10 Accounting Multiple Choice Questions

Question 1.1. Two of the three elements of Dr. Donald Cressey’s Fraud Triangle are Opportunity and Rationalization. What is the third element?
Greed
Addiction
Motive
Denial

Question 2.2. Overstating revenues and understating liabilities and expenses typifies which of the following fraud schemes?
Unconcealed larceny
Skimming
Fraudulent statements
Purchase and sales schemes

Question 3.3. The word artifice means:
False
Trickery
Artificial
Facade

Question 4.4. The Department of Justice has defined “corporate fraud” to include which of the following?
Obstruction of justice
Self-dealing by corporate insiders
Falsification of financial information
All of the above

Question 5.5. Which of the following statement best explains Dr. W. Steve Albrecht’s Fraud Scale?
Status pressure from family and friends
Living beyond one’s means
Poor perception of one’s workplace
All of the above

Question 6.6. A __________ framework of internal controls and corporate governance is standard for many organizations in the United States.
COSO
principled
integrated
compliance

Question 7.7. The requirement to reimburse a company for any bonuses or other compensation received during the 12-month period following the restatement of financials as a result of misconduct is called:
Disgorgement
Executive penalty
Insider trading
Corporate accountability

Question 8.8. The Sarbanes-Oxley Act is also called what?
Corporate Fraud Protection Act of 2002
Public Corporation Accounting Oversight Act
Public Company Accounting Reform and Investor Protection Act of 2002
Principles of Federal Prosecution of Business Organizations

Question 9.9. A robust fraud prevention program must incorporate the _________ steps as detailed in the Amended Federal Sentencing Guidelines for Organizational Crime.
10
Seven
14
None of the above

Question 10.10. A system of checks and balances between management and all other interested parties with the aim of producing an effective, efficient, and law-abiding corporation is known as:
Corporate governance
Code of conduct
Transparency
Culture of compliance