Question 1

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

Accepted Answer

Computer fraud is easiest at the data co

Question 2

Employees should be made aware of the firm's commitment to ethics.

Accepted Answer

A) True 
 B)False

Question 3

Give two examples of employee fraud and explain how the theft might occur.

Accepted Answer

Charges to expense accounts: Cash could

Question 4

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

Accepted Answer

Collusion among employees in the commiss

Question 5

Which of the following best describes lapping?

Accepted Answer

A)  applying cash receipts to a different customer's account in an attempt to conceal previous thefts of funds 
B)  inflating bank balances by transferring money among different bank accounts 
C)  expensing an asset that has been stolen 
D)  creating a false transaction 
A)  applying cash receipts to a different customer's account in an attempt to conceal previous thefts of funds 
B)  inflating bank balances by transferring money among different bank accounts 
C)  expensing an asset that has been stolen 
D)  creating a false transaction

Question 6

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Accepted Answer

A) True 
 B)False

Question 7

Forces which may permit fraud to occur do not include

Accepted Answer

A)  a gambling addiction 
B)  lack of segregation of duties 
C)  centralized decision making environment 
D)  questionable integrity of employees 
A)  a gambling addiction 
B)  lack of segregation of duties 
C)  centralized decision making environment 
D)  questionable integrity of employees

Question 8

Explain the pass through fraud.

Accepted Answer

The perpetrator creates a false vendor a

Question 9

Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud.

Accepted Answer

A) True 
 B)False

Question 10

Distinguish between exposure and risk.

Accepted Answer

Exposure is the absence or wea

Question 11

Which characteristic is not associated with software as intellectual property?

Accepted Answer

A)  uniqueness of the product 
B)  possibility of exact replication 
C)  automated monitoring to detect intruders 
D)  ease of dissemination 
A)  uniqueness of the product 
B)  possibility of exact replication 
C)  automated monitoring to detect intruders 
D)  ease of dissemination

Question 12

Explain the problems associated with lack of auditor independence.

Accepted Answer

Auditing firms who are also engaged by t

Question 13

What are the six broad classes of physical control activities defined by SAS 78?

Accepted Answer

Transaction authorization,segr

Question 14

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 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 15

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 16

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 17

Define operational fraud.

Accepted Answer

Operations fraud is the misuse

Question 18

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Accepted Answer

A) True 
 B)False

Question 19

Name three types of program fraud.

Accepted Answer

Program fraud includes:
(1)creating ille

Question 20

All of the following are conditions for fraud except

Accepted Answer

A)  false representation 
B)  injury or loss 
C)  intent 
D)  material reliance 
A)  false representation 
B)  injury or loss 
C)  intent 
D)  material reliance

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

Employees should be made aware of the firm's commitment to ethics.

Give two examples of employee fraud and explain how the theft might occur.

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

Which of the following best describes lapping?

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Forces which may permit fraud to occur do not include

Explain the pass through fraud.

Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud.

Distinguish between exposure and risk.

Which characteristic is not associated with software as intellectual property?

Explain the problems associated with lack of auditor independence.

What are the six broad classes of physical control activities defined by SAS 78?

Cash larceny involves

Skimming involves

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

Define operational fraud.

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Name three types of program fraud.

All of the following are conditions for fraud except

Auditing and Internal Control

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

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

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

Employees should be made aware of the firm's commitment to ethics.

Give two examples of employee fraud and explain how the theft might occur.

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

Which of the following best describes lapping?

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Forces which may permit fraud to occur do not include

Explain the pass through fraud.

Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud.

Distinguish between exposure and risk.

Which characteristic is not associated with software as intellectual property?

Explain the problems associated with lack of auditor independence.

What are the six broad classes of physical control activities defined by SAS 78?

Cash larceny involves

Skimming involves

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

Define operational fraud.

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Name three types of program fraud.

All of the following are conditions for fraud except

Auditing and Internal Control

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

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