QUESTION 9

An overview of the fraud risk assessment process includes the following components:

1 Money, Ideology, Coercion, and/or Ego/Entitlement (MICE)

2 Act, concealment, and conversion

3 Propose the scope of the audit, execute the scope, report the findings to the board, and reply to management concerns

4 Evaluate the fraud risk factors, identify possible fraud schemes and scenarios, prioritize individual fraud risks, evaluate mitigating controls

QUESTION 10

Most red flags are

Not indicators of fraud but are a function of the dynamic environment in which organizations operate

Indicators of unskilled fraudsters who don't have sufficient knowledge to conceal their defalcations

Indicators of fraud if one knows how and where to look

Typically, indicative of fraud if a targeted risk assessment was not completed

QUESTION 11

The 2016 ACFE Report to the Nations found that ___________ of existing controls is the second most frequently observed internal control weakness that contributed to fraud; the lack of internal controls was the only weakness more frequently cited by the ACFE's survey respondents.

Override

A lack of clarity

Overly complex design

A lack of awareness

QUESTION 12

The most challenging issue regarding fraud detection in a digital environment is the potential for:

Hackers and other unauthorized users were gaining access to proprietary information

Historical transaction data to be lost over time due to the high costs of digital storage

An over-whelming number of fraud symptoms (i.e., red flags)

The inherent susceptibility of digitally stored data to be fraudulently altered without detection

QUESTION 13

______________ is defined as an act where the computer hardware, software, or data is altered, destroyed, manipulated, or compromised due to acts that are not committed with the intent to execute financial fraud

Hacking

Distributed Denial of Service (DDoS)

Phishing

Computer crime

QUESTION 14

Damaged equipment, restoration of data or programs, lost sales, lost productivity, and harm to reputation or goodwill are examples cited by the text of economic losses associated with:

Computer fraud

Computer risks

Computer compromises

Computer crimes

QUESTION 15

Several attributes of the Internet make it an attractive operational location for criminal enterprises. First, individuals and businesses have come to realize that information is power. Criminals have determined they can profit by stealing and selling information. Second, cyberspace gives the criminal a worldwide reach. Third, The World Wide Web is relatively anonymous. Fourth:

Cybercriminals frequently use blockchain technology (i.e., distributed ledgers) to conceal their cybercrime

The majority of cybercrime originates from offshore havens such as Nevis and St. Kitts where local laws allow criminals to flourish

The Dark Web makes it impossible to track, identify, capture, and prosecute cybercriminals

The Dark Web makes it impossible to track, identify, capture, and prosecute cybercriminals