(Multiple choice)
1. When looking for inventory fraud, an important question to ask is:
a. What is the nature of inventory?
b. What is the age of inventory?
c. What is the salability of inventory?
d. All are important questions to ask.

2. Which of the following ratios would not generally be used to look for inventory- and cost of goods sold-related frauds?
a. Accounts payable turnover.
b. Gross profit margin.
c. Inventory turnover.
d. Number of days' sales in inventory.

3. In order to analyze financial statements for fraud, an auditor or fraud examiner should consider all of the following except:
a. The types of accounts that should be included in the financial statements.
b. The types of fraud to which the company is susceptible.
c. The nature of the company's business and industry.
d. The auditor should consider all of the above.

4. Last-minute revenue adjustments, unsupported balance sheet amounts, and improperly recorded revenues are examples of:
a. Analytical symptoms.
b. Documentary symptoms.
c. Control symptoms.
d. Perceptional symptoms.

5. Accounts that can be manipulated in revenue fraud include all of the following except:
a. Accounts Receivable.
b. Bad Debt Expense.
c. Inventory.
d. Sales Discounts.

6. Which financial ratio is not useful in detecting revenue-related fraud?
a. Gross profit margin ratio.
b. Account receivable turnover ratio.
c. Asset turnover ratio.
d. All of the above are useful revenue-related fraud detection ratios.

7. The asset turnover ratio measures:
a. The average time an asset is used by the company.
b. The average useful life of capital assets.
c. Sales that are generated with each dollar of the assets.
d. Assets that are purchased with each dollar of sales.