Question 1

Terrorists are 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 2

"Cooking the books" is typically accomplished by all the following except

Accepted Answer

A) overstating inventory. 
B) accelerating recognition of revenue. 
C) inflating accounts payable. 
D) delaying recording of expenses. 
A) overstating inventory. 
B) accelerating recognition of revenue. 
C) inflating accounts payable. 
D) delaying recording of expenses.

Question 3

Computer systems are particularly vulnerable to computer fraud because

Accepted Answer

A) perpetrators can steal,destroy,or alter massive amount of data in very little time,often leaving little evidence. 
B) computer fraud can be much more difficult to detect than other types of fraud. 
C) computer programs need to be modified illegally only once for them to operate improperly for as long as they are in use. 
D) all of the above. 
A) perpetrators can steal,destroy,or alter massive amount of data in very little time,often leaving little evidence. 
B) computer fraud can be much more difficult to detect than other types of fraud. 
C) computer programs need to be modified illegally only once for them to operate improperly for as long as they are in use. 
D) all of the above.

Question 4

The day after Christmas,Jane Olson,Chief Information Officer at American Trading Corporation (ATC),received some bad news.The hard drive use to store the company's system data backups was lost while it was being transported to an offsite storage location.Jane called a meeting of her technical staff to discuss the implications of the loss.Which of the following is most likely to relieve her concerns over the potential cost of the loss?

Accepted Answer

A) ATC has a comprehensive disaster recovery plan. 
B) The hard drive was encrypted and password protected. 
C) The shipper has insurance that will reimburse ATC for the cost of the hard drive. 
D) ATC has a copy of the hard drive onsite,so a new copy for storage offsite can easily be prepared. 
A) ATC has a comprehensive disaster recovery plan. 
B) The hard drive was encrypted and password protected. 
C) The shipper has insurance that will reimburse ATC for the cost of the hard drive. 
D) ATC has a copy of the hard drive onsite,so a new copy for storage offsite can easily be prepared.

Question 5

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?

Accepted Answer

Establish an organizational environment

Question 6

Discuss the reasons for the rapid increase of computer fraud.

Accepted Answer

Not everyone agrees on what constitutes

Question 7

Which of the following is not a way to make fraud less likely to occur?

Accepted Answer

A) Adopt an organizational structure that minimizes the likelihood of fraud. 
B) Create an organizational culture that stresses integrity and commitment to ethical values. 
C) Create an audit trail so individual transactions can be traced. 
D) Effectively supervise employees. 
A) Adopt an organizational structure that minimizes the likelihood of fraud. 
B) Create an organizational culture that stresses integrity and commitment to ethical values. 
C) Create an audit trail so individual transactions can be traced. 
D) Effectively supervise employees.

Question 8

Which of the following will not reduce the likelihood of an occurrence of fraud?

Accepted Answer

A) Encryption of data and programs. 
B) Use of forensic accountants. 
C) Adequate insurance coverage. 
D) Required vacations and rotation of duties. 
A) Encryption of data and programs. 
B) Use of forensic accountants. 
C) Adequate insurance coverage. 
D) Required vacations and rotation of duties.

Question 9

Which of the following is not a way to improve fraud detection?

Accepted Answer

A) Install fraud detection software. 
B) Implement a fraud hotline. 
C) Employ a computer security officer. 
D) Implement computer-based controls over input,processing,storage,and output activities. 
A) Install fraud detection software. 
B) Implement a fraud hotline. 
C) Employ a computer security officer. 
D) Implement computer-based controls over input,processing,storage,and output activities.

Question 10

Why do fraudulent acts often go unreported and are therefore not prosecuted?

Accepted Answer

Most fraud cases go unreported and are n

Question 11

Explain the various computer fraud classifications using the data processing model.Provide an example for each computer fraud classification.

Accepted Answer

Computer fraud can be classified into th

Question 12

Which characteristic of the fraud triangle often stems from the belief that "the rules do not apply to me" within an organization?

Accepted Answer

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

Question 13

The activist hacker group called Anonymous played Santa Claus one Christmas,indicating they were "granting wishes to people who are less fortunate than most." They were inundated with requests for iPads,iPhones,pizzas,and hundreds of other things.They hacked into banks and sent over $1 million worth of virtual credit cards to people.

Accepted Answer

A) True 
 B)False

Question 14

At the beginning of this chapter,you were presented with a situation regarding Jason Scott.Jason is an internal auditor for Northwest Industries,a forest products company.On March 31,he reviewed his completed tax return and noticed that the federal income tax withholding on his final paycheck was $5 more than the amount indicated on his W-2 form.He used the W-2 amount to complete his tax return and made a note to ask the payroll department what happened to the other $5.The next day,Jason was swamped,and he dismissed the $5 difference as immaterial.On April 16,a coworker grumbled that the company had taken $5 more from his check than he was given credit for on his W-2.When Jason realized he was not the only one with the $5 discrepancy,he investigated and found that all 1,500 employees had the same $5 discrepancy.He also discovered that the W-2 of Don Hawkins,the payroll programmer,had
thousands of dollars more in withholdings reported to the Internal Revenue Service (IRS)than had been withheld from his paycheck.
Identify the type of fraud scheme may have happened as described.Describe controls you would implement to address the fraud risk,and label each control as preventive or detective.

Accepted Answer

The fraud appears to be involved compute

Question 15

________ is a simple,yet effective,method for catching or preventing many types of employee fraud.

Accepted Answer

A) Requiring all employees to take annual vacations 
B) Monitoring all employees computer usage activities 
C) Requiring all employees to take a fraud prevention awareness course 
D) Explaining that fraud is illegal and will be severely punished to employees 
A) Requiring all employees to take annual vacations 
B) Monitoring all employees computer usage activities 
C) Requiring all employees to take a fraud prevention awareness course 
D) Explaining that fraud is illegal and will be severely punished to employees

Question 16

Most fraud perpetrators have previous criminal record;they were dishonest and disrespected members of their community.

Accepted Answer

A) True 
 B)False

Question 17

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

Accepted Answer

A) lapping. 
B) misappropriation of assets. 
C) kiting. 
D) concealment. 
A) lapping. 
B) misappropriation of assets. 
C) kiting. 
D) concealment.

Question 18

Explain the impact of SAS No.99 on auditors' responsibilities.

Accepted Answer

SAS No.99,effective December 2002,requir

Question 19

Identify the threat below that is not one of the four types of threats faced by accounting information systems.

Accepted Answer

A) Natural and political disasters 
B) Software errors and equipment malfunctions 
C) Unintentional acts 
D) System design inefficiency 
A) Natural and political disasters 
B) Software errors and equipment malfunctions 
C) Unintentional acts 
D) System design inefficiency

Question 20

Which of the following is not an example of misappropriation of assets?

Accepted Answer

A) A warehouse employee takes home two units of electronic entertainment inventory each week without authorization. 
B) The chief financial officer of the company falsely adds $20 million to the accounts receivable and revenue accounts. 
C) The president of the company utilizes the organization's cash to add a floor to her 15,000 square foot house. 
D) The treasurer of the company makes an unauthorized wire transfer from the organization's bank to a personal account in Grand Cayman. 
A) A warehouse employee takes home two units of electronic entertainment inventory each week without authorization. 
B) The chief financial officer of the company falsely adds $20 million to the accounts receivable and revenue accounts. 
C) The president of the company utilizes the organization's cash to add a floor to her 15,000 square foot house. 
D) The treasurer of the company makes an unauthorized wire transfer from the organization's bank to a personal account in Grand Cayman.

Terrorists are an example of a(n)________ threat.

"Cooking the books" is typically accomplished by all the following except

Computer systems are particularly vulnerable to computer fraud because

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?

Discuss the reasons for the rapid increase of computer fraud.

Which of the following is not a way to make fraud less likely to occur?

Which of the following will not reduce the likelihood of an occurrence of fraud?

Which of the following is not a way to improve fraud detection?

Why do fraudulent acts often go unreported and are therefore not prosecuted?

Explain the various computer fraud classifications using the data processing model.Provide an example for each computer fraud classification.

Which characteristic of the fraud triangle often stems from the belief that "the rules do not apply to me" within an organization?

________ is a simple,yet effective,method for catching or preventing many types of employee fraud.

Most fraud perpetrators have previous criminal record;they were dishonest and disrespected members of their community.

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

Explain the impact of SAS No.99 on auditors' responsibilities.

Identify the threat below that is not one of the four types of threats faced by accounting information systems.

Which of the following is not an example of misappropriation of assets?

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

Terrorists are an example of a(n)________ threat.

"Cooking the books" is typically accomplished by all the following except

Computer systems are particularly vulnerable to computer fraud because

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?

Discuss the reasons for the rapid increase of computer fraud.

Which of the following is not a way to make fraud less likely to occur?

Which of the following will not reduce the likelihood of an occurrence of fraud?

Which of the following is not a way to improve fraud detection?

Why do fraudulent acts often go unreported and are therefore not prosecuted?

Explain the various computer fraud classifications using the data processing model.Provide an example for each computer fraud classification.

Which characteristic of the fraud triangle often stems from the belief that "the rules do not apply to me" within an organization?

________ is a simple,yet effective,method for catching or preventing many types of employee fraud.

Most fraud perpetrators have previous criminal record;they were dishonest and disrespected members of their community.

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

Explain the impact of SAS No.99 on auditors' responsibilities.

Identify the threat below that is not one of the four types of threats faced by accounting information systems.

Which of the following is not an example of misappropriation of assets?

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