Question 1

Which of the following is the best way to hide theft of assets?

Accepted Answer

A)  creating "cash" through the transfer of money between banks 
B)  conversion of stolen assets into cash 
C)  stealing cash from customer A and then using customer B's balance to pay customer A's accounts receivable 
D)  charging the stolen asset to an expense account 
A)  creating "cash" through the transfer of money between banks 
B)  conversion of stolen assets into cash 
C)  stealing cash from customer A and then using customer B's balance to pay customer A's accounts receivable 
D)  charging the stolen asset to an expense account

Question 2

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 3

This component of the fraud triangle explains how perpetrators justify their (illegal)behavior.

Accepted Answer

A)  pressure 
B)  rationalization 
C)  concealment 
D)  opportunity 
A)  pressure 
B)  rationalization 
C)  concealment 
D)  opportunity

Question 4

Logic errors are an example of which type of 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 5

Which type of threat causes the greatest dollar losses?

Accepted Answer

A)  software errors and equipment malfunctions 
B)  unintentional acts 
C)  intentional acts 
D)  system inefficiency 
A)  software errors and equipment malfunctions 
B)  unintentional acts 
C)  intentional acts 
D)  system inefficiency

Question 6

Intentional or reckless conduct that results in materially misleading financial statements is called

Accepted Answer

A)  financial fraud. 
B)  misstatement fraud. 
C)  fraudulent financial reporting. 
D)  audit failure fraud. 
A)  financial fraud. 
B)  misstatement fraud. 
C)  fraudulent financial reporting. 
D)  audit failure fraud.

Question 7

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

Accepted Answer

Establish an organizational environment

Question 8

Why is computer fraud on the rise?

Accepted Answer

Not everyone agrees on what constitutes

Question 9

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

Accepted Answer

A)  An employee's spouse loses her job. 
B)  An employee has a close association with suppliers or customers. 
C)  An employee suddenly acquires lots of credit cards. 
D)  An employee is upset that he was passed over for a promotion. 
A)  An employee's spouse loses her job. 
B)  An employee has a close association with suppliers or customers. 
C)  An employee suddenly acquires lots of credit cards. 
D)  An employee is upset that he was passed over for a promotion.

Question 10

Describe four ways companies can reduce losses from fraud.

Accepted Answer

Maintain adequate insurance.Keep a curre

Question 11

What is the most prevalent opportunity within most companies to commit fraud?

Accepted Answer

A)  lack of any internal controls 
B)  failure to enforce the internal controls 
C)  loopholes in the design of internal controls 
D)  management's failure to believe employees would commit fraud 
A)  lack of any internal controls 
B)  failure to enforce the internal controls 
C)  loopholes in the design of internal controls 
D)  management's failure to believe employees would commit fraud

Question 12

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 13

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 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

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. 
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. 
D)  theft of company property.

Question 16

The most efficient way to conceal asset misappropriation is to

Accepted Answer

A)  write-off a customer receivable as bad debt. 
B)  alter monthly bank statements before reconciliation. 
C)  alter monthly physical inventory counts to reconcile to perpetual inventory records. 
D)  record phony payments to vendors. 
A)  write-off a customer receivable as bad debt. 
B)  alter monthly bank statements before reconciliation. 
C)  alter monthly physical inventory counts to reconcile to perpetual inventory records. 
D)  record phony payments to vendors.

Question 17

On Tuesday morning,Chen Lee,Chief Information Officer at American Trading Corporation (ATC),got some bad news.The hard drive use to store system data backups was lost while it was being transported to an offsite storage location.Chen 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 18

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 19

Seble wants to open a floral shop in a downtown business district.She doesn't have funds enough to purchase inventory and pay six months'' rent up front.Seble approaches a good friend,Zhou,to discuss the possibility of Zhou investing funds and becoming a 25% partner in the business.After a lengthy discussion Zhou agrees to invest.Eight months later,Zhou and Seble have a major argument.In order for Zhou to sue Seble for fraud,all the following must be true except

Accepted Answer

A)  Zhou's decision to invest was primarily based on Seble's assertion that she had prior floral retail experience. 
B)  Seble told Zhou she had worked at a floral shop for several years, when in fact she did not have any prior experience in floral retail. 
C)  before Zhou invested, Seble prepared a detailed business plan and sales forecasts, and provided Zhou with copies. 
D)  Zhou's 25% share of the business is worth substantially less than her initial investment. 
A)  Zhou's decision to invest was primarily based on Seble's assertion that she had prior floral retail experience. 
B)  Seble told Zhou she had worked at a floral shop for several years, when in fact she did not have any prior experience in floral retail. 
C)  before Zhou invested, Seble prepared a detailed business plan and sales forecasts, and provided Zhou with copies. 
D)  Zhou's 25% share of the business is worth substantially less than her initial investment.

Question 20

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

Which of the following is the best way to hide theft of assets?

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

This component of the fraud triangle explains how perpetrators justify their (illegal)behavior.

Logic errors are an example of which type of threat?

Which type of threat causes the greatest dollar losses?

Intentional or reckless conduct that results in materially misleading financial statements is called

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

Why is computer fraud on the rise?

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

Describe four ways companies can reduce losses from fraud.

What is the most prevalent opportunity within most companies to commit fraud?

Lapping is best described as the process of

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

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

Misappropriation of assets is a fraudulent act that involves

The most efficient way to conceal asset misappropriation is to

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

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

Exam 5: Computer Fraud

Which of the following is the best way to hide theft of assets?

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

This component of the fraud triangle explains how perpetrators justify their (illegal)behavior.

Logic errors are an example of which type of threat?

Which type of threat causes the greatest dollar losses?

Intentional or reckless conduct that results in materially misleading financial statements is called

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

Why is computer fraud on the rise?

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

Describe four ways companies can reduce losses from fraud.

What is the most prevalent opportunity within most companies to commit fraud?

Lapping is best described as the process of

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

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

Misappropriation of assets is a fraudulent act that involves

The most efficient way to conceal asset misappropriation is to

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

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