Reference no: EM132482152
Questions -
Q1. An equipment manufacturer maintains a secure website for access to its order-entry system for the convenience of its pre-approved customers worldwide so they may order parts. Because of the cost and sensitive nature of certain electronic parts, the manufacturer maintains secure access to its order-entry system. The best technique for monitoring the security of access is:
A. Integrated test facility for the order-entry system.
B. Tracing of transactions through the order-entry system.
C. Transaction selection of order-entry transactions.
D. Logging of unsuccessful access attempts.
E. None of the above.
Q2. The primary objective of security software is to:
A. Control access to information system resources.
B. Restrict access to prevent installation of unauthorized utility software.
C. Detect the presence of viruses.
D. Monitor the segregation of duties within application.
E. None of the above.
Q3. Assigning passwords to computer users is a control to prevent unauthorized access. Because a password does not conclusively identify a specific individual, it must be safe guarded from theft.
A method used to protect passwords is to:
A. Require that they be displayed on computer screens but not printed on hard copy output.
B. Set maximum character lengths.
C. Require a minimum retention period.
D. Eliminate all records of old passwords.
Q4. Which of the following is a control that will prevent accessing the accounts receivable files from a hardwired terminal located in a manufacturing department?
A. An echo check.
B. A device authorization table.
C. Providing only dial-up terminals.
D. Using data encryption.
E. None of the above.
Q5. The use of message encryption software
A. Guarantees the secrecy of data.
B. Requires manual distribution of keys.
C. Increases system overhead.
D. Reduces the need for periodic password changes.
E. B and C
F. None of the above
Q6. Which of the following is a step that organizations should undertake while recruiting employees?
A. Conduct a covert investigation on the background of each candidate.
B. Consider the candidate's word as truth to ensure a culture of trust and honesty.
C. Require candidates to certify that all the information on their resumé is accurate.
D. Verify the candidate's race, age, and religion during the interview.
E. All of the above
Q7. Which of the following is not an analytical fraud symptom?
A. consistent cash shortage.
B. overriding of existing controls.
C. access purchases.
D. unreasonably high expenses
E. None of the above
Q8. Document symptoms to some extent can signal that embezzlement is taking place. Which among the following usually does NOT point to some problem with source documents?
A. Photocopied documents
B. Different names or addresses of payees or customers
C. Excessive voids or credits
D. Increased past-due accounts
Q9. Which of the following observations concerning collusive fraud is true?
A. They are usually slower to develop then frauds committed by one individual.
B. Research indicates that the majority of frauds involve collusion.
C. Frauds involving collusion are usually the easiest to detect because of the involvement of multiple players.
D. The right-to-audit clause has been ineffective in discouraging collusive frauds.
E. None of the above
Q10. Which of the following is a highly suspicious financial statement relationship?
A. Increased revenues with decreased inventory.
B. Decreased production with decreased scrap.
C. Increased revenues with increased receivables.
D. Decreased cost per unit with increased level of output.
Q11. Which of the following is not a strange financial statement relationship?
A. Increased revenues with decreased inventory.
B. Increased revenues with decreased receivables.
C. Decreased inventory with decreased payables.
D. Decreased volume with the crate cost per unit.
E. None of the above
Q12. Allowing the clerk who checked out customer A handle a return by the same individual without presenting the receipt would NOT be an example of which of the following internal controls?
A. Lack of segregation of duties.
B. Lack of requiring proper documents and records.
C. Lack of independent checks.
D. Lack of an adequate accounting system.
Q13. Which of the following is a true statement?
A. A fraud perpetrator who normally smokes often quits after committing a fraud.
B. The perpetrator may start entertaining coworkers more often and more lavishly.
C. The perpetrator may start looking coworkers directly in the eye when talking to them.
D. The perpetrator who committed fraud act to pay off gambling debts may suddenly stop gambling.