ACCT 4120 Chapter 2

Question 1

a reason that a person believes motivates them to commit fraud

Answer 1

perceived

Question 2

circumstances that cause a person to commit fraud

Answer 2

real pressure

Question 3

being an example

Answer 3

model

Question 4

the supposed ability or situation that allows someone to commit fraud

Answer 4

perceived opportunities

Question 5

to make something acceptable in a person’s viewpoint

Answer 5

rationalize

Question 6

the work atmosphere that an organization establishes for its employees

Answer 6

control environment

Question 7

communication

Answer 7

labeling

Question 8

the means by which people are held responsible

Answer 8

accounting system

Question 9

a path that allows frauds to be discovered and makes concealment difficult

Answer 9

audit trail

Question 10

dividing a task into two parts so that one person does not have complete control of the task

Answer 10

segregation of duties

Question 11

two individuals work together to complete a task

Answer 11

dual custody

Question 12

means of preventing or minimizing the opportunity for fraud

Answer 12

procedures

Question 13

means of preventing or minimizing the opportunity for fraud

Answer 13

control activities

Question 14

means by which a person is given or denied permission to perform an action

Answer 14

system of authorization

Question 15

provide a record of transactions and an audit trail

Answer 15

documents and records

Question 16

the work or activities of one person are monitored by another person

Answer 16

independent checks

Question 17

vaults, safes, fences, locks, keys, and other devices that take away opportunities to commit fraud by making it difficult for people to access assets

Answer 17

physical safeguards

Question 18

the probability that a person can carry out his or her own will despite resistance

Answer 18

power

Question 19

the ability of a fraud perpetrator to convince a potential victim that he or she will receive a certain benefit through participation in the fraud scheme

Answer 19

reward power

Question 20

the ability of the fraud perpetrator to convince a potential perpetrator that he or she truly has power over him or her

Answer 20

legitimate power

Question 21

the ability of the fraud perpetrator to influence another person because of expertise or knowledge

Answer 21

expert power

Question 22

the ability of the fraud perpetrator to make an individual perceive punishment if he or she does not participate in the fraud

Answer 22

coercive power

Question 23

the ability of the perpetrator to relate to the potential co-conspirator

Answer 23

referent power