Question 1

What is the most prevalent opportunity within most companies to commit fraud?

Accepted Answer

A)   lack of any internal controls
B)   failure to enforce the internal controls
C)   loopholes in the design of internal controls
D)   management's failure to believe employees would commit fraudE) B) and C)
F) A) and D)

Question 2

What agency did the United States create to use cyber weapons and to defend against cyber attacks?

Accepted Answer

A)   U.S. Cyber Command
B)   Department of Network Security
C)   Department of Cyber Defense
D)   Department of Technology StrategyE) None of the above
F) B) and C)

Question 3

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 dutiesE) A) and B)
F) A) and C)

Question 4

Identify the threat below that is not one of the four types of threats faced by accounting information systems.

Accepted Answer

A)   natural and political disasters
B)   software errors and equipment malfunctions
C)   unintentional acts
D)   system inefficiencyE) B) and C)
F) All of the above

Question 5

Describe four ways companies can reduce losses from fraud.

Accepted Answer

Maintain adequate insurance.Keep a curre...

Question 6

Identify the opportunity below that could enable an employee to commit fraud.

Accepted Answer

A)   An employee's spouse loses her job.
B)   An employee has a close association with suppliers or customers.
C)   An employee suddenly acquires lots of credit cards.
D)   An employee is upset that he was passed over for a promotion.E) None of the above
F) A) and D)

Question 7

On Tuesday morning,Chen Lee,Chief Information Officer at American Trading Corporation (ATC) ,got some bad news.The hard drive use to store system data backups was lost while it was being transported to an offsite storage location.Chen 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)   ATC has a comprehensive disaster recovery plan.
B)   The hard drive was encrypted and password protected.
C)   The shipper has insurance that will reimburse ATC for the cost of the hard drive.
D)   ATC has a copy of the hard drive onsite, so a new copy for storage offsite can easily be prepared.E) All of the above
F) C) and D)

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 accountE) None of the above
F) All of the above

Question 9

Seble wants to open a floral shop in a downtown business district.She doesn't have funds enough to purchase inventory and pay six months'' rent up front.Seble approaches a good friend,Zhou,to discuss the possibility of Zhou investing funds and becoming a 25% partner in the business.After a lengthy discussion Zhou agrees to invest.Eight months later,Zhou and Seble have a major argument.In order for Zhou to sue Seble for fraud,all the following must be true except

Accepted Answer

A)   Zhou's decision to invest was primarily based on Seble's assertion that she had prior floral retail experience.
B)   Seble told Zhou she had worked at a floral shop for several years, when in fact she did not have any prior experience in floral retail.
C)   before Zhou invested, Seble prepared a detailed business plan and sales forecasts, and provided Zhou with copies.
D)   Zhou's 25% share of the business is worth substantially less than her initial investment.E) B) and C)
F) A) and B)

Question 10

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?

Accepted Answer

Establish an organizational environment ...

Question 11

This component of the fraud triangle explains how perpetrators justify their (illegal) behavior.

Accepted Answer

A)   pressure
B)   rationalization
C)   concealment
D)   opportunityE) B) and D)
F) None of the above

Question 12

Misappropriation of assets is a fraudulent act that involves

Accepted Answer

A)   dishonest conduct by those in power.
B)   misrepresenting facts to promote an investment.
C)   using computer technology to perpetrate.
D)   theft of company property.E) B) and D)
F) A) and D)

Question 13

Which type of threat causes the greatest dollar losses?

Accepted Answer

A)   software errors and equipment malfunctions
B)   unintentional acts
C)   intentional acts
D)   system inefficiencyE) A) and B)
F) C) and D)

Question 14

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

Accepted Answer

Most fraud cases go unreported and are n...

Question 15

Intentional or reckless conduct that results in materially misleading financial statements is called

Accepted Answer

A)   financial fraud.
B)   misstatement fraud.
C)   fraudulent financial reporting.
D)   audit failure fraud.E) B) and C)
F) B) and D)

Question 16

Why is computer fraud on the rise?

Accepted Answer

Not everyone agrees on what constitutes ...

Question 17

Logic errors are an example of which type of threat?

Accepted Answer

A)   natural and political disasters
B)   software errors and equipment malfunctions
C)   unintentional acts
D)   system inefficiencyE) None of the above
F) All of the above

Question 18

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.E) B) and D)
F) A) and B)

Question 19

Lapping is best described as the process of

Accepted Answer

A)   applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.
B)   inflating bank balances by transferring money among different bank accounts.
C)   stealing small amounts of cash, many times over a period of time.
D)   increasing expenses to conceal that an asset was stolen.E) None of the above
F) A) and D)

Question 20

A 16 year old hacker was able to access the systems of U.S.Missile Command and accidently launched a small nuclear missile,which fortunately,failed to detonate.

Accepted Answer

A) True 
 B)False

Exam 5: Computer Fraud

Identify the opportunity below that could enable an employee to commit fraud.

Correct Answer
verified

Describe four ways companies can reduce losses from fraud.

Correct Answer
verified
Maintain adequate insurance.Keep a curre...
View Answer

Identify the threat below that is not one of the four types of threats faced by accounting information systems.

Correct Answer
verified

Correct Answer
verified

Which type of threat causes the greatest dollar losses?

Correct Answer
verified

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

Correct Answer
verified

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?

Correct Answer
verified
Establish an organizational environment ...
View Answer

The most efficient way to conceal asset misappropriation is to

Correct Answer
verified

Correct Answer
verified

What is the most prevalent opportunity within most companies to commit fraud?

Correct Answer
verified

This component of the fraud triangle explains how perpetrators justify their (illegal) behavior.

Correct Answer
verified

Intentional or reckless conduct that results in materially misleading financial statements is called

Correct Answer
verified

Lapping is best described as the process of

Correct Answer
verified

A 16 year old hacker was able to access the systems of U.S.Missile Command and accidently launched a small nuclear missile,which fortunately,failed to detonate.

Correct Answer
verified

Why is computer fraud on the rise?

Correct Answer
verified
Not everyone agrees on what constitutes ...
View Answer

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

Correct Answer
verified

Logic errors are an example of which type of threat?

Correct Answer
verified

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

Correct Answer
verified
Most fraud cases go unreported and are n...
View Answer

Misappropriation of assets is a fraudulent act that involves

Correct Answer
verified

What agency did the United States create to use cyber weapons and to defend against cyber attacks?

Correct Answer
verified

Exam 5: Computer Fraud

Identify the opportunity below that could enable an employee to commit fraud.

Correct AnswerverifiedShow Answer

Describe four ways companies can reduce losses from fraud.

Correct AnswerverifiedMaintain adequate insurance.Keep a curre...View AnswerShow Answer

Identify the threat below that is not one of the four types of threats faced by accounting information systems.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which type of threat causes the greatest dollar losses?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?

Correct AnswerverifiedEstablish an organizational environment ...View AnswerShow Answer

The most efficient way to conceal asset misappropriation is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the most prevalent opportunity within most companies to commit fraud?

Correct AnswerverifiedShow Answer

This component of the fraud triangle explains how perpetrators justify their (illegal) behavior.

Correct AnswerverifiedShow Answer

Intentional or reckless conduct that results in materially misleading financial statements is called

Correct AnswerverifiedShow Answer

Lapping is best described as the process of

Correct AnswerverifiedShow Answer

A 16 year old hacker was able to access the systems of U.S.Missile Command and accidently launched a small nuclear missile,which fortunately,failed to detonate.

Correct AnswerverifiedShow Answer

Why is computer fraud on the rise?

Correct AnswerverifiedNot everyone agrees on what constitutes ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Logic errors are an example of which type of threat?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedMost fraud cases go unreported and are n...View AnswerShow Answer

Misappropriation of assets is a fraudulent act that involves

Correct AnswerverifiedShow Answer

What agency did the United States create to use cyber weapons and to defend against cyber attacks?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Maintain adequate insurance.Keep a curre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Establish an organizational environment ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Not everyone agrees on what constitutes ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Most fraud cases go unreported and are n...
View Answer

Correct Answer
verified

Correct Answer
verified