Tutorial 10 Financial Crime

Describe auditors (C2)

• Individual who is hired by the company and perform internal control for the company

• Person or a firm who have conflict of interest with a company

• Person or a firm assigned to perform an audit on an organization

• Person work for the company and involve with checking the company details

What is professional skepticism? (C2)

• The expression of disapproval of someone or something on the basis of perceived faults or mistakes.

• An attitude that includes a questioning mind and a critical assessment of audit evidence

• Condition in which people have an unreasonably high sense of their own importance

• The practicing of an activity, especially a sport, by professional rather than amateur players.

Choose the BEST description of an internal audit. (C3)

• To provide independent assurance that an organization's risk management, governance and internal control processes are operating effectively.

• To detect and prevent fraud and error

• Internal audit is similar to external audit

• Hired by the company/organization through HR

Which situation below shows payroll schemes that can be done by employees? (C4)

• Stealing company's inventory for selling purpose (inventory larceny)

• Altering a purchase invoice and asked the company to pay the overbilled invoice (billing scheme)

• Manipulating the amount of salary of an employer

• Using the company photostat machine for personal use (misuse)

Choose the CORRECT effects of asset misappropriation in a company. (C4)

• Ruining the reputation of a business.

• Losses in the company

• Increase the company profit

• Forcing the company to go out of business

Bribery refers to: (C5)

• Giving payments, gifts, or gratuities to employees from contractors or vendors.

• Using company asset for personal use

• Altering invoices to overcharge the company

• Altering claim receipt to get extra payment from the reimbursement.

Which of the situations below shows conflict of interest? (C5)

• An employee uses the company car for personal use.

• The employee forges the director signature in the cheque for personal interest

• The employee who is working in the Human Resources Department provides a job for his own brother.

• The employee steals cash from the cash registry.

Which of the following is NOT a type of scientific misconduct? (C6)

• Fabrication

• Forgery

• Falsification

• Plagiarism

Inventing observations or experiments and recording or reporting them known as: (C6)

• Authorship issues

• Falsification

• Fabrication

• Misconduct

Which of the following is an approach to fraud detection? (C7)

• Misconduct

• Implement internal controls

• Segregation of duties

• Know the symptoms occurrence