CBAD 201 - CHAPTER 4 EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
The two most common types of fraud impacting financial statements are misappropriation of
assets and fraudulent financial reporting. - ANS True
Which of the following terms is not part of the fraud triangle? - ANS Conspiracy
The primary way that fraud is detected, prevented, or corrected is through a proper system of
internal control. - ANS True
Which of the following items is not an objective of an internal control system? (Select all that
apply.) - ANS Ensure maximum profitability
Payments by check or EFT represent an important internal control. - ANS True
When a company receives customers' checks by mail: - ANS all incoming mail containing
checks from customers should be opened by the mailroom.
How are outstanding checks handled in a bank reconciliation? - ANS Deducted from the bank
balance
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
The two most common types of fraud impacting financial statements are misappropriation of
assets and fraudulent financial reporting. - ANS True
Which of the following terms is not part of the fraud triangle? - ANS Conspiracy
The primary way that fraud is detected, prevented, or corrected is through a proper system of
internal control. - ANS True
Which of the following items is not an objective of an internal control system? (Select all that
apply.) - ANS Ensure maximum profitability
Payments by check or EFT represent an important internal control. - ANS True
When a company receives customers' checks by mail: - ANS all incoming mail containing
checks from customers should be opened by the mailroom.
How are outstanding checks handled in a bank reconciliation? - ANS Deducted from the bank
balance
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
