Question 1

What are some of the distinguishing characteristics of fraud perpetrators?

Accepted Answer

Some distinguishing characteristics of fraud perpetrators are: they tend to spend their illegal income to support their lifestyle; once they begin it becomes harder to stop and they become bolder as each incident happens; once they start to rely on the ill-gotten gains,they become more greedy and sometimes careless and overconfident.In the case of computer criminals,they are often young and have substantial computer knowledge.About two-thirds are men and likely to be an employee of the firm from which they steal.Many are unhappy or disgruntled with their employer because they feel unappreciated and underpaid.Most have no previous criminal record.

Question 2

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. D

Question 3

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. D

Question 4

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 5

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

Accepted Answer

A)  because massive fraud can be committed in only seconds, leaving little-to-no evidence 
B)  because most perpetrators invest their illegal income rather than spend it, 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 very small amounts of money at a time, requiring a long period of time to pass before discovery 
A)  because massive fraud can be committed in only seconds, leaving little-to-no evidence 
B)  because most perpetrators invest their illegal income rather than spend it, 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 very small amounts of money at a time, requiring a long period of time to pass before discovery

Question 6

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 7

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 8

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 9

Describe at least four ways a company can make fraud less likely to occur.

Accepted Answer

A company can decrease fraud by: good hi

Question 10

In many cases of fraud,the ________ takes more time and effort than the ________.

Accepted Answer

A)  concealment; theft 
B)  theft; concealment 
C)  conversion; theft 
D)  conversion; concealment 
A)  concealment; theft 
B)  theft; concealment 
C)  conversion; theft 
D)  conversion; concealment

Question 11

SAS No.99 requires that auditors

Accepted Answer

A)  plan audits based on an analysis of fraud risk. 
B)  detect all material fraud. 
C)  alert the Securities and Exchange Commission of any fraud detected. 
D)  take all of the above actions. 
A)  plan audits based on an analysis of fraud risk. 
B)  detect all material fraud. 
C)  alert the Securities and Exchange Commission of any fraud detected. 
D)  take all of the above actions.

Question 12

Most frauds are detected by

Accepted Answer

A)  external auditors. 
B)  hotline tip. 
C)  internal auditors. 
D)  the police. 
A)  external auditors. 
B)  hotline tip. 
C)  internal auditors. 
D)  the police.

Question 13

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.

Question 14

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 15

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 16

"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 17

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 18

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 19

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)  system inefficiency 
A)  natural and political disasters 
B)  software errors and equipment malfunctions 
C)  unintentional acts 
D)  system inefficiency

Question 20

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)  system inefficiency 
A)  natural and political disasters 
B)  software errors and equipment malfunctions 
C)  unintentional acts 
D)  system inefficiency

Exam 5: Computer Fraud

What are some of the distinguishing characteristics of fraud perpetrators?

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

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

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

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

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

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

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

Describe at least four ways a company can make fraud less likely to occur.

In many cases of fraud,the ________ takes more time and effort than the ________.

SAS No.99 requires that auditors

Most frauds are detected by

The fraud that requires the least computer knowledge or skill involves

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

Insiders are frequently the ones who commit fraud because

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

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

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

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

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

Accounting Information Systems: an Overview

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

In many cases of fraud,the takes more time and effort than the .