ACTG 474 FINAL EXAM - CHAPTER 4, 6-9 QUIZZES
QUESTIONS AND ANSWERS
Identify the threat below that is not one of the four types of threats faced by accounting
information systems. - Answers - system inefficiency
"Cooking the books" is typically accomplished by all the following except - Answers -
inflating accounts payable
Which of the following is not an example of one of the basic types of fraud? - Answers -
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
All of the following are required for an act to be legally classified as fraudulent except -
Answers - to inflict pain
Misappropriation of assets is a fraudulent act that involves - Answers - theft of company
property
Insiders are frequently the ones who commit fraud because - Answers - they know more
about the system and its weaknesses than outsiders
Identify the opportunity below that could enable an employee to commit fraud. -
Answers - An employee has a close association with suppliers or customers.
Which fraud scheme involves stealing customer receipts and applying subsequent
customer cash payments to cover the theft? - Answers - lapping
One fraudulent scheme covers up a theft by creating cash through the transfer of
money between banks. This is known as - Answers - kiting
Which characteristic of the fraud triangle often stems from a lack of internal controls
within an organization? - Answers - opportunity
Which situation below makes it easy for someone to commit a fraud? - Answers -
placing excessive trust in key employees, inadequate staffing within the organization,
unclear company policies
All of the above situations make it easy for someone to commit a fraud
This component of the fraud triangle explains how perpetrators justify their (illegal)
behavior. - Answers - rationalization
, Why is computer fraud often more difficult to detect than other types of fraud? - Answers
- The fraud may leave little or no evidence it ever happened
Downloading a master list of customers and selling it to a competitor is an example of -
Answers - data fraud
Most frauds are detected by - Answers - hotline tip
Which of the following is not one of the basic actions that an organization must take to
preserve the confidentiality of sensitive information? - Answers - backing up the
information
Identify the first step in protecting the confidentiality of intellectual property below. -
Answers - Identifying who has access to the intellectual property
After the information that needs to be protected has been identified, what step should
be completed next? - Answers - The information needs to be classified in terms of its
value to the organization
Janus Corporation uses a tool that embeds a code into all of its digital documents. It
then scours the internet, searching for codes that it has embedded into its files. When
Janus finds an embedded code on the internet, it knows that confidential information
has been leaked. Janus then begins identifying how the information was leaked and
who was involved with the leak. Janus is using - Answers - a digital watermark
A client approached Paxton Uffe and said, "Paxton, I need for my customers to make
payments online using credit cards, but I want to make sure that the credit card data
isn't intercepted. What do you suggest?" Paxton responded, "The most effective
solution is to implement - Answers - an encryption system with digital signatures
Cindy Vindoolo logged on to her e-mail account to find that she had received 50 e-mails
from a company called LifeCo that promised her extreme weight loss if she bought their
diet pills. Cindy angrily deleted all 50 e-mails, realizing she was a victim of - Answers -
spam
If an organization asks you to disclose your social security number, but fails to tell you
about its privacy policies and practices, the organization has likely violated which of the
Generally Accepted Privacy Principles? - Answers - Notice, Choice and consent
If an organization asks you to disclose your date of birth and your address, but fails to
establish any procedures for responding to customer complaints, the organization has
likely violated which of the Generally Accepted Privacy Principles? - Answers -
Monitoring and enforcement
QUESTIONS AND ANSWERS
Identify the threat below that is not one of the four types of threats faced by accounting
information systems. - Answers - system inefficiency
"Cooking the books" is typically accomplished by all the following except - Answers -
inflating accounts payable
Which of the following is not an example of one of the basic types of fraud? - Answers -
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
All of the following are required for an act to be legally classified as fraudulent except -
Answers - to inflict pain
Misappropriation of assets is a fraudulent act that involves - Answers - theft of company
property
Insiders are frequently the ones who commit fraud because - Answers - they know more
about the system and its weaknesses than outsiders
Identify the opportunity below that could enable an employee to commit fraud. -
Answers - An employee has a close association with suppliers or customers.
Which fraud scheme involves stealing customer receipts and applying subsequent
customer cash payments to cover the theft? - Answers - lapping
One fraudulent scheme covers up a theft by creating cash through the transfer of
money between banks. This is known as - Answers - kiting
Which characteristic of the fraud triangle often stems from a lack of internal controls
within an organization? - Answers - opportunity
Which situation below makes it easy for someone to commit a fraud? - Answers -
placing excessive trust in key employees, inadequate staffing within the organization,
unclear company policies
All of the above situations make it easy for someone to commit a fraud
This component of the fraud triangle explains how perpetrators justify their (illegal)
behavior. - Answers - rationalization
, Why is computer fraud often more difficult to detect than other types of fraud? - Answers
- The fraud may leave little or no evidence it ever happened
Downloading a master list of customers and selling it to a competitor is an example of -
Answers - data fraud
Most frauds are detected by - Answers - hotline tip
Which of the following is not one of the basic actions that an organization must take to
preserve the confidentiality of sensitive information? - Answers - backing up the
information
Identify the first step in protecting the confidentiality of intellectual property below. -
Answers - Identifying who has access to the intellectual property
After the information that needs to be protected has been identified, what step should
be completed next? - Answers - The information needs to be classified in terms of its
value to the organization
Janus Corporation uses a tool that embeds a code into all of its digital documents. It
then scours the internet, searching for codes that it has embedded into its files. When
Janus finds an embedded code on the internet, it knows that confidential information
has been leaked. Janus then begins identifying how the information was leaked and
who was involved with the leak. Janus is using - Answers - a digital watermark
A client approached Paxton Uffe and said, "Paxton, I need for my customers to make
payments online using credit cards, but I want to make sure that the credit card data
isn't intercepted. What do you suggest?" Paxton responded, "The most effective
solution is to implement - Answers - an encryption system with digital signatures
Cindy Vindoolo logged on to her e-mail account to find that she had received 50 e-mails
from a company called LifeCo that promised her extreme weight loss if she bought their
diet pills. Cindy angrily deleted all 50 e-mails, realizing she was a victim of - Answers -
spam
If an organization asks you to disclose your social security number, but fails to tell you
about its privacy policies and practices, the organization has likely violated which of the
Generally Accepted Privacy Principles? - Answers - Notice, Choice and consent
If an organization asks you to disclose your date of birth and your address, but fails to
establish any procedures for responding to customer complaints, the organization has
likely violated which of the Generally Accepted Privacy Principles? - Answers -
Monitoring and enforcement
