigation and legal action. D) Prevention, detection, investigation and employee assistance program. Show Answer Correct Answer: B) Prevention, detection, investigation and legal action. 10. What is the purpose of the article? A) Give arguments in favor of the auditor and the forensic accounting investigator. B) Discuss the similarities between the forensic accounting and the patrolman. C) Inform about the different tasks of the auditor. D) None. Show Answer Correct Answer: D) None. 11. What does it mean inquiry in the text? A) It is related to balance risk and expectations. B) A range of scenenarios to investigate different frauds. C) Sample transactions done by the company. D) Reseach about some irregular findings. Show Answer Correct Answer: D) Reseach about some irregular findings. 12. In the finding material (position case and modus operandi) of the investigative audit it is necessary to disclose "SIADIBIBAG" which is an abbreviation of: A) Who, What, There, When, How. B) Who, What, Where, When, How. C) Who, Brother, Where, When, How. D) I, What, Where, When, How. Show Answer Correct Answer: B) Who, What, Where, When, How. 13. When a company records a loan as revenue, how it will impact the financial statement? A) Overstated Cash and Overstated Revenue. B) Understated Liabilities and Understated Cash. C) Understated Liabilities and Overstated Revenue. D) None of above. Show Answer Correct Answer: C) Understated Liabilities and Overstated Revenue. 14. The objectives to be achieved in an investigative audit assignment are: A) Reveal the truth. B) Finding state losses. C) Arrest perpetrators of criminal acts. D) Calculating state losses. Show Answer Correct Answer: A) Reveal the truth. 15. Investigative audits carried out by internal auditors emphasize aspects of control system weaknesses in their recommendations for improvement. Which of the following statements is NOT the main objective of disclosing incidents of fraud committed by a forensic accountant/auditor? A) Who did the fraud (Who). B) When was the fraud committed (When). C) Why is fraud committed (Why). D) How is the fraud method carried out (How). Show Answer Correct Answer: C) Why is fraud committed (Why). 16. The investigation stage always starts with the pre-planning stage. In the pre-planning stage, activities carried out include: A) Preparation of investigative work programs. B) Search for and find perpetrators of fraud by applying investigative techniques. C) Analysis of initial data/information originating from certain sources, to determine whether or not an initial suspicion is sufficient to carry out an investigative audit. D) Actions to detect fraud. Show Answer Correct Answer: C) Analysis of initial data/information originating from certain sources, to determine whether or not an initial suspicion is sufficient to carry out an investigative audit. 17. When someone force somebody else to hand an amount of money or other items that are 'something of value' in exchange for a business (or other) opportunities, what scheme is this called? A) Bribery. B) Kickbacks. C) Illegal Gratuities. D) Economic Extortion. Show Answer Correct Answer: D) Economic Extortion. Related QuizzesAccounting QuizzesFinance Quizzes 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books