Which of the following is not a way to improve fraud detection?

Which of the following is not a way to improve fraud detection? A) Install fraud detection software. B) Implement a fraud hotline. C) Employ a computer...

Which of the following is not a way to reduce fraud losses?

Which of the following is not a way to reduce fraud losses? A) Conduct periodic external and internal audits. B) Maintain adequate insurance. C) Use...

Which of the following is not a way to make fraud less likely to occur?

Which of the following is not a way to make fraud less likely to occur? A) Adopt an organizational structure that minimizes the likelihood of fraud. B)...

The fraud appears to be misappropriation of assets that is being concealed with a lapping scheme. Controls would include:

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...

Describe four ways companies can reduce losses from fraud.

Describe four ways companies can reduce losses from fraud. Answer: Maintain adequate insurance. Keep a current backup copy of all program and...

Describe at least four ways a company can make fraud less likely to occur.

Describe at least four ways a company can make fraud less likely to occur. Answer: A company can decrease fraud by: good hiring and firing practices;...

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

What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting? Answer: organizational environment...

_____ is a simple, yet effective, method for catching or preventing many types of employee fraud.

_____ is a simple, yet effective, method for catching or preventing many types of employee fraud. A) Requiring all employees to take annual vacations B)...

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?

On Tuesday morning, Chen Lee, Chief Information Officer at American Trading Corporation (ATC), got some bad news. The hard drive use to store system...

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

Which of the following will not reduce the likelihood of an occurrence of fraud?  A) encryption of data and programs B) use of forensic accountants C)...

Most frauds are detected by

Most frauds are detected by A) external auditors. B) hotline tip. C) internal auditors. D) the police. Answer: ...

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

Why do fraudulent acts often go unreported and are therefore not prosecuted? Answer: Most fraud cases go unreported and are not prosecuted for...

Why is computer fraud on the rise?

Why is computer fraud on the rise? Answer: Not everyone agrees on what constitutes computer fraud and some people may commit computer fraud unwittingly...

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

Downloading a master list of customers and selling it to a competitor is an example of  A) data fraud. B) output theft. C) download fraud. D)...

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

The simplest and most common way to commit a computer fraud is to  A) alter computer input. B) alter computer output. C) modify the processing. D)...

The fraud that requires the least computer knowledge or skill involves

The fraud that requires the least computer knowledge or skill involves  A) altering or falsifying source data. B) unauthorized use of computers. C)...

Why do many fraud cases go unreported and unprosecuted?

Why do many fraud cases go unreported and unprosecuted?  A) Major fraud is a public relations nightmare. B) Fraud is difficult, costly, and time-consuming...

Why is computer fraud often more difficult to detect than other types of fraud?

Why is computer fraud often more difficult to detect than other types of fraud?  A) Rarely is cash stolen in computer fraud. B) The fraud may...

Why is computer fraud often much more difficult to detect than other types of fraud?

Why is computer fraud often much more difficult to detect than other types of fraud? A) because massive fraud can be committed in only seconds, leaving...

How does the U.S. Justice Department define computer fraud?

How does the U.S. Justice Department define computer fraud? A) as any crime in which a computer is used B) as any act in which cash is stolen using...

Which of the following is least likely to result in computer fraud?

Which of the following is least likely to result in computer fraud? A) releasing data to unauthorized users B) allowing computer users to test software...

What are some of the distinguishing characteristics of fraud perpetrators?

What are some of the distinguishing characteristics of fraud perpetrators? Answer: Some distinguishing characteristics of fraud perpetrators...

The most efficient way to conceal asset misappropriation is to

The most efficient way to conceal asset misappropriation is to A) write-off a customer receivable as bad debt. B) alter monthly bank statements before...

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

This component of the fraud triangle explains how perpetrators justify their (illegal) behavior. A) pressure B) rationalization C) concealment D)...

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

What is the most prevalent opportunity within most companies to commit fraud?  A) lack of any internal controls B) failure to enforce the internal...

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

Which situation below makes it easy for someone to commit a fraud?  A) placing excessive trust in key employees B) inadequate staffing within...

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?  A) pressure B) opportunity C)...

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

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

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

Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft? A) kiting B) laundering C)...

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

Which of the following is the best way to hide theft of assets?  A) creating "cash" through the transfer of money between banks B) conversion...

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

In many cases of fraud, the ________ takes more time and effort than the ________.  A) concealment; theft B) theft; concealment C) conversion;...

Which of the following fraudulent acts generally takes most time and effort?

Which of the following fraudulent acts generally takes most time and effort? A) lapping accounts receivable B) selling stolen inventory to get cash C)...

Which of the following is a financial pressure that could cause an employee to commit fraud?

Which of the following is a financial pressure that could cause an employee to commit fraud?  A) a feeling of not being appreciated B) failing...

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

Identify the opportunity below that could enable an employee to commit fraud. A) An employee's spouse loses her job. B) An employee has a close association...

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

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

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?

Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting? A) close relationship...

Insiders are frequently the ones who commit fraud because

Insiders are frequently the ones who commit fraud because  A) they are more dishonest than outsiders. B) they need money more than outsiders. C)...

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

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization? A) revenge against the company B) intent...

Lapping is best described as the process of

Lapping is best described as the process of  A) applying cash receipts to a different customer's account in an attempt to conceal previous thefts...

Misappropriation of assets is a fraudulent act that involves

Misappropriation of assets is a fraudulent act that involves A) dishonest conduct by those in power. B) misrepresenting facts to promote an investment. C)...

All of the following are required for an act to be legally classified as fraudulent except

All of the following are required for an act to be legally classified as fraudulent except  A) a falsehood is made. B) about a material fact. C)...

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

Explain the impact of SAS No. 99 on auditors' responsibilities. Answer: SAS No. 99, effective December 2002, requires that auditors explicitly consider...

Describe Two kinds of fraud.

Describe Two kinds of fraud. Answer: 1. Misappropriation of assets, or theft, by a person or group for personal financial gain is usually committed...

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

Which of the following is not an example of one of the basic types of fraud? A) While straightening the store at the end of the day, a shoe store...

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

Intentional or reckless conduct that results in materially misleading financial statements is called  A) financial fraud. B) misstatement fraud. C)...

SAS No. 99 requires that auditors

SAS No. 99 requires that auditors A) plan audits based on an analysis of fraud risk. B) detect all material fraud. C) alert the Securities and Exchange...

"Cooking the books" is typically accomplished by all the following except

"Cooking the books" is typically accomplished by all the following except A) overstating inventory. B) accelerating recognition of revenue. C) inflating...

Perpetrators do not typically

Perpetrators do not typically  A) attempt to return or pay back stolen amounts soon after the initial theft, but find they are unable to make...

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

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...

Logic errors are an example of which type of threat?

Logic errors are an example of which type of threat? A) natural and political disasters B) software errors and equipment malfunctions C) unintentional...

True or False: 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.

True or False: 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,...

True or False: A disgruntled employee in Australia hacked into a sewage system, causing a quarter of a million gallons of raw sewage to flood a hotel and a park.

True or False: A disgruntled employee in Australia hacked into a sewage system, causing a quarter of a million gallons of raw sewage to flood a hotel...

Which type of threat causes the greatest dollar losses?

Which type of threat causes the greatest dollar losses? A) software errors and equipment malfunctions B) unintentional acts C) intentional acts D)...

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

What agency did the United States create to use cyber weapons and to defend against cyber attacks? A) U.S. Cyber Command B) Department of Network...

What was the first known cyber-attack intended to harm a real-world physical target?

What was the first known cyber-attack intended to harm a real-world physical target? A) Sasser B) Stuxnet C) Michelangelo D) Doomsday Answer:&n...

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

Excessive heat is an example of a(n) ________ threat. A) natural and political disasters B) software errors and equipment malfunctions C) unintentional...

A power outage is an example of a(n) ________ threat.

A power outage is an example of a(n) ________ threat. A) natural and political disasters B) software errors and equipment malfunctions C) unintentional...

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

Identify the threat below that is not one of the four types of threats faced by accounting information systems. A) natural and political disasters B)...

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

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?  A) human errors and omissions B) physical...

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

Perhaps the most striking fact about natural disasters in relation to AIS controls is that  A) many companies in one location can be seriously...