ACCTG 433 EXAM SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ Chp 15 Hw: Garbine, an internal auditor for XYS, examined
purchases made for the previous year. Garbine found that several
contracts were awarded to the same vendor despite several bids coming
in with more favorable terms. Upon questioning those in the purchasing
department, Garbine learned that Amanda always handled the contracts
with that vendor and seems to have received gifts from the vendor. What
kind f corruption may be between Amanda and the vendor? Answer:
Illegal gratuities
◉ Chp 15 Hw: Elena works in the internal audit and takes her job very
seriously. So seriously that she early takes any time off and insists she
will compete any work when she returns and for no one else to touch her
work. Which behavior red flag is being exhibited by Elana? Answer:
Control issues
◉ Chp 15 Hw: Victoria, an accountant for the firm, and her husband are
getting a divorce. How should the red flag presented by Victorias
divorce be treated by her supervisor? Answer: Victorias divorce is a
behavioral red flag that indicates the possibility not evidence of fraud
,◉ Chp 15 Hw: Which of the following statements is incorrect? Answer:
Financial accounting professionals are the first line of defense when
monitoring internal controls in their organization.
What's correct:
Accounting professionals are the first line of defense
Internal auditors are the third line of defense
◉ Chp 15 Hw: which of the following statements is true? Answer:
External auditors provide additional assurance outside the three lines of
defense
◉ Chp 15 Hw: Which of the following statements is incorrect? Answer:
Companies allow anonymous tips of suspected fraud because employees
do not have legal protection from retaliation.
Correct:
companies use anonymous hotlines
Anonymous hotlines help suspect fraud, without fear of retaliation
◉ Chp 15 Hw: Danielle purchased a new car with higher payments
expecting a raise from her employer. When the raise didn't occur,
, Danielle started pocketing a bit of cash from the drawer each week to
make up for the higher car payment since her employer didn't give her
the raise she deserved. What element of the fraud triangle is most closely
related to Danielles issue? Answer: Rationalization
◉ Chp 15 Hw: Psychopaths only need to complete two elements of the
fraud triangle to commit fraud. Which element is not necessary for
psychopaths to commit fraud? Answer: Rationalization
◉ Chp 15 Hw: which of the following statements is true? Answer:
Preventing fraud is the most cost effective approach to fighting fraud
◉ Chp 15 Hw:Aja suggested to her company that they should consider
financial statement analysis to identify potential fraud by comparing
changes in items between financial periods. What kind of analysis is Aja
suggesting? Answer: Horizontal
◉ Chp 15 Hw: what type of fraud would result from a company
recording revenue earned on January 2nd in the previous fiscal year after
the books are closed. Answer: Financial statement fraud
◉ Chp 15 Hw: Cam processed and shipped a large order of soccer balls
to a sporting goods place, a regular customer, late in the fiscal year
without a customer order. The sale is recorded in the current years
financial statement even though the place retuned the soccer balls that
they did not order a few days later. When the return was received back,
QUESTIONS AND CORRECT ANSWERS
◉ Chp 15 Hw: Garbine, an internal auditor for XYS, examined
purchases made for the previous year. Garbine found that several
contracts were awarded to the same vendor despite several bids coming
in with more favorable terms. Upon questioning those in the purchasing
department, Garbine learned that Amanda always handled the contracts
with that vendor and seems to have received gifts from the vendor. What
kind f corruption may be between Amanda and the vendor? Answer:
Illegal gratuities
◉ Chp 15 Hw: Elena works in the internal audit and takes her job very
seriously. So seriously that she early takes any time off and insists she
will compete any work when she returns and for no one else to touch her
work. Which behavior red flag is being exhibited by Elana? Answer:
Control issues
◉ Chp 15 Hw: Victoria, an accountant for the firm, and her husband are
getting a divorce. How should the red flag presented by Victorias
divorce be treated by her supervisor? Answer: Victorias divorce is a
behavioral red flag that indicates the possibility not evidence of fraud
,◉ Chp 15 Hw: Which of the following statements is incorrect? Answer:
Financial accounting professionals are the first line of defense when
monitoring internal controls in their organization.
What's correct:
Accounting professionals are the first line of defense
Internal auditors are the third line of defense
◉ Chp 15 Hw: which of the following statements is true? Answer:
External auditors provide additional assurance outside the three lines of
defense
◉ Chp 15 Hw: Which of the following statements is incorrect? Answer:
Companies allow anonymous tips of suspected fraud because employees
do not have legal protection from retaliation.
Correct:
companies use anonymous hotlines
Anonymous hotlines help suspect fraud, without fear of retaliation
◉ Chp 15 Hw: Danielle purchased a new car with higher payments
expecting a raise from her employer. When the raise didn't occur,
, Danielle started pocketing a bit of cash from the drawer each week to
make up for the higher car payment since her employer didn't give her
the raise she deserved. What element of the fraud triangle is most closely
related to Danielles issue? Answer: Rationalization
◉ Chp 15 Hw: Psychopaths only need to complete two elements of the
fraud triangle to commit fraud. Which element is not necessary for
psychopaths to commit fraud? Answer: Rationalization
◉ Chp 15 Hw: which of the following statements is true? Answer:
Preventing fraud is the most cost effective approach to fighting fraud
◉ Chp 15 Hw:Aja suggested to her company that they should consider
financial statement analysis to identify potential fraud by comparing
changes in items between financial periods. What kind of analysis is Aja
suggesting? Answer: Horizontal
◉ Chp 15 Hw: what type of fraud would result from a company
recording revenue earned on January 2nd in the previous fiscal year after
the books are closed. Answer: Financial statement fraud
◉ Chp 15 Hw: Cam processed and shipped a large order of soccer balls
to a sporting goods place, a regular customer, late in the fiscal year
without a customer order. The sale is recorded in the current years
financial statement even though the place retuned the soccer balls that
they did not order a few days later. When the return was received back,
