Question 1

Skimming involves

Accepted Answer

A)  stealing cash from an organization before it is recorded 
B)  Stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor. 
A)  stealing cash from an organization before it is recorded 
B)  Stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Question 2

Computer fraud is easiest at the data collection stage. Why?

Accepted Answer

Computer fraud is easiest at the data co

Question 3

Computer programs are intellectual property.

Accepted Answer

A) True 
 B)False

Question 4

Explain the problems associated with Questionable Executive Compensation Schemes

Accepted Answer

A survey by Thompson Financial revealed

Question 5

Sarbanes-Oxley (SOX)

Accepted Answer

A)  imposes new corporate disclosure requirements 
B)  imposes new criminal penalties for fraud 
C)  both a. and b. 
D)  none of the above 
A)  imposes new corporate disclosure requirements 
B)  imposes new criminal penalties for fraud 
C)  both a. and b. 
D)  none of the above

Question 6

Misappropriation of assets can involve various schemes: expense reimbursement fraud, lapping, and payroll fraud. Explain each and give an example.

Accepted Answer

Expense reimbursement fraud involve fict

Question 7

Cash larceny involves

Accepted Answer

A)  stealing cash from an organization before it is recorded. 
B)  stealing cash from an organization after it has been recorded. 
C)  manufacturing false purchase orders, receiving reports, and invoices. 
D)  a clerk paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor. 
A)  stealing cash from an organization before it is recorded. 
B)  stealing cash from an organization after it has been recorded. 
C)  manufacturing false purchase orders, receiving reports, and invoices. 
D)  a clerk paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor.

Question 8

Contrast management fraud with employee fraud.

Accepted Answer

Employee fraud is usually designed to di

Question 9

When it comes to losses from fraud,

Accepted Answer

A)  the highest losses are from employees under 40 years of age 
B)  women tend to commit more frauds then men. 
C)  higher education levels mean higher losses from fraud 
D)  all of the above 
A)  the highest losses are from employees under 40 years of age 
B)  women tend to commit more frauds then men. 
C)  higher education levels mean higher losses from fraud 
D)  all of the above

Question 10

Name three forms of computer fraud.

Accepted Answer

Computer fraud includes:
The theft, misu

Question 11

For an action to be called fraudulent, all of the following conditions are required except

Accepted Answer

A)  poor judgment 
B)  false representation 
C)  intent to deceive 
D)  injury or loss 
A)  poor judgment 
B)  false representation 
C)  intent to deceive 
D)  injury or loss

Question 12

All of the following are factors in the fraud triangle except

Accepted Answer

A)  Ethical behavior of an individual 
B)  Pressure exerted on an individual at home and job related 
C)  Materiality of the assets 
D)  Opportunity to gain access to assets 
A)  Ethical behavior of an individual 
B)  Pressure exerted on an individual at home and job related 
C)  Materiality of the assets 
D)  Opportunity to gain access to assets

Question 13

Internal control systems are recommended but not required to prevent fraud.

Accepted Answer

A) True 
 B)False

Question 14

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Accepted Answer

A) True 
 B)False

Question 15

Name three types of program fraud.

Accepted Answer

Program fraud includes:
(1) creating ill

Question 16

Explain the problems associated with lack of director independence

Accepted Answer

Many boards of directors are comprised o

Question 17

Of the three fraud factors (situational pressure, ethics, and opportunity), situational pressure is the factor that actually facilitates the act.

Accepted Answer

A) True 
 B)False

Question 18

The four principal types of fraud include all of the following except

Accepted Answer

A)  bribery 
B)  gratuities 
C)  conflict of interest 
D)  economic extortion 
A)  bribery 
B)  gratuities 
C)  conflict of interest 
D)  economic extortion

Question 19

One characteristic of employee fraud is that the fraud

Accepted Answer

A)  is perpetrated at a level to which internal controls do not apply 
B)  involves misstating financial statements 
C)  involves the direct conversion of cash or other assets to the employee's personal benefit 
D)  involves misappropriating assets in a series of complex transactions involving third parties 
A)  is perpetrated at a level to which internal controls do not apply 
B)  involves misstating financial statements 
C)  involves the direct conversion of cash or other assets to the employee's personal benefit 
D)  involves misappropriating assets in a series of complex transactions involving third parties

Question 20

Explain the problems associated with inappropriate accounting practices.

Accepted Answer

The use of inappropriate accounting tech

Skimming involves

Computer fraud is easiest at the data collection stage. Why?

Computer programs are intellectual property.

Explain the problems associated with Questionable Executive Compensation Schemes

Sarbanes-Oxley (SOX)

Misappropriation of assets can involve various schemes: expense reimbursement fraud, lapping, and payroll fraud. Explain each and give an example.

Cash larceny involves

Contrast management fraud with employee fraud.

When it comes to losses from fraud,

Name three forms of computer fraud.

For an action to be called fraudulent, all of the following conditions are required except

All of the following are factors in the fraud triangle except

Internal control systems are recommended but not required to prevent fraud.

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Name three types of program fraud.

Explain the problems associated with lack of director independence

Of the three fraud factors (situational pressure, ethics, and opportunity), situational pressure is the factor that actually facilitates the act.

The four principal types of fraud include all of the following except

One characteristic of employee fraud is that the fraud

Explain the problems associated with inappropriate accounting practices.

Auditing and Internal Control

Auditing IT Governance Controls

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Transaction Processing and Financial Reporting Systems Overview

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Filters

Exam 12: Business Ethics, Fraud, and Fraud Detection

Skimming involves

Computer fraud is easiest at the data collection stage. Why?

Computer programs are intellectual property.

Explain the problems associated with Questionable Executive Compensation Schemes

Sarbanes-Oxley (SOX)

Misappropriation of assets can involve various schemes: expense reimbursement fraud, lapping, and payroll fraud. Explain each and give an example.

Cash larceny involves

Contrast management fraud with employee fraud.

When it comes to losses from fraud,

Name three forms of computer fraud.

For an action to be called fraudulent, all of the following conditions are required except

All of the following are factors in the fraud triangle except

Internal control systems are recommended but not required to prevent fraud.

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Name three types of program fraud.

Explain the problems associated with lack of director independence

Of the three fraud factors (situational pressure, ethics, and opportunity), situational pressure is the factor that actually facilitates the act.

The four principal types of fraud include all of the following except

One characteristic of employee fraud is that the fraud

Explain the problems associated with inappropriate accounting practices.

Auditing and Internal Control

Auditing IT Governance Controls

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Transaction Processing and Financial Reporting Systems Overview

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Filters