F1 (BT) – Chapter 12 MCQ’s (Identifying and preventing fraud) – ACCA

Business-Students.net
October 4, 2022
ACCA, Business and Technology, F1, FIA, MCQs

These are ACCA F1 (BT/FBT) Business and Technology MCQs for Chapter; Identifying and preventing fraud.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have finished the entire chapter “Identifying and preventing fraud”.

All the questions are compulsory, so do not skip any.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA
Fundamental Level: Knowledge, FIA
Subject: Business And Technology
Paper: F1 – BT
Chapter: Identifying and preventing fraud
Chapter Number: 12 of the Practice and Exam Kit; and 19 of the Study Text
Syllabus Area: C – Accounting and reporting systems, technology, compliance and controls
Questions Type: MCQs
Exam Section: Section A

Number of the Questions

These MCQs Test consist of 16 Questions that covers the Chapter; Identifying and preventing fraud of ACCA F1 (BT) Business and Technology Module.

Time

These MCQs have a deadline. Students have to finish the Test within the given time period so Students can get used to finishing the Exam in time.

As in ACCA Exam, there are 1.8 minutes per mark. So each 2 marks question have 3.6 minutes to complete.

This Test includes some MCQs that worth 2 marks and some worth 1 Mark. We therefore giving an average time to complete the Test.

This Test has 16 questions, so Students have total 32 minutes to complete the Test.

Result

Students can see their result at the end of the test. Further, the correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seems to you correct/ or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F1 - Chapter 12 - Part C Test - MCQs and MTQs

1 / 16

All of the following, with one exception, are internal factors which might increase the risk profile of a business. Which is the exception?

Corporate restructuring

Increased competition

New personnel

Upgraded management information system

2 / 16

Dishonesty is a .................... to act in ways which contravene accepted ethical, social, organisational or legal norms for fair and honest dealing.

Which word correctly completes this statement?

3 / 16

Which TWO of the following stakeholders will be most directly affected if a business overstates its financial position?

Suppliers

Staff

Customers

Investors

4 / 16

Which of the following would NOT form part of a fraud response plan?

Fraud awareness training and recruitment controls.

Suspending staff suspected of fraudulent activity

Investigating the activities and contacts of a suspected fraudster

5 / 16

Only allowing purchasing staff to choose suppliers from an approved list is an example of what sort of fraud prevention measure?

Appropriate documentation

Limitation control

Check control

Segregation of duties

6 / 16

Which of the following would most clearly present a personnel risk of fraud?

Staff not taking their full holiday entitlements

Segregation of duties

High staff morale

Consultative management style

7 / 16

Which of the following is NOT a key risk area for computer fraud?

Hackers

Inability to secure access to data

Lack of managerial understanding

Integration of data systems

8 / 16

Which of the following activities create vulnerability to fraud?

(i) Calculating payslips
(ii) Preparing delivery notes
(iii) Paying supplier invoices
(iv) Meeting budgets and performance targets

(iii) only

(i) and (ii) only

(i) and (iii) only

(i), (ii), (iii) and (iv)

9 / 16

In a limited company, or plc, it is the ultimate responsibility of the ................... to take reasonable steps to prevent and detect fraud.

Which word or phrase correctly completes this statement?

10 / 16

Which of the following statements about fraud prevention is NOT true?

Emphasis on the autonomy of operational management may weaken controls.

Cash sales are an area of high risk of fraud.

Performance-based rewards for managers reduce the risk of fraud.

Fraud awareness and ethics education can reduce the risk of fraud

11 / 16

Which of the following internal controls might be least effective in preventing fraud, if staff are in collusion with customers?

Sequential numbering of transaction documents

Physical security

Requiring signatures to confirm receipt of goods or services

Authorisation policies

12 / 16

The initial disposal of the proceeds of an illegal activity into apparently legitimate business activity is known as what?

Layering

Placement

Integration

13 / 16

. . . . . . . . . . constitutes any financial transactions whose purpose is to conceal the origins of the proceeds of criminal activity. Which word(s) completes the sentence?

14 / 16

All of the following, except one, are potential impacts on a business of removal of significant funds or assets. Which is the exception?

Reputational damage

Reduction in profits

Fall in returns to shareholders

Increase in working capital

15 / 16

What is the term given to a method of fraud in the accounts receivable area, by which cash or cheque receipts are stolen, and the theft concealed by setting subsequent receipts against the outstanding debt?

Teeming and lading

Misrepresentation

Collusion

16 / 16

X plc has a bad debt policy whereby aged receivables who are obviously not going to pay, are written off. The financial accountant does not enforce this policy.

This might be fraudulent insofar as it creates which of the following effects?

It results in the overstatement of profits and net assets

It results in the understatement of profits and net assets

It results in the intentional overstatement of profits and net assets

It removes funds from the business

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