Question 1

Which of the following would be considered an intrinsic reward?

Accepted Answer

A)  the satisfaction from studying hard.
B)  providing help to someone in need.
C)  doing a good job.
D)  All of the answers are correct.E) A) and B)
F) A) and C)

Question 2

Rewards that include grades,money,praise,and prizes are called

Accepted Answer

A)  traditional rewards.
B)  intrinsic rewards.
C)  extrinsic rewards.
D)  outside rewards.E) B) and C)
F) A) and B)

Question 3

Which of the following are components of deferred compensation?

Accepted Answer

A)  cash bonuses.
B)  profit sharing plans.
C)  special awards.
D)  stock options.E) None of the above
F) A) and C)

Question 4

How does overstated ending inventory leads to overstated earnings?

Accepted Answer

A)  By understating cost of good sold.
B)  By overstating cost of good sold.
C)  By understating contribution margin.
D)  By understating gross margin.E) A) and B)
F) A) and C)

Question 5

Which of these is a common type of fraud on financial statements?

Accepted Answer

A)  overstating inventory.
B)  overstating cash.
C)  understating inventory.
D)  overstating cost of goods sold.E) A) and D)
F) None of the above

Question 6

Rewards that come from outside the individual,such as rewards from a teacher,a parent,an organization,or a spouse that include grades,money,praise,and prizes are called

Accepted Answer

A)  traditional rewards.
B)  intrinsic rewards.
C)  extrinsic rewards.
D)  outside rewards.E) C) and D)
F) B) and D)

Question 7

Which of the following is considered to be fraudulent financial reporting?

Accepted Answer

A)  intentional conduct resulting in materially misleading financial statements.
B)  embezzlement or theft of assets.
C)  unintentional errors in preparing financial statements.
D)  None of the answers is correct.E) B) and C)
F) A) and C)

Question 8

Effective incentive compensation plans must induce individual behavior compatible with increasing the firm's wealth.Deferred compensation is given for

Accepted Answer

A)  short-term performance.
B)  long-term incentive.
C)  particular actions or extraordinary performance.
D)  None of the answers is correct.E) None of the above
F) A) and B)

Question 9

A causal model of lead and lag indicators of performance based on financial and non-financial perspectives is known as which of the following?

Accepted Answer

A)  balanced scorecard.
B)  managerial report card.
C)  hierarchical scorecard.
D)  management by objectives.E) All of the above
F) A) and B)

Question 10

Which of these falls under the responsibility of top management?

Accepted Answer

A)  assuring the integrity of financial information presented to outsiders.
B)  maintaining adequate internal control.
C)  unintentional errors in preparing financial statements.
D)  assuring the integrity of financial information presented to outsiders and maintaining adequate internal control.E) A) and B)
F) All of the above

Question 11

Explain management's role in assuring the integrity of financial information.

Accepted Answer

Management reports should ackn...

Question 12

Which of the management methods developed in the private sector are being used by nonprofit organizations?

Accepted Answer

A)  Balanced scorecard.
B)  Deferred stock options.
C)  Bonuses based on achieving profit targets.
D)  Extended vacation time.E) B) and D)
F) All of the above

Question 13

In 1977,Congress addressed foreign bribes paid by U.S.Companies by passing which of the following acts?

Accepted Answer

A)  Foreign Anti-bribery Practices Act.
B)  Foreign Corruption Act.
C)  Foreign Corrupt Practices Act.
D)  Foreign Bribery and Corruption Act.E) B) and C)
F) A) and D)

Question 14

Which of the following are not controls that can be instituted to prevent financial fraud?

Accepted Answer

A)  Separate duties where a single person carrying out a series of tasks could not commit fraud and hide it.
B)  Hire internal auditors.
C)  Have independent auditors review a company's internal controls.
D)  Have the bank independently reconcile cash balances with company records.E) A) and C)
F) None of the above

Question 15

Controls that can be instituted to prevent financial fraud includes

Accepted Answer

A)  separation of duties where a single person carrying out a series of tasks could commit fraud and take steps to hide it.
B)  the presence of the independent auditors and their review of a company's internal controls.
C)  the presence of the internal auditors and their review of a company's internal controls.
D)  All of the answers are correct.E) B) and C)
F) A) and D)

Question 16

In 1977,the United States Government passed the Foreign Corrupt Practices Act which

Accepted Answer

A)  requires all companies registered with the SEC to make and keep accurate books and records.
B)  requires all companies registered with the SEC to devise and maintain a system of internal accounting controls sufficiently adequate that managers of a company will know if a bribe is paid.
C)  allows for "grease payments" paid to low-level foreign government employees to expedite routine matters.
D)  All of the answers are correct.E) None of the above
F) C) and D)

Question 17

Effective divisional incentive compensation plans must induce individual behavior compatible with increasing which of the following?

Accepted Answer

A)  firm's wealth.
B)  suppliers' wealth.
C)  customers' wealth.
D)  employees' agency wealth.E) A) and D)
F) A) and B)

Question 18

Which of these is the perspective of the balanced scorecard that is measured by employee satisfaction,employee retention,and employee productivity?

Accepted Answer

A)  financial perspective.
B)  internal business and production process perspective.
C)  learning and growth perspective.
D)  customer perspective.E) A) and B)
F) B) and D)

Question 19

Which statement best describes the balanced scorecard?

Accepted Answer

A)  A causal model for lead and lag indicators of performance.
B)  A replacement for zero-based budgeting.
C)  A product of zero-sum game theory.
D)  A tool to evaluate customer profitability.E) A) and C)
F) B) and D)

Question 20

Treadway Commission
The 1987 recommendations of the Treadway Commission focused on publicly held companies.For each area listed below,explain how a company can improve its overall financial reporting process,increase the likelihood of preventing fraudulent financial reporting,and detect it earlier when it occurs.
Refer to the Treadway Commission.Explain why the Treadway Commission believes the internal audit function plays an important role in deterring financial fraud.

Accepted Answer

The internal audit function must be desi...

Exam 12: Incentive Issues

Which of the following is considered to be fraudulent financial reporting?

Correct Answer
verified

Which of the following would be considered an intrinsic reward?

Correct Answer
verified

Controls that can be instituted to prevent financial fraud includes

Correct Answer
verified

How does overstated ending inventory leads to overstated earnings?

Correct Answer
verified

Rewards that include grades,money,praise,and prizes are called

Correct Answer
verified

Which of the following are components of deferred compensation?

Correct Answer
verified

Which of these falls under the responsibility of top management?

Correct Answer
verified

Which of the following are not controls that can be instituted to prevent financial fraud?

Correct Answer
verified

Effective divisional incentive compensation plans must induce individual behavior compatible with increasing which of the following?

Correct Answer
verified

Explain management's role in assuring the integrity of financial information.

Correct Answer
verified
Management reports should ackn...
View Answer

Which statement best describes the balanced scorecard?

Correct Answer
verified

In 1977,the United States Government passed the Foreign Corrupt Practices Act which

Correct Answer
verified

Rewards that come from outside the individual,such as rewards from a teacher,a parent,an organization,or a spouse that include grades,money,praise,and prizes are called

Correct Answer
verified

A causal model of lead and lag indicators of performance based on financial and non-financial perspectives is known as which of the following?

Correct Answer
verified

Which of the management methods developed in the private sector are being used by nonprofit organizations?

Correct Answer
verified

Which of these is the perspective of the balanced scorecard that is measured by employee satisfaction,employee retention,and employee productivity?

Correct Answer
verified

Which of these is a common type of fraud on financial statements?

Correct Answer
verified

In 1977,Congress addressed foreign bribes paid by U.S.Companies by passing which of the following acts?

Correct Answer
verified

Correct Answer
verified
The internal audit function must be desi...
View Answer

Effective incentive compensation plans must induce individual behavior compatible with increasing the firm's wealth.Deferred compensation is given for

Correct Answer
verified

Exam 12: Incentive Issues

Which of the following is considered to be fraudulent financial reporting?

Correct AnswerverifiedShow Answer

Which of the following would be considered an intrinsic reward?

Correct AnswerverifiedShow Answer

Controls that can be instituted to prevent financial fraud includes

Correct AnswerverifiedShow Answer

How does overstated ending inventory leads to overstated earnings?

Correct AnswerverifiedShow Answer

Rewards that include grades,money,praise,and prizes are called

Correct AnswerverifiedShow Answer

Which of the following are components of deferred compensation?

Correct AnswerverifiedShow Answer

Which of these falls under the responsibility of top management?

Correct AnswerverifiedShow Answer

Which of the following are not controls that can be instituted to prevent financial fraud?

Correct AnswerverifiedShow Answer

Effective divisional incentive compensation plans must induce individual behavior compatible with increasing which of the following?

Correct AnswerverifiedShow Answer

Explain management's role in assuring the integrity of financial information.

Correct AnswerverifiedManagement reports should ackn...View AnswerShow Answer

Which statement best describes the balanced scorecard?

Correct AnswerverifiedShow Answer

In 1977,the United States Government passed the Foreign Corrupt Practices Act which

Correct AnswerverifiedShow Answer

Rewards that come from outside the individual,such as rewards from a teacher,a parent,an organization,or a spouse that include grades,money,praise,and prizes are called

Correct AnswerverifiedShow Answer

A causal model of lead and lag indicators of performance based on financial and non-financial perspectives is known as which of the following?

Correct AnswerverifiedShow Answer

Which of the management methods developed in the private sector are being used by nonprofit organizations?

Correct AnswerverifiedShow Answer

Which of these is the perspective of the balanced scorecard that is measured by employee satisfaction,employee retention,and employee productivity?

Correct AnswerverifiedShow Answer

Which of these is a common type of fraud on financial statements?

Correct AnswerverifiedShow Answer

In 1977,Congress addressed foreign bribes paid by U.S.Companies by passing which of the following acts?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe internal audit function must be desi...View AnswerShow Answer

Effective incentive compensation plans must induce individual behavior compatible with increasing the firm's wealth.Deferred compensation is given for

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Management reports should ackn...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The internal audit function must be desi...
View Answer

Correct Answer
verified