Test Bank Ch05 - Chapter 5 MULTIPLE CHOICE 1. Perhaps the...

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Chapter 5 MULTIPLE CHOICE 1. Perhaps the most striking fact about natural disasters in relation to AIS controls is that a) many companies in one locale can be seriously affected at one time by a disaster. b) losses are absolutely unpreventable. c) there are a large number of major disasters every year. d) disaster planning has largely been ignored in the literature. 2. There are four distinct types of threats to an AIS: 1) software errors and equipment malfunctions; 2) unintentional acts; 3) intentional acts; and 4) __________. a) computer fraud b) data transmission errors c) human carelessness d) natural and political disasters 3. Which AIS threat below would be classified an unintentional act? a) a power outage b) sabotage c) high winds d) a logic error 4. Which AIS threat below would be classified as a natural or political disaster? a) Accident b) Corruption c) Power outage d) Terrorist attack 5. Which AIS threat below would be classified a computer crime? a) Innocent error b) Operating system crash c) Sabotage d) Terrorist attack 6. Which AIS threat below would be classified as a software error or equipment malfunction? a) Earthquake b) Logic error c) Operating system crash d) Sabotage 7. An expert from the Information Systems Security Association estimates that the largest single source of security problems for systems is due to a) human errors and omissions. b) physical threats such as natural disasters. c) dishonest employees. d) fraud and embezzlement.
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8. Fraud is any and all means a person uses to gain an unfair advantage over another person. Current and former employees of an organization are much more likely to perpetrate fraud than external parties. The act by a person or group of persons resulting in materially misleading financial statements is called a(n) a) misappropriation of assets. b) employee fraud. c) fraudulent financial reporting. d) theft of assets. 9. Most fraud perpetrators are insiders because a) insiders are more dishonest than outsiders. b) insiders know more about the system and its weaknesses than outsiders. c) outsiders are more likely to get caught than insiders. d) insiders have more need for money than outsiders. 10. A majority of fraud perpetrators are a) outsiders. b) employees. c) computer hackers. d) vendors. 11. Misappropriation of assets can also be called a) Computer fraud b) Employee fraud c) Fraudulent financial reporting d) Management fraud 12. Intentional or reckless conduct that results in materially misleading financial statements is called a) financial fraud. b) misstatement fraud. c) fraudulent financial reporting. d) audit failure fraud. 13. The Treadway Commission studied 450 lawsuits against auditors and found that a) misappropriation of assets was the reason for over one-half of the suits. b)
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Test Bank Ch05 - Chapter 5 MULTIPLE CHOICE 1. Perhaps the...

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