Exam 3: Fraud, Ethics, and Internal Control

The theft of proprietary company information is called:

When two or more people work together to commit a fraud, it is called:

Proper segregation of functional responsibilities calls for separation of the functions of:

The Sarbanes-Oxley act was passed in 2002 as a Congress's response to the many situations of fraudulent financial reporting discovered during 2001.The intention of the Act was:

A fraudster uses this to alter a program to slice a small amount from several accounts, crediting those small amounts to the perpetrator's benefit.

Circumstances that provide access to the assets or records that are the objects of the fraudulent activity describes which condition of the Fraud Triangle?

When a customer improperly obtains cash or property from a company, or avoids liability through deception, it is termed:

The most common method for detecting occupational fraud is a tip - from an employee, a customer, vendor, or anonymous source.

The risk related to this category of Trust Services Principles could be inaccurate, incomplete, or improperly authorized information.

A kickback is an example of which type of fraud?

Changing the accounting records to hide the existence of a fraud is termed:

COSO describes five components of internal control.Which of the following terms is best described as "policies and procedures that help ensure management directives are carried out and management objectives are achieved"?

The objectives of an internal control system include all of the following except:

The risk assessment is the foundation for all other components of internal control and provides the discipline and structure of all other components.

A sophisticated accounting system will provide the necessary accurate and effective feedback needed by management to assess, manage and control the operations of an organization.

The risk related to this category of Trust Principles is system or subsystem failure due to hardware or software problems.

The review of amounts charged to the company from a seller that it purchased from is called a:

The process of risk assessment would include all of the following actions, except:

Internal controls can be effective in preventing or detecting all of the following types of fraud except:

The main risk related to this category of Trust Services Principles is unauthorized access.