LSU ACCT 4235 EXAMINATION TEST 2026
FINAL QUESTIONS WITH ALL CORRECT
ANSWERS ALREADY GRADED A+
⩥ Karen, a friend of yours, recently started her own business, The Bike
and Boulder Company (B&B). B&B specializes in the sales of mountain
bikes and rock-climbing equipment. Karen is putting the finishing
touches on her company policies and procedures. She knows you are
taking a fraud class and asks you to review what she has completed thus
far. You quickly notice that Karen has neglected to address fraud and
fraud prevention in her policies and procedures. What policies and
procedures would you suggest Karen implement to prevent and detect
fraud at B&B?Which of the following fraud prevention policies or
procedures would you recommend to Karen with respect to hiring
employees?
a. Require all applicants to certify that they have never committed
employee fraud.
b. Verify all information on each applicant's resume and/or application.
c. Train those involved in the hiring process to conduct thorough
background checks.
d. Answer: b. Verify all information on each applicant's resume and/or
application.
⩥ True or False
,Because ABC Company suffered large losses from fraud last year, senior
management has decided to be more proactive in implementing a fraud
prevention environment. In interviewing employees, they found that
many employees were unclear about which behaviors were ethical and
which were not. Management is considering ways to better educate
employees about ethical behavior.ABC Company's human resources
staff should develop a code of ethics to be read and signed by each
employee having supervisory responsibilities. Answer: False
⩥ True or False
Nellie works for a large manufacturing company. She heads the
information systems department and works closely with the accounting
department. Nellie knows a lot about the company's database systems
and accounting practices. Her responsibilities include working with the
company's vendors to create data communication lines. The company
works with many vendors, including a large number of new vendors that
have been added due to the company's rapid growth. Recently, Nellie has
become concerned about the effectiveness of the internal controls in
ensuring the integrity of the purchasing function. She expressed her
concerns to senior management and has been asked to recommend
proactive steps the company can take to prevent fraud from collusion
between employees and vendors.A periodic letter to vendors explaining
an organization's policy of not allowing employees to accept gifts or
gratuities is an effective t Answer: True
⩥ Robert was the chief teller in a large New York bank. Over a period of
three years, he embezzled $1.5 million. He took the money by
manipulating dormant accounts. Robert was responsible both for
,handling dormant accounts and for dealing with complaints from
customers. When a customer would complain about his account, Robert
was always the one to explain the discrepancy. He usually used the
excuse that "it's a computer error."Which of the following control
activities would most likely have prevented this fraud?
a. Proper authorizations.
b. Physical safeguards over customer accounts.
c. Documents and records.
d. Segregation of duties. Answer: d. Segregation of duties.
⩥ Developing and promoting a well-defined corporate code of conduct
is related to which element of the fraud-fighting model? Answer: Tone at
the top
⩥ Fraud perpetrators:
a. Look like other criminals.
b. Have profiles that look like most honest people.
c. Are usually very young.
d. Are none of the above. Answer: b. Have profiles that look like most
honest people.
⩥ Ture or False
Two of the three elements in creating a positive work environment
include assistance and honesty. Answer: False
, ⩥ Which of the following is not one of the three elements of fraud?
a. Perceived pressure.
b. Perceived opportunity.
c. Rationalization.
d. Intelligence Answer: d. Intelligence
⩥ Which of the following is a common perceived pressure?
a. The ability to outsmart others.
b. Opportunity to cheat others.
c. A financial need.
d. The ability to "borrow" money by committing fraud. Answer: c. A
financial need.
⩥ Opportunity involves:
a. Opportunity to conceal fraud.
b. Opportunity to avoid being punished for fraud.
c. Opportunity to commit fraud.
d. All of the above.
e. None of the above. Answer: d. All of the above.
FINAL QUESTIONS WITH ALL CORRECT
ANSWERS ALREADY GRADED A+
⩥ Karen, a friend of yours, recently started her own business, The Bike
and Boulder Company (B&B). B&B specializes in the sales of mountain
bikes and rock-climbing equipment. Karen is putting the finishing
touches on her company policies and procedures. She knows you are
taking a fraud class and asks you to review what she has completed thus
far. You quickly notice that Karen has neglected to address fraud and
fraud prevention in her policies and procedures. What policies and
procedures would you suggest Karen implement to prevent and detect
fraud at B&B?Which of the following fraud prevention policies or
procedures would you recommend to Karen with respect to hiring
employees?
a. Require all applicants to certify that they have never committed
employee fraud.
b. Verify all information on each applicant's resume and/or application.
c. Train those involved in the hiring process to conduct thorough
background checks.
d. Answer: b. Verify all information on each applicant's resume and/or
application.
⩥ True or False
,Because ABC Company suffered large losses from fraud last year, senior
management has decided to be more proactive in implementing a fraud
prevention environment. In interviewing employees, they found that
many employees were unclear about which behaviors were ethical and
which were not. Management is considering ways to better educate
employees about ethical behavior.ABC Company's human resources
staff should develop a code of ethics to be read and signed by each
employee having supervisory responsibilities. Answer: False
⩥ True or False
Nellie works for a large manufacturing company. She heads the
information systems department and works closely with the accounting
department. Nellie knows a lot about the company's database systems
and accounting practices. Her responsibilities include working with the
company's vendors to create data communication lines. The company
works with many vendors, including a large number of new vendors that
have been added due to the company's rapid growth. Recently, Nellie has
become concerned about the effectiveness of the internal controls in
ensuring the integrity of the purchasing function. She expressed her
concerns to senior management and has been asked to recommend
proactive steps the company can take to prevent fraud from collusion
between employees and vendors.A periodic letter to vendors explaining
an organization's policy of not allowing employees to accept gifts or
gratuities is an effective t Answer: True
⩥ Robert was the chief teller in a large New York bank. Over a period of
three years, he embezzled $1.5 million. He took the money by
manipulating dormant accounts. Robert was responsible both for
,handling dormant accounts and for dealing with complaints from
customers. When a customer would complain about his account, Robert
was always the one to explain the discrepancy. He usually used the
excuse that "it's a computer error."Which of the following control
activities would most likely have prevented this fraud?
a. Proper authorizations.
b. Physical safeguards over customer accounts.
c. Documents and records.
d. Segregation of duties. Answer: d. Segregation of duties.
⩥ Developing and promoting a well-defined corporate code of conduct
is related to which element of the fraud-fighting model? Answer: Tone at
the top
⩥ Fraud perpetrators:
a. Look like other criminals.
b. Have profiles that look like most honest people.
c. Are usually very young.
d. Are none of the above. Answer: b. Have profiles that look like most
honest people.
⩥ Ture or False
Two of the three elements in creating a positive work environment
include assistance and honesty. Answer: False
, ⩥ Which of the following is not one of the three elements of fraud?
a. Perceived pressure.
b. Perceived opportunity.
c. Rationalization.
d. Intelligence Answer: d. Intelligence
⩥ Which of the following is a common perceived pressure?
a. The ability to outsmart others.
b. Opportunity to cheat others.
c. A financial need.
d. The ability to "borrow" money by committing fraud. Answer: c. A
financial need.
⩥ Opportunity involves:
a. Opportunity to conceal fraud.
b. Opportunity to avoid being punished for fraud.
c. Opportunity to commit fraud.
d. All of the above.
e. None of the above. Answer: d. All of the above.
