ACTG 313 UPDATED STUDY EXAM GUIDE QUESTIONS AND
SOLUTIONS GUARANTEE A+
✔✔5-3.3 Which of the following classification of pressures motivate people to perpetrate
employee fraud? (Check all that apply.)
a)Industry pressures and conditions
b)Lifestyle pressures
c)Management characteristics and pressures
d)Emotional pressures
e)Financial pressures - ✔✔b,d,e
✔✔5-3.4 Opportunity is the condition or situation that allows a perpetrator to: (Check all
that apply.)
a)Commit the fraud
b)Conceal the fraud
c)Convert the theft into a personal gain
d)Convince the perpetrator that he or she will not be caught
e)Control those who may know of his or her actions - ✔✔a,b,c
✔✔5-3.5 A rationalization allows a person to convince him or herself that his or her
actions are not illegal or dishonest. There are several different types of rationalizations:
(Check all that apply.)
a)A justification, such as "I am underpaid, so they owe it to me"
b)A lack of personal integrity that makes what a person wants more important than
acting honestly
c)A mental defect that makes a person think that they own the item that they took
d)An attitude, such as "the rules do not apply to me" - ✔✔a,b,d
✔✔5-4.1 Computer systems are particularly vulnerable to fraud for the following
reasons: (Check all that apply.)
a)It is difficult to control physical access to each electronic device that accesses a
network.
b)Most employees and suppliers with access to a computer system will eventually
perpetrate a computer fraud, irrespective of the strength of the Internal controls.
c)Perpetrators who break into corporate databases can steal or destroy massive
amounts of data in very little time, often leaving little evidence.
d)Few companies design controls into their computer systems.
e)Computer programs need to be illegally modified only once, in order for them to
operate improperly for as long as they are in use. - ✔✔a,c,e
✔✔5-4.2 A programmer at a large bank inserted code into the company's computer
system that told the computer to not only ignore any overdrafts on his accounts, but to
not charge his accounts any late or service fees. This is an example of what type of
fraud?
a)Input fraud
, b)Computer instruction fraud
c)Processor fraud
d)Output fraud
e)Data fraud - ✔✔b
✔✔5-4.3 Employees at a large brokerage house used their employer's computer system
to run a large and lucrative side business that their employer knew nothing about. This
is an example of what type of fraud?
a)Computer instruction fraud
b)Processor fraud
c)Input fraud
d)Data fraud
e)Output fraud - ✔✔b
✔✔5-4.4 A woman sent her company fictitious medical bills from doctors who did not
exist. The bills were processed in the normal way by her employer, and payments went
to her husband's office address. She bilked her company out of millions of dollars. This
is an example of what type of fraud?
a)Input fraud
b)Processor fraud
c)Computer instruction fraud
d)Data fraud
e)Output fraud - ✔✔a
✔✔5-4.5 A hacker was able to break into the system that transmitted the daily
transactions of a retail store to the company's central office. Every night for several
weeks he copied the transaction data that included customer names, credit card
numbers, and other confidential data. Hundreds of thousands of customers were
affected. This is an example of what type of fraud?
a)Computer instruction fraud
b)Data fraud
c)Processor fraud
d)Input fraud
e)Output fraud - ✔✔b
✔✔5-5.1 After a fraud has occurred, which one of the following is the best way to
reduce the loss from that fraud?
a)Develop and implement a strong system of internal controls.
b)Collect on fraud insurance purchased before the fraud.
c)Implement computer-based controls over data input, computer processing, data
storage, data transmission, and information output.
d)Increase the penalty for committing fraud by prosecuting fraud perpetrators more
vigorously.
e)Create an organizational culture that stresses integrity and commitment to ethical
values and competence. - ✔✔e
SOLUTIONS GUARANTEE A+
✔✔5-3.3 Which of the following classification of pressures motivate people to perpetrate
employee fraud? (Check all that apply.)
a)Industry pressures and conditions
b)Lifestyle pressures
c)Management characteristics and pressures
d)Emotional pressures
e)Financial pressures - ✔✔b,d,e
✔✔5-3.4 Opportunity is the condition or situation that allows a perpetrator to: (Check all
that apply.)
a)Commit the fraud
b)Conceal the fraud
c)Convert the theft into a personal gain
d)Convince the perpetrator that he or she will not be caught
e)Control those who may know of his or her actions - ✔✔a,b,c
✔✔5-3.5 A rationalization allows a person to convince him or herself that his or her
actions are not illegal or dishonest. There are several different types of rationalizations:
(Check all that apply.)
a)A justification, such as "I am underpaid, so they owe it to me"
b)A lack of personal integrity that makes what a person wants more important than
acting honestly
c)A mental defect that makes a person think that they own the item that they took
d)An attitude, such as "the rules do not apply to me" - ✔✔a,b,d
✔✔5-4.1 Computer systems are particularly vulnerable to fraud for the following
reasons: (Check all that apply.)
a)It is difficult to control physical access to each electronic device that accesses a
network.
b)Most employees and suppliers with access to a computer system will eventually
perpetrate a computer fraud, irrespective of the strength of the Internal controls.
c)Perpetrators who break into corporate databases can steal or destroy massive
amounts of data in very little time, often leaving little evidence.
d)Few companies design controls into their computer systems.
e)Computer programs need to be illegally modified only once, in order for them to
operate improperly for as long as they are in use. - ✔✔a,c,e
✔✔5-4.2 A programmer at a large bank inserted code into the company's computer
system that told the computer to not only ignore any overdrafts on his accounts, but to
not charge his accounts any late or service fees. This is an example of what type of
fraud?
a)Input fraud
, b)Computer instruction fraud
c)Processor fraud
d)Output fraud
e)Data fraud - ✔✔b
✔✔5-4.3 Employees at a large brokerage house used their employer's computer system
to run a large and lucrative side business that their employer knew nothing about. This
is an example of what type of fraud?
a)Computer instruction fraud
b)Processor fraud
c)Input fraud
d)Data fraud
e)Output fraud - ✔✔b
✔✔5-4.4 A woman sent her company fictitious medical bills from doctors who did not
exist. The bills were processed in the normal way by her employer, and payments went
to her husband's office address. She bilked her company out of millions of dollars. This
is an example of what type of fraud?
a)Input fraud
b)Processor fraud
c)Computer instruction fraud
d)Data fraud
e)Output fraud - ✔✔a
✔✔5-4.5 A hacker was able to break into the system that transmitted the daily
transactions of a retail store to the company's central office. Every night for several
weeks he copied the transaction data that included customer names, credit card
numbers, and other confidential data. Hundreds of thousands of customers were
affected. This is an example of what type of fraud?
a)Computer instruction fraud
b)Data fraud
c)Processor fraud
d)Input fraud
e)Output fraud - ✔✔b
✔✔5-5.1 After a fraud has occurred, which one of the following is the best way to
reduce the loss from that fraud?
a)Develop and implement a strong system of internal controls.
b)Collect on fraud insurance purchased before the fraud.
c)Implement computer-based controls over data input, computer processing, data
storage, data transmission, and information output.
d)Increase the penalty for committing fraud by prosecuting fraud perpetrators more
vigorously.
e)Create an organizational culture that stresses integrity and commitment to ethical
values and competence. - ✔✔e
