Question
Which of the following is an example of output fraud? A) A man used desktop publishing to prepare bills for office supplies that were never
Which of the following is an example of output fraud?
A) A man used desktop publishing to prepare bills for office supplies that were never ordered or
delivered and mailed them to local companies. The invoices were for less than $300, an amount
that often does not require purchase orders or approvals. A high percentage of the companies
paid the bills.
B) Two accountants without the appropriate access rights hacked into Ciscos stock option
system, transferred over $6.3 million of Cisco stock to their brokerage accounts, and sold the
stock. They used part of the funds to support an extravagant lifestyle, including a $52,000
Mercedes-Benz, a $44,000 diamond ring, and a $20,000 Rolex watch.
C) The office manager of a Wall Street law firm sold information to friends and relatives about
prospective mergers and acquisitions found in Word files. They made several million dollars
trading the securities.
D) A fraud perpetrator scanned a company paycheck, used desktop publishing software to erase
the payee and amount, and printed fictitious paychecks.
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