IT2 FRAUD, ETHICS AND INTERNAL CONTROLS

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

• TRUE

• FALSE

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

• TRUE

• FALSE

Defalcation is another word for financial fraud

• TRUE

• FALSE

The external auditor is responsible for establishing and maintaining the internal control system

• TRUE

• FALSE

Segregation of duties is an example of an internal control procedure

• TRUE

• FALSE

Controls in a computer-based information system are identical to controls in a manual system

• TRUE

• FALSE

Preventive controls are passive techniques designed to reduce fraud.

• TRUE

• FALSE

Ethical issues and legal issues are essentially the same

• TRUE

• FALSE

Internal control systems are recommended but not required of firms subject to the Foreign Corrupt Practices Act

• TRUE

• FALSE

Operations fraud is the misuse or theft of the firm’s computer resources

• TRUE

• FALSE