Accounting Information Systems
Question Bank
Course Introduction
Accounting Information Systems (AIS) explores the intersection of accounting and information technology, focusing on how computerized systems support the collection, processing, and communication of financial data. The course covers the design, implementation, and control of AIS, emphasizing the role of internal controls, data security, and compliance with legal and regulatory requirements. Students learn to analyze business processes, apply accounting software, and evaluate information flows to support effective decision-making and organizational objectives. Topics may include systems development life cycle, enterprise resource planning (ERP) systems, documentation techniques, fraud prevention, and the ethical considerations in managing accounting information.
Recommended Textbook
Forensic Accounting and Fraud Examination 1st Edition by Mary Jo Kranacher
Available Study Resources on Quizplus
16 Chapters
916 Verified Questions
916 Flashcards
Source URL: https://quizplus.com/study-set/3573 Page 2
Chapter 1: Core Foundation Related to Fraud Examination and Financial
Forensics
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/70962
Sample Questions
Q1) Explain what is meant by the term "financial forensics."
Answer: Financial forensics is the application of financial principles and theories to facts or hypotheses at issue in a legal dispute and consists of two primary functions:
1. Litigation advisory services, which recognizes the role of the financial forensic professional as an expert or consultant, and 2. Investigative services, which makes use of the financial forensic professional's skills and may or may not lead to courtroom testimony. Financial forensics may involve either an attest or consulting engagement. According to the AICPA, Forensic and Litigation Advisory Services FLAS professionals provide educational, technical, functional, and industry-specific services that often apply to occupational fraud, corruption, and abuse and to financial statement fraud cases. Text page 8
Q2) The Sarbanes-Oxley Act SOX of 2002 is aimed at accounting staffs, auditing firms, corporate governance, executive management CEOs and CFOs, officers, and directors.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Careers in Fraud Examination and Financial
Forensics
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/70961
Sample Questions
Q1) ISACA has become a pace-setting global organization for information governance, control, security, and information systems IS professionals.
A)True
B)False
Answer: False
Q2) As part of legal and regulatory oversight to prevent misconduct, including fraud, professionals are checking for compliance and doing risk analysis for:
A) the Sarbanes-Oxley Act of 2002 SOX Act.
B) environmental.
C) health and safety OSHA issues.
D) All of the above are correct.
Answer: D
Q3) The board of directors, as an important internal component of corporate governance, receives its authority from the appointing president/CEO.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Who Commits Fraud and Why: Criminology and Ethics
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/70960
Sample Questions
Q1) Give examples of behavioral indications of fraud.
Answer: Behavioral symptoms of fraud can include such behavior as:
Can't look people in the eye
Embarrassment with friends, family
Irritable and suspicious
Defensive
Argumentative
Unusually belligerent in stating opinions
Needs to see a counselor, psychiatrist, etc.
Complains of being unable to sleep
Drinks too much
Using illegal, illicit drugs
Can't relax
Q2) Status gaining is most typically associated with which of the following?
A) perceived economic pay inequities.
B) no one to share a problem with.
C) revenge for unfair treatment in the workplace.
D) "keeping up with the Joneses" syndrome.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Complex Frauds and Financial Crimes
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/70959
Sample Questions
Q1) Under RICO, which of the following is an illegal activity:
A) Purchasing a bank to deposit gambling receipts generated from illegal betting parlors
B) Investing in a bank that provides services to foreign nationals
C) Purchasing a bank formerly used to reinitiate money into the financial system from a bankruptcy trustee
D) All of the above
Q2) Which of the following is an example of financial statement fraud:
A) The sales manager records as a sale shipments of goods on January 1, 20X1, the day after year-end
B) The financial controller capitalizes a large amount of expenses that should have been included on the income statement
C) The CEO insists that current year bonuses be deferred to the next fiscal year for payment
D) Both "a" and "b"
Q3) Bank secrecy laws make it difficult to "follow the money".
A)True
B)False
Q4) Explain how the Patriot Act enhances RICO.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Cybercrime: Computer and Internet Fraud
Available Study Resources on Quizplus for this Chatper
6 Verified Questions
6 Flashcards
Source URL: https://quizplus.com/quiz/70958
Sample Questions
Q1) Computers offer cyber criminals efficient ways to hide fraudulent activities.
A)True
B)False
Q2) The "computer as a symbol" involves using a computer to intercept data transmission.
A)True
B)False
Q3) Cyber-crime involves the use of cell phones.
A)True
B)False
Q4) Computer crime and computer fraud are synonyms.
A)True
B)False
Q5) Computer crime involves the attempt to access data illegally.
A)True
B)False
Q6) An employee, having authorized access to a work computer, commits fraud while using the computer. This is an example of a computer crime.
A)True
B)False
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Legal, Regulatory, and Professional Environment
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/70957
Sample Questions
Q1) What common law protections do individuals have during interviews?
Q2) The ________ Amendment prohibits unreasonable searches and seizures.
A) Fifth
B) Fourth
C) Sixth
D) Fourteenth
Q3) The Fourth Amendment prohibits unreasonable searches and seizures.
A)True
B)False
Q4) What remedies are available through the civil and criminal justice systems?
Q5) PCAOB Auditing Standard No. 3 AS3, Audit Documentation, requires that audit engagement documentation should include a list of all EXCEPT:
A)significant fraud risk factors.
B)the auditors response.
C)the results of the auditors related procedures.
D)List of the internal controls.
Q6) Discuss the considerations that must be given in respect to documentary evidence.
Q7) What are the three major types of negotiated remedies and how do they differ?
Q8) What constitutes "good cause" in the discharge of an employee?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Fraud Detection: Red Flags and Targeted Risk Assessment
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/70956
Sample Questions
Q1) CAATTS computer-aided auditing tools and techniques are used primarily to select samples and detect collusion .
A)True
B)False
Q2) "One-time" transactions of large values should be scrutinized to ensure they have an appropriate underlying business rationale because generally such transactions will be fraudulent.
A)True
B)False
Q3) A major difference between auditors and fraud examiners is that most auditors match documents to numbers to see whether support exists and is adequate, whereas fraud examiners determine whether the documents are real or fraudulent..
A)True B)False
Q4) The main deterrent for fraud in the corporate environment:
A) remains the internal audit team.
B) remains the external audit team.
C) is the threat of getting caught.
D) is the effectiveness of the SEC and FBI investigators.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Detection and Investigations
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/70955
Sample Questions
Q1) Pressure is a form of motive.
A)True
B)False
Q2) The defendant has an account at a local bank. As part of the trial, bank statements showing the defendant made several large cash deposits are admitted. Which type of evidence is this:
A) Testimony
B) Real
C) Demonstrative
D) All of the above
Q3) Checks retrieved from the defendant's home are considered real evidence.
A)True
B)False
Q4) Assets hidden from easy detection are often identified by:
A) Tax returns
B) Property records
C) Divorce proceedings
D) All of the above
Q5) How do electronic versus "paper" evidence vary in the protections needed to prove chain of custody?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Effective Interviewing and Interrogation
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/70954
Sample Questions
Q1) In order to begin in information phase of the interview, you must first make a transition out of the introductory phase. Which method is NOT commonly used during this phase?
A) Begin with background questions
B) Observe verbal and nonverbal behavior
C) Ask leading closed questions
D) Approach sensitive questions carefully
Q2) Why are interviews in fraudulent financial statements and tax returns handled differently than interviews in other fraud examinations?
Q3) What are the five types of interview and interrogation questions?
Q4) Norming or calibrating is the process of observing behavior before critical questions are asked, as opposed to doing so during questioning.
A)True
B)False
Q5) Assessment questions should proceed logically from the most to the least sensitive. A)True
B)False
Q6) Why are introductory questions so important to an interview's success?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Using Information Technology for Fraud
Examination and Financial Forensics
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/70953
Sample Questions
Q1) An association matrix is not useful for identifying major players who are central to an investigation and to identify linkages between those players.
A)True
B)False
Q2) Benford's Law can be used as an indicator of potential fraud.
A)True
B)False
Q3) What is meant by the acronym CAATTs and what are they used for?
Q4) An activity that can enhance the ability to recover deleted files is the "Defrag" command.
A)True
B)False
Q5) Correlation analysis in data extraction and analysis software could be used to discover all EXCEPT:
A) Correlations where none existed previously
B) Non-existent inventory
C) Correlations that currently exist
D) How variables move in the same direction
Q6) What is computer forensics?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Cash Receipt Schemes and Other Asset
Misappropriations
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/70952
Sample Questions
Q1) Which computer audit step could catch a false shipment scheme?
A) Shipping documents with no associated sales order
B) Shipping documents with an associated sales order
C) Shipping documents that have been independently approved by management
D) Receipts in the receiving system that do not agree to the payables invoice
Q2) If a fraudster has a hand in both ends of the receipting process, he or she can falsify records to conceal the theft of receivables payments. This technique is called:
A) Lapping
B) Kiting
C) Force balancing
D) Debiting the wrong account
Q3) A billing manager in a hospital was authorized to write off certain patient balances as hardship allowances without further review by management. This practice could lead to:
A) Theft of patient payments
B) Double-counting of receivables
C) Overstatement of receivables
D) Overstatement of cash
Q4) How may the larceny of noncash assets be prevented?
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Cash Disbursement Schemes
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/70951
Sample Questions
Q1) Pay and return schemes depend on which of the following controls being absent:
A) Separation of duties between the payment requestor and the mailroom
B) Separation of duties between the mailroom and cash receipts
C) Separation of duties between the vendor and the payment requestor
D) None of the above
Q2) Mischaracterized expense schemes include:
A) Paying for entertainment of corporate clients
B) Paying for expenses incurred on behalf of your employees
C) Paying for expenses from an account you control
D) All of the above
Q3) Which of the following renders the separation of duties control useless:
A) Fraudulent maker
B) Fraudulent payee
C) Rubber stamping
D) None of the above
Q4) Shell companies require collusion amongst employees in order to be successful.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Corruption and the Human Factor
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/70950
Sample Questions
Q1) Employers sometimes have ________ their employees that may contribute to occupational fraud and abuse.
A) unreasonable expectations of
B) confidence n
C) hopes in
D) confusion about
Q2) In an underbilling scheme the perpetrator sells goods or services above fair market value to a vendor in which he or she has a hidden interest.
A)True
B)False
Q3) ________ is a process by which several bidders conspire to split up contracts and ensure that each gets a certain amount of work.
A) Blind bidding
B) Bid pooling
C) Expropriation
D) Splitting the pot
Q4) What is a kickback scheme, and how is it committed?
Q5) What is meant by a conflict of interest?
Q6) List the four major corruption schemes.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Financial Statement Fraud
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/70949
Sample Questions
Q1) The matching concept recommends but does not require that the books and records and the resultant financial statements match revenue and expense in the proper accounting period.
A)True
B)False
Q2) Reporting practices within certain industries may not deviate from generally accepted accounting principles as a matter of fair and clear presentation..
A)True
B)False
Q3) Which is NOT a step to reduce grounds for rationalizing fraud?
A) Promote strong values, based on integrity, throughout the organization
B) Provide regular training to all employees, communication prohibited behavior
C) Provide job opportunities to friends and relatives
D) Clearly define the consequences of violating the rules.
Q4) How can financial statement fraud be deterred?
Q5) A woman shoots her husband. Then she holds him underwater for over five minutes. Finally, she hangs him. But five minutes later they both go out together and enjoy a wonderful dinner together. How can this be?
Q6) What are some of the ways in which financial statement fraud is committed?
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Consulting, Litigation Support, and Expert
Witnesses: Damages, Valuations, and Other Engagements
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/70948
Sample Questions
Q1) The asset valuation model starts with the assumption that the organization's balance sheet does a reasonably good job of identifying the company's assets and liabilities.
A)True
B)False
Q2) The accepted concept for measuring lost revenues or excess expenses over a loss period:
A) Project incremental lost sales or increased expenses
B) Validate opportunity costs
C) Validate sunk costs
D) Validate the fair value of assets
Q3) The Accredited Senior Appraiser's ASA's Principles of Appraisal Practice suggests the following items be included from a valuation report with the exception of:
A) Description of the property that is the subject of the appraisal
B) The objectives of the appraisal work
C) The statement of contingent and limiting conditions to which the appraisal findings are subject
D) An opinion from FASB
Q4) What are the different types of commercial damages?
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Remediation and Litigation Advisory Services
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/70947
Sample Questions
Q1) What legal mechanisms may be used to recover assets in the civil and criminal justice systems?
Q2) Albrecht notes types of symptoms that may indicate a fraud is occurring. Which is not such a symptom?
A) Accounting anomalies including irregular, unusual, or missing source documents
B) Internal control weaknesses including the lack of segregation of duties, physical safeguards, independent checks, proper authorization of documents and records
C) Tips and complaints from employees, customers, suppliers, family, and friends
D) A company listing in a national business magazine of "Top 100 companies to work for"
Q3) What steps should the forensic professional take, assuming that legal counsel initiated the fraud investigation?
Q4) A company should develop a system of internal controls that provides absolute assurance that assets are protected and financial statements are fairly presented.
A)True
B)False
Q5) What is meant by corporate governance and why is it important?
To view all questions and flashcards with answers, click on the resource link above.
18