Shelley is an accountant at an aerospace company that is going through a financial crisis. To make it seem like the company is still profitable, she manipulates the company's financial data. However, this manipulation is against the standards of accounting. In this scenario, Shelley is guilty of
A. bribery.
B. nepotism.
C. unethical behavior.
D. social loafing.
Answer: C
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An auditor is required to establish an understanding with a client regarding the responsibilities for each engagement. This understanding generally includes:
A. management's responsibility for providing the auditor with an assessment of the risk of material misstatement due to fraud. B. the auditor's responsibility to plan and perform the audit to provide reasonable, but not absolute, assurance of detecting material errors or fraud. C. the auditor's responsibility for the fairness of the financial statements. D. management's responsibility to guarantee that there are no material misstatements due to fraud.
Routine maintenance activities require all of the following controls except
a. documentation updates b. testing c. formal authorization d. internal audit approval
In an electronic environment, no other control can better prevent fraud than the wise use of _________
a. digital certificates b. biometrics c. anti-virus software d. passwords
Everything in the supervisor's working file should be
a. Shown to the human resources department b. Private c. Shared with the employee d. Positive and encouraging