Question 1

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 2

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file.As a result,the accounts receivable master file was erased.Which control would prevent this from happening?

Accepted Answer

A)  header label check 
B)  expiration date check 
C)  version check 
D)  validity check 
A)  header label check 
B)  expiration date check 
C)  version check 
D)  validity check

Question 3

Which of the following is an input control?

Accepted Answer

A)  Reasonableness check 
B)  Run-to-run check 
C)  Spooling check 
D)  Batch check 
E)  None are input controls 
A)  Reasonableness check 
B)  Run-to-run check 
C)  Spooling check 
D)  Batch check 
E)  None are input controls

Question 4

Computer programs are intellectual property.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following situations is not a segregation of duties violation?

Accepted Answer

A)  The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine. 
B)  The warehouse clerk,who has the custodial responsibility over inventory in the warehouse,selects the vendor and authorizes purchases when inventories are low. 
C)  The sales manager has the responsibility to approve credit and the authority to write off accounts. 
D)  The department time clerk is given the undistributed payroll checks to mail to absent employees. 
E)  The accounting clerk who shares the record keeping responsibility for the accounts receivable subsidiary ledger performs the monthly reconciliation of the subsidiary ledger and the control account. 
A)  The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine. 
B)  The warehouse clerk,who has the custodial responsibility over inventory in the warehouse,selects the vendor and authorizes purchases when inventories are low. 
C)  The sales manager has the responsibility to approve credit and the authority to write off accounts. 
D)  The department time clerk is given the undistributed payroll checks to mail to absent employees. 
E)  The accounting clerk who shares the record keeping responsibility for the accounts receivable subsidiary ledger performs the monthly reconciliation of the subsidiary ledger and the control account.

Question 8

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 9

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Accepted Answer

A) True 
 B)False

Question 10

Systems that use a sequential master files employ a backup technique called

Accepted Answer

A)  Batch check 
B)  Destructive update 
C)  Grandfather-father-son 
D)  Master file backup 
E)  None of the above 
A)  Batch check 
B)  Destructive update 
C)  Grandfather-father-son 
D)  Master file backup 
E)  None of the above

Question 11

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 12

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Accepted Answer

The Sarbanes-Oxley Act requires all audi

Question 13

Which check is not an input control?

Accepted Answer

A)  reasonableness check 
B)  validity check. 
C)  spooling check 
D)  missing data check 
A)  reasonableness check 
B)  validity check. 
C)  spooling check 
D)  missing data check

Question 14

Explain the pass through fraud.

Accepted Answer

A pay-and-return scheme involves a clerk

Question 15

Explain the purpose of the PCAOB.

Accepted Answer

The Sarbanes-Oxley Act creates a Public

Question 16

Since all fraud involves some form of financial misstatement,how is Fraudulent Statement fraud different?

Accepted Answer

Fraudulent statements are associated wit

Question 17

Explain the problems associated with inappropriate accounting practices.

Accepted Answer

The use of inappropriate accounting tech

Question 18

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 19

Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling)include all of the following actions by a computer criminal except

Accepted Answer

A)  gaining access to the output file and changing critical data values 
B)  using a remote printer and incurring operating inefficiencies 
C)  making a copy of the output file and using the copy to produce illegal output reports 
D)  printing an extra hardcopy of the output file 
A)  gaining access to the output file and changing critical data values 
B)  using a remote printer and incurring operating inefficiencies 
C)  making a copy of the output file and using the copy to produce illegal output reports 
D)  printing an extra hardcopy of the output file

Question 20

Segregation of duties is an example of an internal control procedure.

Accepted Answer

A) True 
 B)False

Forces which may permit fraud to occur do not include

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file.As a result,the accounts receivable master file was erased.Which control would prevent this from happening?

Which of the following is an input control?

Computer programs are intellectual property.

All of the following are conditions for fraud except

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Which of the following situations is not a segregation of duties violation?

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

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Systems that use a sequential master files employ a backup technique called

Which of the following best describes lapping?

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Which check is not an input control?

Explain the pass through fraud.

Explain the purpose of the PCAOB.

Since all fraud involves some form of financial misstatement,how is Fraudulent Statement fraud different?

Explain the problems associated with inappropriate accounting practices.

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

Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling)include all of the following actions by a computer criminal except

Segregation of duties is an example of an internal control procedure.

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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Exam 3: Ethics,fraud,and Internal Control

Forces which may permit fraud to occur do not include

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file.As a result,the accounts receivable master file was erased.Which control would prevent this from happening?

Which of the following is an input control?

Computer programs are intellectual property.

All of the following are conditions for fraud except

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Which of the following situations is not a segregation of duties violation?

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

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Systems that use a sequential master files employ a backup technique called

Which of the following best describes lapping?

How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

Which check is not an input control?

Explain the pass through fraud.

Explain the purpose of the PCAOB.

Since all fraud involves some form of financial misstatement,how is Fraudulent Statement fraud different?

Explain the problems associated with inappropriate accounting practices.

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

Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling)include all of the following actions by a computer criminal except

Segregation of duties is an example of an internal control procedure.

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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