Chapter 5

Question 1

Co-workers and managers

Answer 1

Best position to detect fraud

Question 2

Unusual processes or procedures in the accounting system

E.g missing docs, excessive voids or credits, duplicate payments

Answer 2

Accounting anomalies

Question 3

Relationships in financial or non-financial data that do not make sense.

E.g. Unexplained inventory shortages
Excess purchases
Cash shortages or overages

Answer 3

Analytical anomalies

Question 4

Control environment
Accounting system
Control activities (procedures)

Answer 4

Internal Control System