Question 1

Why do many fraud cases go unreported and unprosecuted?

Accepted Answer

A)  Major fraud is a public relations nightmare. 
B)  Fraud is difficult, costly, and time-consuming to investigate and prosecute. 
C)  Law enforcement and the courts are often so busy with violent crimes that little time is left for fraud cases. 
D)  all of the above 
A)  Major fraud is a public relations nightmare. 
B)  Fraud is difficult, costly, and time-consuming to investigate and prosecute. 
C)  Law enforcement and the courts are often so busy with violent crimes that little time is left for fraud cases. 
D)  all of the above

Question 2

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)  fraud and embezzlement 
A)  human errors and omissions 
B)  physical threats such as natural disasters 
C)  dishonest employees 
D)  fraud and embezzlement

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.

Question 4

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 5

Perpetrators do not typically

Accepted Answer

A)  attempt to return or pay back stolen amounts soon after the initial theft, but find they are unable to make full restitution. 
B)  use trickery or lies to gain the confidence and trust of others at the organization they defraud. 
C)  become bolder and more greedy the longer the theft remains undetected. 
D)  begin to rely on stolen amounts as part of their income. 
A)  attempt to return or pay back stolen amounts soon after the initial theft, but find they are unable to make full restitution. 
B)  use trickery or lies to gain the confidence and trust of others at the organization they defraud. 
C)  become bolder and more greedy the longer the theft remains undetected. 
D)  begin to rely on stolen amounts as part of their income.

Question 6

Researchers have compared the psychological and demographic characteristics of white-collar criminals,violent criminals,and the general public.They found that

Accepted Answer

A)  few differences exist between white-collar criminals and the general public. 
B)  white-collar criminals eventually become violent criminals. 
C)  most white-collar criminals invest their illegal income rather than spend it. 
D)  most white-collar criminals are older and not technologically proficient. 
A)  few differences exist between white-collar criminals and the general public. 
B)  white-collar criminals eventually become violent criminals. 
C)  most white-collar criminals invest their illegal income rather than spend it. 
D)  most white-collar criminals are older and not technologically proficient.

Question 7

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 8

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

Accepted Answer

A)  a feeling of not being appreciated 
B)  failing to receive a deserved promotion 
C)  believing that their pay is too low relative to others around them 
D)  having a spouse injured in a car accident and in the hospital for several weeks 
A)  a feeling of not being appreciated 
B)  failing to receive a deserved promotion 
C)  believing that their pay is too low relative to others around them 
D)  having a spouse injured in a car accident and in the hospital for several weeks

Question 9

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 10

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

Accepted Answer

SAS No.99,effective December 2002,requir

Question 11

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 12

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 13

Perhaps the most striking fact about natural disasters in relation to AIS controls is that

Accepted Answer

A)  many companies in one location can be seriously affected at one time by a disaster. 
B)  losses are absolutely unpreventable. 
C)  there are a large number of major disasters every year. 
D)  disaster planning has largely been ignored in the literature. 
A)  many companies in one location can be seriously affected at one time by a disaster. 
B)  losses are absolutely unpreventable. 
C)  there are a large number of major disasters every year. 
D)  disaster planning has largely been ignored in the literature.

Question 14

All of the following are required for an act to be legally classified as fraudulent except

Accepted Answer

A)  a falsehood is made. 
B)  about a material fact. 
C)  to inflict pain. 
D)  resulting in a financial loss. 
A)  a falsehood is made. 
B)  about a material fact. 
C)  to inflict pain. 
D)  resulting in a financial loss.

Question 15

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 16

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 17

The simplest and most common way to commit a computer fraud is to

Accepted Answer

A)  alter computer input. 
B)  alter computer output. 
C)  modify the processing. 
D)  corrupt the database. 
A)  alter computer input. 
B)  alter computer output. 
C)  modify the processing. 
D)  corrupt the database.

Question 18

Which of the following is least likely to result in computer fraud?

Accepted Answer

A)  releasing data to unauthorized users 
B)  allowing computer users to test software upgrades 
C)  allowing computer operators full access to the computer room 
D)  storing backup tapes in a location where they can be quickly accessed 
A)  releasing data to unauthorized users 
B)  allowing computer users to test software upgrades 
C)  allowing computer operators full access to the computer room 
D)  storing backup tapes in a location where they can be quickly accessed

Question 19

________ 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 employee bank accounts and net worth 
C)  Monitoring employee behavior using video cameras 
D)  Explaining that fraud is illegal and will be severely punished to employees 
A)  Requiring all employees to take annual vacations 
B)  Monitoring employee bank accounts and net worth 
C)  Monitoring employee behavior using video cameras 
D)  Explaining that fraud is illegal and will be severely punished to employees

Question 20

Describe two kinds of fraud.

Accepted Answer

Misappropriation of assets,or theft,by a

Exam 5: Computer Fraud

Why do many fraud cases go unreported and unprosecuted?

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

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

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

Perpetrators do not typically

Researchers have compared the psychological and demographic characteristics of white-collar criminals,violent criminals,and the general public.They found that

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

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

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.

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

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

Perhaps the most striking fact about natural disasters in relation to AIS controls is that

All of the following are required for an act to be legally classified as fraudulent except

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.

The simplest and most common way to commit a computer fraud is to

Which of the following is least likely to result in computer fraud?

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

Describe two kinds of fraud.

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

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