Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 5 Computer Fraud
1) Perhaps the most striking fact about natural disasters in relation to AIS controls is that
A) many companies in one location can be seriously affected at one time by a disaster.
B) losses are absolutely unpreventable.
C) there are a large number of major disasters every year.
D) disaster planning has largely been ignored in the literature.
Answer: A
Page Ref: 121
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
2) Which of the following best describes lapping?
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) Increasing expenses to conceal that an asset was stolen.
D) Stealing small amounts of cash, many times over a period of time.
Answer: A
Page Ref: 128
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
3) Which of the following is the greatest risk to information systems and causes the greatest dollar
losses?
A) human errors and omissions
B) physical threats such as natural disasters
C) dishonest employees
D) fraud and embezzlement
Answer: A
Page Ref: 122
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
4) All of the following could lead to computer fraud except
A) allowing computer operators full access to the computer room.
B) releasing data to unauthorized users.
C) allowing computer users to test software upgrades.
D) storing backup tapes in a location where they can be quickly accessed.
Answer: A
Page Ref: 131-134
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
, 5) Which of the following is not an example of the fraud triangle characteristic concerned with easing a
fraudster's conscience?
A) Revenge against the company
B) Sense of entitlement as compensation for receiving a lower than average raise
C) Intent to repay "borrowed" funds in the future
D) Belief that the company won't suffer because an insurance company will reimburse losses
Answer: A
Page Ref: 130
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
6) Most fraud perpetrators are insiders because
A) insiders are more dishonest than outsiders.
B) insiders know more about the system and its weaknesses than outsiders.
C) outsiders are more likely to get caught than insiders.
D) insiders have more need for money than outsiders.
Answer: B
Page Ref: 126
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
7) Most frauds are detected by
A) external auditors.
B) internal auditors.
C) accident.
D) hotline tip.
Answer: D
Page Ref: 135
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic
2
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Chapter 5 Computer Fraud
1) Perhaps the most striking fact about natural disasters in relation to AIS controls is that
A) many companies in one location can be seriously affected at one time by a disaster.
B) losses are absolutely unpreventable.
C) there are a large number of major disasters every year.
D) disaster planning has largely been ignored in the literature.
Answer: A
Page Ref: 121
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
2) Which of the following best describes lapping?
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) Increasing expenses to conceal that an asset was stolen.
D) Stealing small amounts of cash, many times over a period of time.
Answer: A
Page Ref: 128
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
3) Which of the following is the greatest risk to information systems and causes the greatest dollar
losses?
A) human errors and omissions
B) physical threats such as natural disasters
C) dishonest employees
D) fraud and embezzlement
Answer: A
Page Ref: 122
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
4) All of the following could lead to computer fraud except
A) allowing computer operators full access to the computer room.
B) releasing data to unauthorized users.
C) allowing computer users to test software upgrades.
D) storing backup tapes in a location where they can be quickly accessed.
Answer: A
Page Ref: 131-134
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
, 5) Which of the following is not an example of the fraud triangle characteristic concerned with easing a
fraudster's conscience?
A) Revenge against the company
B) Sense of entitlement as compensation for receiving a lower than average raise
C) Intent to repay "borrowed" funds in the future
D) Belief that the company won't suffer because an insurance company will reimburse losses
Answer: A
Page Ref: 130
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
6) Most fraud perpetrators are insiders because
A) insiders are more dishonest than outsiders.
B) insiders know more about the system and its weaknesses than outsiders.
C) outsiders are more likely to get caught than insiders.
D) insiders have more need for money than outsiders.
Answer: B
Page Ref: 126
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
7) Most frauds are detected by
A) external auditors.
B) internal auditors.
C) accident.
D) hotline tip.
Answer: D
Page Ref: 135
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic
2
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
