Question 1

The fraud that requires the least computer knowledge or skill involves

Accepted Answer

A) altering or falsifying source data. 
B) unauthorized use of computers. 
C) tampering with or copying software. 
D) forging documents like paychecks. 
A) altering or falsifying source data. 
B) unauthorized use of computers. 
C) tampering with or copying software. 
D) forging documents like paychecks. A

Question 2

Lauren wants to open a floral shop in a downtown business district.She doesn't have funds enough to purchase inventory and pay six months' rent up front.Lauren approaches a good friend,Jamie,to discuss the possibility of Jamie investing funds and becoming a 25% partner in the business.After a lengthy discussion,Jamie agrees to invest.Eight months later,Jamie discovered that Lauren has not be honest with her regarding some aspects of the business financial operation.In order for Jamie to sue Lauren for fraud,all the following must be true except

Accepted Answer

A) Jamie's decision to invest was primarily based on Lauren's assertion that she had prior floral retail experience. 
B) Jamie has suffered a substantial loss in her investment because of Lauren's deception. 
C) Jamie trusted and relied on Lauren's representation of the business financial operation. 
D) Jamie found Lauren dishonest because she does not always reconcile the business cash account on a timely basis. 
A) Jamie's decision to invest was primarily based on Lauren's assertion that she had prior floral retail experience. 
B) Jamie has suffered a substantial loss in her investment because of Lauren's deception. 
C) Jamie trusted and relied on Lauren's representation of the business financial operation. 
D) Jamie found Lauren dishonest because she does not always reconcile the business cash account on a timely basis. D

Question 3

Describe four ways companies can reduce losses from fraud.

Accepted Answer

Maintain adequate insurance.Keep a current backup copy of all program and data files in a secure off-site location.Develop a contingency plan for fraud occurrences and other disasters that might occur.Use special software designed to monitor system activity and help companies recover from frauds and malicious actions.

Question 4

A teller at a savings and loan drive-through accepted a cash payment from customer #1 for an auto loan.The teller appeared to process the payment,but told the customer the printer was jammed and she can't print a receipt.The customer accepted the excuse and drove away.The teller pocketed the cash and wrote down customer #1's loan number and payment amount for future reconciling.A couple of days before customer #1's monthly statement was printed,the teller recorded a cash payment from customer #2 as if it were made by customer #1.The teller pocketed the difference between the two payments.The teller continued to steal and misapply customer payments for the next two years without detection.
Identify the type of fraud scheme described.Describe five controls you would implement to address the fraud risk,and label each control as preventive or detective.

Accepted Answer

The fraud appears to be misappropriation

Question 5

Which of the following is an example of data fraud?

Accepted Answer

A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks. 
A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks.

Question 6

Which of the following fraudulent acts generally takes most time and effort?

Accepted Answer

A) Lapping accounts receivable. 
B) Selling stolen inventory to get cash. 
C) Stealing inventory from the warehouse. 
D) Creating false journal entries to overstate revenue. 
A) Lapping accounts receivable. 
B) Selling stolen inventory to get cash. 
C) Stealing inventory from the warehouse. 
D) Creating false journal entries to overstate revenue.

Question 7

How does the U.S.Justice Department define computer fraud?

Accepted Answer

A) As any crime in which a computer is used. 
B) As any act in which cash is stolen using a computer. 
C) As an illegal act in which a computer is an integral part of the crime. 
D) As an illegal act in which knowledge of computer technology is essential. 
A) As any crime in which a computer is used. 
B) As any act in which cash is stolen using a computer. 
C) As an illegal act in which a computer is an integral part of the crime. 
D) As an illegal act in which knowledge of computer technology is essential.

Question 8

A 16 year old hacker was able to access the systems of U.S.Missile Command and accidently launched a small nuclear missile,which fortunately,failed to detonate.

Accepted Answer

A) True 
 B)False

Question 9

What is the most prevalent opportunity within most companies to commit fraud?

Accepted Answer

A) Lack of internal controls designed by management. 
B) Failure by management to enforce the internal controls. 
C) Weaknesses in the design of internal controls. 
D) Management's belief that most employees would not commit fraud. 
A) Lack of internal controls designed by management. 
B) Failure by management to enforce the internal controls. 
C) Weaknesses in the design of internal controls. 
D) Management's belief that most employees would not commit fraud.

Question 10

This component of the fraud triangle explains the incentive or motivation for someone to commit fraud.

Accepted Answer

A) Pressure 
B) Rationalization 
C) Concealment 
D) Opportunity 
A) Pressure 
B) Rationalization 
C) Concealment 
D) Opportunity

Question 11

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?

Accepted Answer

A) Pressure 
B) Opportunity 
C) Rationalization 
D) Concealment 
A) Pressure 
B) Opportunity 
C) Rationalization 
D) Concealment

Question 12

What are some of the distinguishing characteristics of fraud perpetrators?

Accepted Answer

Some distinguishing characteristics of f

Question 13

Lapping is best described as the process of

Accepted Answer

A) applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts. 
B) inflating bank balances by transferring money among different bank accounts. 
C) stealing small amounts of cash,many times over a period of time. 
D) increasing expenses to conceal that an asset was stolen. 
A) applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts. 
B) inflating bank balances by transferring money among different bank accounts. 
C) stealing small amounts of cash,many times over a period of time. 
D) increasing expenses to conceal that an asset was stolen.

Question 14

The two most common types of fraud impacting financial statements are

Accepted Answer

A) corruption and fraudulent financial reporting. 
B) misappropriation of assets and embezzlement. 
C) fraudulent financial reporting and e-commerce fraud. 
D) fraudulent financial reporting and misappropriation of assets. 
A) corruption and fraudulent financial reporting. 
B) misappropriation of assets and embezzlement. 
C) fraudulent financial reporting and e-commerce fraud. 
D) fraudulent financial reporting and misappropriation of assets.

Question 15

Why is computer fraud often much more difficult to detect than other types of fraud?

Accepted Answer

A) Because fraud can be committed in only seconds,leaving little-to-no evidence. 
B) Because most perpetrators do not spend their illegal income immediately,concealing key evidence. 
C) Because most computer criminals are older and more cunning than perpetrators of other types of fraud. 
D) Because perpetrators usually only steal immaterial amounts of money at a time,requiring a long period of time to pass before discovery 
A) Because fraud can be committed in only seconds,leaving little-to-no evidence. 
B) Because most perpetrators do not spend their illegal income immediately,concealing key evidence. 
C) Because most computer criminals are older and more cunning than perpetrators of other types of fraud. 
D) Because perpetrators usually only steal immaterial amounts of money at a time,requiring a long period of time to pass before discovery

Question 16

Which of the following is a financial pressure that could cause an employee to commit fraud?

Accepted Answer

A) A feeling of not being valued. 
B) Having a grumbling and drug addiction. 
C) Having a close association with suppliers and customers. 
D) Having an anger management issue. 
A) A feeling of not being valued. 
B) Having a grumbling and drug addiction. 
C) Having a close association with suppliers and customers. 
D) Having an anger management issue.

Question 17

Sabotage is an example of a(n)________ threat.

Accepted Answer

A) natural and political disasters 
B) software errors and equipment malfunctions 
C) unintentional acts 
D) intentional acts (computer crimes) 
A) natural and political disasters 
B) software errors and equipment malfunctions 
C) unintentional acts 
D) intentional acts (computer crimes)

Question 18

Misappropriation of assets is a fraudulent act that involves

Accepted Answer

A) dishonest conduct by those in power. 
B) misrepresenting facts to promote an investment. 
C) using computer technology to perpetrate a crime. 
D) theft of company property. 
A) dishonest conduct by those in power. 
B) misrepresenting facts to promote an investment. 
C) using computer technology to perpetrate a crime. 
D) theft of company property.

Question 19

Describe two kinds of fraud.

Accepted Answer

Misappropriation of assets,or theft,by a

Question 20

Why is computer fraud often more difficult to detect than other types of fraud?

Accepted Answer

A) Rarely is cash stolen in computer fraud. 
B) The fraud may leave little or no evidence it ever happened. 
C) Computers provide more opportunities for fraud. 
D) Computer fraud perpetrators are just more clever than other types of criminals. 
A) Rarely is cash stolen in computer fraud. 
B) The fraud may leave little or no evidence it ever happened. 
C) Computers provide more opportunities for fraud. 
D) Computer fraud perpetrators are just more clever than other types of criminals.

The fraud that requires the least computer knowledge or skill involves

Describe four ways companies can reduce losses from fraud.

Which of the following is an example of data fraud?

Which of the following fraudulent acts generally takes most time and effort?

How does the U.S.Justice Department define computer fraud?

A 16 year old hacker was able to access the systems of U.S.Missile Command and accidently launched a small nuclear missile,which fortunately,failed to detonate.

What is the most prevalent opportunity within most companies to commit fraud?

This component of the fraud triangle explains the incentive or motivation for someone to commit fraud.

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?

What are some of the distinguishing characteristics of fraud perpetrators?

Lapping is best described as the process of

The two most common types of fraud impacting financial statements are

Why is computer fraud often much more difficult to detect than other types of fraud?

Which of the following is a financial pressure that could cause an employee to commit fraud?

Sabotage is an example of a(n)________ threat.

Misappropriation of assets is a fraudulent act that involves

Describe two kinds of fraud.

Why is computer fraud often more difficult to detect than other types of fraud?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 5: Computer Fraud

The fraud that requires the least computer knowledge or skill involves

Describe four ways companies can reduce losses from fraud.

Which of the following is an example of data fraud?

Which of the following fraudulent acts generally takes most time and effort?

How does the U.S.Justice Department define computer fraud?

A 16 year old hacker was able to access the systems of U.S.Missile Command and accidently launched a small nuclear missile,which fortunately,failed to detonate.

What is the most prevalent opportunity within most companies to commit fraud?

This component of the fraud triangle explains the incentive or motivation for someone to commit fraud.

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?

What are some of the distinguishing characteristics of fraud perpetrators?

Lapping is best described as the process of

The two most common types of fraud impacting financial statements are

Why is computer fraud often much more difficult to detect than other types of fraud?

Which of the following is a financial pressure that could cause an employee to commit fraud?

Sabotage is an example of a(n)________ threat.

Misappropriation of assets is a fraudulent act that involves

Describe two kinds of fraud.

Why is computer fraud often more difficult to detect than other types of fraud?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters