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Group 3 Questionnaire

The document discusses different types of fraud, ethical issues, and internal controls. It provides definitions for identification, fraud, asset misappropriation, and management responsibility. It also lists factors of the fraud triangle, layers of internal control, examples of billing schemes and corruption, and categories of IT application controls.

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Aira Grace Saraga
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14 views

Group 3 Questionnaire

The document discusses different types of fraud, ethical issues, and internal controls. It provides definitions for identification, fraud, asset misappropriation, and management responsibility. It also lists factors of the fraud triangle, layers of internal control, examples of billing schemes and corruption, and categories of IT application controls.

Uploaded by

Aira Grace Saraga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Identification

1. refers to the principles of conduct that individuals use in making choices


and guiding their behavior in situations that involve the concepts of right or
wrong.
2. This denotes a false representation of a material fact made by one party to
another party with the intent to deceive and induce the other party to
justifiably rely on the fact to his or her detriment.
3. Fraud usually does not involve the direct theft of assets.
4. The creation and maintenance of huge, shared databases make it necessary
to protect people from potential misuse of data.
5. These involve the theft or misuse of the victim organization's noncash
assets.
6. It is the distribution of fraudulent paychecks to existent and/or nonexistent.
7. Organizations must perform this to identify, analyze, and manage risks
relevant to financial reporting.
8. A fraud which is also known as vendor fraud and is perpetrated by
employees who cause their employer to issue a payment to a false supplier.
9. Refers to a computer output that can be used to be a source of exposure.
10.A permanent file that serves as an authoritative source of data.
11.Backup process in which poses a more difficult problem due to the
transactions being processed continuously.
12.Contains only successful transactions that has changed the balances of the
Masterfile account and is also referred to as Journal.
13.A type of errors that are replacement of one digit in a code with another?
14.This control is to detect keystroke errors by data check.
15.What does the close supervision often called as?
16.This allow management and auditors to maintain constant surveillance over
the internal controls?
17.Do not relate to the computer logic that actually performs accounting tasks
18.It is the most common fraud schemes involve some form of asset
misappropriation in which assets are either directly or indirectly diverted to
the perpetrator’s benefit.
19. These are associated with management fraud. Whereas all fraud involves
some form of financial misstatement, to meet the definition under this class
of fraud scheme the statement itself must bring direct or indirect financial
benefit to the perpetrator.
20. The establishment and maintenance of a system of internal control is the
responsibility of management.

Enumeration

1-3 Three (3) factors of fraud triangle.

4-7 Four (4) areas of ethical issues in business

8-10 Give the three (3) layers of control in the Internal Control Shield.

11-13 Give the 3 examples of Biing Schemes.

14-17 Give the 4 principal types of corruption.

18-21 Conditions that a fraudulent act must meet?

22-24 3 broad categories of IT application controls

25-26 2 types of Transposition error

27-30 Give at least 4 intermediaries in production and distribution of Hard-Copy


output
Answer Key (Identification)

1. Ethics

2. Fraud

3. Management Fraud

4. Privacy

5. non-cash misappropriation

6. Payroll Fraud

7. Risk Assessment

8. Billing Scheme

9. Waste

10. Master file

11. Backup of Master files in a real-time system

12. Transaction Logs

13. Substitution Errors

14. Range Check

15. Compensating Control

16. Monitoring

17. Physical Controls

18. Asset Misappropriation

19. Fraudulent Statements

20. Management Responsibility


Answer Key (Enumeration)

1-3. Pressure, Opportunity, Ethics

4-7. Equity, Rights, Honesty, Exercise of Corporate Power

8-10. Preventive, Detective, Corrective

11-13. Shell Company Fraud, Pass-through Fraud, Pay-and-Return Fraud

14-17. Bribery, Illegal Gratuities, Conflict of Interest, Economic Extortion

18-21. False representation, Material Fact, Intent, Justifiable reliance, Injury or


loss

22-24. Input Controls, Processing Controls, Output Controls

25-26. Single Transposition Error, Multiple Transposition Error

27-30. Output Spooling, Print Programs, Waste, Report Distribution, End-User


Control, Controlling Digital Output

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