AIS EXAM 3 CERTIFICATION EVALUATION
2026 COMPLETE QUESTIONS AND
SOLUTIONS UPDATED
◉ Funds in a bank account are an example of what type of money?
Fiduciary money (legal tender)
Token, notational money
scriptural, notational money
Token money
Answer: scriptural, notational money
◉ Which of the following is the most important, basic, and effective
control to deter fraud?
segregation of duties
virus protection controls
access control
enforced vacations
Answer: segregation of duties
◉ Lauren wants to open a floral shop. She doesn't have funds
enough to purchase inventory and pay 6 months' rent. Lauren
approaches, Jamie, to discuss the possibility of Jamie investing funds
,and becoming a 25% partner in the business. After a lengthy
discussion, Jamie agrees to invest. Eight months later, Jamie
discovered that Lauren has not be honest with her regarding some
aspects of the business financial operation. In order for Jamie to sue
Lauren for fraud, all the following must be true except
Jamie found Lauren dishonest because she does not always
reconcile the business cash account on a timely basis.
Jamie has suffered a substantial loss in her investment because of
Lauren's deception.
Jamie's decision to invest was primarily based on Lauren's assertion
that she had prior floral retail experience.
Jamie trusted and relied on Lauren's representation of the business
financial operation.
Answer: Jamie found Lauren dishonest because she does not always
reconcile the business cash account on a timely basis.
◉ "Cooking the books" is typically accomplished by all the following
except
delaying recording of expenses.
inflating accounts payable.
overstating inventory.
accelerating recognition of revenue.
Answer: inflating accounts payable.
, ◉ What is the primary difference between fraud and errors in
financial statement reporting?
The type of transaction effected
The intent to deceive
The materiality of the misstatement
The level of management involved
Answer: The intent to deceive
◉ Which of the following control procedure is most likely to deter
lapping? (Lapping is a scheme where the perpetrator steals the cash
or check that customer A mails in to pay its accounts receivable, then
the perpetrator takes the funds from customer B to later cover that
account. And so on with Customer C.)
periodic rotation of duties
continual update of access control matrix
encryption
background check on employees, including programmers
Answer: periodic rotation of duties
◉ Which type of attack takes place between the time a software
vulnerability os discovered and the time software
developers/vendor release a patch that fixes the problem?
trojan horse
zero-day attack
2026 COMPLETE QUESTIONS AND
SOLUTIONS UPDATED
◉ Funds in a bank account are an example of what type of money?
Fiduciary money (legal tender)
Token, notational money
scriptural, notational money
Token money
Answer: scriptural, notational money
◉ Which of the following is the most important, basic, and effective
control to deter fraud?
segregation of duties
virus protection controls
access control
enforced vacations
Answer: segregation of duties
◉ Lauren wants to open a floral shop. She doesn't have funds
enough to purchase inventory and pay 6 months' rent. Lauren
approaches, Jamie, to discuss the possibility of Jamie investing funds
,and becoming a 25% partner in the business. After a lengthy
discussion, Jamie agrees to invest. Eight months later, Jamie
discovered that Lauren has not be honest with her regarding some
aspects of the business financial operation. In order for Jamie to sue
Lauren for fraud, all the following must be true except
Jamie found Lauren dishonest because she does not always
reconcile the business cash account on a timely basis.
Jamie has suffered a substantial loss in her investment because of
Lauren's deception.
Jamie's decision to invest was primarily based on Lauren's assertion
that she had prior floral retail experience.
Jamie trusted and relied on Lauren's representation of the business
financial operation.
Answer: Jamie found Lauren dishonest because she does not always
reconcile the business cash account on a timely basis.
◉ "Cooking the books" is typically accomplished by all the following
except
delaying recording of expenses.
inflating accounts payable.
overstating inventory.
accelerating recognition of revenue.
Answer: inflating accounts payable.
, ◉ What is the primary difference between fraud and errors in
financial statement reporting?
The type of transaction effected
The intent to deceive
The materiality of the misstatement
The level of management involved
Answer: The intent to deceive
◉ Which of the following control procedure is most likely to deter
lapping? (Lapping is a scheme where the perpetrator steals the cash
or check that customer A mails in to pay its accounts receivable, then
the perpetrator takes the funds from customer B to later cover that
account. And so on with Customer C.)
periodic rotation of duties
continual update of access control matrix
encryption
background check on employees, including programmers
Answer: periodic rotation of duties
◉ Which type of attack takes place between the time a software
vulnerability os discovered and the time software
developers/vendor release a patch that fixes the problem?
trojan horse
zero-day attack
