Fraud Examiners Must Be Able to Recognize Signals That a Journal

question 1

Multiple Choice

Fraud examiners must be able to recognize signals that a journal entry may have been manufactured to conceal a fraud. Which of the following is a common journal entry fraud symptom?

• A) Journal entries with documentary support
• B) Journal entries that balance
• C) Adjustments to receivables or payables that are made monthly
• D) Journal entries made near the end of an accounting period

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Definitions:

Indian Reservations

Designated areas of land managed by Native American tribes under the U.S. Bureau of Indian Affairs, intended to maintain and preserve their cultures and ways of life.

Population Growth

The increase in the number of individuals in a population, often measured by birth rate minus death rate plus net migration.

Gilded Age

A period in late 19th century America characterized by rapid economic growth, technological innovation, and ostentatious wealth, alongside widespread social inequalities.