Question 1

Computer fraud is often much more difficult to detect than other types of fraud because

Accepted Answer

A)  perpetrators usually only steal very small amounts of money at a time, thus requiring a long period of time to have elapsed before they're discovered. 
B)  massive fraud can be committed in only seconds, leaving little or no evidence. 
C)  most perpetrators invest their illegal income rather than spend it, thus concealing key evidence. 
D)  most computer criminals are older and are considered to be more cunning when committing such a fraud. 
A)  perpetrators usually only steal very small amounts of money at a time, thus requiring a long period of time to have elapsed before they're discovered. 
B)  massive fraud can be committed in only seconds, leaving little or no evidence. 
C)  most perpetrators invest their illegal income rather than spend it, thus concealing key evidence. 
D)  most computer criminals are older and are considered to be more cunning when committing such a fraud.

Question 2

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 3

Which of the following is an opportunity that could contribute to employee fraud?

Accepted Answer

A)  an employee's spouse loses their job 
B)  an employee suddenly acquires lots of credit cards 
C)  an employee is upset that he was passed over for a promotion 
D)  close association with suppliers or customers 
A)  an employee's spouse loses their job 
B)  an employee suddenly acquires lots of credit cards 
C)  an employee is upset that he was passed over for a promotion 
D)  close association with suppliers or customers

Question 4

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

Accepted Answer

A)  lapping. 
B)  misappropriation of assets. 
C)  kiting. 
D)  concealment. 
A)  lapping. 
B)  misappropriation of assets. 
C)  kiting. 
D)  concealment.

Question 5

On Monday morning,Janet Pillsner,Chief Information Officer at International Securities Corporation (ISC),got some bad news.A tape used to store system data backups was lost while it was being transported to an offsite storage location.She called a meeting of her technical staff to discuss the implications of the loss.Which of the following is most likely to relieve her concerns over the potential cost of the loss?

Accepted Answer

A)  The shipper has insurance that will reimburse ISC for the cost of the tape. 
B)  ISC has a copy of the tape onsite, so a new copy for storage offsite can easily be prepared. 
C)  The tape was encrypted and password protected. 
D)  ISC has a comprehensive disaster recovery plan. 
A)  The shipper has insurance that will reimburse ISC for the cost of the tape. 
B)  ISC has a copy of the tape onsite, so a new copy for storage offsite can easily be prepared. 
C)  The tape was encrypted and password protected. 
D)  ISC has a comprehensive disaster recovery plan.

Question 6

The most efficient way to conceal asset misappropriation is to

Accepted Answer

A)  write-off a customer receivable as bad debt. 
B)  alter monthly bank statements before reconciliation. 
C)  alter monthly physical inventory counts to reconcile to perpetual inventory records. 
D)  record phony payments to vendors. 
A)  write-off a customer receivable as bad debt. 
B)  alter monthly bank statements before reconciliation. 
C)  alter monthly physical inventory counts to reconcile to perpetual inventory records. 
D)  record phony payments to vendors.

Question 7

Describe two kinds of fraud.

Accepted Answer

Misappropriation of assets,or theft,by a

Question 8

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

Accepted Answer

A)  Creating "cash" through the transfer of money between banks 
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)  Creating "cash" through the transfer of money between banks 
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 9

Which of the following will not reduce the likelihood of an occurrence of fraud?

Accepted Answer

A)  encryption of data and programs 
B)  use of forensic accountants 
C)  adequate insurance coverage 
D)  required vacations and rotation of duties 
A)  encryption of data and programs 
B)  use of forensic accountants 
C)  adequate insurance coverage 
D)  required vacations and rotation of duties

Question 10

What are some of the distinguishing characteristics of fraud perpetrators?

Accepted Answer

Some distinguishing characteristics of f

Question 11

A teller at a savings and loan drive-through accepted a cash payment from customer #1 for an auto loan.The teller appeared to process the payment,but told the customer the printer was jammed and she can't print a receipt.The customer accepted the excuse and drove away.The teller pocketed the cash and wrote down customer #1's loan number and payment amount for future reconciling.A couple of days before customer #1's monthly statement was printed,the teller recorded a cash payment from customer #2 as if it were made by customer #1.The teller pocketed the difference between the two payments.The teller continued to steal and misapply customer payments for the next two years without detection.
Identify the type of fraud scheme described.Describe five controls you would implement to address the fraud risk,and label each control as preventive or detective.

Accepted Answer

The fraud appears to be misappropriation

Question 12

Most frauds are detected by

Accepted Answer

A)  external auditors. 
B)  internal auditors. 
C)  accident. 
D)  hotline tip. 
A)  external auditors. 
B)  internal auditors. 
C)  accident. 
D)  hotline tip.

Question 13

The US Justice Department defines computer fraud as

Accepted Answer

A)  any crime in which a computer is used. 
B)  an illegal act in which knowledge of computer technology is essential. 
C)  any act in which cash is stolen using a computer. 
D)  an illegal act in which a computer is an integral part of the crime. 
A)  any crime in which a computer is used. 
B)  an illegal act in which knowledge of computer technology is essential. 
C)  any act in which cash is stolen using a computer. 
D)  an illegal act in which a computer is an integral part of the crime.

Question 14

In a ________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.

Accepted Answer

A)  kiting 
B)  laundering 
C)  bogus expense 
D)  lapping 
A)  kiting 
B)  laundering 
C)  bogus expense 
D)  lapping

Question 15

All of the following could lead to computer fraud except

Accepted Answer

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

Question 16

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.

Question 17

Which situation below makes it easy for someone to commit a fraud?

Accepted Answer

A)  placing excessive trust in key employees 
B)  inadequate staffing within the organization 
C)  unclear company policies 
D)  All of the above situations make it easy for someone to commit a fraud. 
A)  placing excessive trust in key employees 
B)  inadequate staffing within the organization 
C)  unclear company policies 
D)  All of the above situations make it easy for someone to commit a fraud.

Question 18

Why do fraudulent acts often go unreported and are therefore not prosecuted?

Accepted Answer

Most fraud cases go unreported and are n

Question 19

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

Accepted Answer

A)  human errors and omissions 
B)  physical threats such as natural disasters 
C)  dishonest employees 
D)  fraud and embezzlement 
A)  human errors and omissions 
B)  physical threats such as natural disasters 
C)  dishonest employees 
D)  fraud and embezzlement

Question 20

Explain the impact of SAS No.99 on auditors' responsibilities.

Accepted Answer

SAS No.99,effective December 2002,requir

Computer fraud is often much more difficult to detect than other types of fraud because

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

Which of the following is an opportunity that could contribute to employee fraud?

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

The most efficient way to conceal asset misappropriation is to

Describe two kinds of fraud.

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

Which of the following will not reduce the likelihood of an occurrence of fraud?

What are some of the distinguishing characteristics of fraud perpetrators?

Most frauds are detected by

The US Justice Department defines computer fraud as

In a ________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.

All of the following could lead to computer fraud except

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

Which situation below makes it easy for someone to commit a fraud?

Why do fraudulent acts often go unreported and are therefore not prosecuted?

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

Explain the impact of SAS No.99 on auditors' responsibilities.

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 5: Computer Fraud

Computer fraud is often much more difficult to detect than other types of fraud because

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

Which of the following is an opportunity that could contribute to employee fraud?

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

The most efficient way to conceal asset misappropriation is to

Describe two kinds of fraud.

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

Which of the following will not reduce the likelihood of an occurrence of fraud?

What are some of the distinguishing characteristics of fraud perpetrators?

Most frauds are detected by

The US Justice Department defines computer fraud as

In a ________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.

All of the following could lead to computer fraud except

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

Which situation below makes it easy for someone to commit a fraud?

Why do fraudulent acts often go unreported and are therefore not prosecuted?

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

Explain the impact of SAS No.99 on auditors' responsibilities.

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters