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1. Which of the following statements is TRUE regarding the prevention of inventory theft?
A) The inventory requisition form should be completed by the same person who is responsible for incoming shipments.
B) The purchasing supervisor should conduct the physical inventory count.
C) Shipping documents should be prenumbered and controlled.
D) The person who is responsible for shipping inventory should also be responsible for converting inventory to scrap.
2. ______________ is required not only for theft, but for procedures to detect errors, avoid waste, and ensure a proper amount of inventory is maintained.
3. In the fraud scale, pressure, opportunity, and integrity variables all result in a list of ___ possible red flags or indicators of occupational fraud and abuse.
A) 83
B) 84
C) 81
D) 82
4. Jorge, a Certified Fraud Examiner (CFE), is investigating a tip involving an accountant at a bank who allegedly adjusted the bank's general ledger to conceal the theft of funds from a customer's account. If Jorge finds evidence that proves the allegation, which of the following BEST describes the accountant's scheme?
A) Unauthorized withdrawal
B) False accounting entry
C) Unauthorized disbursement of funds
D) Moving money from inactive accounts
5. Otto, a bank manager, purchases a new boat that he cannot afford. Knowing that one of the bank customers is an older client who does not regularly check their account, Otto takes money from the customer's account to make his boat payments. To conceal the missing amount, Otto adjusts the bank's general ledger. Which of the following BEST describes Otto's scheme?
A) Moving money from dormant accounts
B) Unauthorized withdrawal
C) False accounting entry
D) Unauthorized disbursement of funds
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: Only visible for members | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C |
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