Flashcards in Exam 1 Deck (124)
an intentional act where the intent is to destroy a system or some of its components
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.
Any and all means a person uses to gain an unfair advantage over another person
typically business people who commit fraud. Usually resort to trickery or cunning, and their crimes usually involve a violation of trust or confidence
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.
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
theft of company assets by employees
misappropriation of assets
intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements.
fraudulent financial reporting
pressure, rationalization, and opportunity
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
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
concealing the theft of cash by means of a series of delays in posting collection to accounts receivable
creating cash using the lag between the time a check is deposited and the time it clears the bank.
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."
any type of fraud that requires computer technology to perpetrate
easiest type of computer fraud, involves falsifying or altering computer input
includes unauthorized system use, including the theft of computer time and services
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
illegally using, copying, browsing, searching, or harming computer data
displayed or printed output that is stolen or copied or misused
controls that deter problems before they arise.
controls designed to discover control problems that were not prevented
controls that identify and correct problems as well as correct and recover from the resulting errors.
controls designed to make sure tan organization's information system and control environment is stable and well managed.
controls that prevent, detect, and correct transaction errors and fraud in application programs
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
system that helps employees act ethically by setting boundaries on employee behavior
system that measures, monitors, and compares actual company progress to budgets and performance goals.
diagnostic control system
system that helps managers to focus subordinates' attention on key strategic issues and to be more involved in their decisions
interactive control system