CB Fraud Prevention and Internal Controls

Question 1

Which of the following is the primary objective of internal controls?

Accepted Answer

To safeguard assets and prevent fraud

Answer

Internal controls are designed to safeguard assets, ensure accurate financial reporting, and prevent fraud within an organization.

Question 2

Which of the following is an example of an internal control measure?

Accepted Answer

Implementing segregation of duties

Answer

Segregation of duties helps prevent fraud by ensuring that no single individual has complete control over financial transactions.

Question 3

Which of the following best describes fraud?

Accepted Answer

An intentional act of deception for financial gain

Answer

Fraud is an intentional act of deception intended to gain an unfair or unlawful advantage, such as financial gain.

Question 4

What is the purpose of a bank reconciliation?

Accepted Answer

To ensure records match the bank statement

Answer

A bank reconciliation ensures that an organization's records match the bank statement, detecting errors and unauthorized transactions.

Question 5

Which of the following is a red flag for potential fraud?

Accepted Answer

A lack of segregation of duties

Answer

A lack of segregation of duties can create an opportunity for fraud, as it allows one person to manipulate financial records without oversight.

(CB) Certified Bookkeeper Practice Test