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21.Dorothy McNally stole $232 from the company deposit while the

Question : 21.Dorothy McNally stole $232 from the company deposit while the : 1414222

 

 

21.Dorothy McNally stole $232 from the company deposit while on the way to the bank. She can conceal the theft by recording the missing amount on the bank reconciliation as a(n):

a.Deposit in transit

b.Outstanding check

c.Credit memo

d.None of the above

 

22.Jeff Lewis is an accounts receivable clerk for FTB Industries. As customers pay off their balances, Lewis posts the payments but pockets the money. He can conceal his theft by:

a.Making unsupported entries for the amount stolen

b.Adjusting the account with a discount

c.Destroying the records

d.All of the above

 

23.Mel Turner, the runner for a small bookstore, had a bad habit of helping himself to cash from the deposit on the way to the bank.  He covered his tracks by substituting a check from the next day’s deposit for the amount he stole from the previous day’s deposit. This is an example of what type of concealment?

a.Deposits in transit

b.Deposit lapping

c.Force balancing

d.None of the above

 

24.Victor Jackson, CFE, was hired by BRS Carpet and Tile to investigate possible cash larceny at the point of sale. Which of the following red flags should he look for?

a.Large differences between sales records and cash on hand

b.Unusual journal entries to the cash accounts

c.A large number of small differences between sales records and cash on hand

d.All of the above

 

25.Danielle Boyle, CFE, was hired to investigate some suspicious activity in the accounts receivable department at Red Technologies. While examining the company’s accounting records, she noticed several payments posted to customers’ accounts that were later reversed with journal entries to “courtesy discounts.” What type of scheme might this situation indicate?

a.Receivables skimming

b.Deposit lapping

c.Cash larceny of receivables

d.Shell company

 

26.In one of the case studies in the textbook, Laura Grove was the head teller at a bank in Tennessee. As the head teller, she had the authority to open the night depository along with another teller. For security reasons, each teller only had half of the combination to the vault. In the end, Grove opened the vault and stole two deposit bags worth approximately $16,000. Which of the following red flags made the investigators suspect Laura?

a.The security system showed that she was the last one to leave the bank on the day before the bags were stolen.

b.She broke out in a rash when she was interviewed.

c.During the interview she made a point of mentioning that the other teller had been having financial problems.

d.All of the above

 

27.In one of the case studies in the textbook, Laura Grove was the head teller at a bank in Tennessee. As the head teller, she had the authority to open the night depository along with another teller. For security reasons, each teller only had half of the combination to the vault. In the end, Grove opened the vault and stole two deposit bags worth approximately $16,000. How was she ultimately caught?

a.She broke down and confessed to the investigators during a routine interview of all tellers.

b.Her husband found the bank’s money and turned her in.

c.The bank found some of the checks in the dumpster near her house with her fingerprints on them.

d.None of the above

 

28.In one of the case studies in the textbook, Laura Grove was the head teller at a bank in Tennessee. As the head teller, she had the authority to open the night depository along with another teller. For security reasons, each teller only had half of the combination to the vault. In the end, Grove opened the vault and stole two deposit bags worth approximately $16,000. How was the case settled?

a.She paid the bank back in lieu of prosecution.

b.She was prosecuted and sentenced to eighteen months in jail.

c.She was dismissed and signed a promissory note to repay the money.

d.She was prosecuted but received probation in lieu of prison time.

 

29.In one of the case studies in the textbook, Bill Gurado was a branch manager for a consumer-loan finance company in New Orleans who decided to help himself to the daily deposits. Instead of depositing the money into the company’s bank account, he deposited the money into his own personal account. How was Gurado’s fraud discovered?

a.He suspected he was on the verge of being caught, called the company’s president, and confessed that he had taken the money.

b.The auditors found it during a surprise audit of the branch Gurado managed.

c.His assistant suspected him and reported him to the company’s audit committee.

d.A customer called to complain about receiving an overdue notice.

 

30.In one of the case studies in the textbook, Bill Gurado was a branch manager for a consumer-loan finance company in New Orleans who decided to help himself to the daily deposits. Instead of depositing the money into the company’s bank account, he deposited the money to his own personal account. How was the case settled?

a.The company pursued civil action for the repayment of the stolen funds.

b.Gurado was terminated and he immediately paid back the money.

c.Gurado was convicted of grand theft and scheming to defraud, and he was placed on probation.

d.Gurado was placed on deferred adjudication and required to make restitution.

 

 

 

 

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