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Analytical symptoms for unrecorded notes and mortg...

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Analytical symptoms for unrecorded notes and mortgages payable include which of the following? a. Recorded amounts of notes payable, mortgages payable, and other debts that appear to be too high b. Significant sales of assets with not much cash flow. c. Unreasonable relationships between interest expense and recorded liabilities d. A significant decrease in the company?s current ratio. e. A significant increase in accounts payable Which of the following is NOT helpful in detecting inadequate disclosure fraud? a. Comparing one company?s disclosures to companies of similar size and in the same industry. b. Searching for analytical symptoms in the financial statements. c. A tip or a complaint. d. Looking for inconsistencies between disclosures and information in the financial statements and other information available. e. Making inquiries of management regarding related-party transactions, contingent liabilities and contractual obligations. Which of the following is the most likely to detect an occupational fraud? a. A tip or complaint b. A well-written code of ethics c. The company?s internal controls d. An audit conducted by the company?s external auditors. e. An audit conducted by the company?s internal audit group. Jack and Jill both work at an ice cream stand at the beach. The cash register consists of a cash drawer that has no ability to issue receipts. Jack and Jill never work on the same day. Jack steals cash after a sale has been entered into the cash register. Jill steals cash from the cash register but does not enter all ofher sales into the cash register. Who will probably be caught first? a. Jack, because the customer is more likely to detect his fraud and report him to management. b. Jack, because his fraud will be more difficult to conceal. c. Jill, because the customer is more likely to detect her fraud and report her to management. d. Jack and Jill both have an equal chance of being caught. e. Jill, because her fraud will be more difficult to conceal.

 

Paper#6420 | Written in 18-Jul-2015

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