Which is not one of the three M's of financial statement fraud?

• Missing general ledger.
• Manipulation.
• Misrepresentation.
• Intentional misapplication.

Which group is not one of the members of corporate governance in the six-legged stool as outlined by Professor Zab Razaee?

• BOD
• Audit Committee.
• Internal auditors.
• Employees of the company.

Which quality or characteristic is not outlined in Statement of Financial Concepts No. 2?

• Relevance.
• Materiality.
• Timeliness.
• Transparency.

Which would be an example of the bill-and-hold strategy?

• Books are kept open beyond the appropriate time.
• Sell products and hold them, with an agreement to bill customers later.
• Combine restricted fund account with the general fund account.
• Inflate revenues with phony software sales.

An example of "channel stuffing" would be:

• Keeping books open beyond the appropriate time.
• Combining restricted fund account with the general fund account.
• Booking income before receiving payments.
• Inflating revenues with phony software sales.

Under the KPMG categories of fraud, what would probably not be an employer internal fraud?

• False insurance claims.
• Ghost vendors.
• Check forgery.
• False financial statements.

COSA defines "internal controls" as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories except:

• A reasonable degree of transparency.
• Effectiveness and efficiency of operations.
• Reliability of financial reporting.
• Compliance with applicable laws and regulations.

Which of the following is a red flag for forensic accountants?

• Complex financial products.
•  Aggressive revenue recognition policies.
•        All of the above
• None of the above

What is an industry conditions risk factor?

• Company in a declining industry.
• Significant accounts based upon estimates.
• Significant related-party transactions.
• Aggressive incentive programs.

What is an operating and financial stability risk factor?

• New accounting requirements for the company.
• Substance over form questions.
• Company declining in the industry.
• High degree of competition.