Name: Score:
368 Multiple choice questions
Term 1 of 368
Which of the following is a method that can be used to destroy or manipulate data?
Wire tapping into a computer's communication links
Using malware to infect computers
Transmitting data to an outside destination without authorization
All of the above
Term 2 of 368
Which of the following methods might be used to conceal a sham loan transaction in which the
loan officer receives part of the proceeds (kickback)?
Turning the loan over to a collections agency
Letting the loan go into arrears
Charging off the loan as a bad loan
"Digging" the loan on the books
,Term 3 of 368
Jessica worked at the cash register of a department store. Her friend Molly came to the store one
day to help Jessica steal a watch she wanted but couldn't afford. Molly took the watch to Jessica's
register and, instead of charging Molly for it, Jessica rang a "no sale" on the register. Molly
pretended to give Jessica cash to make it look like she was paying for the watch. Molly then took
the watch out of the store and later gave it to Jessica. What type of scheme did Molly and Jessica
commit?
A false sale scheme
A register disbursement scheme
A purchasing and receiving scheme
A skimming scheme
Term 4 of 368
__________ is the term used for including additional coverages in an insurance policy without the
insured's knowledge.
Sliding
Churning
Twisting
None of the above
Term 5 of 368
There is nothing inherently wrong with a company engaging in related-party transactions, as long
as the transactions are fully disclosed.
True
False
,Term 6 of 368
David runs a local catering company. He keeps his books on a calendar year and uses the accrual
basis of accounting. In December of Year 1, a customer placed an order with him to cater the food
for a party that would take place in February of Year 2. The contract was signed and the balance
was paid in full when the order was placed in December. When should David report the revenue
from this party and the associated expenses of catering it?
The revenue should be recorded in December when David received the cash, and the
expenses should be recorded in February after the party takes place.
Both the revenue and expenses should be recorded in December.
Both the revenue and expenses should be recorded in February.
It doesn't matter because it is up to David to decide whether he reports the revenue and
expenses in December or February.
Term 7 of 368
Frequent check deposits in round numbers or for the same amount and checks written to
individuals for large, even amounts might be indicators of check fraud.
True
False
Term 8 of 368
Nondisclosure agreements are generally an expensive and inefficient means of protecting an
organization's proprietary information.
True
False
Term 9 of 368
To ensure separation of duties within the information systems department and between IT and
business unit personnel, computer operators should be responsible for performing computer
programming.
True
False
, Term 10 of 368
In a construction loan, developer overhead is a ripe area for abuse. The purpose of developer
overhead is to provide:
Budget shortfall
Profit margin
Operating capital
Labor reimbursements
Term 11 of 368
All of the following can help prevent a computer from being infected by malicious software
EXCEPT:
Updating the operating system regularly
Installing shareware into a system's root directory
Using anti-malware software
Updating with the latest security patches
Term 12 of 368
With the Health Insurance Portability and Accountability Act (HIPAA) of 1996, the U.S. Congress
added which of the following offenses to the federal code?
Committing fraud against health care benefit programs
Theft or embezzlement in connection with health care
False statement relating to health care fraud
All of the above
368 Multiple choice questions
Term 1 of 368
Which of the following is a method that can be used to destroy or manipulate data?
Wire tapping into a computer's communication links
Using malware to infect computers
Transmitting data to an outside destination without authorization
All of the above
Term 2 of 368
Which of the following methods might be used to conceal a sham loan transaction in which the
loan officer receives part of the proceeds (kickback)?
Turning the loan over to a collections agency
Letting the loan go into arrears
Charging off the loan as a bad loan
"Digging" the loan on the books
,Term 3 of 368
Jessica worked at the cash register of a department store. Her friend Molly came to the store one
day to help Jessica steal a watch she wanted but couldn't afford. Molly took the watch to Jessica's
register and, instead of charging Molly for it, Jessica rang a "no sale" on the register. Molly
pretended to give Jessica cash to make it look like she was paying for the watch. Molly then took
the watch out of the store and later gave it to Jessica. What type of scheme did Molly and Jessica
commit?
A false sale scheme
A register disbursement scheme
A purchasing and receiving scheme
A skimming scheme
Term 4 of 368
__________ is the term used for including additional coverages in an insurance policy without the
insured's knowledge.
Sliding
Churning
Twisting
None of the above
Term 5 of 368
There is nothing inherently wrong with a company engaging in related-party transactions, as long
as the transactions are fully disclosed.
True
False
,Term 6 of 368
David runs a local catering company. He keeps his books on a calendar year and uses the accrual
basis of accounting. In December of Year 1, a customer placed an order with him to cater the food
for a party that would take place in February of Year 2. The contract was signed and the balance
was paid in full when the order was placed in December. When should David report the revenue
from this party and the associated expenses of catering it?
The revenue should be recorded in December when David received the cash, and the
expenses should be recorded in February after the party takes place.
Both the revenue and expenses should be recorded in December.
Both the revenue and expenses should be recorded in February.
It doesn't matter because it is up to David to decide whether he reports the revenue and
expenses in December or February.
Term 7 of 368
Frequent check deposits in round numbers or for the same amount and checks written to
individuals for large, even amounts might be indicators of check fraud.
True
False
Term 8 of 368
Nondisclosure agreements are generally an expensive and inefficient means of protecting an
organization's proprietary information.
True
False
Term 9 of 368
To ensure separation of duties within the information systems department and between IT and
business unit personnel, computer operators should be responsible for performing computer
programming.
True
False
, Term 10 of 368
In a construction loan, developer overhead is a ripe area for abuse. The purpose of developer
overhead is to provide:
Budget shortfall
Profit margin
Operating capital
Labor reimbursements
Term 11 of 368
All of the following can help prevent a computer from being infected by malicious software
EXCEPT:
Updating the operating system regularly
Installing shareware into a system's root directory
Using anti-malware software
Updating with the latest security patches
Term 12 of 368
With the Health Insurance Portability and Accountability Act (HIPAA) of 1996, the U.S. Congress
added which of the following offenses to the federal code?
Committing fraud against health care benefit programs
Theft or embezzlement in connection with health care
False statement relating to health care fraud
All of the above
