Deck 10: Cybercrime, Fraud, and Ethics

Question 1

A computer virus may lie dormant in a system until software is copied and run on non?licensed machines.

Answer 1

True

Question 2

No one really knows how much is lost each year as the result of cybercrime.

Answer 2

True

Question 3

A conflict exists between providing bona fide AIS users easy access to computer resources and security objectives.

Answer 3

True

Question 4

The absence of good statistics on cybercrime is partially explained by the fact that a large proportion of the cybercrime committed in private organizations is handled as an internal matter and thus is never publicly divulged.

Question 5

Cybercrime and fraud are one and the same.

Question 6

According to the chapter, a computer virus is an example of a type of cybercrime called "denial of service."

Question 7

Most computer abuse that we have caught so far has been because of good accounting controls.

Question 8

In the United States, trafficking in passwords is immoral, but not illegal.

Question 9

Worm programs are viruses that insert themselves into computer systems and disrupt operations or files.

Question 10

The Fraud Triangle provides a useful framework for understanding the drivers that must be present for cybercrime to occur.

Question 11

We believe that most cybercrime is not discovered.

Question 12

There is no complete, generally accepted definition of cybercrime presently available.

Question 13

The U.S.Congress passed the first federal computer crime law in 1986 making it illegal to alter or destroy federal information.

Question 14

SAS 99 identifies two types of financial statement fraud: fraudulent financial reporting and misappropriation of assets.

Question 15

Many types of cybercrime have other, more common names such as "vandalism" or "embezzlement."

Question 16

One conclusion that we can draw about cybercrime is that it is growing.

Question 17

When organizations discover a cybercrime, the cost of auditing and investigating the loss often exceeds the actual monetary loss.

Question 18

It is generally accepted that hackers are motivated only by greed.

Question 19

Weak or ineffective internal controls often provide the fraudster the rationalization necessary to commit a fraud.

Question 20

Automated accounting information systems are a particularly important potential target of cybercrime.

Question 21

According to the chapter, which of these statements is most accurate?
A)Almost all cybercrime is committed for personal gain

A)Very little cybercrime is committed for personal gain
B)Most cybercrime is just as easily described as "embezzlement"
C)Cybercrime is constantly evolving in terms of tools and techniques used

Question 22

Which of these would be an example of "denial-of-service" computer abuse?

A)Computer virus
B)Salami technique
C)Trojan horse computer program
D)Embezzlement using computerized data
E)none of these

Question 23

Much of what has been termed cybercrime has merely involved the computer but probably would be more accurately classified as other types of crimes.A notable exception to this involves:
A)Inventory misappropriation

A)Raiding dormant bank accounts
B)Embezzlement
C)Theft of computer time

Question 24

Organizations that stress the importance of business ethics tend to get about the same results as companies that do not stress its importance.

Question 25

Most computer criminals we have been fortunate enough to catch have had long, criminal backgrounds.

Question 26

A DDOS attack often utilizes a botnet controlled by a nefarious actor.

Question 27

Most computer criminals are individuals of questionable background, little education, and no morals.

Question 28

The process of changing data before, during, or after they are entered into a computer system is called:

A)Data diddling
B)DDOS
C)Logic bombs
D)Social engineering

Question 29

Which of these terms describes a computer program that remains dormant until triggered by some specific circumstance or date?

A)Trojan horse program
B)DDoS program
C)Logic bomb
D)Dial back system

Question 30

Forensic accountants are to accounting as detectives are to criminal justice.

Question 31

Experts suggest that policies on computer abuse are ineffective, and therefore should not be used to help educate employees about computer abuse.

Question 32

Today's accountants have no responsibility for designing or implementing control procedures that protect AISs from cybercrime and fraud.

Question 33

A DDOS is a collection of compromise internet-enabled devices that are utilized in concert to commit cybercrime.

Question 34

Examples of pressures that motivate the fraudster to act include financial difficulties and unobtainable sales / bonus goals.

Question 35

Fraud involves using deceit or concealment.
Renumber below and adjust solution manual.

Question 36

A "strong password" is a password that lasts a long time.

Question 37

Fraudsters often rationalize their actions by convincing themselves that everyone is doing it, or that their actions serve the greater good.

Question 38

Thwarting most forms of cybercrime does not require the support of top management.

Question 39

Watching for tell-tale signs may help detect computer crime.

Question 40

According to the chapter, which of these statements is most accurate?
A)Most cybercrime is performed as retaliation against employers

A)Very little cybercrime is committed for personal gain
B)Some cybercrime is performed simply to meet a challenge
C)We catch most computer abusers with good accounting controls

Question 41

At present, we think that cybercrime is:
A)Falling

A)Random
B)Rising
C)Flat

Question 42

An example of a conflict-of-interest situation is:

A)Not working for a new company in a job similar to your last job
B)Not talking to outsiders about general business concerns
C)A decision where personal and corporate goals conflict
D)Refusing to use a new computer if your colleagues are not provided similar systems

Question 43

Accounting "ethics" means:

A)Whatever the corporate manual says it means
B)Acting responsibly as long as no dollars are involved
C)Only being honest; everything else is up for grabs
D)Acting responsibly, no matter what

Question 44

According to most security professionals, most computer criminals are discovered because of
A)audit and compliance activities

A)management review
B)luck, chance or accident
C)effective internal controls

Question 45

A computer virus is:

A)A disease that computer programmers are very susceptible to
B)A small processing routine that the user accidentally introduces into the system
C)A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves
D)Harmless

Question 46

___ protects data in transit and at rest by transforming the data into an unintelligible format, readable only if the key is possessed.
A)Encryption

A)IoT
B)Data diddling
C)Antivirus software

Question 47

All of these are reasons why we think that cybercrime is rising except:
A)More devices are now connected to the Internet

A)Numerous web sites now instruct users how to perform certain types of computer abuse
B)Information security measures are not keeping pace with threats
C)all of these are reasons

Question 48

Hacking involves:
A)Destroying computer hardware

A)Stealing carbons of credit cards
B)Gaining illegal entry to computer files from remote locations
C)Inserting a logic bomb in a computer program

Question 49

Thwarting computer abuse can be enhanced by all of the following except:
A)Enlisting top-management support

A)Increasing employee awareness and education
B)Minimizing employees who have access to networked resources
C)Using strong passwords

Question 50

A forensic accountant is an accountant who:

A)Performs autopsies on dead accountants
B)Tries to explain why some accounts become inactive
C)Investigates suspected fraud
D)Performs court-approved accounting tasks for bankrupt companies

Question 51

This best explains why we have incomplete information on cybercrime.
A)Most companies handle abuse as an internal matter

A)Most newspapers no longer have any interest in reporting cybercrime
B)Documentation of abuses is usually poor
C)We believe that most cybercrime is not caught

Question 52

Most computer criminals who have been caught:

A)Have inferior educational backgrounds
B)Have superior educational backgrounds
C)Work for organized crime
D)Are ill suited to their jobs

Question 53

Most states now have at least one cybercrime law.In general, successful prosecution is predicated on
A)evidence that a breach occurred

A)evidence that a computer was used
B)evidence that damage was incurred
C)demonstration of willful intent

Question 54

A DDOS attack works by:
A)changing the passwords to critical system accounts so that they become unusable

A)overwhelming organizational information resources with a multitude of junk network traffic sent from a collection of compromised devices
B)encrypting the data on a drive so that it becomes unreadable
C)compromising banking credentials so that the perpetrator can liquidate accounts

Question 55

Computer programs that can scan computer disks for virus-like coding are called:

A)Antivirus software
B)Virus software
C)Detection software
D)Friendly applets

Question 56

In thwarting cybercrime, which of the following is true?

A)It is not important to enlist the support of top management
B)Many IT managers do not think cybercrime is very important
C)Cybercrime mostly means controlling computer hardware
D)Most cybercrime happens because of a failure of controls, not an absence of controls

Question 57

Almost all computer criminals can be described as:

A)Professional criminals
B)Technical hackers possessing strong computer skills
C)White collar professional criminals
D)Amateurs who describe themselves as relatively honest

Question 58

Which of these is an acronym for computer crime legislation?
A)ACL

A)BART
B)CFAA
C)DDoS

Question 59

All of the following are ways to thwart computer viruses except:
A)Acquire a vaccine or anti?virus program

A)Do not download computer games from questionable sources
B)Maintain complete backup files
C)Buy shrink?wrapped software from reputable sources

Question 60

A small computer program that is stored on a web server and designed to run in conjunction with browser software is called a(n):
A)Applet

A)Logic bomb
B)Worm
C)Boot sector

Question 61

According to the most recent ACFE Report to the Nations, the greatest median fraud loss is reported among fraudsters who:

A)completed high school
B)attended college, but did not graduate
C)college graduates with an undergraduate degree
D)college graduates with a postgraduate degree

Question 62

Misappropriation of assets is:

A)A form of computer fraud involving the misapplication of account numbers.
B)The theft of assets, usually by employees
C)The proper recording of assets using debits
D)A form of computer abuse that is not a crime

Question 63

Some firms and governmental organizations use ethical hackers to help find any vulnerabilities that could be exploited by a malicious hacker.Which of the following is also used to refer to ethical hacking?

A)Denial of service
B)Intrusion service
C)Penetration testing
D)Executable testing

Question 64

Which of the following is not a common way to steal personal identity information?
A)Using key logging software

A)Altering computer records
B)Dumpster diving
C)Phishing

Question 65

The theft of millions of credit card numbers from customers of Target stores using malware is an example of:

A)Denial of service
B)Misappropriation of assets
C)Penetration testing
D)Hacking

Question 66

A computer virus is different from a "Trojan Horse" because the virus can

A)Corrupt data
B)Alter programming instructions
C)Replicate itself
D)Erase executable files

Question 67

One of the major crimes identified by the Computer Fraud and Abuse Act of 1986 is the intent to illegally obtain information or tangible property through the use of computers.Which of the following methods might accomplish this type of crime if the perpetrator can change data before, during, or after they are entered into a computer system?

A)Salami technique
B)Data diddling
C)Shoulder surfing
D)Trojan horse program

Question 68

Probably the most important federal legislation governing activities involving computers is:

A)CAN-SPAM Act of 2003
B)Federal Privacy Act of 1974
C)Computer Fraud and Abuse Act of 1986
D)Cyber Security Act of 1987

Question 69

Which of the following is a primary reason why accountants should be concerned about cybercrime?

A)They might lose their job if they don't detect cybercrime in their organization
B)They might lose their professional credibility and license if cybercrime continues for a long time in their organization and they do not detect it
C)They are responsible for designing, implementing, and monitoring the control procedures for AISs
D)all of the above are equally important

Question 70

Which of the following is true?

A)Most accounting and audit professional associations have not articulated a code of ethics
B)Computer crime only refers to manipulating a computer to dishonestly obtain money, property, or some other advantage of value
C)Most organizations report cybercrime once detected
D)Ethical use of computers means realizing that the availability of a system does not convey its unrestricted use

Question 71

It is important to be able to recognize the symptoms of employee fraud.In practice, which of the following might be the best clue that fraud might be occurring?

A)Accounting irregularities
B)Internal control procedures that managers feel are inadequate
C)Anomalies that, together, seem unreasonable
D)Trial balances that almost always contain errors

Question 72

Acts such as dumpster diving, phishing, and smishing are all conducted to:

A)Conduct a denial of service attack
B)Disrupt computer services
C)Destroy data
D)Perform identify theft

Question 73

The term "smishing" means:

A)Conducting identify theft by using text messages on cell phones
B)Attempting to appear unnoticeable for an illegal act
C)Stealing small amounts of monies from several computer accounts
D)Masquerading as a corporate manager in order to obtain useful information

Question 74

Effective computer security usually begins with:

A)Strong application controls
B)Enlisting the support of top management
C)Long jail sentences
D)Powerful microprocessors

Question 75

Which of the following does not destroy data but merely replicates itself repeatedly until the user runs out of internal memory or disk space?

A)Computer virus
B)Worm program
C)Java applet
D)Salami technique