Free CFE - Law Exam Braindumps (page: 4)

Page 3 of 41

The principal way to detect omitted credits from books of account is through:

  1. Forced Balance
  2. Trend analysis
  3. Expense account
  4. None of all

Answer(s): B



People commit financial statement fraud to:

  1. Conceal false business performances
  2. Preserve personal status/control
  3. Maintain personal income
  4. Stand outside the accounting system

Answer(s): B



Which of the following is NOT the reason why senior management will overstate business statement?

  1. Comply with debit covenants
  2. Meet personal performance criteria
  3. Trigger performance related compensation
  4. Show a pattern of growth to support sale of a business

Answer(s): A



Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

  1. Proper documentation, segregation of duties, independent checks and physical safeguards
  2. Proper documentation, segregation of duties, independent checks and inventory control
  3. Proper documentation, physical padding, independent checks and physical safeguards
  4. prenumbered affiliations, segregation of duties, independent checks and physical safeguards

Answer(s): A






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