Let's test our Knowledge of Fraud & Internal Controls

A strong system of internal ________ reduces the ________ to commit fraud.

The use of internal controls cannot guarantee protection against losses due to fraud, errors, and inefficiencies.

Which of the following is one of the three factors of the fraud triangle?

A bank reconciliation item that a company's bank may not know about would be:

The Sarbanes-Oxley Act (SOX) requires external auditors to test the company's internal control system.

Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation?

All of the following bank reconciliation items would result in a journal entry on the company's books except:

In a bank reconciliation, an outstanding check is:

Assigning sequential numbers to cash sales is required by the internal control principle of:

Which of the following is not a category of employee fraud?

A bank service charge should be a(n) ________ on a bank reconciliation.

Outstanding checks written by the company should be a(n) ________ on the company's bank reconciliation.

Acountng is the languag of busnss You have to be comfortble with it as you are with your natve languag to evluate busnss

Employee fraud includes which of the following categories?

Employee fraud is often grouped into three categories, including corruption, asset misappropriation, and embezzlement.

A highly effective internal control should be implemented even if the cost is greater than the benefit.

Which of the following items will require an adjusting journal entry on a company's books?