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14 Cards in this Set
- Front
- Back
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True or False. Defalcation is another word for financial fraud |
True |
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True or False. Operations Fraud is the misuse or theft of the firm's computer resources |
True |
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True or False. Database management fraud includes altering, updating, and deleting an organization's data |
False |
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True or False. The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process |
True |
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For an action to be called fraudulent, all of the following conditions are required except: A. Poor judgement B. False representation C. Intent to deceive D. Injury or Loss |
A. Poor Judgement |
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One characteristic of employee fraud is that the fraud: A. Is perpetrated at a level to which internal controls do not apply B. Involves misstating financial statements C. Involves the direct conversion of cash or other assets to the employees' personal benefit D. Involves misappropriating assets in a series or complex transactions involving third parties |
C. Involves the direct conversion of cash or other assets to the employees' personal benefit |
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Forces which may permit fraud to occur do not include: A. Gambling addiction B. Lack of segregation of duties C. Centralized decision-making environment D. Questionable integrity of employees |
C. Centralized decision making environment |
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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 funds B. Inflating bank balances by transferring money among different bank accounts C. Expensing an asset that has been stolen D. Creating a false transaction |
A. Applying cash receipts to a different customer's account in an attempt to conceal previous thefts of funds |
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Operations fraud includes: A. Altering program logic to cause the application to process data incorrectly B. Misusing the firm's computer resources C. Destroying or corrupting a programs logic using a computer virus D. Creating illegal programs that can access data files to alter, delete, or insert values |
B. Misusing the firm's computer resources |
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Employee fraud involves three steps. Of the following, which is not involved: A. Concealing the crime to avoid detection B. Stealing something of value C. Misstating financial statements D. Converting the asset to a usable form |
C. Misstating financial statements |
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The importance to the accounting profession of the Foreign Corrupt Practices Act of 1977 is that: A. Bribery will be eliminated B. Management will not override the company's internal control system C. Firms are required to have an effective internal control system D. Firms will not be exposed to law suita |
C. Firms are required to have an effective internal control system |
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Computer fraud can take on many forms including each of the following except: A. Theft or illegal use of computer-readable information B. Theft, misuse, or misappropriation of computer equipment C. Theft, misuse, or misappropriation of assets by altering computer-readable records and files D. Theft, misuse, or misappropriation of printer supplies |
D. Theft, misuse, or misappropriation of printer supplies |
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All of the following are conditions for fraud except: A. False representation B. Injury or Loss C. Intent D. Material Reliance |
Material reliance |
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The four principal types of fraud include all of the following except: A. Bribery B. Gratuities C. Conflict of Interest D. Economic Extortion |
Gratuities |
