Question 1

Fraud perpetrators are often referred to as

Accepted Answer

A)  bad actors.
B)  blue-collar criminals.
C)  white-collar criminals.
D)  outlaws.E) C) and D)
F) B) and C)

Question 2

SAS No.99 requires that auditors

Accepted Answer

A)  plan audits based on an analysis of fraud risk.
B)  detect all material fraud.
C)  alert the Securities and Exchange Commission of any fraud detected.
D)  take all of the above actions.E) B) and D)
F) B) and C)

Question 3

In many cases of fraud,the ________ takes more time and effort than the ________.

Accepted Answer

A)  concealment;theft
B)  theft;concealment
C)  conversion;theft
D)  conversion;concealmentE) None of the above
F) A) and B)

Question 4

Most frauds are detected by

Accepted Answer

A)  external auditors.
B)  hotline tip.
C)  internal auditors.
D)  forensic accountants.E) A) and B)
F) B) and C)

Question 5

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

Accepted Answer

A)  Revenge against the company
B)  Intent to repay "borrowed" funds in the future
C)  Sense of entitlement as compensation for receiving a lower than average raise
D)  Belief that the company won't suffer because an insurance company will reimburse lossesE) A) and B)
F) A) and D)

Question 6

Systems that do not meet company need 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) E) A) and B)
F) All of the above

Question 7

Which of the following is not an example of one of the basic types of fraud?

Accepted Answer

A)  While straightening the store at the end of the day,a shoe store employee finds and keeps an expensive pair of sunglasses left by a customer.
B)  An executive devised and implemented a plan to accelerate revenue recognition on a long-term contract,which will allow the company to forestall filing for bankruptcy.The executive does not own any stock,stock options or grants,and will not receive a bonus or perk because of the overstated revenue.
C)  A purchasing agent places a large order at higher-than-normal unit prices with a vendor that gave the agent tickets to several football games.
D)  A salesperson approves a large sales discount on an order from a company owned partially by the salesperson's sister.E) B) and D)
F) B) and C)

Question 8

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)  Computer crimeE) A) and C)
F) B) and D)

Question 9

What characteristics must be presented for an act to be considered fraudulent? Give an example to support your answer.

Accepted Answer

A false statement,representation,or disc...

Question 10

Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft?

Accepted Answer

A)  kiting
B)  laundering
C)  lapping
D)  bogus expenseE) B) and C)
F) None of the above

Question 11

Which type of threat poses the greatest risk to information systems?

Accepted Answer

A)  Software errors and equipment malfunctions
B)  Unintentional acts
C)  Intentional acts (computer crimes) 
D)  Natural and political disastersE) None of the above
F) All of the above

Question 12

Excessive heat 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) E) B) and D)
F) None of the above

Question 13

Undetected data transmission errors are 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) E) None of the above
F) A) and B)

Question 14

Fraud perpetrators do not typically

Accepted Answer

A)  attempt to return or pay back stolen amounts soon after the initial theft,but find they are unable to make full restitution.
B)  use trickery or lies to gain the confidence and trust of others at the organization they defraud.
C)  become bolder and more greedy the longer the theft remains undetected.
D)  begin to rely on stolen amounts as part of their income.E) All of the above
F) C) and D)

Question 15

The simplest and most common way to commit a computer fraud is to

Accepted Answer

A)  alter computer input.
B)  alter computer output.
C)  modify the processing.
D)  corrupt the database.E) A) and D)
F) A) and C)

Question 16

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

Question 17

Insiders are frequently the ones who commit fraud because

Accepted Answer

A)  they are more dishonest than outsiders.
B)  they need money more than outsiders.
C)  they are less likely to get caught than outsiders.
D)  they know more about the system and its weaknesses than outsiders.E) B) and C)
F) A) and B)

Question 18

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) A) and D)
F) B) and C)

Question 19

Researchers have compared the psychological and demographic characteristics of white-collar criminals,violent criminals,and the general public.They found that

Accepted Answer

A)  few differences exist between white-collar criminals and the general public.
B)  white-collar criminals eventually become violent criminals.
C)  most white-collar criminals invest their illegal income rather than spend it.
D)  most white-collar criminals are older and not technologically proficient.E) A) and B)
F) All of the above

Question 20

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) A) and C)
F) None of the above

Exam 5: Computer Fraud

Excessive heat is an example of a(n) ________ threat.

Correct AnswerverifiedShow Answer

Researchers have compared the psychological and demographic characteristics of white-collar criminals,violent criminals,and the general public.They found that

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Which of the following is not an example of one of the basic types of fraud?

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Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

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Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft?

Correct AnswerverifiedShow Answer

Fraud perpetrators are often referred to as

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Which type of threat poses the greatest risk to information systems?

Correct AnswerverifiedShow Answer

The simplest and most common way to commit a computer fraud is to

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In many cases of fraud,the ________ takes more time and effort than the ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

SAS No.99 requires that auditors

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What characteristics must be presented for an act to be considered fraudulent? Give an example to support your answer.

Correct AnswerverifiedA false statement,representation,or disc...View AnswerShow Answer

Insiders are frequently the ones who commit fraud because

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Most frauds are detected by

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

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Fraud perpetrators do not typically

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Systems that do not meet company need is an example of a(n) ________ threat.

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Undetected data transmission errors are an example of a(n) ________ threat.

Correct AnswerverifiedShow Answer

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In many cases of fraud,the takes more time and effort than the .

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A false statement,representation,or disc...
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