AIS Threats and Fraud in Information Systems

False (B)

Fraud is any act involving a false statement, material fact, intent to deceive, justifiable reliance, and resultant injury or loss, used to gain an unfair advantage.

<p>sabotage</p> Signup and view all the answers

<p>Intentional Act = A deliberate action to harm a system Unintentional Act = An accidental or innocent error Software Error = A flaw in the code causing system malfunction Hardware Failure = Malfunction of physical system components Natural Disaster = An event like fire or flood impacting systems</p> Signup and view all the answers

<p>A significant financial loss (E)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Corruption refers to dishonest conduct by those in power, involving illegitimate, immoral, or unethical actions, often involving breaches of trust within an information system.</p> Signup and view all the answers

<p>Incorporate a technology focus (G)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Auditors gather evidence by looking for fraud risk factors, testing company records, and asking management, the audit committee of the board of directors, and others whether they know of past or current fraud.</p> Signup and view all the answers

<p>evaluate</p> Signup and view all the answers

<p>Disgruntled employees = Revenge against employers Curious individuals = Challenge of beating the system Predatory individuals = Financial gain Malicious software creators = Profit from selling data and malware</p> Signup and view all the answers

<p>Input Fraud (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Employee negligence</p> Signup and view all the answers

<p>safeguarded</p> Signup and view all the answers

<p>Computer Instructions Fraud (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Forging paychecks</p> Signup and view all the answers

<p>Input Fraud = Altering or falsifying computer input Processor Fraud = Unauthorized system use including theft of computer time Data Fraud = Illegally using or harming company data Output Fraud = Stealing or misusing displayed or printed outputs</p> Signup and view all the answers

<p>Pressure, Opportunity, Rationalization (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Lapping or Kiting</p> Signup and view all the answers

<p>assets</p> Signup and view all the answers

<p>Creating cash using the lag between check deposit and clearance (D)</p> Signup and view all the answers

<p>Lapping = Delaying posting of collections to conceal theft Kiting = Creating cash from timing differences of check clearing Fraudulent financial reporting = Overstating assets or revenues Theft of assets = Misappropriation of company resources</p> Signup and view all the answers

<p>Financial needs (D)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Investment fraud (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Absence of internal controls</p> Signup and view all the answers

<p>Using poorly designed documents (D)</p> Signup and view all the answers

<p>closing</p> Signup and view all the answers

<p>To reduce fraudulent financial reporting (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Misappropriation of assets = Theft of company assets by employees Fraudulent financial reporting = Intentional misconduct resulting in misleading financial statements Investment fraud = Misrepresenting facts about investments Bribery = Offering something of value to influence an action</p> Signup and view all the answers

<p>They can help to detect fraudulent activities and ensure compliance.</p> Signup and view all the answers

<p>transaction</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Inflating revenues</p> Signup and view all the answers

<p>Implement a fraud hotline = Encourage reporting of fraudulent behavior Conduct fraud risk assessments = Evaluate potential fraudulent activity Encrypt data = Protect against unauthorized access Destroy hard drives = Prevent data mining by criminals</p> Signup and view all the answers

<p>Whistleblower rewards and protections (D)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Implementing computer-based controls or restricting access.</p> Signup and view all the answers

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Deliberate acts to gain an unfair advantage using computers.

Factors that can harm accounting information systems including natural disasters and human error.

Mistakes in software that can lead to failures or data loss.

Accidental errors that can damage information systems, often due to carelessness.

Conditions for fraud: false statement, material fact, intent to deceive, reliance, and injury.

Businesspeople committing fraud, typically through deceit and breach of trust.

Dishonest actions by those in power, violating ethical standards.

Text files created by websites to store user information on hard drives.

Processes designed to prevent fraudulent financial reporting and ensure accuracy in financial statements.

A statement outlining auditors' responsibility to detect fraud during audits.

Indicators that suggest the likelihood of fraudulent activities within an organization.

Evaluating fraud risks by examining evidence and determining audit approaches.

The process of documenting and sharing audit findings with management and committees.

Individuals who engage in fraud, often motivated by personal grievances or excitement.

Software intended to harm by creating opportunities for fraud and facilitating cybercrime.

The transition of first-time fraudsters into serial fraudsters if not caught.

Misrepresenting or omitting facts to promote high-profit, low-risk investments.

Theft of company assets by employees, also known as employee fraud.

Intentional or reckless conduct leading to misleading financial statements.

A group that addressed and recommended actions against financial fraud.

Scheming to fraudulently inflate revenues or hide liabilities.

Evaluating the likelihood of fraudulent financial reporting in a company.

Fraud that continues due to fear of discovery by stopping.

Individuals engaging in illegal activities using the internet, often targeting specific people or businesses.

A model explaining three conditions for fraud: pressure, opportunity, and rationalization.

The motivation or incentive driving an individual to commit fraud, including financial or emotional factors.

The condition that allows a person to commit and conceal a dishonest act.

A method of concealing theft by delaying postings of cash collections to accounts.

Creating cash using the time lag between check deposits and clearances.

The cognitive process individuals use to justify their fraudulent actions.

The act of hiding or covering up fraudulent activities to prevent detection.

Altering or falsifying computer input data, often using forged numbers or accounts.

Unauthorized use of computer systems, including theft of computer time and services.

Tampering with software, copying illegally, or unauthorized software activities.

Illegal use, copying, or harm to company data, often caused by negligence.

Stealing or misusing printed or displayed computer outputs like paychecks.

Individuals who commit fraud using their knowledge of systems.

Internet sites provide instructions for committing computer fraud.

Lack of care which can lead to unauthorized data access or breaches.

Dividing responsibilities among multiple people to reduce fraud risk.

Evaluation of potential fraud and effectiveness of controls to prevent it.

A record that allows tracing transactions back to their source.

Software used to identify potentially fraudulent activities.

Incentives offered to employees who report fraudulent activities.

Coding information to prevent unauthorized access during storage and transmission.

Measures taken to protect physical assets and data from unauthorized access.