ACCT 562 DeVry Midterm Exam

(TCO F) The conceptual framework for financial reporting includes several assumptions that underlie generally
accepted accounting principles. Which of the following is one of these assumptions
(TCO A) Operational review phases are ordered in
(TCO F) Reversing entries is a method for concealing larceny of ___________?
(TCO F) Dorothy McNally stole $232 from the company deposit while on the way to the bank. She can conceal the theft
by recording the missing amount on the bank reconciliation as a(n):
(TCO F) According to a study by COSO, which of the following groups is the most likely to commit financial statement
fraud?
(TCO B) One of the primary purposes of the planning is to:
(TCO A) Operational review procedures embrace the concept of conducting operations for economy, efficiency, and
effectiveness. Provide a brief description of the EFFICIENCY aspect, and provide an example.
(TCO A) Compare and contrast a financial audit versus an operation review using the following characteristics: Purpose,
Scope, Skills, Audience, Audit Results, and Focus
(TCO F) Cressey’s “fraud triangle” states that three factors—non-shareable financial need, perceived opportunity, and
rationalization—are present in cases of occupational fraud. Which of these three factors, if any, is the most important
in causing executives, managers, and employees to commit occupational fraud?
In the case study, “The Importance of Timing,” what kind of fraud did the accountant commit? How could this fraud
have been discovered?