Answers All the question below

Question 2

Stringent Ltd is a victim of fraud. The company incurred $5,000 loss as a result of fraud committed by its sales manager during 2013. This loss is included in the amount of reported Expenses. The following information has been extracted from the Income Statement for 2013:

Stringent Ltd

Extract from Income Statement for the Year Ended 30 June 2013

Sales $50,000

Less cost of goods sold $20,000

Gross profit $30,000

Expenses $15,000 Profit $15,000

How much additional Sales must Stringent earn to recover the loss from the fraud?

$1,667

$1,500

$667

$16,667

Question 3

Mary is the company's accounts clerk. It has been alleged that Mary created false journal entries to conceal the theft of money from the company. Investigations show that Mary accessed the accounting system and processed the false journal entries. To successfully sue Mary for false accounting, the company........................

must prove amongst other things, that Mary created the false journal entries so that she can steal the money.

must prove amongst other things, that Mary created the false journal entries with a view to a gain for herself or another.

must decide under which false accounting provision action will be taken and prove Mary had the view to a gain for herself or another, by creating the false journal entries.

must decide under which false accounting provision action will be taken and prove Mary had the view to a gain for herself or another, by stealing the money.

Question 4

Which of the following is a common perceived pressure?

rationalization

a financial need

pressure to lie to work colleagues

pressure to outsmart people

Question 5

Fraudsters use the following different types of power to recruit others to participate in a fraud:

coercive power, monetary power, expert power, favour power and illegitimate power.

muscle power, economic power, legitimate power, referent power and convincing power.

reward power, coercive power, legitimate power, referent power and expert power.

coercive power, reward power, expert power, reference power and legitimate power.

Question 6

Which of the following is not a type of fraud?

Disbursement scheme

Investor scam

Supplier fraud

Theft

Question 7

Fraud is deception that always includes

a witness

all of the above

more than one victim

a false representation