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1. According to U.S. GAAP, the asset(s) that is the most susceptible to fraud is: A) Plant, property and equipment B) Inventory C) Cash D) Accounts Receivable 2. Fraud is defined by the textbook as a "dishonest act by an employee that results in personal benefit to the employee at the cost to the employer." Factors contributing to fraudulent activity are often represented by the fraud triangle, which includes: A) Opportunity, access and rationalization B) Rationalization, financial pressure and opportunity C) Financial pressure, access and rationalization D) Opportunity, greed and rationalization 3. To combat fraud, companies' will develop and implement an effective internal control structure. Internal control is defined as measures and related methods adopted within an organization to: A) Enhance the reliability of its accounting records B) Safeguard assets C) Ensure compliance with laws and regulations D) Increase efficiency of operations E) All of the above 4. A Company's internal control structure would include these primary components EXCEPT: A) A control environment B) Information and communication C) Control activities D) Routine software and hardware upgrades E) Risk assessments 5. Control activities include: A) Independent internal verification and human resource controls B) Segregation of duties and establishment of responsibilities C) Physical controls and document procedures D) B and C Only E) A, B and C

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