Question
The starting point for the use of electronic data in the fraud or forensic accounting area, as a means of fraud prevention and deterrence is
The starting point for the use of electronic data in the fraud or forensic accounting area, as a means of fraud prevention and deterrence is a/an _______________________.
Group of answer choices
Evaluation of the integrity of the data and their related systems
Robust antifraud training program focused on the IT infrastructure
Anti-virus, malware detection system running in the background of all company IT
Suitable software that can crunch big data sets (such as Excel or IDEA)
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Question 2
4pts
Many of the process controls applicable to paper-based information systems are analogous to the internal controls surrounding digital information systems. An information technology system (IT) audit consists of (1) planning, (2) test of controls, and (3) _____________.
Group of answer choices
Auditor training on specific systems with which the fraud examiner may be unfamiliar
Substantive tests
An audit plan whose scope limitations receive buy-in from the company
Establish a materiality threshold for IT errors that may be encountered
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Question 3
4pts
Batch controls are __________________ that ensure data integrity for groups of transactions as they move through the system.
Group of answer choices
System-generated criteria
Used to detect input errors by flagging those transactions that fall outside accepted ranges
Techniques to ensure that data relationships within a record make sense
Operator generated flags
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Question 4
4pts
Fraud professionals in the IT audit environment need to be cognizant of the possibility that ___________________________________________________.
Group of answer choices
IT personnel may not understand accounting standards and terminology
Sophisticated spear-phishing attacks may have altered the data in the system
One or more of the IT systems personnel may be colluding with others to commit or conceal fraud.
Ghost IT systems can exist within a company (much like shell companies) that can be almost impossible to detect
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Question 5
4pts
The IT professional may be in a unique position to commit and conceal a fraud, simply because ______________________________________.
Group of answer choices
They can make important data disappear while credibly explaining it was caused by malware or a hard drive crash
They sometimes have access to all of a company's financial transaction data
So few others understand IT and how data can be manipulated
They often know how to navigate the Dark Web undetected
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Question 6
4pts
The assertions of management related to financial statements include (1) the existence of assets and transactions, (2) the completeness of the transactions reflected in the financial statements and related notes, (3) proper disclosure of all rights and obligations associated with assets and liabilities, (4) the reasonableness of the valuation of transactions and balances reflected in the financial statements, and (5) _____________________________________.
Group of answer choices
Proper financial statement presentation and disclosure of the related notes
Certification of responsibility for the internal control environment
Formal attestation of any incidents of known fraud since prior audit
Internal auditor statement that they have not been coerced into overriding controls
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Question 7
4pts
Electronic evidence refers to any evidence captured ___________________.
Group of answer choices
With the assistance of IT or MIS professionals working in collaboration with investigators
By examining the unused space on computer hard drives (assuming files have not been lost due to defragging)
Through the use of digital tools such as Road MASSter 3 and EnCase
By computers and electronic devices
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Question 8
4pts
Students (of forensic accounting and fraud examination) should understand that, with regard to digital evidence, only those with specialized training, experience, and appropriate professional certifications should _____________________.
Group of answer choices
Be involved in establishing materiality thresholds for IT audits
Use CAATTs to do "black box" or "white box" investigations
Initially handle digital evidence
Provide expert testimony
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Question 9
4pts
It may be possible to recover deleted emails if _______________________.
Group of answer choices
A program such as Privacy Guardian was used by the perpetrator
The service provider is named in the warrant (e.g., Google for gmail)
An MIS or IT professional uses the "Defrag" command while the computer is in safe mode
An email recovery tool is used prior to compaction/overwrite of data storage location
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Question 10
4pts
Fraud examiners and auditors use data analysis software as ___________________, detecting a potential fraud in situations for which manual examination would prove extremely difficult or impossible.
Group of answer choices
A substitute for paper and pencil computations for
An internal control useful for
The ultimate system of red flags
Supplements to analytical work in
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Question 11
4pts
The common fraudster is usually depicted with the following characteristics: first-time offender, middle-aged, male, well-educated, married with children, trusted employee, in a position of responsibility, and possibly considered a "good citizen" through works in the community or through a church organization. The terminology used to refer to such a person has gravitated over time from "accidental" to ____________ fraudster.
Group of answer choices
"Non-accidental"
"Intentional"
"Predator"
"Situational"
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Question 12
4pts
A repeat offender is not a ___________ fraudster; he or she is better described as a __________.
Group of answer choices
Situational; predator
Accidental; situational fraudster
Predator; white collar criminal
White collar criminal; situational fraudster
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Question 13
6pts
Because the activities of predators and organizational crimes are more deliberate from the outset than those of the situational fraudster, they are _______________, have more __________________, and are _________________
Group of answer choices
More collusive by definition; offshore banking activities; more difficult to investigate
Better organized; sophisticated concealment schemes; well-prepared to deal with auditors and other oversight mechanisms
More expensive; reach into the banking system; usually foreign entities
Harder to detect; offshore banking activities; complex in their internal structure
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Question 14
6pts
Research suggests that collusive fraud leaders are more likely to be ____________ with ___________________ and a/an _________________.
Group of answer choices
Highly educated; ego/entitlement problems; non-shareable financial problem
Younger males; close ties to customers or vendors; wheeler-dealer attitude
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Question 15
10pts
____________ is the act of engaging in criminal activity as a structured group, and individuals in organized criminal organizations are often prosecuted for it under RICO.
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Question 16
10pts
______________ is one of the workhorses of federal white-collar prosecutions and is available, among other statutes, to investigate and prosecute complex frauds and financial crimes.
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Question 17
10pts
_________________ is, essentially, any activity designed to hide the nature, location, source, ownership, or control of proceeds used for, or derived from, criminal activity. Any time an examiner sees evidence consistent with this definition, a money laundering issue may exist.
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Question 18
10pts
_____________ internal controls include independent checks on performance and assurance of compliance with applicable laws and regulations.
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