Computer fraud is discouraged by:

Being willing to prosecute.

Ostracizing whistleblowers.
Overlooking inefficiencies in the judicial
system.
Accepting the lack of integrity in the system.

Correct. Situational pressures (e.g., gambling, drugs), opportunities to commit

fraud (e.g., weak system of controls), and personal characteristics (e.g., lack
of integrity, honesty) are major causes of fraud, whether computer related or
not. There is nothing new about the act of committing fraud. There is no new
way to commit fraud because someone has already tried it somewhere. The
other options encourage computer fraud whereas the correct answer
discourages it. Willingness to prosecute sends a strong message to potential
perpetrators.
Incorrect. This option encourages computer fraud.
Incorrect. This option encourages computer fraud.
Incorrect. This option encourages computer fraud.

Which of the following risk responses can bring new risks to an organization?
Avoid
Share
Transfer
Shift

Correct. Avoiding risks means removing the risk, which, in turn, means
forgoing business opportunities, such as entering into new markets with new
products and services and expanding facilities and operations. Risk avoidance
increases lost business opportunities in sales, revenues, and profits, thus
introducing new risks to an organization.
Incorrect. Sharing risks reduces the risks to an organization by sharing those
risks with others.
Incorrect. Transferring risks reduce risks to an organization by transferring
them to others.
Incorrect. Shifting risks reduces risks to an organization by moving the risks
from one party to another party (e.g., between shareholders and
bondholders). Note that risk shifting is not same as the risk sharing or risk
transferring.

Regarding key ethical principles, the prudent person concept is related to which of the
following?
Goal-congruence
principle.
Professional principle.
Golden Rule.
Might-equals-right
principle.
Correct. The prudent person, who is not infallible or perfect, has the ability to
govern and discipline him- or herself by the use of reason; does not neglect
duty; and applies knowledge, skills, and sound judgment in the use of the
organization's resources. Because of this, the prudent person concept is
related to the goal-congruence principle.
Incorrect. The professional principle states that a true person will do things in
such a way that he or she can explain them before a committee of peer
professionals. This is not related to the prudent-person concept.
Incorrect. The Golden Rule states that one should put oneself in others'
shoes. It includes not knowingly doing harm to others. This is not related to
the prudent-person concept.
Incorrect. The might-equals-right principle states that justice is defined as the
interest of the stronger, meaning that stronger people have an upper hand
over weaker people. This is not related to the prudent-person concept.