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10 Cards in this Set
- Front
- Back
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Not a valid reason for senior management to issue fraud financial statements
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Increase tax liability
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Not a reason for managers to overstate financial statements
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Negotiate with (impress) union officials
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Not a reason for managers to understate financial statements
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To enhance earnings per share
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Methods people commit fraud
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Bribe the SEC
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What scheme not used in fixed assets
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Depreciation to an amount below 0
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6. Not a step to prevention
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a. Abuse of bonus
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7. One popular method for overstating inventory
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a. Fictitious (phantom) inventory
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8. Improper capitalization of expenses a key method of which (failed) company
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Worldcom
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9. Most common fraud scheme in accounts receivable
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a. Both a & b
i. Fictitious receivables ii. Failure to write off accounts receivables as bad debts |
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10. NOT a red flag with improper asset valuation
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a. Using lower cost of market
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