Question 1

The most efficient way to conceal asset misappropriation is to

Accepted Answer

A) understate a stolen inventory item an asset account. 
B) charge a stolen inventory item to an expense account. 
C) not talk about the theft with anyone in the company. 
D) record fictitious payments to vendors. 
A) understate a stolen inventory item an asset account. 
B) charge a stolen inventory item to an expense account. 
C) not talk about the theft with anyone in the company. 
D) record fictitious payments to vendors.

Question 2

Describe some of the most frequent fraudulent financial reporting schemes.

Accepted Answer

The most frequent fraudulent financial r

Question 3

Which of the following is an example of processor fraud?

Accepted Answer

A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco's stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks. 
A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco's stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks.

Question 4

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?

Accepted Answer

A) Close relationship with the current audit engagement partner and manager 
B) Pay for performance incentives based on short-term performance measures 
C) High management and employee turnover 
D) Highly optimistic earnings projections 
A) Close relationship with the current audit engagement partner and manager 
B) Pay for performance incentives based on short-term performance measures 
C) High management and employee turnover 
D) Highly optimistic earnings projections

Question 5

Which of the following is least likely to result in computer fraud?

Accepted Answer

A) Releasing data to unauthorized users. 
B) Allowing computer users to test software upgrades. 
C) Allowing computer operators full access to the computer room. 
D) Storing backup tapes in a location where they can be quickly accessed. 
A) Releasing data to unauthorized users. 
B) Allowing computer users to test software upgrades. 
C) Allowing computer operators full access to the computer room. 
D) Storing backup tapes in a location where they can be quickly accessed.

Question 6

Researchers found significant differences between white-collar criminals and the public.

Accepted Answer

A) True 
 B)False

Question 7

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) intentional acts (computer crimes) 
A) natural and political disasters 
B) software errors and equipment malfunctions 
C) unintentional acts 
D) intentional acts (computer crimes)

Question 8

Which of the following is an example of input fraud?

Accepted Answer

A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks. 
A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks.

Question 9

Which of the following is the best way to hide theft of assets?

Accepted Answer

A) Only steal an immaterial amount of assets. 
B) Conversion of stolen assets into cash. 
C) Stealing cash from customer A and then using customer B's balance to pay customer A's accounts receivable. 
D) Charging the stolen asset to an expense account. 
A) Only steal an immaterial amount of assets. 
B) Conversion of stolen assets into cash. 
C) Stealing cash from customer A and then using customer B's balance to pay customer A's accounts receivable. 
D) Charging the stolen asset to an expense account.

Question 10

Why do many computer fraud cases go unreported and unprosecuted?

Accepted Answer

A) Many companies believe the adverse publicity would result in copycat fraud and a loss of customer confidence,which could cost more than the fraud itself. 
B) It is difficult to calculate total losses when information is stolen,websites are defaced,and viruses shut down entire computer systems. 
C) Because of lack of funding and skilled staff,law enforcement investigates only 1 in 15 computer crimes. 
D) All of the above 
A) Many companies believe the adverse publicity would result in copycat fraud and a loss of customer confidence,which could cost more than the fraud itself. 
B) It is difficult to calculate total losses when information is stolen,websites are defaced,and viruses shut down entire computer systems. 
C) Because of lack of funding and skilled staff,law enforcement investigates only 1 in 15 computer crimes. 
D) All of the above

Question 11

Which of the following is not a way to reduce fraud losses?

Accepted Answer

A) Conduct periodic external and internal audits. 
B) Maintain adequate insurance. 
C) Use software to monitor system activity. 
D) Store backup copies of program and data files. 
A) Conduct periodic external and internal audits. 
B) Maintain adequate insurance. 
C) Use software to monitor system activity. 
D) Store backup copies of program and data files.

Question 12

At Facebook,an automated system for verifying configuration value errors backfired,causing every single client to try to fix accurate data it perceived as invalid.Since the fix involved querying a cluster of databases,that cluster was quickly overwhelmed by hundreds of thousands of queries a second.The resultant crash took the Facebook system offline for two-and-a-half hours.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an example of output fraud?

Accepted Answer

A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks. 
A) A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills. 
B) Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch. 
C) The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities. 
D) A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
The payee and amount,and printed fictitious paychecks.

Question 14

What was the first known cyber-attack intended to harm a real-world physical target?

Accepted Answer

A) Sasser 
B) Stuxnet 
C) Michelangelo 
D) Doomsday 
A) Sasser 
B) Stuxnet 
C) Michelangelo 
D) Doomsday

Question 15

Describe at least four ways a company can make fraud less likely to occur.

Accepted Answer

A company can decrease fraud by: good hi

Question 16

Downloading a master list of customers and selling it to a competitor is an example of

Accepted Answer

A) data fraud. 
B) output theft. 
C) download fraud. 
D) fraudulent financial reporting. 
A) data fraud. 
B) output theft. 
C) download fraud. 
D) fraudulent financial reporting.

Question 17

What is the primary difference between fraud and errors in financial statement reporting?

Accepted Answer

A) The level of management involved 
B) The intent to deceive 
C) The materiality of the misstatement 
D) The type of transaction effected 
A) The level of management involved 
B) The intent to deceive 
C) The materiality of the misstatement 
D) The type of transaction effected

Question 18

A disgruntled employee in Australia hacked into a sewage system,causing a quarter of a million gallons of raw sewage to flood a hotel and a park.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not one of the components of the fraud triangle?

Accepted Answer

A) Incentive 
B) Rationalization 
C) Susceptibility 
D) Opportunity 
A) Incentive 
B) Rationalization 
C) Susceptibility 
D) Opportunity

Question 20

Perhaps the most striking fact about natural disasters in relation to AIS controls is that

Accepted Answer

A) many companies in one location can be seriously affected at one time by a disaster. 
B) losses are absolutely unpreventable. 
C) there are a large number of major disasters every year. 
D) disaster planning has largely been ignored in the literature. 
A) many companies in one location can be seriously affected at one time by a disaster. 
B) losses are absolutely unpreventable. 
C) there are a large number of major disasters every year. 
D) disaster planning has largely been ignored in the literature.

Exam 5: Computer Fraud

The most efficient way to conceal asset misappropriation is to

Describe some of the most frequent fraudulent financial reporting schemes.

Which of the following is an example of processor fraud?

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?

Which of the following is least likely to result in computer fraud?

Researchers found significant differences between white-collar criminals and the public.

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

Which of the following is an example of input fraud?

Which of the following is the best way to hide theft of assets?

Why do many computer fraud cases go unreported and unprosecuted?

Which of the following is not a way to reduce fraud losses?

Which of the following is an example of output fraud?

What was the first known cyber-attack intended to harm a real-world physical target?

Describe at least four ways a company can make fraud less likely to occur.

Downloading a master list of customers and selling it to a competitor is an example of

What is the primary difference between fraud and errors in financial statement reporting?

A disgruntled employee in Australia hacked into a sewage system,causing a quarter of a million gallons of raw sewage to flood a hotel and a park.

Which of the following is not one of the components of the fraud triangle?

Perhaps the most striking fact about natural disasters in relation to AIS controls is that

Conceptual Foundations of Accounting Information Systems

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

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