Question 1

Researchers found significant differences between white-collar criminals and the public.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is an example of input 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. A

Question 3

Downloading a master list of customers and selling it to a competitor is an example of

Accepted Answer

A) data fraud. 
B) output theft. 
C) download fraud. 
D) fraudulent financial reporting. 
A) data fraud. 
B) output theft. 
C) download fraud. 
D) fraudulent financial reporting. A

Question 4

A disgruntled employee in Australia hacked into a sewage system,causing a quarter of a million gallons of raw sewage to flood a hotel and a park.

Accepted Answer

A) True 
 B)False

Question 5

"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 6

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 7

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

Accepted Answer

A) Human errors and omissions 
B) Physical threats such as natural disasters 
C) Dishonest employees 
D) Computer crime 
A) Human errors and omissions 
B) Physical threats such as natural disasters 
C) Dishonest employees 
D) Computer crime

Question 8

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 9

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 10

Excessive heat 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 11

Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft?

Accepted Answer

A) kiting 
B) laundering 
C) lapping 
D) bogus expense 
A) kiting 
B) laundering 
C) lapping 
D) bogus expense

Question 12

Systems that do not meet company need 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 13

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 14

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.

Question 15

Which of the following is not an example of one of the basic types of fraud?

Accepted Answer

A) While straightening the store at the end of the day, a shoe store employee finds and keeps an expensive pair of sunglasses left by a customer. 
B) An executive devised and implemented a plan to accelerate revenue recognition on a long-term contract, which will allow the company to forestall filing for bankruptcy. The executive does not own any stock, stock options or grants, and will not receive a bonus or perk because of the overstated revenue. 
C) A purchasing agent places a large order at higher-than-normal unit prices with a vendor that gave the agent tickets to several football games. 
D) A salesperson approves a large sales discount on an order from a company owned partially by the salesperson's sister. 
A) While straightening the store at the end of the day, a shoe store employee finds and keeps an expensive pair of sunglasses left by a customer. 
B) An executive devised and implemented a plan to accelerate revenue recognition on a long-term contract, which will allow the company to forestall filing for bankruptcy. The executive does not own any stock, stock options or grants, and will not receive a bonus or perk because of the overstated revenue. 
C) A purchasing agent places a large order at higher-than-normal unit prices with a vendor that gave the agent tickets to several football games. 
D) A salesperson approves a large sales discount on an order from a company owned partially by the salesperson's sister.

Question 16

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 17

What agency did the United States create to use cyber weapons and to defend against cyber attacks?

Accepted Answer

A) U.S. Cyber Command 
B) Department of Network Security 
C) Department of Cyber Defense 
D) Department of Technology Strategy 
A) U.S. Cyber Command 
B) Department of Network Security 
C) Department of Cyber Defense 
D) Department of Technology Strategy

Question 18

A power outage 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 19

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 20

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.

Exam 5: Computer Fraud

Researchers found significant differences between white-collar criminals and the public.

Which of the following is an example of input fraud?

Downloading a master list of customers and selling it to a competitor is an example of

A disgruntled employee in Australia hacked into a sewage system,causing a quarter of a million gallons of raw sewage to flood a hotel and a park.

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

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

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

Lapping is best described as the process of

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

Excessive heat is an example of a(n)________ threat.

Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft?

Systems that do not meet company need is an example of a(n)________ threat.

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

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

Which of the following is not an example of one of the basic types of fraud?

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

What agency did the United States create to use cyber weapons and to defend against cyber attacks?

A power outage is an example of a(n)________ threat.

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

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

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