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Flashcards in Exam 1 Deck (124)
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1

an intentional act where the intent is to destroy a system or some of its components

sabotage

2

a text file created by Web site and stored on a visitor's hard drive. Store information about who the user is and what the user has done on the site.

Cookie

3

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

fraud

4

typically business people who commit fraud. Usually resort to trickery or cunning, and their crimes usually involve a violation of trust or confidence

White-collar criminals

5

dishonest conduct by those in power which often involves actions that are illegitimate, immoral, or incompatible with ethical standards. Examples include bribery and bid rigging.

Corruption

6

Misrepresenting or leaving out facts in order to promote and investment that promises fantastic profits with little or no risk. Examples include Ponzi schemes and securities fraud

investment fraud

7

theft of company assets by employees

misappropriation of assets

8

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

fraudulent financial reporting

9

pressure, rationalization, and opportunity

fraud triangle

10

a person's incentive or motivation for committing fraud; could be financial, lifestyle, or emotional. Also management characteristics, industry conditions, and financial can lead to financial statement fraud

pressure

11

the condition or situation that allows a person or organization to commit and conceal a dishonest act and convert it to personal gain. Commit, conceal, and convert

opportunity

12

concealing the theft of cash by means of a series of delays in posting collection to accounts receivable

lapping

13

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

check kiting

14

the excuse that fraud perpetrators use to justify their illegal behaviors. Ex. "I'm only borrowing it," "The company owes me, I am only taking what is rightfully mine."

rationalization

15

any type of fraud that requires computer technology to perpetrate

computer fraud

16

easiest type of computer fraud, involves falsifying or altering computer input

input fraud

17

includes unauthorized system use, including the theft of computer time and services

processor fraud

18

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

computer instructions fraud

19

illegally using, copying, browsing, searching, or harming computer data

data fraud

20

displayed or printed output that is stolen or copied or misused

output fraud

21

controls that deter problems before they arise.

preventive controls

22

controls designed to discover control problems that were not prevented

detective controls

23

controls that identify and correct problems as well as correct and recover from the resulting errors.

corrective controls

24

controls designed to make sure tan organization's information system and control environment is stable and well managed.

general controls

25

controls that prevent, detect, and correct transaction errors and fraud in application programs

application controls

26

system that describes how a company creates value, helps employees understand management's vision, communicates company core values, and inspires employees to live by those values

belief system

27

system that helps employees act ethically by setting boundaries on employee behavior

boundary system

28

system that measures, monitors, and compares actual company progress to budgets and performance goals.

diagnostic control system

29

system that helps managers to focus subordinates' attention on key strategic issues and to be more involved in their decisions

interactive control system

30

a security and control framework that allows (1) management to benchmark the security and control practices of IT environments, (2) users of IT services to be assured that adequate security and control exist, (3) auditors to substantiate their internal control opinions and advise on it security and control matters.

Control Objectives for information and related technology (COBIT)