ACC 6113 - QUIZ 2 - INTERNAL CONTROL

Which type of fraud is associated with 50% of all auditor lawsuits?

• Kiting

• Ponzi schemes

• Lapping

• Fraudulent financial reporting

The following are the conditions which usually necessary for a fraud to occur?

• Pressure

• Explanation

• Opportunity

• Rationalization

Which of the following is NOT an example of computer fraud?

• Theft of money by altering computer records

• Obtaining information illegally using a computer

• Failure to perform preventive maintenance on a computer

• Unauthorized modification of a software program

Which of the following causes the majority of computer security problems?

• Software errors

• Human errors

• Natural disasters

• Power outages

Which of the following is the most important, basic, and effective control to deter fraud?

• Enforced vacations

• Logical access control

• Segregation of duties

• Virus protection controls

Techniques used to obtain confidential information, often by tricking people, are referred to as what?

• Pretexting

• Social engineering

• Posing

• Identity theft

A set of instructions to increase a programmer's pay rate by 10% is hidden inside an authorized program. It changes and updated the payroll file. What is this computer fraud technique called?

• Trojan horse

• Virus

• Worm

• Trap door

Which of the fraud technique is TRUE when fraud perpetrators threaten to harm a company if it does not pay a specified amount of money

• Cyber-terrorism

• Cyber-extortion

• Blackmailing

• Scareware

The following are the functions of internal control, EXCEPT;

• Preventive control

• Detective control

• Corrective control

• Computer control

To achieve effective segregation of duties, certain functions must be separated. Which of the following is the correct listing of the accounting-related functions that must be segregated?

• Control, recording, and monitoring

• Control, custody, and authorization

• Authorization, recording, and custody

• Monitoring, recording, and planning