CBAD 201 EXAM 2 PRACTICE QUESTIONS AND ANSWERS
a weak internal control system is which element in the fraud triangle
a. attitude
b. motive
c. opportunity
d. rationalization - CORRECT ANSWER✅✅opportunity
which of the following is not true about fraud
a. it can cause injury or damage to another party
b. it is intentional misrepresentation of facts
c. its damages must exceed a threshold of 1$50000
d. it is designed to persuade another party that causes damage or injury to that party - CORRECT
ANSWER✅✅c
ficticious accounting entries are recorded that cause revenue to be overstated by 5 million for the year;
the accounting manager was trying to make the company's income look better on the company's
upcoming loan application. This type of fraud is;
a. asset appropriation
b. fraudulent financial reporting
c. GAAP disordering
d. IFRS misalignment - CORRECT ANSWER✅✅b
each of the following represents an internal control procedure except
a. separation of duties
b. limited access to both assets and records
c. compliance monitoring
d. clear lined of authority and communication - CORRECT ANSWER✅✅d
as part of a strong internal control system which of the following accounting duties needs to be
separated from cash handling
, a. record keeping
b. filing
c. transaction approval
d. a and c - CORRECT ANSWER✅✅d
having a corporate code of ethics that prohibits employees from accepting gifts from customers or
vendors is an example of which component of internal controls
a. control environment
b. risk assessment
c. control procedures
d. information environment - CORRECT ANSWER✅✅a
which law or regulation requires that public companies must maintain strong internal control systems
a. Dodd frank act
b. Sarbanes-Oxley act
c.securities and exchange of 1933
d. Treadway Commission - CORRECT ANSWER✅✅B
why does cash require some specific internal controls
a. most transactions ultimately affect cash
b. cash is relatively easy to steal
c. cash is easy to convert to other forms of wealth
d. all - CORRECT ANSWER✅✅d
each of the following is a control for a bank account except
a. signature card
b. geographic location of ATMs
c. bank statement
d. bank reconciliation - CORRECT ANSWER✅✅b
a weak internal control system is which element in the fraud triangle
a. attitude
b. motive
c. opportunity
d. rationalization - CORRECT ANSWER✅✅opportunity
which of the following is not true about fraud
a. it can cause injury or damage to another party
b. it is intentional misrepresentation of facts
c. its damages must exceed a threshold of 1$50000
d. it is designed to persuade another party that causes damage or injury to that party - CORRECT
ANSWER✅✅c
ficticious accounting entries are recorded that cause revenue to be overstated by 5 million for the year;
the accounting manager was trying to make the company's income look better on the company's
upcoming loan application. This type of fraud is;
a. asset appropriation
b. fraudulent financial reporting
c. GAAP disordering
d. IFRS misalignment - CORRECT ANSWER✅✅b
each of the following represents an internal control procedure except
a. separation of duties
b. limited access to both assets and records
c. compliance monitoring
d. clear lined of authority and communication - CORRECT ANSWER✅✅d
as part of a strong internal control system which of the following accounting duties needs to be
separated from cash handling
, a. record keeping
b. filing
c. transaction approval
d. a and c - CORRECT ANSWER✅✅d
having a corporate code of ethics that prohibits employees from accepting gifts from customers or
vendors is an example of which component of internal controls
a. control environment
b. risk assessment
c. control procedures
d. information environment - CORRECT ANSWER✅✅a
which law or regulation requires that public companies must maintain strong internal control systems
a. Dodd frank act
b. Sarbanes-Oxley act
c.securities and exchange of 1933
d. Treadway Commission - CORRECT ANSWER✅✅B
why does cash require some specific internal controls
a. most transactions ultimately affect cash
b. cash is relatively easy to steal
c. cash is easy to convert to other forms of wealth
d. all - CORRECT ANSWER✅✅d
each of the following is a control for a bank account except
a. signature card
b. geographic location of ATMs
c. bank statement
d. bank reconciliation - CORRECT ANSWER✅✅b
