WGU ACCY 610 - ACTUAL FINAL EXAM QUESTIONS
WITH DETAILED ANSWERS WITH RATIONALES AND
A READINESS PRACTICE EXAM TEST BANK WITH A
STUDY GUIDE | LATEST UPDATED AND VERIFIED
FOR GUARANTEED PASS
Fraud in accounting/auditing (AS 2401)
Fraud is a broad legal concept, and the auditor does not make
such legal determination, rather from the auditor's
perspective fraud is:
(a) ____ of such an act is a __ in the financial statements.
Byproduct; Material misstatement
Fraud in accounting/auditing (AS 2401)
Fraud is a broad legal concept, and the auditor does not make
such legal determination, rather from the auditor's
perspective fraud is:
(b) Not the auditors' job to determine if...
Fraud has occurred from a legal perspective, rather from an
accountant/auditing perspective
,Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(a) Typically perpetrated by...
Management because compensation is tied to FS performance and
they have the access/opportunity because they prepare the FS
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(b) ______ that has the purpose of misrepresenting the FS
Intentional act
,Two types of fraud and typical perpetrators
(2) Asset misappropriation
(a) Typically perpetrated by.....
Employees
Two types of fraud and typical perpetrators
(2) Asset misappropriation
(b) ___ are a byproduct of asset misappropriation
Misstatements
Example: stealing inventory from the warehouse, causes inventory to
be materially overstated, even though that as not employees' purpose
for stealing
Two types of fraud and typical perpetrators
(2) Asset misappropriation
(c) _____ or _____ of the entity's assets
Theft; Misuse
, Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Require different _____ and have different _____
Audit approaches; Risks
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Require different audit approaches and have different risks:
(a) e.g., management is on the auditors' side with respect to but
against the auditor in __ by management
Employee misappropriation; Financial misrepresentation
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Require different audit approaches and have different risks:
(b) Require different _ for both types of fraud
Evidence
WITH DETAILED ANSWERS WITH RATIONALES AND
A READINESS PRACTICE EXAM TEST BANK WITH A
STUDY GUIDE | LATEST UPDATED AND VERIFIED
FOR GUARANTEED PASS
Fraud in accounting/auditing (AS 2401)
Fraud is a broad legal concept, and the auditor does not make
such legal determination, rather from the auditor's
perspective fraud is:
(a) ____ of such an act is a __ in the financial statements.
Byproduct; Material misstatement
Fraud in accounting/auditing (AS 2401)
Fraud is a broad legal concept, and the auditor does not make
such legal determination, rather from the auditor's
perspective fraud is:
(b) Not the auditors' job to determine if...
Fraud has occurred from a legal perspective, rather from an
accountant/auditing perspective
,Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(a) Typically perpetrated by...
Management because compensation is tied to FS performance and
they have the access/opportunity because they prepare the FS
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(b) ______ that has the purpose of misrepresenting the FS
Intentional act
,Two types of fraud and typical perpetrators
(2) Asset misappropriation
(a) Typically perpetrated by.....
Employees
Two types of fraud and typical perpetrators
(2) Asset misappropriation
(b) ___ are a byproduct of asset misappropriation
Misstatements
Example: stealing inventory from the warehouse, causes inventory to
be materially overstated, even though that as not employees' purpose
for stealing
Two types of fraud and typical perpetrators
(2) Asset misappropriation
(c) _____ or _____ of the entity's assets
Theft; Misuse
, Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Require different _____ and have different _____
Audit approaches; Risks
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Require different audit approaches and have different risks:
(a) e.g., management is on the auditors' side with respect to but
against the auditor in __ by management
Employee misappropriation; Financial misrepresentation
Two types of fraud and typical perpetrators
(1) Financial misrepresentation
(2) Asset misappropriation
Require different audit approaches and have different risks:
(b) Require different _ for both types of fraud
Evidence
