Deck 16: Ethics, fraud and Computer Crime

Question 1

A whistleblower is:

A)Another term for a disgruntled employee
B)Someone who highlights favourable company information
C)Someone who exposes corruption or malpractice
D)None of the options are correct

Answer 1

C

Question 2

Which of the following is not a stage in ethical decision making?

A)Identify the facts
B)Identify the laws that can be applied
C)Consider alternative courses of action
D)Make a decision

Answer 2

B

Question 3

Which of the following is not a criticism of utilitarianism?

A)The rights of individuals are not taken into account.
B)It does not consider the minority question.
C)Some individuals may suffer great harm while others may receive only modest benefits.
D)Happiness is the ultimate goal of human behaviour.

Answer 3

D

Question 4

Ethical theories help us to:
Introduction

A)Explore the implications of a decision.
B)Better understand the implications of a decision.
C)Be able to justify our choices.
D)All of the options are correct.

Question 5

Which of the following statements regarding Kantianism is not true?

A)Kantianism is embedded in duty or obligation and encompasses a dignity or respect for the individual.
B)According to Kantianism,a business that is doing respectful things,despite that it is motivated by profits,is acting in a prudent and moral way.
C)Critics point out that Kantianism's universal obligations do not take into account particular situations.
D)Kantianism is grounded in the notion of respect for the individual.

Question 6

When submitting their online registration form,a pop-up dialogue box appears in the customers' Internet browser asking them to confirm the submission of information.This is an example of:

A)Informed consent
B)Implied consent
C)Forced consent
D)Conscious consent

Question 7

The implicit rules that guide us in our everyday behaviour,thoughts and actions are collectively termed:

A)Ethics
B)Morals
C)Code of conduct
D)Legislation

Question 8

Which of the following statements regarding ethics and decision making is true?

A)An ethical framework is preferable but not essential in making good decisions.
B)Ethical theories are preferable but not essential in making good decisions.
C)In most cases decisions based on intuition and personal feelings will achieve better outcomes than those based on an ethical framework.
D)Ethics is very complex.

Question 9

The examination of principles,values,duties and norms,the consideration of available choices in order to make the decision and the strength of character to act in accordance with that decision is referred to as:

A)Ethics
B)Morals
C)Beliefs
D)Meditations

Question 10

Do electronic Accounting Information Systems pose more of a threat to customer privacy than paper based systems?

A)No because the data cannot be read by a human.
B)Yes because organisations always sell the data onto marketing companies.
C)No because there are laws that protect the privacy of customers.
D)Yes because organisations can collect more data about more people than ever before.

Question 11

Ideally,a website should not store any data of the potential customer during the customer registration process until:

A)The customer has agreed to relevant Terms and Conditions.
B)The customer has elected to press the 'Submit' button on the electronic registration form.
C)The customer has reviewed all information entered in previous steps of registration.
D)All of the options are correct.

Question 12

Cost-benefit analysis is an example of:

A)Opportunism
B)Hedonism
C)Realism
D)Utilitarianism

Question 13

Kantianism suggests that:

A)An action is morally right if it is motivated by a good will that stems from a sense of duty
B)Maximisation of an individual's utility should not be at the expense of the group or community
C)There are always multiple ethical approaches
D)None of the options are correct

Question 14

An ethical decision-making model provides guidance on:
Introduction

A)How to navigate difficult and complex issues in reaching an effective solution for a business problem.
B)How to navigate difficult and complex issues in reaching a best practice for an issue.
C)How to navigate difficult and complex issues in reaching a decision.
D)All of the options are correct.

Question 15

The saying that an action is morally right if it is motivated by a good will that stems from a sense of duty is known as:

A)Kantianism
B)Hedonism
C)Realism
D)Utilitarianism

Question 16

The first step of ethical decision-making is to:

A)Define the issue
B)Identify the principles that can be applied
C)Identify the facts
D)None of the options are correct.

Question 17

________ refers to the individual consenting to the information gathering through their subsequent actions.

A)Informed consent
B)Implied consent
C)Forced consent
D)None of the options are correct.

Question 18

How a person approaches and responds to an ethical issue is termed:

A)Ethics
B)Morals
C)Critical thinking
D)Decision making

Question 19

Which of the following statements regarding ethical decision-making is true?

A)The number of alternative courses of action should be restricted to a small amount to avoid information overload.
B)When choosing from a set of alternative courses of action,the primary principle is to look for the one that will minimise the chance of legal sanction.
C)Each alternative courses of action needs to be evaluated from the perspective of the different stakeholders.
D)All of the options are correct.

Question 20

Which of the following is not a type of Consequentialist theory?

A)Ethical utilitarianism
B)Ethical Kantianism
C)Ethical egoism
D)Ethical altruism

Question 21

Which of the following fraud can occur if an employee is responsible for both approving and paying invoices?

A)Paying non-existent suppliers
B)Inventory theft
C)Credit fraud
D)All of the options are correct.

Question 22

In terms of IT,cookies cannot:

A)ensure the browser does not display ads the user has already seen.
B)ensure the user has adequate protection against online unethical behaviours.
C)track the previous and next sites the user visits.
D)track whether a user has visited the site before.

Question 23

Information privacy principles from the Privacy Act 1988 do not dictate that:

A)Information shall not be disclosed to a third party unless such disclosure was made known to the subject at the time the information was solicited and the subject consented to such disclosure.
B)Individuals have the right to view the information that is kept about them.
C)Individuals have the right to require that any inaccuracy regarding information that is kept about them be corrected.
D)The person gathering information should use whatever means to ensure that the information is complete and up to date.

Question 24

In terms of IT,spam is a problem because:

A)It can slow down email servers
B)It may spread computer viruses
C)It may affect the job efficiency of employees
D)All of the options are correct.

Question 25

The principles of the Privacy Act 1988 do not explicitly cover:

A)Collection of information.
B)Storage of information
C)Usage of information
D)Disposal of information

Question 26

Gaining unauthorised access to a system is called:

A)Hacking
B)Identity theft
C)Phishing
D)None of the options are correct.

Question 27

Which of the following factors is the most important one in addressing internet access issues in Australia?

A)Social barriers
B)Economic barriers
C)Technical barriers
D)All of the options are correct.

Question 28

Which of the following controls can ensure that all software is properly licensed in an organisation?

A)Users are restricted from installing programs or running unauthorised programs on their work computer.
B)Administrator rights and power user rights are not assigned to any common user.
C)Centralised deployment of software.
D)All of the options are correct.

Question 29

Privacy is:

A)A legal issue only.
B)An ethical issue only.
C)Both a legal and an ethical issue.
D)Neither a legal nor an ethical issue.

Question 30

Some organisations restrict employee's access to external websites such as Facebook and eBay that are not relevant to work.Such conduct is ________ from an employee's perspective:

A)Definitely unethical and illegal
B)Definitely unethical but legal
C)Potentially unethical and illegal
D)Potentially unethical but legal

Question 31

Consumer profiling is less likely to be able to gather information regarding:

A)Consumer interests
B)Consumer purchasing patterns
C)Consumer spending capability
D)Consumer viewing patterns

Question 32

There are three risk factors known as the 'fraud triangle' that are generally present when a fraud is committed.Which of the following is not one of them?

A)An incentive or pressure to commit fraud.
B)A perceived opportunity to commit fraud.
C)An ability to rationalise the fraudulent action.
D)An ability to avoid being discovered.

Question 33

The reporting,by an employee or member of an organisation,of the unethical behaviour of a colleague is called:

A)Informing
B)Insider report
C)Whistle-blowing
D)Ethical action

Question 34

Which of the privacy principles covers the requirement that information should be protected from loss and unauthorised access?

A)Collection of information
B)Record keeping
C)Storage
D)Access

Question 35

Whether it is ethical for the purchasing manager to accept a gift from a supplier may depend on:

A)The social culture.
B)The value of the gift.
C)The company's gift policy.
D)All of the options are correct.

Question 36

A bank teller is experiencing pressure at home,with mortgage payments rapidly approaching and credit cards nearing their limit.The teller has the opportunity to 'borrow' some of the bank's cash to place a bet on a 'sure thing' at the Saturday races with the intention of returning the cash to the bank on Monday morning.This is an example of: (i)Pressure for fraud (ii)Opportunity for fraud.

A)Only (i)
B)Only (ii)
C)Both (i)and (ii)
D)Neither (i)nor (ii)

Question 37

Which of the following is not considered invasion of privacy?

A)Blocking employee access to external websites.
B)Screening employee emails.
C)Maintaining a log that tracks employee usage of the internet.
D)None of the options are correct.

Question 38

Which of the following is not true?

A)Technology is advancing faster than the legislation can keep pace with.
B)The three main types of cybercrime are fraud,hacking,and identity theft.
C)The cost of cybercrime is not easy to calculate.
D)Much of the cybercrime goes unreported.

Question 39

Which of the following statements regarding internet access is true?

A)Young people are more likely to have internet access.
B)Wealthier people are more likely to have internet access
C)Well educated people are more likely to have internet access
D)All of the options are correct.

Question 40

Which of the following factors does not affect the usage of internet technology?

A)Age
B)Education
C)Geography
D)Gender

Question 41

Which principle is the foundation for phishing and social engineering?

A)Dishonesty principle
B)Herd principle
C)Distraction principle
D)Social compliance principle

Question 42

An individual's perceived ability to carry out the fraud and conceal the fraudulent activity is referred to as:

A)Pressure for fraud.
B)Opportunity for fraud.
C)Rationalisation for fraud.
D)Concealing for fraud.

Question 43

Once a person realises that they have been involved in a scam,the victim may be reluctant to tell the authorities.This is referred to as:

A)Distraction principle
B)Social compliance principle
C)Kindness principle
D)Dishonesty principle

Question 44

What are the three ways of gathering information of users of an accounting information system? What are the associated ethical concerns?

Question 45

Which of the following is not one of the seven recurring behavioural patterns and related principles identified by Stajano and Wilson?

A)Need and greed principle
B)Time principle
C)Authority principle
D)Herd principle

Question 46

Compare and contrast the following terms: phishing,pharming,hacking,and social engineering.

Question 47

Give at least three examples of organisational fraud related to accounting information systems.

Question 48

In terms of cybercrime,which of the following is true?

A)Employees are only the main risk inside the organisation.
B)Employees are only the main risk outside the organisation.
C)There must be clear and swift sanctions against security misconduct.
D)External audit is more effective in detecting fraud than internal audit.

Question 49

People are more likely to provide personal information to someone on the phone who purports to be a police officer or other authority figure.This is referred to as the:

A)Kindness principle
B)Authority principle
C)Social compliance principle
D)Distraction principle

Question 50

Compare and contrast data mining and customer profiling.What are the ethical issues associated with these two techniques?

Question 51

Which of the following is not true?

A)Research studies have found that the incidence of fraud tends to be related to the ethical environment of the organisation.
B)Ethical conducts can be promoted through professional registration.
C)Ethical guidelines exist to guide auditors when making client acceptance decisions,when determining the level of non-audit service fees,and on what gifts from the client can be accepted.
D)Codes of ethics should be formal.

Question 52

Describe what a cookie (in terms of IT)is and what it can do.

Question 53

Name and briefly compare and contrast at least three types of malware.

Question 54

Stajano and Wilson distilled seven recurring behavioural patterns and related principles that are useful in the examination of fraud.Name and briefly describe these principles.

Question 55

Which of the following is true?

A)The COSO framework,rather than the COBIT framework,can be utilised to reduce the risk of cyber fraud.
B)The COBIT framework,rather than the COSO framework,can be utilised to reduce the risk of cyber fraud.
C)The COSO and COBIT frameworks can both be utilised to reduce the risk of cyber fraud.
D)The COSO and COBIT frameworks are irrelevant to cyber fraud.

Question 56

How do professional bodies and codes of ethics help in deterring frauds?

Question 57

What are the seven stages to go through when making an ethical decision?

Question 58

Explain the meaning of 'fraud triangle'.