35. Irregularities such as missing documents, excessive voids or credit memos, excessive write-offs, duplicate payments, second endorsement on checks, and questionable handwriting are all examples of:

A. Accounting anomalies

B. Analytical anomalies

C. Behavioral red flags

D. Internal control irregularities and weaknesses

36. From a fraud perspective, internal controls have at least three different objectives:

A. Increase perception of detection, improve deterrence, and create a reporting mechanism

B. Deterrence, detection, and mitigation

C. Segregation of duties, checks and balances, and detection

D. Prevention, deterrence, and detection

37. Data such as laundromat electricity usage and cycle time, beer purchase quantities, and travel dates are examples of:

A. Accounting anomalies

B. Nonfinancial numerical performance data

C. Red flags that have little to no potential value in verifying or disproving fraud

D. Tend to be corrupted sources of data

38. The targeted fraud risk assessment approach assumes that there should be a direct relationship between the ________________ and the _________________________.

A. Specific industry involved; risk levels typically associated with that industry

B. Accounts receivable department; accounts payable department

C. Level of risk associated with a material weakness in the companys controls; amount of attention devoted to that area during an audit

D. Organizations tolerance for risk; implementation of appropriate internal controls