Question 1

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 2

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

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.

Question 4

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

Accepted Answer

SAS No.99,effective December 2002,requir

Question 5

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 6

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 7

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

Accepted Answer

Most fraud cases go unreported and are n

Question 8

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

________ 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 17

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 18

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 19

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 20

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.

Exam 5: Computer Fraud

Insiders are frequently the ones who commit fraud because

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

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

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

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

Perpetrators do not typically

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

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

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

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

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

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

The most efficient way to conceal asset misappropriation is to

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

Lapping is best described as the process of

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

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

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

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

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