Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer.

1. 1. Which of the following statements is (are) true?
   1. a. The type of computer fraud that is the most difficult because it requires the most skill is computer instructions fraud.
   2. b. Losses from the theft of physical assets are much greater than those from the electronic theft of data.
   3. c. In the absence of controls, it is not hard for a dishonest employee to steal data.
   4. d. The biggest cause of data breaches is organized hacker groups.
   5. e. The type of computer fraud that is simplest and most common and that requires the least amount of skill is data fraud.
2. 2. Which of the following statements is (are) true?
   1. a. Strong, mutually beneficial personal relationships with suppliers is unlikely to result in fraud.
   2. b. Fraud is highly unlikely to occur when a crisis arises, and normal controls are suspended.
   3. c. Perpetrators who do not steal cash or use the stolen assets usually convert the assets to a spendable form.
   4. d. A huge fraud opportunity arises when a company has clear policies and procedures and teaches and stresses honesty.
   5. e. The biggest fraud opportunity arises from a companys failure to design and enforce its internal control system.
3. 3. The number of incidents and the total dollar losses from computer fraud are increasing rapidly for which of the following reasons?
   1. a. Many companies are moving to cloud services where there are few data security controls.
   2. b. Internet sites offer step-by-step instructions on how to perpetrate computer fraud and abuse.
   3. c. Law enforcement is not interested in preventing or prosecuting computer fraud.
   4. d. There are no laws against computer fraud, so prosecution is difficult.
   5. e. Many instances of computer fraud go undetected, and many computer frauds are not reported.
4. 4. SAS No. 99 requires auditors to ________________________.
   1. a. limit discussion among audit team members of how and where the companys financial statements have been susceptible to fraud in prior years due to confidentiality concerns
   2. b. understand fraud and why it is committed
   3. c. limit the use of technology in the audit due to managements ability to change or manipulate electronic records
   4. d. document and communicate findings to the general public
   5. e. identify, assess, and respond to risks by varying the nature, timing, and extent of audit procedures
   6. f. evaluate the results of their audit tests to determine whether misstatements indicate the presence of fraud
5. 5. Which of the following actions did the Treadway Commission recommended to reduce fraudulent financial reporting?
   1. a. Design and implement internal controls to provide reasonable assurance of preventing fraudulent financial reporting.
   2. b. Establish financial incentives that promote integrity in the financial reporting process.
   3. c. Identify and understand the factors that lead to fraudulent financial reporting.
   4. d. Assess the risk of corruption and misappropriation of assets within the company.