EMT Practice Test

1. Question Content...

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Question1: When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

Question2: _________ revenues involve the recording sales of goods or services hat did not occur.

Question3: What is sometimes used to overcome well-designed internal controls of a victim company?

Question4: ____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

Question5: A shell company scheme in which actual goods or services are sold to the victim company is known as:

Question6: Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.

Question7: Entering a sales total lower than the amount actually paid by the customer is called:

Question8: The heart of book keeping system is the ___________.

Question9: Which of the following is NOT the method for stealing inventory and other assets?

Question10: ________ decrease assets and expenses and/or increase liabilities and/or equity

Question11: The difference between assets and liabilities is called:

Question12: Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

Question13: A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

Question14: When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

Question15: Delivery has not occurred or services have not been rendered when:

Question16: ____________ is a summary of the account balances carried in a ledger.

Question17: What is sometimes used to overcome well-designed internal controls of a victim company?

Question18: __________ can be defined as conduct detrimental to the organization and to the employee.

Question19: Revenue is recognized when it is:

Question20: 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:

Question21: ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Question22: In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

Question23: The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others is called:

Question24: The most common method for billing scheme is:

Question25: Which of the following is NOT the phase of the bidding process?

Question26: _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

Question27: The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

Question28: 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?

Question29: Assets that are long-lived and that differ from property, plant and equipment hat has been purchased outright or acquired under a capital lease are:

Question30: Physical tampering prevention is a check tampering technique that is used to secure bank assisted controls.

Question31: 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.

Question32: The essential elements of a ________ are an actual or constructive taking away of the goods or property of another with the without the consent and against the will of the owner and with a felonious intent.

Question33: The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

Question34: What is sometimes used to overcome well-designed internal controls of a victim company?

Question35: A __________ is a day-by-day, or chronological, record of transactions

Question36: Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?

Question37: ________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Question38: Which sale occurs when the accomplice of the employee-fraudster "buys" merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Question39: 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:

Question40: ____________ is a summary of the account balances carried in a ledger.

Question41: The principle behind full disclosure is:

Question42: A tangible asset is one which is:

Question43: ___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

Question44: __________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

Question45: A journal in which all sales made on credit or cash are listed is:

Question46: 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.

Question47: ________ increase assets and expenses and/or decrease liabilities and/or equity

Question48: Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.

Question49: _________ normally are carried on an organization's books as expenses because they tend to be consumed by the organization within a year of purchase.

Question50: Which sale occurs when the accomplice of the employee-fraudster "buys" merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Question51: The fraudsters' interest lies with an employer other than a company.

Question52: How many accounts are affected in fraudulent accounting entries and therefore same number of categories on the financial statement?

Question53: ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Question54: __________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

Question55: A variation between the physical inventory and the perpetual inventory totals is called:

Question56: __________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

Question57: Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.

Question58: The fraudsters' interest lies with an employer other than a company.

Question59: The difference between assets and liabilities is called:

Question60: Which of the following is not the skimming scheme?

Question61: 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.

Question62: Skimming is:

Question63: Which of the following are the classifications for the Corruption?

Question64: Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

Question65: The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

Question66: When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

Question67: Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

Question68: According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

Question69: Which of the following is NOT the example of bribery prevention policies?

Question70: The principle behind full disclosure is:

Question71: A shell company scheme in which actual goods or services are sold to the victim company is known as:

Question72: ___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Question73: Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes and wages.

Question74: The principal way to detect omitted credits from books of account is through:

Question75: Skimming cases can more likely to be detected by:

Question76: In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

Question77: Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

Question78: Persuasive evidence of an arrangement does not exist when:

Question79: Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

Question80: Fraudsters use the accounting system as a tool to generate the results they want in ___________ approach:

Question81: One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.

Question82: 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:

Question83: __________ can be defined as conduct detrimental to the organization and to the employee.

Question84: Which of the following is true for Red flags associated with fictitious revenues?

Question85: A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:

Question86: Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:

Question87: 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:

Question88: The fraudsters' interest lies with an employer other than a company.

Question89: Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

Question90: ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Question91: Which of the following is NOT standard of generally accepted accounting principles?

Question92: According to Hollinger and Clark for Policy development, management must pay attention to:

Question93: According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

Question94: Which of the following can constitute a bribe, even if the illicit payment is never actually made?

Question95: When employees committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

Question96: Forced reconciliation of the account says:

Question97: Which of the following is not the skimming scheme?

Question98: In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

Question99: Which of the following are used in a short-term skimming scheme?

Question100: Which of the following is true for Red flags associated with fictitious revenues?

Question101: The seller's price to the buyer is not fixed or determinable when:

Question102: When employees avoid detection in a refund scheme to keep the sizes of the disbursement low, is referred to:

Question103: Delivery has not occurred or services have not been rendered when:

Question104: Which of the following search is used for unusually high incidence of returns and allowances scheme?

Question105: Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

Question106: The scheme in which the same vendor is receiving favorable treatment can be found in purchases by vendor searches.

Question107: A typical issue involving material and fraud would be:

Question108: People commit financial statement fraud to:

Question109: According to Hollinger and Clark for Policy development, management must pay attention to:

Question110: Multiple cashiers operate from a single cash drawer without separate access codes is a red flag for:

Question111: Which of the following search is used for unusually high incidence of returns and allowances scheme?

Question112: Forced reconciliation of the account says:

Question113: Larceny by Fraud or deception means that:

Question114: The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets are called:

Question115: The seller's price to the buyer is not fixed or determinable when:

Question116: Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

Question117: Which of the following are not of Basic types of non-sharable problems?

Question118: Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Question119: False billing scheme states that:

Question120: Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.