Fraud Examination
6th Edition
ISBN: 9781337619677
Author: Albrecht, W. Steve, Chad O., Conan C., Zimbelman, Mark F.
Publisher: Cengage,
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Question
Chapter 1, Problem 1MCQ
To determine
The correct option for why fraud is increasing at an alarming rate
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Students have asked these similar questions
Accounts payable fraud is an issue that may arise. Find an Accounts payable fraud story on the internet
Discuss the following:
What was the purpose of the fraud?
What were the actions and consequences?
Who benefitted from the fraud?
How did the fraud get discovered?
What controls should have been in place to prevent fraud?
“Organizations are encouraged to take every precaution possible to protect their information systems so that potential for fraud and any resulting losses can be significantly minimized.”
Required:
Critically explain any three motives behind the cheque fraud scheme. What to do if someone has deposited a fake cheque into your bank account?
Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer.
The number of incidents and the total dollar losses from computer fraud are increasing rapidly for several reasons:
a. Many instances of computer fraud go undetected and many frauds are not reported.
b. Many companies are moving to cloud services where there are few data security controls.
c. Internet sites offer step-by-step instructions on how to perpetrate computer fraud and abuse.
d. Law enforcement is not interested in preventing or prosecuting computer fraud.
e. There are no laws against computer fraud so prosecution is difficult
Chapter 1 Solutions
Fraud Examination
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQ
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 1TFCh. 1 - Prob. 2TFCh. 1 - Prob. 3TFCh. 1 - 4. Manufacturing companies with a profit margin of...Ch. 1 - Prob. 5TFCh. 1 - Prob. 6TFCh. 1 - 7. When perpetrators are criminally convicted of...Ch. 1 - Prob. 8TFCh. 1 - 9. A Ponzi scheme is considered to be a type of...Ch. 1 - Prob. 10TFCh. 1 - Prob. 11TFCh. 1 - Prob. 12TFCh. 1 - Prob. 14TFCh. 1 - Prob. 15TFCh. 1 - Prob. 16TFCh. 1 - Prob. 17TFCh. 1 - Prob. 18TFCh. 1 - Prob. 19TFCh. 1 - Prob. 20TFCh. 1 - Prob. 21TFCh. 1 - 22. In vendor fraud, customers don’t pay for goods...Ch. 1 - Prob. 23TFCh. 1 - Prob. 24TFCh. 1 - Prob. 25TFCh. 1 - Prob. 26TFCh. 1 - Prob. 27TFCh. 1 - Prob. 28TFCh. 1 - Prob. 29TFCh. 1 - Prob. 30TFCh. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQCh. 1 - Prob. 11MCQCh. 1 - Prob. 13MCQCh. 1 - Prob. 14MCQCh. 1 - Prob. 15MCQCh. 1 - Prob. 16MCQCh. 1 - Prob. 17MCQCh. 1 - Prob. 18MCQCh. 1 - Prob. 19MCQCh. 1 - Prob. 20MCQCh. 1 - Which of the following is not an example of...Ch. 1 - Prob. 22MCQCh. 1 - Prob. 23MCQCh. 1 - Prob. 24MCQCh. 1 - Prob. 25MCQCh. 1 - Prob. 1SCCh. 1 - Prob. 2SCCh. 1 - Prob. 3SCCh. 1 - Prob. 4SCCh. 1 - Prob. 5SCCh. 1 - Prob. 6SCCh. 1 - Prob. 7SCCh. 1 - Prob. 8SCCh. 1 - Prob. 9SCCh. 1 - Prob. 10SCCh. 1 - Prob. 11SCCh. 1 - Prob. 13SCCh. 1 - Prob. 14SCCh. 1 - Prob. 15SCCh. 1 - Prob. 16SCCh. 1 - Prob. 1.1CSCh. 1 - Prob. 1.2CSCh. 1 - Prob. 1.3CSCh. 1 - Prob. 2.1CSCh. 1 - Prob. 2.2CSCh. 1 - Prob. 3.1CSCh. 1 - Prob. 3.2CSCh. 1 - Prob. 4.1CSCh. 1 - Prob. 4.2CS
Knowledge Booster
Similar questions
- “Identity theft is often applied to a wide range of crimes, including checking account fraud, counterfeiting, forgery, auto theft using false documentation, trafficking in human beings, and terrorism, most policymakers, and researchers agree that identity theft includes the misuse of another individual’s personal information to commit fraud”. Required: Where does identity theft fraud happen often? Explain any five steps that victims should need to take once identity theft occurs.arrow_forwardPreventing Cybercrime and Identity Theft Cybercrime and identity theft have become a growing problem in all aspects of society in recent years. Locate an article about cybercrime or identity theft in an organization from one of the types we have discussed in the course (government, not-for-profit organization, healthcare organization, or college or university). Summarize the case of cybercrime or identity theft in your article. What are the risks of these types of crimes to their organization? How can auditing and internal controls help prevent a company from falling prey to cybercrime? Then, review the examples shared by your peers. What strategies related to auditing and internal controls could you suggest for the organizations they shared?arrow_forwardListed here are two scenarios. For each scenario, discuss the possible damages that can occur.Suggest a preventive control.A. An intruder taps into a telecommunications device and retrieves the identifying codes andpersonal identification numbers for ATM cardholders. (The user subsequently codes thisinformation onto a magnetic coding device and places this strip on a blank bank card.)B. Because of occasional noise on a transmission line, electronic messages received are extremelygarbled.Problem # 4 (30arrow_forward
- 1. How do you understand Fraud in your own words? Please provide explanation. 2. How do you understand the Fraud Triangle? Please provide explanation. 3. Favorite topic in Forensic Accounting? 4. What recommendations will you give to prevent fraud? 5. Will you consider becoming a Fraud investigator in the Future? Why or why not.arrow_forwardTypes of Cyber Crimes. The following situations are similar, but each represents a variation of a particular crime. Identify the crime and point out the differences in the variations. (a) Chen, posing fraudulently as Diamond Credit Card Co., sends an e-mail to Emily, stating that the company has observed suspicious activity in her account and has frozen the account. The e-mail asks her to reregister her credit-card number and password to reopen the account. Chen's action is cyber theft. In this situation, it would be phishing, which is a district form of identity theft. Chen is the perpetrator to find out about Emily’s financial data and passwords by posing as Diamond Credit Card Co. The suspicious activity in her account and the frozen of her account are part of the schemes for the perpetrator to seek information from Emily. He included this information to frighten Emily, so she will immediately respond with information and her account wouldn’t be frozen. When Chen has her…arrow_forwardWhat is a good response to? Small businesses are increasingly vulnerable to cyber-attacks, which can cause serious disruptions to daily routines and significant financial losses (Sutch, 2023). One of the most damaging types of attack is a denial-of-service attack, also known as a DoS attack. This type of attack is launched against a network or website in an attempt to overwhelm it with traffic, which can cause it to become unavailable for legitimate users. This can have a crippling effect on small businesses, as they often lack the resources to be able to prevent or mitigate such incidents effectively (Sutch, 2023). If a website or online service is unavailable due to a denial-of-service attack, customers may be unable to purchase products or services, resulting in lost revenue for the business (Sutch, 2023). For small businesses, this type of attack can cost them over $120,000. For enterprise corporations, DoS attacks have risen to over $2 million in costs. Not only do…arrow_forward
- How can accounting information systems aid in the prevention of fraud? Do legislative activities such as the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act of 2002 really aid in the prevention of accounting fraud? Justify your answer.arrow_forwardAll companies are vulnerable to fraud, but small businesses are particularly vulnerable. Why do you think this may be the case? What signs of possible fraud may be more pronounced in small businesses when compared to larger ones?arrow_forwardSelect the correct answer(s) for the following multiple choice questions. Note that there may be more than one correct answer. Which of the following statements is (are) true about computer fraud perpetrators? a. They are typically younger and are motivated by curiosity, the challenge of beating the system, and gaining stature in the hacking community. b. They do not see themselves as criminals and rarely, if ever, seek to turn their actions into money. c. They write and sell malicious software that infect computers with viruses or can be used to steal money or data that can be sold. d. They are a top FBI priority because they organize fraud schemes targeted at specific individuals and businesses.arrow_forward
- The impact of weak internal controls can affect an employee’s fraud behavior. The role of information technology (IT) controls facilitate and help detect fraud. Design a method from the accounting information system (AIS) readings to help eliminate such employee fraud activity. Chapter 3 in your textbook discusses the need for a code of ethics and internal controls.arrow_forwardWhistle-blowers have played a key role in fraud detection. There are several types of whistle-blowers and safeguards for each type. Analyze the adversities that whistle-blowers face, including the safeguards intended to protect them. Compare the different types of whistle-blowers. What is the importance of each type?arrow_forward1. What does it mean to say that internal control has limitations and what are these limitations? 2. Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented? 3. What is petty cash and what purpose(s) does it serve? 4. What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash? 5. Prepare the necessary journal entries for each of the following: (a) On March 1, issued a check to establish a petty cash fund of $1,410 (b)…arrow_forward
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