Webclass 129: GAPS! Does the tax man still do the GAPS test and what type of fraud are they looking for?

Q1. Why would the tax officer look for gaps in journal entries?

To see if there are missing documents

Correct Incorrect Correct answer

To see if the values have been changed

Correct Incorrect Correct answer

Q2. Why did Enron delete paper documentation and electronic records?

Because they wanted to hide offshore profits

Correct Incorrect Correct answer

Because they didn't need to keep it for more than a ten-year period

Correct Incorrect Correct answer

Q3. Do some countries require the accounting document number to be sequential and without any gaps in the sequence?

Yes, for example, France

Correct Incorrect Correct answer

No

Correct Incorrect Correct answer

Q4. What was the latest example of a country where there were many fines relating to non-compliance with SAF-T (Standard Audit File for Tax)?

Poland – in the retail sector in 2020

Correct Incorrect Correct answer

Portugal in 2018

Correct Incorrect Correct answer

Q5. How long would it take a non-technical person to search for gaps in 2 million records of journal entries using a tool such as ACL?

About two minutes

Correct Incorrect Correct answer

About two days

Correct Incorrect Correct answer

Q6. When doing a Data Fix, would we expect to see logs of the Data Fix in the ERP logs?

No

Correct Incorrect Correct answer

Yes

Correct Incorrect Correct answer

Q7. Why might the IT department need to do a Data Fix?

For example, if there was an error in the SAP system, such as the calculation for First In First Out was not turned on in the SAP system

Correct Incorrect Correct answer

The Database Administrator needs to do Data Fixes regularly in order to ensure the good maintenance of the database system

Correct Incorrect Correct answer

Q8. How might the IT department collude with the warehouse to steal inventory?

The warehouse manager could take stock out of physical inventory and the IT department could do a Data Fix to remove the items from inventory, without any trace in the application logs

Correct Incorrect Correct answer

The warehouse manager could steal the inventory and the IT department could restore inventory files from backups to hide the movement

Correct Incorrect Correct answer

Q9. When running a GAPS test do we need to first sort the data?

Yes, we need to sort it, whether we are doing it in ACL, SQL, QLIK or python

Correct Incorrect Correct answer

Yes, but not if we are doing it in ACL

Correct Incorrect Correct answer

Q10. When running a GAPS test, which field(s) should we sort on?

On the company code, fiscal year and document number

Correct Incorrect Correct answer

On the company code and fiscal year

Correct Incorrect Correct answer

Q11. If there are very large gaps of 100s thousand records between two records in the data set, what does this mean?

That it is not a real case of GAPS, but rather a different range in numbering

Correct Incorrect Correct answer

That there is a large fraud case that has occurred in the organization

Correct Incorrect Correct answer

Q12. If the auditor sees GAPS in the general ledger (within a number range), should they assume that there has been a fraud?

No, because it could be due to an update termination, number buffering or user exist. The auditor should therefore look for update terminations in SM13 or the report RFBNUM reports, that should be logged monthly

Correct Incorrect Correct answer

Yes, the auditor should interview the CFO and check why they are deleting records in the system

Correct Incorrect Correct answer

Q13. Why is it perhaps not the best idea for the python program to output the numbers in the system that are missing?

Because the auditor will not be able to find them in the application to confirm the results and also there might be a lot of numbers that are output

Correct Incorrect Correct answer

Because the python program will take too long to run

Correct Incorrect Correct answer

Q14. Should we spend hours working out how to write the python program better, or should we ask Chat GPT?

We should ask Chat GPT because we will get the program updated within a few minutes to what we require, however, we need some foundations in data and python to critically assess if the result from Chat GPT is correct

Correct Incorrect Correct answer

We should ask Chat GPT, because Chat GPT will have a much more accurate result than we can ever obtain on our own

Correct Incorrect Correct answer

Q15. Why is it not a good idea to do a many-many join between two copies of a large table, without specifying a join key?

Because the system will create a cartesian product between the two tables, which will take a huge amount of space and take a long time to run

Correct Incorrect Correct answer

Because the analysis will be incorrect

Correct Incorrect Correct answer

Q16. What is an advantage of the Common Table Expression in SQL compared to in ACL where a sort needs to be done before the GAPs expression?

The query is quicker and takes up less space because the Common Table Expression is an expression (like a formula) and not an actual data set

Correct Incorrect Correct answer

The query is more accurate

Correct Incorrect Correct answer

Q17. What is the advantage of the GAPS button in ACL compared to writing an SQL or python program?

In ACL, to do GAPS, we only need to click on a button, whereas in SQL or python, we need to write a program

Correct Incorrect Correct answer

In ACL, the program will run quicker

Correct Incorrect Correct answer

Q18. Should we include the value of journal entries that have GAPS on the dashboard about GAPS?

No, because since those journal entries are missing, we can not know the value of them

Correct Incorrect Correct answer

Yes, because we need to know the financial impact of the problem

Correct Incorrect Correct answer

Q19. Does ACL also have a button for looking for sequence errors?

Yes

Correct Incorrect Correct answer

No

Correct Incorrect Correct answer

Q20. What should be sorted on before checking for sequence errors?

Company code, fiscal year, input date, input time, document number

Correct Incorrect Correct answer

Company code, fiscal year, document number, input date, input time

Correct Incorrect Correct answer

WC129 – GAPS! Does the tax man still do the GAPS test and what type of fraud are they looking for?

Quizzes

Participants 13

Webclass 129: GAPS! Does the tax man still do the GAPS test and what type of fraud are they looking for?

admin June 9, 2026

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question