Question 1

Systems that use sequential master files employ a backup technique called destructive update.

Accepted Answer

A) True 
 B)False

Question 2

Why are the computer ethics issues of privacy,security,and property ownership of interest to accountants?

Accepted Answer

Privacy is a concern because the nature

Question 3

In a computerized environment,all input controls are implemented after data is input.

Accepted Answer

A) True 
 B)False

Question 4

Explain the pass-through fraud.

Accepted Answer

The perpetrator creates a false vendor a

Question 5

Situational pressure includes personal or job-related stresses that could coerce an individual to act dishonestly.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a principal type of corruption?

Accepted Answer

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

Question 7

Which of the following is not an element of the control environment?

Accepted Answer

A) management philosophy and operating style 
B) organizational structure of the firm 
C) well-designed documents and records 
D) the participation of the board of directors and the audit committee 
A) management philosophy and operating style 
B) organizational structure of the firm 
C) well-designed documents and records 
D) the participation of the board of directors and the audit committee

Question 8

Explain the purpose of the PCAOB.

Accepted Answer

The Sarbanes-Oxley Act creates a Public

Question 9

Management fraud is regarded as more serious than employee fraud.Three special characteristics have been discussed for management fraud.What are they? Explain.

Accepted Answer

Management fraud is more insidious than

Question 10

Define and describe a conflict of interest.

Accepted Answer

A conflict of interest occurs when an em

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Explain the characteristics of management fraud.

Accepted Answer

Management fraud typically occurs at lev

Question 15

How does privacy relate to output control?

Accepted Answer

If the privacy of certain type

Question 16

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

Accepted Answer

A) access controls 
B) segregation of functions 
C) independent verification 
D) accounting records 
A) access controls 
B) segregation of functions 
C) independent verification 
D) accounting records

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Explain the purpose of the PCAOB.

Accepted Answer

The PCAOB is empowered to set

Question 20

The importance to the accounting profession of the Sarbanes-Oxley Act is that

Accepted Answer

A) bribery will be eliminated 
B) management will not override the company's internal controls 
C) management is required to certify the internal control system 
D) firms will not be exposed to lawsuits 
A) bribery will be eliminated 
B) management will not override the company's internal controls 
C) management is required to certify the internal control system 
D) firms will not be exposed to lawsuits

Systems that use sequential master files employ a backup technique called destructive update.

Why are the computer ethics issues of privacy,security,and property ownership of interest to accountants?

In a computerized environment,all input controls are implemented after data is input.

Explain the pass-through fraud.

Situational pressure includes personal or job-related stresses that could coerce an individual to act dishonestly.

Which of the following is not a principal type of corruption?

Which of the following is not an element of the control environment?

Explain the purpose of the PCAOB.

Management fraud is regarded as more serious than employee fraud.Three special characteristics have been discussed for management fraud.What are they? Explain.

Define and describe a conflict of interest.

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

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

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

Explain the characteristics of management fraud.

How does privacy relate to output control?

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

Which of the following best describes lapping?

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

Explain the purpose of the PCAOB.

The importance to the accounting profession of the Sarbanes-Oxley Act is that

The Information System: an Accountants Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 3: Ethics,fraud,and Internal Control

Systems that use sequential master files employ a backup technique called destructive update.

Why are the computer ethics issues of privacy,security,and property ownership of interest to accountants?

In a computerized environment,all input controls are implemented after data is input.

Explain the pass-through fraud.

Situational pressure includes personal or job-related stresses that could coerce an individual to act dishonestly.

Which of the following is not a principal type of corruption?

Which of the following is not an element of the control environment?

Explain the purpose of the PCAOB.

Management fraud is regarded as more serious than employee fraud.Three special characteristics have been discussed for management fraud.What are they? Explain.

Define and describe a conflict of interest.

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

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

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

Explain the characteristics of management fraud.

How does privacy relate to output control?

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

Which of the following best describes lapping?

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

Explain the purpose of the PCAOB.

The importance to the accounting profession of the Sarbanes-Oxley Act is that

The Information System: an Accountants Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters