Chapter 8 - Fraud and Errors

Question 1

What is a cookie?

Answer 1

A text file created by a website and stored on a visitor’s hard rive. Cookies store information about who the user is and what the user has done before on the site.

Question 2

What is fraud?

Answer 2

Any and all means a person uses to gain an unfair advantage over another person.

Question 3

What is fraudulent financial reporting?

Answer 3

Intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements.

Question 4

What is lapping?

Answer 4

Concealing the theft of cash by means of a series of delays in posting collections to accounts receivable.

Question 5

What is check kiting?

Answer 5

Creating cash using the lag time between the time a check is deposited and the time it clears the bank.

Question 6

What is input fraud?

Answer 6

Altering or falsifying computer inputs.

Question 7

What is processor fraud?

Answer 7

Unauthorized system use, including the theft of computer time and services.

Question 8

What is computer instructions fraud?

Answer 8

Tampering with company software, copying software illegally, using software in an unauthorized manner, and developing software to carry out an unauthorized activity.

Question 9

What is data fraud?

Answer 9

Illegally using, copying, browsing, searching, or harming company data.

Question 10

What is output fraud?

Answer 10

Stealing, copying, or misusing computer outputs.