ACCOUNTING INFORMATION SYSTEMS GLOBAL EDITION 14TH ED BY MARSHALL B - TEST BANK Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Accounting Information Systems, 14e, Global Edition (Romney/Steinbart) Chapter 5 Computer Fraud 1 Explain the threats faced by modern information systems. 1) Perhaps the …
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ACCOUNTING INFORMATION SYSTEMS GLOBAL EDITION 14TH ED BY MARSHALL B – TEST BANK
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Accounting Information Systems, 14e, Global Edition (Romney/Steinbart)
Chapter 5 Computer Fraud
1 Explain the threats faced by modern information systems.
1) Perhaps the most striking fact about natural disasters in relation to AIS controls is that
Answer: A
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
2) Which of the following is the greatest risk to information systems and causes the greatest dollar losses?
Answer: A
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
3) Identify the threat below that is not one of the four types of threats faced by accounting information systems.
Answer: D
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Application of Knowledge
4) A power outage is an example of a(n) ________ threat.
Answer: B
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
5) Sabotage is an example of a(n) ________ threat.
Answer: D
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
6) Systems that do not meet company need is an example of a(n) ________ threat.
Answer: C
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
7) Terrorists are an example of a(n) ________ threat.
Answer: A
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
8) Undetected data transmission errors are an example of a(n) ________ threat.
Answer: B
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
9) Excessive heat is an example of a(n) ________ threat.
Answer: A
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
10) What was the first known cyber-attack intended to harm a real-world physical target?
Answer: B
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Challenging
AACSB: Analytical Thinking
11) What agency did the United States create to use cyber weapons and to defend against cyber attacks?
Answer: A
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Challenging
AACSB: Analytical Thinking
12) Which type of threat poses the greatest risk to information systems?
Answer: B
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
13) 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.
Answer: TRUE
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
14) 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.
Answer: FALSE
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
15) At Facebook, an automated system for verifying configuration value errors backfired, causing every single client to try to fix accurate data it perceived as invalid. Since the fix involved querying a cluster of databases, that cluster was quickly overwhelmed by hundreds of thousands of queries a second. The resultant crash took the Facebook system offline for two-and-a-half hours.
Answer: TRUE
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
16) The activist hacker group called Anonymous played Santa Claus one Christmas, indicating they were “granting wishes to people who are less fortunate than most.” They were inundated with requests for iPads, iPhones, pizzas, and hundreds of other things. They hacked into banks and sent over $1 million worth of virtual credit cards to people.
Answer: TRUE
Concept: Threats to accounting information systems
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking
2 Define fraud and describe both the different types of fraud and the auditor’s responsibility to detect fraud.
1) Lauren 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. Lauren approaches a good friend, 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
Answer: D
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Reflective Thinking
2) What characteristics must be presented for an act to be considered fraudulent? Give an example to support your answer.
Answer: A false statement, representation, or disclosure; a material fact, which is something that induces a person to act; an intent to deceive; a justifiable reliance; that is, the person relies on the misrepresentation to take an action; and an injury or loss suffered by the victim. Students’ response may vary depending on the example that they provide.
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Challenging
AACSB: Reflective Thinking
3) Fraud perpetrators are often referred to as
Answer: C
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Easy
AACSB: Analytical Thinking
4) “Cooking the books” is typically accomplished by all the following except
Answer: C
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
5) SAS No. 99 requires that auditors
Answer: A
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Challenging
AACSB: Analytical Thinking
6) What is the primary difference between fraud and errors in financial statement reporting?
Answer: B
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
7) The two most common types of fraud impacting financial statements are
Answer: D
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
8) Intentional or reckless conduct that results in materially misleading financial statements is called
Answer: C
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Easy
AACSB: Analytical Thinking
9) Which of the following is not an example of one of the basic types of fraud?
Answer: A
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Reflective Thinking
10) Describe two kinds of fraud.
Answer: Misappropriation of assets, or theft, by a person or group for personal financial gain is usually committed by employees. Fraudulent financial reporting is intentional or reckless conduct that results in materially misleading financial statements.
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Easy
AACSB: Analytical Thinking
11) Which of the following is not an example of misappropriation of assets?
Answer: B
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Reflective Thinking
12) Describe some of the most frequent fraudulent financial reporting schemes.
Answer: The most frequent fraudulent financial reporting schemes involve fictitiously inflating revenues,
holding the books open (recognizing revenues before they are earned), closing the books
early (delaying current expenses to a later period), overstating inventories or fixed assets, and
concealing losses and liabilities.
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
13) Describe ways that the Treadway Commission has recommended to reduce fraudulent financial reporting.
Answer: The Treadway Commission recommended four actions to reduce fraudulent financial
reporting: (1) Establish an organizational environment that contributes to the integrity of the financial reporting process. (2) Identify and understand the factors that lead to fraudulent financial reporting. (3) Assess the risk of fraudulent financial reporting within the company. (4.) Design and implement internal controls to provide reasonable assurance of preventing fraudulent financial reporting.
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
14) Asset misappropriation is ________ likely than fraudulent financial reporting. The amounts involved in asset misappropriation are much ________ than fraudulent financial reporting.
Answer: C
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
15) Misappropriation of assets is a fraudulent act that involves
Answer: D
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
16) Explain the impact of SAS No. 99 on auditors’ responsibilities.
Answer: SAS No. 99, effective December 2002, requires that auditors explicitly consider fraud risks when planning and performing an audit. Auditors must understand types and characteristics of fraud. Audit teams must review clients’ financial statements for areas susceptible to fraud and communicate with each other during planning of the audit. Auditors must ask management and audit committee members about any past or current instances of fraud. Since many frauds involve revenue recognition, auditors must exercise special care and testing in examining revenue accounts. Audit procedures and testing must be tailored in response to fraud risk assessment. Auditors must evaluate the risk of management override of controls and any other indications of fraud occurrences. All audit procedures, testing and findings must be documented and communicated to management and the audit committee. Auditors must evaluate and recognize the impact of technology on fraud risks, as well as opportunities technology may provide to design fraud-auditing procedures.
Concept: Fraud
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
3 Discuss who perpetrates fraud and why it occurs, including the pressures, opportunities, and rationalizations that are present in most frauds.
1) Fraud perpetrators do not typically
Answer: A
Concept: Fraud perpetrators
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
2) Researchers found significant differences between white-collar criminals and the public.
Answer: FALSE
Concept: Fraud perpetrators
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
3) Most fraud perpetrators have previous criminal record; they were dishonest and disrespected members of their community.
Answer: FALSE
Concept: Fraud perpetrators
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
4) Lapping is best described as the process of
Answer: A
Concept: Fraud
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Reflective Thinking
5) Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?
Answer: A
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Reflective Thinking
6) Insiders are frequently the ones who commit fraud because
Answer: D
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
7) Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?
Answer: A
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
8) Researchers have compared the psychological and demographic characteristics of white-collar criminals, violent criminals, and the general public. They found that
Answer: A
Concept: Fraud perpetrators
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
9) Identify the opportunity below that could enable an employee to commit fraud.
Answer: B
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
10) Which of the following is a financial pressure that could cause an employee to commit fraud?
Answer: B
Concept: The concept of information
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
11) Which of the following fraudulent acts generally takes most time and effort?
Answer: A
Concept: Fraud
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Reflective Thinking
12) In many cases of fraud, the ________ takes more time and effort than the ________.
Answer: A
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
13) Which of the following is the best way to hide theft of assets?
Answer: D
Concept: Fraud
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Reflective Thinking
14) Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft?
Answer: C
Concept: Fraud
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
15) One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks. This is known as
Answer: C
Concept: Fraud
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
16) Which of the following is not one of the components of the fraud triangle?
Answer: C
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
17) Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?
Answer: B
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
18) Which characteristic of the fraud triangle often stems from the belief that “the rules do not apply to me” within an organization?
Answer: C
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
19) Which situation below makes it easy for someone to commit a fraud?
Answer: D
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
20) What is the most prevalent opportunity within most companies to commit fraud?
Answer: B
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
21) This component of the fraud triangle explains the incentive or motivation for someone to commit fraud.
Answer: A
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
22) The most efficient way to conceal asset misappropriation is to
Answer: B
Concept: The fraud triangle
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Reflective Thinking
23) What are some of the distinguishing characteristics of fraud perpetrators?
Answer: Some distinguishing characteristics of fraud perpetrators are: they tend to spend their illegal income to support their lifestyle; once they begin it becomes harder to stop and they become bolder as each incident happens; once they start to rely on the ill-gotten gains, they become more greedy and sometimes careless and overconfident. In the case of computer criminals, they are often young and have substantial computer knowledge. About two-thirds are men and likely to be an employee of the firm from which they steal. Many are unhappy or disgruntled with their employer because they feel unappreciated and underpaid. Most have no previous criminal record.
Concept: Fraud perpetrators
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
4 Define computer fraud and discuss the different computer fraud classifications.
1) Which of the following is least likely to result in computer fraud?
Answer: C
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Easy
AACSB: Analytical Thinking
2) How does the U.S. Justice Department define computer fraud?
Answer: D
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
3) Why is computer fraud often much more difficult to detect than other types of fraud?
Answer: A
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
4) Why is computer fraud often more difficult to detect than other types of fraud?
Answer: B
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Easy
AACSB: Analytical Thinking
5) Computer systems are particularly vulnerable to computer fraud because
Answer: D
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Easy
AACSB: Analytical Thinking
6) Why do many computer fraud cases go unreported and unprosecuted?
Answer: D
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Easy
AACSB: Analytical Thinking
7) The fraud that requires the least computer knowledge or skill involves
Answer: A
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Reflective Thinking
8) The simplest and most common way to commit a computer fraud is to
Answer: A
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Easy
AACSB: Analytical Thinking
9) Downloading a master list of customers and selling it to a competitor is an example of
Answer: A
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Easy
AACSB: Analytical Thinking
10) Which of the following is an example of processor fraud?
the payee and amount, and printed fictitious paychecks.
Answer: B
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
11) Which of the following is an example of input fraud?
the payee and amount, and printed fictitious paychecks.
Answer: A
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
12) Which of the following is an example of data fraud?
the payee and amount, and printed fictitious paychecks.
Answer: C
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
13) Which of the following is an example of output fraud?
the payee and amount, and printed fictitious paychecks.
Answer: D
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
14) Discuss the reasons for the rapid increase of computer fraud.
Answer: Not everyone agrees on what constitutes computer fraud and some people may commit computer fraud unwittingly and not be aware of it. Many computer frauds go undetected. The belief that “it just can’t happen to us.” Most networks have a low level of security. Many Internet sites provide guidance on how to commit computer crimes. Law enforcement is unable to keep up with the number of computer frauds. Most frauds are not reported. The total dollar value of losses is difficult to calculate.
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Reflective Thinking
15) Why do fraudulent acts often go unreported and are therefore not prosecuted?
Answer: Most fraud cases go unreported and are not prosecuted for several reasons. Many cases of computer fraud are as yet still undetected. As new technology and methods become available to organizations, prior undetected fraud may be revealed in the future. A second reason is that companies are reluctant to report computer fraud and illegal acts simply because of bad publicity—a highly visible case can undermine consumer confidence in an organization such as a financial institution. Also, the fact that a fraud has occurred may indeed encourage others to attempt to commit further acts against the organization. It would seem that unreported fraud creates a false sense of security, as people think systems are more secure than they are in reality. Another reason for not reporting fraudulent acts is the fact that the court system and law enforcement is busy with violent crimes and criminals in its system. There is little time left to go after a crime where no physical harm is present. Also, the court system tends to treat teen hacking and cracking as “acts of childhood” rather than as serious crimes—this leads to many plea bargains when a computer fraud is brought to trial. Another reason is that a computer fraud case is difficult, costly, and time-consuming to investigate and prosecute. Before 1986 no federal law existed governing computer fraud. Law enforcement officials, lawyers, and judges generally lack the computer skills necessary to properly evaluate, investigate, and prosecute computer crimes. Sadly, when all is said and done a successful prosecution and conviction of computer fraud results in a very light sentence. All of these factors contribute to the under reporting and lack of prosecution of computer fraud crimes. Not everyone agrees on what constitutes computer fraud:
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Moderate
AACSB: Analytical Thinking
16) Explain the various computer fraud classifications using the data processing model. Provide an example for each computer fraud classification.
Answer: Computer fraud can be classified into the following categories: data fraud, input fraud, processor fraud, computer instructions fraud, and output fraud. Illegally using, copying, browsing, searching, or harming company data constitutes data fraud. The simplest and most common way to commit a computer fraud is to alter or falsify computer input. Processor fraud includes unauthorized system use, including the theft of computer time and services. Computer instructions fraud includes tampering with company software, copying software illegally, using software in an unauthorized manner, and developing software to carry out an unauthorized activity. Unless properly safeguarded, displayed or printed output can be stolen, copied, or misused. Students answer may vary depending on the examples they used.
Concept: Computer fraud
Objective: Learning Objective 4
Difficulty: Challenging
AACSB: Reflective Thinking
5 Explain how to prevent and detect computer fraud and abuse.
1) Most frauds are detected by
Answer: B
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Easy
AACSB: Analytical Thinking
2) Which of the following will not reduce the likelihood of an occurrence of fraud?
Answer: C
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Easy
AACSB: Analytical Thinking
3) The day after Christmas, Jane Olson, Chief Information Officer at American Trading Corporation (ATC), received some bad news. The hard drive use to store the company’s system data backups was lost while it was being transported to an offsite storage location. Jane 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?
Answer: B
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Easy
AACSB: Analytical Thinking
4) ________ is a simple, yet effective, method for catching or preventing many types of employee fraud.
Answer: A
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Easy
AACSB: Analytical Thinking
5) What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?
Answer: Establish an organizational environment that contributes to the integrity of the financial reporting process. Identify and understand the factors that lead to fraudulent financial reporting. Assess the risk of fraudulent financial reporting within the company. Design and implement internal controls to provide reasonable assurance that the fraudulent financial reporting is prevented.
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Moderate
AACSB: Analytical Thinking
6) 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; good management of unhappy employees; training in fraud awareness; manage and track computer licenses; implement signed confidentiality agreements; maintain visible security; educate the workforce in ethics and the penalties for illegal acts.
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Moderate
AACSB: Analytical Thinking
7) Describe four ways companies can reduce losses from fraud.
Answer: Maintain adequate insurance. Keep a current backup copy of all program and data files in a secure off-site location. Develop a contingency plan for fraud occurrences and other disasters that might occur. Use special software designed to monitor system activity and help companies recover from frauds and malicious actions.
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Easy
AACSB: Analytical Thinking
8) 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 told the customer the printer was jammed and she can’t print a receipt. The customer accepted the excuse and drove away. The teller pocketed the cash and wrote down customer #1’s loan number and payment amount for future reconciling. A couple of days before customer #1’s monthly statement was printed, the teller recorded a cash payment from customer #2 as if it were made by customer #1. The teller pocketed the difference between the two payments. The teller continued to steal and misapply customer payments for the next two years without detection.
Identify the type of fraud scheme described. Describe five controls you would implement to address the fraud risk, and label each control as preventive or detective.
Answer: The fraud appears to be misappropriation of assets that is being concealed with a lapping scheme. Controls would include:
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Challenging
AACSB: Reflective Thinking
9) At the beginning of this chapter, you were presented with a situation regarding Jason Scott. Jason is an internal auditor for Northwest Industries, a forest products company. On March 31, he reviewed his completed tax return and noticed that the federal income tax withholding on his final paycheck was $5 more than the amount indicated on his W-2 form.He used the W-2 amount to complete his tax return and made a note to ask the payroll department what happened to the other $5. The next day, Jason was swamped, and he dismissed the $5 difference as immaterial. On April 16, a coworker grumbled that the company had taken $5 more from his check than he was given credit for on his W-2. When Jason realized he was not the only one with the $5 discrepancy, he investigated and found that all 1,500 employees had the same $5 discrepancy. He also discovered that the W-2 of Don Hawkins, the payroll programmer, had
thousands of dollars more in withholdings reported to the Internal Revenue Service (IRS) than had been withheld from his paycheck.
Identify the type of fraud scheme may have happened as described. Describe controls you would implement to address the fraud risk, and label each control as preventive or detective.
Answer: The fraud appears to be involved computer fraud. Possible controls would include:
Students’ answer would vary depending on the type of fraud scheme they identify.
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Challenging
AACSB: Reflective Thinking
10) Which of the following is not a way to make fraud less likely to occur?
Answer: C
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Moderate
AACSB: Analytical Thinking
11) Which of the following is not a way to reduce fraud losses?
Answer: A
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Moderate
AACSB: Analytical Thinking
12) Which of the following is not a way to improve fraud detection?
Answer: D
Concept: Fraud prevention
Objective: Learning Objective 5
Difficulty: Moderate
AACSB: Analytical Thinking
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Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
