Question 1

A set of documented guidelines for moral and ethical behavior within an organization is termed a(n):

Accepted Answer

A) Accounting Information System 
B) Code of Ethics 
C) Internal Control 
D) Sarbanes-Oxley 
A) Accounting Information System 
B) Code of Ethics 
C) Internal Control 
D) Sarbanes-Oxley

Question 2

If an organization's IT systems are not properly controlled, they may become exposed to the risks of:

Accepted Answer

A) Unauthorized access 
B) Erroneous processing 
C) Service interruption 
D) All of the above 
A) Unauthorized access 
B) Erroneous processing 
C) Service interruption 
D) All of the above

Question 3

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

Accepted Answer

A) Check fraud 
B) Customer fraud 
C) Credit card fraud 
D) Refund fraud 
A) Check fraud 
B) Customer fraud 
C) Credit card fraud 
D) Refund fraud

Question 4

Jamie Stark, a sales employee, stole merchandise from her employer, and Frank Adams, the accounting clerk, covered it up by altering the inventory records.This is an example of:

Accepted Answer

A) Inventory theft 
B) Financial journal fraud 
C) Skimming 
D) Collusion 
A) Inventory theft 
B) Financial journal fraud 
C) Skimming 
D) Collusion

Question 5

A process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations is:

Accepted Answer

A) COSO's definition of internal control 
B) AICPA's definition of stewardship 
C) ACFE's definition of confidentiality 
D) IMA's definition of competency 
A) COSO's definition of internal control 
B) AICPA's definition of stewardship 
C) ACFE's definition of confidentiality 
D) IMA's definition of competency

Question 6

When a person, using a computer system, pretends to be someone else, it is termed:

Accepted Answer

A) DoS Attack 
B) Hacking 
C) Spoofing 
D) Phishing 
A) DoS Attack 
B) Hacking 
C) Spoofing 
D) Phishing

Question 7

Which of the following is not an example of employee fraud?

Accepted Answer

A) Skimming 
B) Larceny 
C) Kickbacks 
D) Earnings management 
A) Skimming 
B) Larceny 
C) Kickbacks 
D) Earnings management

Question 8

When a person alters a system generated check or reports to commit fraud it is referred to as:

Accepted Answer

A) Input manipulation 
B) Output manipulation 
C) Program manipulation 
D) Collusion 
A) Input manipulation 
B) Output manipulation 
C) Program manipulation 
D) Collusion

Question 9

The COSO report is also known as:

Accepted Answer

A) Fraud Triangle 
B) Internal Control Integrated Framework 
C) Code of Ethical Behavior 
D) Report to the Nation 
A) Fraud Triangle 
B) Internal Control Integrated Framework 
C) Code of Ethical Behavior 
D) Report to the Nation

Question 10

The existence of verifiable information about the accuracy of accounting records is called a(n):

Accepted Answer

A) Audit trail 
B) Internal control 
C) Risk assessment 
D) Supporting documentation 
A) Audit trail 
B) Internal control 
C) Risk assessment 
D) Supporting documentation

Question 11

Which control activity is intended to serve as a method to confirm the accuracy or completeness of data in the accounting system?

Accepted Answer

A) Authorization 
B) Segregation of duties 
C) Security of assets 
D) Independent checks and reconciliations 
A) Authorization 
B) Segregation of duties 
C) Security of assets 
D) Independent checks and reconciliations

Question 12

A kickback is an example of which type of fraud?

Accepted Answer

A) Cash Receipts Fraud 
B) Accounts Payable Fraud 
C) Accounts Receivable Fraud 
D) Expense Account Fraud 
A) Cash Receipts Fraud 
B) Accounts Payable Fraud 
C) Accounts Receivable Fraud 
D) Expense Account Fraud

Question 13

The theft of assets by a non-management employee is termed:

Accepted Answer

A) Inventory theft 
B) Employee fraud 
C) Expense account fraud 
D) Skimming 
A) Inventory theft 
B) Employee fraud 
C) Expense account fraud 
D) Skimming

Question 14

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

Accepted Answer

A) Customer Fraud 
B) Management Fraud 
C) Vendor Fraud 
D) Employee Fraud 
A) Customer Fraud 
B) Management Fraud 
C) Vendor Fraud 
D) Employee Fraud

Question 15

When discussing the security of assets and documents, there are many actions that can be taken.Which of the following would not be related to this category of internal control?

Accepted Answer

A) Securing the assets and records so that they are not misused or stolen. 
B) Limiting access to certain assets to the extent that is practical. 
C) Identifying sources of risk and estimating the possibility of that risk. 
D) Enacting physical safeguards, such as security cameras, to protect some assets. 
A) Securing the assets and records so that they are not misused or stolen. 
B) Limiting access to certain assets to the extent that is practical. 
C) Identifying sources of risk and estimating the possibility of that risk. 
D) Enacting physical safeguards, such as security cameras, to protect some assets.

Question 16

The types of concepts commonly found in a code of ethics would not include:

Accepted Answer

A) Obeying applicable laws and regulations that govern business. 
B) Avoiding all conflicts of interest. 
C) Operating at a profit in all reporting periods. 
D) Creating and maintaining a safe work environment. 
A) Obeying applicable laws and regulations that govern business. 
B) Avoiding all conflicts of interest. 
C) Operating at a profit in all reporting periods. 
D) Creating and maintaining a safe work environment.

Question 17

The range of actions that make up the component of internal control referred to as control activities includes each of the following, except:

Accepted Answer

A) Segregation of duties 
B) Risk assessment 
C) Independent checks and reconciliations 
D) Authorization of transactions 
A) Segregation of duties 
B) Risk assessment 
C) Independent checks and reconciliations 
D) Authorization of transactions

Question 18

Skimming is a type of employee fraud where

Accepted Answer

A) An employee sets up an account as a vendor and collects payments for false invoices. 
B) Steeling a portion of inventory after it is received in teh warehouse, but before it is stored in its inventory location. 
C) Purchasing personal items on a company credit card or submitting a  personal purchase as an employee expense reimbursement. 
D) an employee steels cash before it is entered into the accounting records. 
A) An employee sets up an account as a vendor and collects payments for false invoices. 
B) Steeling a portion of inventory after it is received in teh warehouse, but before it is stored in its inventory location. 
C) Purchasing personal items on a company credit card or submitting a  personal purchase as an employee expense reimbursement. 
D) an employee steels cash before it is entered into the accounting records.

Question 19

All of the following are reasons why it is not possible to eliminate all fraud risks, except

Accepted Answer

A) Human Error 
B) Human Behavior 
C) Opportunity 
D) May not be cost effective 
A) Human Error 
B) Human Behavior 
C) Opportunity 
D) May not be cost effective

Question 20

In order to have the segregation of duties recommended by COSO, it would be necessary for a small organization to hire two additional individuals.At this time, there is not enough work for the one office employee to stay busy.The reason for not hiring the additional people would have to do with:

Accepted Answer

A) Human error 
B) Cost versus benefit 
C) Collusion 
D) Authorization 
A) Human error 
B) Cost versus benefit 
C) Collusion 
D) Authorization

A set of documented guidelines for moral and ethical behavior within an organization is termed a(n):

If an organization's IT systems are not properly controlled, they may become exposed to the risks of:

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

Jamie Stark, a sales employee, stole merchandise from her employer, and Frank Adams, the accounting clerk, covered it up by altering the inventory records.This is an example of:

When a person, using a computer system, pretends to be someone else, it is termed:

Which of the following is not an example of employee fraud?

When a person alters a system generated check or reports to commit fraud it is referred to as:

The COSO report is also known as:

The existence of verifiable information about the accuracy of accounting records is called a(n):

Which control activity is intended to serve as a method to confirm the accuracy or completeness of data in the accounting system?

A kickback is an example of which type of fraud?

The theft of assets by a non-management employee is termed:

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

When discussing the security of assets and documents, there are many actions that can be taken.Which of the following would not be related to this category of internal control?

The types of concepts commonly found in a code of ethics would not include:

The range of actions that make up the component of internal control referred to as control activities includes each of the following, except:

Skimming is a type of employee fraud where

All of the following are reasons why it is not possible to eliminate all fraud risks, except

In order to have the segregation of duties recommended by COSO, it would be necessary for a small organization to hire two additional individuals.At this time, there is not enough work for the one office employee to stay busy.The reason for not hiring the additional people would have to do with:

Introduction to AIS

Foundational Concepts of the AIS

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

Exam 3: Fraud, Ethics, and Internal Control

A set of documented guidelines for moral and ethical behavior within an organization is termed a(n):

If an organization's IT systems are not properly controlled, they may become exposed to the risks of:

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

Jamie Stark, a sales employee, stole merchandise from her employer, and Frank Adams, the accounting clerk, covered it up by altering the inventory records.This is an example of:

When a person, using a computer system, pretends to be someone else, it is termed:

Which of the following is not an example of employee fraud?

When a person alters a system generated check or reports to commit fraud it is referred to as:

The COSO report is also known as:

The existence of verifiable information about the accuracy of accounting records is called a(n):

Which control activity is intended to serve as a method to confirm the accuracy or completeness of data in the accounting system?

A kickback is an example of which type of fraud?

The theft of assets by a non-management employee is termed:

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

When discussing the security of assets and documents, there are many actions that can be taken.Which of the following would not be related to this category of internal control?

The types of concepts commonly found in a code of ethics would not include:

The range of actions that make up the component of internal control referred to as control activities includes each of the following, except:

Skimming is a type of employee fraud where

All of the following are reasons why it is not possible to eliminate all fraud risks, except

In order to have the segregation of duties recommended by COSO, it would be necessary for a small organization to hire two additional individuals.At this time, there is not enough work for the one office employee to stay busy.The reason for not hiring the additional people would have to do with:

Introduction to AIS

Foundational Concepts of the AIS

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters