Question 1

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Accepted Answer

Cash larceny involves stealing cash from an organization after it has been recorded on the organization's books and records.

Question 2

Para computer ethics is the exposure to stories and reports found in the popular media regarding the good or bad ramifications of computer technology.

Accepted Answer

Para computer ethics actually refers to the field of study that deals with how computing professionals should make decisions regarding professional and social conduct, not the exposure to stories and reports in the media.

Question 3

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Accepted Answer

Collusion among employees in the commission of a fraud is both difficult to prevent and detect. It often involves multiple individuals working together to conceal their illegal activities and deceive employer controls. Detecting collusion may require advanced data analytics or whistleblowers coming forward with information.

Question 4

Database management fraud includes altering, updating, and deleting an organization's data.

Accepted Answer

The answer of Database management fraud includes altering, updating, and...

Question 5

The trend toward distributed data processing increases the exposure to fraud from remote locations.

Accepted Answer

As data is being processed across multiple remote locations, it becomes more difficult to monitor and secure against fraudulent activity, increasing the risk and exposure to fraud.

Question 6

Opportunity involves direct access to assets and/or access to information that controls assets.

Accepted Answer

Opportunity requires either access to the assets themselves or information that can control those assets, enabling an individual to commit fraud or other illicit activities.

Question 7

Computers can be misused in many ways.

Accepted Answer

Computers can be misused in various ways such as cyberbullying, hacking, cyberstalking, phishing, spreading malware, etc.

Question 8

Business ethics is the analysis of the nature and social impact of computer technology, and the corresponding formulation and justification of policies for the ethical use of such technology.

Accepted Answer

This statement is not an accurate definition of business ethics. Instead, business ethics refers to the study of ethical principles and values in business conduct and decision-making. The statement describes more of the field of computer ethics.

Question 9

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Accepted Answer

The fraud triangle is actually a conceptual model developed by criminologist Donald Cressey to explain why individuals commit occupational fraud. It consists of three key elements: opportunity, rationalization, and pressure. It is not a geographic area in Southeast Asia.

Question 10

Of the three fraud factors (situational pressure, ethics, and opportunity), situational pressure is the factor that actually facilitates the act.

Accepted Answer

Opportunity is the factor that actually facilitates the act, as it provides the means for someone to commit fraud. Situational pressure (or motivation) and rationalization (often related to ethics) are also part of the fraud triangle, but opportunity is what allows the fraud to be carried out.

Question 11

Internal control systems are recommended but not required to prevent fraud.

Accepted Answer

Internal control systems are not just recommended, but actually required to prevent fraud. The Sarbanes-Oxley Act of 2002 (SOX) requires publicly traded companies to have adequate internal controls in place to ensure the accuracy and reliability of their financial reporting. Other regulations and standards, such as the COSO framework and the PCAOB auditing standards, also emphasize the importance of internal controls in preventing and detecting fraud.

Question 12

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records

Accepted Answer

Skimming involves stealing cash from an organization before it is recorded on the organization's books and records, making it harder to detect.

Question 13

Defalcation is another word for financial fraud.

Accepted Answer

Defalcation involves the misappropriation or misuse of funds, which is a type of financial fraud.

Question 14

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

Accepted Answer

Situational pressure refers to various external factors that may push an individual towards unethical behavior. These pressures could be personal issues or job-related stressors such as financial difficulties, conflicts with superiors or colleagues, fear of losing one's job, or pressure to meet business targets. Such pressures can make individuals vulnerable to indulging in dishonest behaviors that may seem expedient at the moment but can have long-term negative consequences.

Question 15

Copyright laws and computer industry standards have been developed jointly and rarely conflict.

Accepted Answer

Copyright laws and industry standards can sometimes conflict, especially when it comes to digital rights management (DRM) and anti-piracy measures. Industry standards may include DRM technologies that limit the use or sharing of copyrighted material, whereas copyright laws may have exceptions or limitations on the use of DRM. Additionally, industry standards may not always be consistent with the requirements of copyright laws, such as fair use provisions.

Question 16

Ethical issues and legal issues are essentially the same.

Accepted Answer

Ethical issues refer to principles and values that guide individual and societal behavior, while legal issues refer to matters governed by laws and regulations. While there may be overlap between the two, they are not the same. One can be legally obligated to act in a certain way, but that may not always align with ethical considerations.

Question 17

Computer programs are intellectual property.

Accepted Answer

Computer programs are considered intellectual property and are protected by copyright laws.

Question 18

Business bankruptcy cases always involve fraudulent behavior.

Accepted Answer

Business bankruptcy cases may involve a variety of factors such as economic downturns, poor management decisions, and unforeseen circumstances. While fraud may be a contributing factor in some cases, it is not always present.

Question 19

Employees should be made aware of the firm's commitment to ethics.

Accepted Answer

It is important for employees to be aware of the firm's commitment to ethics in order to promote a culture of ethical behavior and decision-making within the organization. This can be done through the communication of clear ethical values and policies and training programs.

Question 20

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

Accepted Answer

The principle of justice requires that the distribution of benefits and risks should be fair, equitable and impartial. It ensures that the benefits and burdens of the decision-making process are distributed fairly among all stakeholders.

Quiz 12: Business Ethics, Fraud, and Fraud Detection