Question 5 (1 point)

Which of these is an example of financial statement fraud?

Question 5 options:

	An invoice was misclassified as machinery instead of equipment.
	A liability was booked for a pending lawsuit and the amount was 110% of the amount that the attorney recommended.
	The company forgot to accrue an estimate for two salesman's expense reports not yet turned in at year end.
	The company coded new tires on the truck fleet as renovations and annual repair contracts as purchases.

Question 6 (2.5 points)

Name three things that SAS 99 (AU 240) requires an auditor to do with regard to finding fraud.

Question 6 options:

Question 7 (2.5 points)

What is the auditor's responsibility if they find evidence that might be fraud when conducting an audit?

Question 7 options: