QUIZ /SEATWORK # 5

Auditing in CIS Environment (ACC 37)

(RMCI, 1st Semester, S/Y 2019-2020)

Chapter 12 — Business Ethics, Fraud, and Fraud Detection

1. What is ethics?

2. What is business ethics?

3. What are the four areas of ethical business issues?

4. What are the main issues to be addressed in a business code of ethics required by the Securities
and Exchange Commission?

5. What are three ethical principles that may provide some guidance for ethical responsibility?

6. What is computer ethics?

7. Are computer ethical issues new problems, or just a new twist on old problems?

8. What are the computer ethical issues regarding privacy?

9. What are the computer ethical issues regarding security?

10. What are the computer ethical issues regarding ownership of property?

11. What are the computer ethical issues regarding equity in access?

12. What are the computer ethical issues regarding the environment?

13. What are the computer ethical issues regarding artificial intelligence?

14. What are the computer ethical issues regarding unemployment and displacement?

15. What are the computer ethical issues regarding misuse of computers?

16. What are the five conditions that constitute fraud under common law?

17. Name the three fraud-motivating forces.

18. What is employee fraud?

19. What is management fraud?

20. What three forces constitute the triangle of fraud?

 QUIZ /SEATWORK # 5
Auditing in CIS Environment (ACC 37)
(RMCI, 1st Semester, S/Y 2019-2020)

21. How can external auditors attempt to uncover motivations for committing fraud?

22. What is lapping?

23. What is collusion?

24. What is bribery?

25. What is economic extortion?

26. What is conflict of interest?

27. What is computer fraud, and what types of activities does it include?

28. At which stage of the general accounting model is it easiest to commit computer fraud?

29. Define check tampering.

30. What is billing (or vendor) fraud?

31. Define cash larceny.

32. What is skimming?

33. Distinguish between ethical issues and legal issues.

34. When a company has a strong internal control structure, stockholders can expect the elimination
of fraud. Comment on the soundness of this statement.

35. How has the Sarbanes-Oxley Act had a significant impact on corporate government?

36. Discuss the nonaccounting services that external auditors are no longer permitted to render to
audit clients.

37. An organization’s internal audit department is usually considered an effective control mechanism
for evaluating the organization’s internal control structure. The Birch Company’s internal auditing
function reports directly to the controller. Comment on the effectiveness of this organizational
structure.