CPA Exam BEC Questions & Answers 2023/2024
The fraud triangle includes each of the following, EXCEPT:
A) Incentive.
B) Collusion.
C) Opportunity.
D) Rationalization. - ANSWER-B) Collusion.
According to COSO, which of the following issues should lead to the greatest concern regarding the...
CPA Exam BEC Questions & Answers
2023/2024
The fraud triangle includes each of the following, EXCEPT:
A) Incentive.
B) Collusion.
C) Opportunity.
D) Rationalization. - ANSWER-B) Collusion.
According to COSO, which of the following issues should lead to the greatest concern regarding the
effectiveness of an entity's internal control?
A) Monitoring internal control areas that have NEVER had a control failure.
B) Errors from control failures that were NOT detected timely by the routine monitoring procedures.
C) Unwarranted duplication of efforts when multiple people monitor the same control.
D) Additional evaluations solely to meet regulatory requirements when elements of other procedures
would be sufficient. - ANSWER-B) Errors from control failures that were NOT detected timely by the
routine monitoring procedures.
A member of the audit committee is evaluating the following risk matrix for a company:
Item Number Likelihood Severity Risk
1 8.3% $20,235 Cash register embezzlement
2 13.6% $168,477 Vendor kickbacks (collusion)
3 7.5% $522,531 Server Outage
4 1.1% $2,937,632 F/S earning restatement
, Using statistical risk ranking methodology, which of the following lists of risks is correctly prioritized?
A) 2,1,3,4
B) 2,1,4,3
C) 3,4,2,1
D) 4,3,2,1 - ANSWER-C) 3,4,2,1
According to the Sarbanes-Oxley Act of 2002, each of the following is a corporate responsibility
requirement, EXCEPT:
A) The audit committee of the issuer is directly responsible for the appointment, compensation, and
oversight of the registered accounting firm.
B) The audit committee chairperson must certify that the quarterly report be filed with the SEC fairly
presents the financial condition and results of operations.
C) The audit committee of the issuer must establish whistleblowing mechanisms and procedures within
the issuer.
D) Each audit committee member of the issuer must be independent. - ANSWER-B) The audit committee
chairperson must certify that the quarterly report be filed with the SEC fairly presents the financial
condition and results of operations.
A manufacturer performed an analysis of its product's price point in an effort to meet its customers'
demand without experiencing excess inventory.
Price Point Supply Demand
$4 20 10
$3 15 15
$2 10 20
$1 5 25
The manufacturer uses just-in-time inventory processes, and demand for the product is elastic. Which of
the following prices should management use in order to address the efforts above while maximizing
profits?
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