California Code
Fraud Scandals
Ethics
Senarios
Accounting Concepts
100
A score of 75 for any section of the Uniform Certified Public Accountant Examination ...
What is a Passing Score
100
In 2001, by keeping huge debts off the balance sheets--Shareholders lost $74 billion, thousands of employees and investors lost their retirement accounts, and many employees lost their jobs...
What is Enron Scandal
100
Immanuel Kant's theory of ethics, the end does not justify the means...
What is Deontology
100
Violated California Code regarding independence...
Who is Raquel Fabiala
100
The need for accounting information to be presented to the users in time to fulfill their decision making needs...
What is Timeliness Principle
200
Refers to the evaluation of financial and operational data solely for review by management and not intended for distribution to outside parties...
What is Audit
200
In 2002, by underreporting line costs through capitalizing rather than expensing, and inflating revenues with fake accounting entries-- Assets were inflated by $11 billion, leading to 30,000 lost jobs and $180 billion losses for investors...
What is WorldCom Scandal
200
The philosophical view that what is right or wrong and good or bad is not absolute but variable and relative...
What is Ethical Relativism
200
Created special purpose entities in order to hide debt...
Who is Juan Horton
200
Requires that expenses incurred by an organization must be charged to the income statement in the accounting period in which the revenue, to which those expenses relate, is earned...
What is Matching Principle
300
Each applicant shall present satisfactory evidence that he/she has received a baccalaureate or higher degree, has completed the accounting subjects specified in subsection (b), and has completed the business-related subjects specified in subsection (c)...
What is Education Required
300
In 2002, by siphoning money through unapproved loans and fraudulent stock sales, money was smuggled out of the company disguised as executive bonuses/ benefits-- Chief officers stole $150 million and inflated company income by $500 million
What is Tyco Scandal
300
Deals with how people ought to act, does not describe the way people actually act, and is prescriptive not descriptive...
What is Ethics
300
Knowingly signed off on documents although he/she is not yet certified...
Who is Julie
300
Information is ____ if a user can depend upon it to be materially accurate and if it faithfully represents the information that it purports to present...
What is Reliable
400
Master of Accounting, Master of Taxation, or Master of Laws in Taxation degree- all satisfy...
What is Accounting Study
400
In 2003, by making up numbers and transactions from 1996-2003-- Earnings numbers were inflated $1.4 billion to meet stockholders expectations...
What is HealthSouth Scandal
400
An investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors...
What is Ponzi Scheme
400
Encountered a red flag pertaining to the account "prepaid capacity"...
Who is Manly Steel
400
Reliability of information contained in the financial statements is achieved only if ____ financial information is provided relevant to the business and financial decision making needs of the users...
What is Completeness
500
A licensee may be granted a license in a retired status under this Article on no more than two separate occasions...
What is Limitation on Retired Status
500
In 2003, by intentionally misstating and understating earnings--$5 billion of earnings were misstated...
What is Freddie Mac Scandal
500
Used in the context of misstatements to describe the effects on the financial statements of misstatements, if any, that are undetected due to an inability to obtain sufficient appropriate audit evidence...
What is Pervasive
500
Licensed CPA in Washington, wanting to move to California...
Who is Juan Horton
500
Information is ____ if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements...
What is Materiality
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