Ch14 Practise Q's - Ethics & Cybercrime

Question 1

Ethics can be defined as:(LO1)

A a synonymous term for a country’s legal system.
B rules that guide us in our everyday behaviour, thoughts and actions.
C all of the options are correct.
D none of the options are correct.

Answer 1

B rules that guide us in our everyday behaviour, thoughts and actions.

Question 2

Which of the following is not a stage in ethical decision making?(LO2)

A Identify the facts.
B Identify the laws that can be applied.
C Consider alternative courses of action.
D Make a decision.

Answer 2

B Identify the laws that can be applied.

Question 2

A whistleblower is:(LO1)

A another term for a disgruntled employee.
B someone who highlights favourable company information.
C someone who exposes corruption or malpractice.
D none of the options are correct.

Answer 2

C someone who exposes corruption or malpractice.

Question 2

Which of the following statements regarding ethical decision making is true?(LO2)

A The number of alternative courses of action should be restricted to a small amount to avoid information overload.
B When choosing from a set of alternative courses of action, the primary principle is to look for the one that will minimise the chance of legal sanction.
C Each alternative course of action needs to be evaluated from the perspective of the different stakeholders.
D All of the options are correct.

Answer 2

C Each alternative course of action needs to be evaluated from the perspective of the different stakeholders.

Question 3

Which of the following statements are correct?(LO7)

(i) Technology is developing quickly and new issues will always emerge.
(ii) The Internet of Things (IoT) is a term used to explain the connectivity of devices.
(iii) It has been argued that IoT does not have the potential to drive productivity increases and economic growth.
(iv) Many technologies are already invisible and taken for granted.

A (i) and (iii)
B (i), (ii) and (iii)
C (i), (ii) and (iv)
D (i), (ii), (iii) and (iv)

Answer 3

C (i), (ii) and (iv)

Question 4

Which of the following is not a perceived benefit of the National Broadband Network NBN?(LO3)

A Reduced working hours due to greater online engagement.
B Increased teleworking.
C Improvements in health and aged care.
D Expanded online education.

Answer 4

A Reduced working hours due to greater online engagement.

Question 4

Companies that trade on the internet use cookies to ________________.(LO3)

A present a personalised welcome screen to the returning customer
B capture data about the response to advertisement displayed at the site
C track sites visited before and after the company site
D all of the options are correct

Answer 4

D all of the options are correct

Question 5

When submitting their online registration form, a pop-up dialogue box appears in the customers’ internet browser asking them to confirm the submission of information. This is an example of:(LO3)

A informed consent.
B implied consent.
C forced consent.
D conscious consent.

Answer 5

A informed consent.

Question 5

Data mining:(LO3)

A is the same as customer profiling.
B is a data analysis technique where large amounts of data are taken and analysed for potential patterns and relationships that may exist.
C is a data analysis technique that keeps a record of websites viewed, viewing preferences and user profiles.
D none of the options are correct.

Answer 5

B is a data analysis technique where large amounts of data are taken and analysed for potential patterns and relationships that may exist.

Question 6

Cybercrime can be defined as:(LO4)

A any crime that is committed when people are not face-to-face.
B a crime committed using a computer and or the internet.
C a financial crime committed using a computer and the internet.
D none of the options are correct.

Answer 6

B a crime committed using a computer and or the internet.

Question 7

A technique of online deception that encourages users to reveal personal banking details is called:(LO4)

A identity theft.
B Trojan mail.
C hacking.
D phishing.

Answer 7

D phishing.

Question 8

Which of the following best defines fraud?(LO5)

A An act of deception for the purpose of gaining financial benefit.
B Misappropriation of cash funds paid to settle an outstanding account.
C A Trojan email that encourages the reader to link to a web page that downloads a virus.
D Creating fictitious invoices.

Answer 8

A An act of deception for the purpose of gaining financial benefit.

Question 9

People are more likely to provide personal information to someone on the phone who purports to be a police officer or other authority figure. This is referred to as the:(LO6)

A kindness principle.
B authority principle.
C social compliance principle.
D distraction principle.

Answer 9

C social compliance principle.

Question 9

Reporting sales in the current period which have not yet shipped so that annual sales figures are inflated is an example of:(LO5)

A inventory theft.
B non-existent sales.
C credit fraud.
D non-existent customers.

Answer 9

B non-existent sales.

Question 10

Ethical theories are important for managers to understand because:(LO1)

their decisions should include a framework to make good decisions.

they are not able to make decisions without considering the ethical issues.

they have to make decisions based on the best financial outcome for the organisation.

ethics is a legal requirement.

Answer 10

their decisions should include a framework to make good decisions.

Question 10

Which of the following is true?(LO6)

A The COSO framework, rather than the COBIT framework, can be utilised to reduce the risk of cyber fraud.
B The COBIT framework, rather than the COSO framework, can be utilised to reduce the risk of cyber fraud.
C The COSO and COBIT frameworks can both be utilised to reduce the risk of cyber fraud.
D The COSO and COBIT frameworks are irrelevant to cyber fraud.

Answer 10

C The COSO and COBIT frameworks can both be utilised to reduce the risk of cyber fraud.

Question 11

Which of the factors below were not mentioned by Stajano and Wilson as having an influence on human behaviour?(LO6)

Distraction principle.

Herd principle.

Technology principle.

Need and greed principle.

Answer 11

Need and greed principle.

Question 11

Which of the following is not an example of online fraud?(LO5)

Paying non-existent suppliers with false invoices.

Credit card fraud.

Non-existent customers.

Phishing.

Answer 11

Paying non-existent suppliers with false invoices.

Question 12

Which of the following is NOT an example of malicious code (malware)?(LO4)

Trojan.

Virus.

Bots.

Social engineering.

Answer 12

Social engineering.

Question 13

Spam is:(LO4)

Sending unsolicited emails.

Acquiring personal details by means of deception.

Gaining unauthorised access to a system.

Pretending to be someone else in an online transaction.

Answer 13

Sending unsolicited emails.

Question 14

Which of the following according to futurists is unlikely to be a technology trend?(LO7)

Internet of everywhere.

Increased security and privacy.

Jobs changing and evolving as technology disrupts more industries.

Big data.

Answer 14

Big data.

Question 15

A company discovers that an employee has created a fictitious vendor on the vendor master file and the company has paid a total of $250 000 to this vendor through fake invoices. This is an example of fraud in the:(LO5)

revenue cycle.

inventory management cycle.

expenditure cycle.

cash receipts cycle.

Answer 15

cash receipts cycle.

Question 16

Which of the following is not needed for a fraudulent act?(LO5)

A reason.

Pressure.

A system with weak internal controls.

An opportunity.

Answer 16

A system with weak internal controls.

Remember the triangle - pressure, opportunity & rationalisation.