AIS Ch5 Computer Fraud

Perhaps the most striking fact about natural disasters in relation to AIS controls is that

• many companies in one location can be seriously affected at one time by a disaster.

• losses are absolutely unpreventable.

• there are a large number of major disasters every year.

• disaster planning has largely been ignored in the literature.

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

• human errors and omissions

• physical threats such as natural disasters

• dishonest employees

• fraud and embezzlement

4) All of the following could lead to computer fraud except

• allowing computer operators full access to the computer room.

• releasing data to unauthorized users.

• allowing computer users to test software upgrades.

• storing backup tapes in a location where they can be quickly accessed.

Which of the following is not an example of the fraud triangle characteristic concerned with easing a fraudster's conscience?

• Revenge against the company

• Sense of entitlement as compensation for receiving a lower than average raise

• Intent to repay "borrowed" funds in the future

• Belief that the company won't suffer because an insurance company will reimburse losses

Most fraud perpetrators are insiders because

• insiders are more dishonest than outsiders.

• insiders know more about the system and its weaknesses than outsiders.

• outsiders are more likely to get caught than insiders.

• insiders have more need for money than outsiders.

Most frauds are detected by

• external auditors.

• internal auditors.

• accident.

• hotline tip.

Most frauds are detected by

• external auditors.

• internal auditors.

• accident.

• hotline tip.

9) Perpetrators of theft of company assets typically exhibit all the following characteristics except that they

• attempt to return or pay back stolen amounts soon after the initial theft, but find they are unable to make full restitution.

• use trickery or lies to gain the confidence and trust of others at the organization they defraud.

• become bolder and more greedy the longer the theft remains undetected.

• begin to rely on stolen amounts as part of their income.

"Cooking the books" is typically accomplished by all the following except

• inflating accounts payable.

• accelerating recognition of revenue.

• delaying recording of expenses.

• overstating inventory.

SAS No. 99 requires that auditors

• plan audits based on an analysis of fraud risk.

• detect all material fraud.

• alert the Securities and Exchange Commission of any fraud detected.

• take all of the above actions.