CORE CONCEPTS OF Accounting Information Systems Twelfth Edition Mark G. Simkin, Ph.D. Internal Control Systems and Computer Crime, Etics, and Privacy CHAPTER 11 / Computer Crime, Fraud, Ethics, and Privacy

11-15. What company policies or procedures would you recommend to prevent each of the following activities?

a. A clerk at the Paul Yelverton Company faxes a fictitious sales invoice to a company that purchases a large quantity of goods from it. The clerk plans to intercept that particular payment check and pocket the money.

b. The bookkeeper at a construction company has each of the three owners sign a paycheck for her. Each check is drawn from a separate account of the company.

c. A clerk in the human relations department creates a fictitious employee in the personnel computer file. When this employees payroll check is received for distribution, the clerk takes and cashes it.

d. A clerk in the accounts receivable department steals $250 in cash from a customer payment and then prepares a computer credit memo that reduces the customers account balance by the same amount.

e. A purchasing agent prepares an invoice for goods received from a fictitious supplier. She sends a check for the goods to this supplier, in care of her mothers post-office box.

f. A hacker manages to break into a companys computer system by guessing the password of his friendChamp, the name of the friends dog.