ISO 31000 Risk Management Techniques: Reduction, Retention, and

School: De La Salle-College of Saint Benilde - Course: ACCOUNTING 105 - Subject: Accounting

Question 1(2 points) Saved ISO 31000 suggests that once risks have been identified and assessed, techniques to manage risks should be applied. These techniques include the following except Question 1 options: Reduction Retention Complete disregard Sharing Question 2(2 points) Saved On a recent trip to Hongkong, Brian Santos, sales manager of Micro-electronic Devices, took his wife at company expense. Erika Tan, vice president of sales and Santos' boss, thought this travel and entertainment expenses seemed excessive. Tan approved the reimbursement, however, because she owed Santos a favor. Tan, well aware that the company president routinely reviewed all expenses recorded in the cash disbursements journal, had the accountant record Santos' wife expenses in the general journal as follows: Sales Promotion Expense35,000 Cash35,000 What is the main ethical issue in this situation? Question 2 options: Use of company money to pay Santos expenses None of the above since it was approved Tan uses accounting to conceal payment Recording the transactions in the general journal rather than the cash disbursements journal Question 3(2 points) Saved Identify the fraud risk factor in this situation: Complex or unstable organizational structure. Question 3 options: Opportunity Pressure

Rationalization None of the above Question 4(2 points) Saved The assessment considers pressures that might lead to fraud in the financial statements Question 4 options: The level of management involved The intent to deceive The type of transaction effected The materiality of the misstatement Question 5(2 points) Saved Top management's commitment in the "Unified Code of Conduct for Business" included the following except Question 5 options: To lead by example in conducting business with integrity To communicate within the company and the general public the company's position against bribery, corruption and unethical business practice To support strategy integrity practices and efforts and allocate sufficient resources for their implementation. To institute training programs or business ethics covering all levels of the organization Question 6(2 points) Saved Which of the following statements is false regarding the risk assessment component of internal control? Question 6 options: Risk assessment includes the identification and analysis of significant changes Risk assessment assessing internal and external sources of risk Risk assessment includes assessing fraud risk Economic changes would not be considered a risk that needed to be analyzed as part of the risk assessment process