EMT Practice Test

1. Question Content...

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Question1: The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

Question2: Accounting records are designed to be kept on subjective rather than objective evidence.

Question3: A variation between the physical inventory and the perpetual inventory totals is called:

Question4: ______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

Question5: Larceny by Fraud or deception means that:

Question6: According to Hollinger and Clark for Policy development, management must pay attention to:

Question7: Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, are called:

Question8: In which approach, fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer.

Question9: Entering a sales total lower than the amount actually paid by the customer is called:

Question10: A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.

Question11: __________ are the amounts which are owned to other entities:

Question12: Which of the following is NOT the reason why senior management will overstate business statement?

Question13: A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

Question14: When employee committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

Question15: A __________ is a day-by-day, or chronological, record of transactions

Question16: Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

Question17: ________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Question18: In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.

Question19: The most common method of detection in corruption cases is:

Question20: ________ decrease assets and expenses and/or increase liabilities and/or equity

Question21: In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Question22: ___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Question23: Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

Question24: When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

Question25: Collusion or bid-rigging between bidders is called

Question26: A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

Question27: Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

Question28: Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.

Question29: The difference between assets and liabilities is called:

Question30: Which of the following is NOT the type of billing scheme?

Question31: The heart of book keeping system is the ___________.

Question32: In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Question33: A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:

Question34: Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.

Question35: If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referring to as:

Question36: "Anticipate possible losses and omit potential profits", this results in:

Question37: ______________ can be detected by closely examining the documentation submitted with the cash receipts.

Question38: A shell company scheme in which actual goods or services are sold to the victim company is known as:

Question39: A journal in which all sales made on credit or cash are listed is:

Question40: _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

Question41: What can make it easy for an employee to skim sales or receivables?

Question42: How many accounts are affected in fraudulent accounting entries and therefore same number of categories on the financial statement?

Question43: Which of the following is NOT the example of bribery prevention policies?

Question44: One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

Question45: According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Question46: Which of the following are not of Basic types of non-sharable problems?

Question47: Which of the following is NOT the aspect of inventory purchase?

Question48: Which of the following is the criterion for bid solicitation?

Question49: In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

Question50: Multiple cashiers operate from a single cash drawer without separate access codes is a red flag for:

Question51: Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?

Question52: The principle behind full disclosure is:

Question53: According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

Question54: By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

Question55: Employees with the authority to grant discounts in order to skim revenues may use which authority?

Question56: When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called: