Chapter 4 Part 2

Question 1

report it 1 lvl above the boss

Answer 1

If I found immaterial fraud?

Question 2

report to those charged with governance

Answer 2

If I find material fraud?

Question 3

unintentional misstatements or omissions of amounts or disclosures in financial statements.

Answer 3

Errors

Question 4

intentional misstatements or omissions of amounts or disclosures in financial statements.

Answer 4

Management Fraud

Question 5

violations of laws or government regulations by the company or its management or employees that produce direct and material effects on dollar amounts in financial statements.

Answer 5

Direct-effect illegal acts

Question 6

employees misappropriating funds or property entrusted their care, custody and control.

Answer 6

Embezzlement

Question 7

violations of laws and regulations that are far removed from financial statement effects (for example, violations relating to insider securities trading, occupational health and safety, food and drug administration, environmental protection, and equal employment opportunity).

Answer 7

InDirect-effect Illegal acts

Question 8

Same term - no change

Answer 8

Under asb - direct effect & indirect effect noncompliance to the law