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NEW QUESTION: 1
CORRECT TEXT
When a non-compressed evidence file is reacquired with compression, the acquisition and verification hash values for the evidence will remain the same for both files.
A. False
B. True
Answer: B

NEW QUESTION: 2
When an entity uses a trust company as custodian of its marketable securities, the possibility of concealing
fraud most likely would be reduced if the:
A. Interest and dividend checks are mailed directly to an entity employee who is authorized to sell
securities.
B. Trust company places the securities in a bank safe-deposit vault under the custodian's exclusive
control.
C. Trust company has no direct contact with the entity employees responsible for maintaining investment
accounting records.
D. Securities are registered in the name of the trust company, rather than the entity itself.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. When an entity uses a trust company as custodian of its marketable securities, the
possibility of concealing fraud would be reduced if the trust company deals only with the person reconciling
the accounts, and not with the employees responsible for maintaining investment records.
Choice "B" is incorrect. The securities should be in the entity's name, and not the trust company's.
Choice "C" is incorrect. If interest and dividend checks are mailed directly (custody of the asset) to the
employee authorized to sell the securities (authorization), incompatible duties would result which may
result in fraud being concealed.
Choice "D" is incorrect. Limiting access to the assets would reduce the possibility of theft, but would not
reduce the possibility of concealing fraud.

NEW QUESTION: 3
The Altman credit risk score considers:
A. A historical database of the firms that have defaulted
B. A combination of accounting measures and market values
C. A historical database of the firms that have survived
D. A quadratic approximation of the credit risk based on underlying risk factors
Answer: B
Explanation:
Explanation
A computation of Altman's Z-score considers the following ratios:
- Working capital to total assets
- Retained earnings to total assets
- EBIT to total assets
- Market cap to debt
- Sales to total assets
Nearly all the numbers above are accounting measures derived straight from the balance sheet or the income statement. Market capitalization is a market driven number. Therefore Choice 'c' is the correct answer as the Altman credit risk score considers both accounting and market based measures.
Altman's score, though computationally straightforward and intuitively easy to understand, was introduced in the late sixties and has been very accurate in predicting corporate bankruptcies, which is why it continues to be used extensively.