Deck 10: Using Information Technology for Fraud Examination and Financial Forensics

Question 1

An association matrix is not useful for identifying major players who are central to an investigation and to identify linkages between those players.

Answer 1

False

Question 2

Generally, a warrant or subpoena is not required to obtain digital evidence.

Answer 2

False

Question 3

IDEA can read, display, analyze, manipulate, sample, and extract data from files obtained from many sources in only one format.

Answer 3

False

Question 4

An activity that can enhance the ability to recover deleted files is the "Defrag" command.

Question 5

Case management software can be used in a number of situations to manage cases and case data.

Question 6

The acronym MICE signifies fraud motivations such as money, intellectualism, coercion, and ego.

Question 7

Data mining and knowledge discovery software is generally classified into two general categories: public domain and commercial applications.

Question 8

Record validation can include reasonableness checks, sequences checks, and other checks.

Question 9

Benford's Law can be used as an indicator of potential fraud.

Question 10

Validation controls detest input errors by flagging those transactions that fall within accepted ranges.

Question 11

Preparing link charts is a way to represent the associations, linkages, and other important relationship graphically.

Question 12

ACL and IDEA are examples of commercially available data mining software.

Question 13

The simple act of turning on a confiscated computer, digital camera, cell phone, PDA, etc. may make all the evidence on that digital device inadmissible in a courtroom.

Question 14

Output controls address how to monitor waste and how to identify who is responsible for data accuracy, report distribution, and end-user controls.

Question 15

Once data sectors on computer files have been overwritten, generally a computer forensic specialist can still recover the files.

Question 16

Recovering deleted files is not considered difficult, provided that the file has not been overwritten or corrupted and that the drive has not been repartitioned or reformatted.

Question 17

Restoring data and files is a more sophisticated approach to recovering deleted files.

Question 18

An information technology IT audit consists of 1 planning, 2 tests of controls, and 3 substantive tests.

Question 19

There are two major ways to test IT systems - the "black-box" approach, and the "white-box" approach, which utilizes a relatively small dataset to test the system.

Question 20

The source documents that support the electronic data systems do not need to be pre-numbered and used in sequence.

Question 21

Which of the following is NOT a tool to collect digital evidence?

A) Road MASSter
B) Encase
C) HDD Regenerator
D) Microsoft Dynamics GP

Question 22

Duplicate searches in data extraction and analysis software could be used to discover:

A) Invoices that have been paid twice
B) Missing employees
C) Missing invoices
D) Stolen inventory

Question 23

MC Graphic 10-5

-The graphic 10-5 is called an:

A) Association matrix
B) Link chart
C) Familial chart
D) Grouping chart

Question 24

In data analysis and extraction software, the types of queries conducted on accounts receivable would includes everything EXCEPT:

A) Identifying debits to expense accounts
B) Create a list of customer limit increases
C) Age accounts receivable in various formats
D) Identify gaps in the sequence of invoice numbers

Question 25

An example of an input error that would likely be caught by a validation control in payroll processing would be:

A) Overtime hours above 10 hours for an individual.
B) Zero hours for a long time employee.
C) 90 hours worked by one employee in one week.
D) The addition of a new employee

Question 26

Which of the following would be considered a batch control for payroll?

A) A total on FICA taxes withheld.
B) A total on Federal Income taxes withheld.
C) A total on employee hours.
D) A total on state income tax withheld.

Question 27

Which of the following would be normally be detected as an input error in payroll processing?

A) An alphabetic character in the employee hours field.
B) Overtime hours above 10 hours for an individual employee.
C) Zero hours for a long time employee.
D) The addition of a new employee.

Question 28

The assertions of management related to financial statements include all of the these EXCEPT:

A) The existence of assets and transactions.
B) The completeness of the transactions.
C) Proper disclosure of all rights and obligations.
D) Assurance of future profitability.

Question 29

The general framework for viewing IT risks and controls include all the following EXCEPT

A) IT Operations
B) Systems Maintenance
C) Human Resource Management
D) Electric Commerce

Question 30

The functions of data extraction and analysis software tools includes all EXCEPT:

A) Compliance verification
B) Input into inventory system
C) Duplicate searches
D) Correlation analysis

Question 31

The functions of data extraction and analysis software tools includes all EXCEPT:

A) Sorting
B) Input into payroll system
C) Verifying multiples of a number
D) Correlations analysis

Question 32

In data analysis and extraction software, the types of queries conducted on sales analysis would include everything EXCEPT:

A) Analyze sales returns and allowances
B) Selecting specifying journal entries for analysis
C) Summarize trends by customers type
D) Create reports on customer demand

Question 33

An information technology IT audit consists of all EXCEPT

A) planning,
B) tests of controls,
C) substantive tests,
D) qualitative tests.

Question 34

Compliance verification in data extraction and analysis software could be used to discover all EXCEPT:

A) Credit approvals for customer credit limits by credit manager
B) Excessive per diem amounts on employee expense accounts
C) Criminal background searches on prospective employees
D) Insuring that middle managers do not exceed company mandated budget limits

Question 35

Verifying multiples of a number in data extraction and analysis software could be used to discover all EXCEPT:

A) Recalculation of invoice totals
B) Reimbursement rates for mileage
C) Paycheck amounts for hours worked
D) Embezzled petty cash

Question 36

Which of the following is not considered CAATTs Computer-Aided Audit Tools and Techniques software:

A) Microsoft Dynamics GP
B) IDEA
C) ACL
D) Picalo

Question 37

In data analysis and extraction software, the types of queries conducted on the general ledger would include everything EXCEPT:

A) Calculating financial ratios
B) Select specific journal entries for analysis
C) Age counts receivable in various formats
D) Create actual to budget comparison reports

Question 38

One of the major functions of data security and privacy tools such as Privacy Suite is to:

A) Copy files
B) Rename files
C) Overwrite files
D) Recycle files

Question 39

Correlation analysis in data extraction and analysis software could be used to discover all EXCEPT:

A) Correlations where none existed previously
B) Non-existent inventory
C) Correlations that currently exist
D) How variables move in the same direction

Question 40

MC Graphic 10-4

-The graphic 10-4 is called an:

A) Association matrix
B) Link chart
C) Familial chart
D) Grouping chart

Question 41

What functions are used by data extraction and analysis software to highlight red flags of fraud?

Question 42

What computer functions can make recovering deleted files more difficult?

Question 43

What is meant by the acronym CAATTs and what are they used for?

Question 44

This type of graphic allows the investigator to analyze the movement of goods services, people and money:

A) Gantt chart
B) Link chart
C) Association matrix
D) Flow diagram

Question 45

List and describe three graphical techniques used to support the forensics professional.

Question 46

List two commercial data extraction and analysis software and list four functions of this software.

Question 47

What role do graphics play in an investigation?

Question 48

What are the two categories of data mining and knowledge discovery software?

Question 49

What is the purpose of timelines in an investigation?

Question 50

What are the two major approaches for testing IT system controls?

Question 51

What is computer forensics?

Question 52

A married couple goes to a movie. During the movie, the husband strangles the wife. He is able to get her body home without attracting attention.
How is this possible?

Question 53

How do e-discovery rules have an impact on the storage of e-mail and other electronic files?

Question 54

List five assertions of management in respect to financial statements.

Question 55

This type of graphic organizes information about events chronologically to determine what has occurred:

A) Link chart
B) Association matrix
C) Timeline
D) Flow diagram

Question 56

How is case management software used in an investigation?

Question 57

The software product Analyst's Notebook I2 would be classified as:

A) Data analysis and extraction software
B) Case management software
C) Electronic spreadsheet
D) Data presentation software