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

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

Accepted Answer

Establish an organizational environment

Question 3

Which of the following is not a way to reduce fraud losses?

Accepted Answer

A) Conduct periodic external and internal audits. 
B) Maintain adequate insurance. 
C) Use software to monitor system activity. 
D) Store backup copies of program and data files. 
A) Conduct periodic external and internal audits. 
B) Maintain adequate insurance. 
C) Use software to monitor system activity. 
D) Store backup copies of program and data files.

Question 4

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?

Accepted Answer

A) Close relationship with the current audit engagement partner and manager 
B) Pay for performance incentives based on short-term performance measures 
C) High management and employee turnover 
D) Highly optimistic earnings projections 
A) Close relationship with the current audit engagement partner and manager 
B) Pay for performance incentives based on short-term performance measures 
C) High management and employee turnover 
D) Highly optimistic earnings projections

Question 5

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 6

Identify the opportunity below that could enable an employee to commit fraud.

Accepted Answer

A) An employee's spouse loses her job. 
B) The company does not have a clear policies and procedures for the employee to follow. 
C) The employee is experiencing financial hardship. 
D) An employee is upset that he was passed over for a promotion. 
A) An employee's spouse loses her job. 
B) The company does not have a clear policies and procedures for the employee to follow. 
C) The employee is experiencing financial hardship. 
D) An employee is upset that he was passed over for a promotion.

Question 7

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 8

Describe four ways companies can reduce losses from fraud.

Accepted Answer

Maintain adequate insurance.Keep a curre

Question 9

What was the first known cyber-attack intended to harm a real-world physical target?

Accepted Answer

A) Sasser 
B) Stuxnet 
C) Michelangelo 
D) Doomsday 
A) Sasser 
B) Stuxnet 
C) Michelangelo 
D) Doomsday

Question 10

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 11

Which situation below makes it easy for someone to commit a fraud?

Accepted Answer

A) Placing excessive trust in key employees. 
B) Inadequate staffing within the organization. 
C) Unclear company policies. 
D) All of the above situations make it easy for someone to commit a fraud. 
A) Placing excessive trust in key employees. 
B) Inadequate staffing within the organization. 
C) Unclear company policies. 
D) All of the above situations make it easy for someone to commit a fraud.

Question 12

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 13

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 14

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

Accepted Answer

Most fraud cases go unreported and are n

Question 15

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

Accepted Answer

A) Revenge against the company 
B) Intent to repay "borrowed" funds in the future 
C) Sense of entitlement as compensation for receiving a lower than average raise 
D) Belief that the company won't suffer because an insurance company will reimburse losses 
A) Revenge against the company 
B) Intent to repay "borrowed" funds in the future 
C) Sense of entitlement as compensation for receiving a lower than average raise 
D) Belief that the company won't suffer because an insurance company will reimburse losses

Question 16

Which of the following is not one of the components of the fraud triangle?

Accepted Answer

A) Incentive 
B) Rationalization 
C) Susceptibility 
D) Opportunity 
A) Incentive 
B) Rationalization 
C) Susceptibility 
D) Opportunity

Question 17

Insiders are frequently the ones who commit fraud because

Accepted Answer

A) they are more dishonest than outsiders. 
B) they need money more than outsiders. 
C) they are less likely to get caught than outsiders. 
D) they know more about the system and its weaknesses than outsiders. 
A) they are more dishonest than outsiders. 
B) they need money more than outsiders. 
C) they are less likely to get caught than outsiders. 
D) they know more about the system and its weaknesses than outsiders.

Question 18

What is the primary difference between fraud and errors in financial statement reporting?

Accepted Answer

A) The level of management involved 
B) The intent to deceive 
C) The materiality of the misstatement 
D) The type of transaction effected 
A) The level of management involved 
B) The intent to deceive 
C) The materiality of the misstatement 
D) The type of transaction effected

Question 19

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 20

Which of the following is an example of output 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.

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

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

Which of the following is not a way to reduce fraud losses?

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?

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.

Identify the opportunity below that could enable an employee to commit fraud.

Describe four ways companies can reduce losses from fraud.

What was the first known cyber-attack intended to harm a real-world physical target?

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

Which situation below makes it easy for someone to commit a fraud?

Misappropriation of assets is a fraudulent act that involves

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

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

Which of the following is not one of the components of the fraud triangle?

Insiders are frequently the ones who commit fraud because

What is the primary difference between fraud and errors in financial statement reporting?

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

Which of the following is an example of output 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

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

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

Which of the following is not a way to reduce fraud losses?

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?

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.

Identify the opportunity below that could enable an employee to commit fraud.

Describe four ways companies can reduce losses from fraud.

What was the first known cyber-attack intended to harm a real-world physical target?

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

Which situation below makes it easy for someone to commit a fraud?

Misappropriation of assets is a fraudulent act that involves

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

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

Which of the following is not one of the components of the fraud triangle?

Insiders are frequently the ones who commit fraud because

What is the primary difference between fraud and errors in financial statement reporting?

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

Which of the following is an example of output 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