QUIZZES SUMMER 2016

Electronic Crime
Summer 2016  TRI-C
Quiz One

NAME (printed or typed) _____________________________________________________________

The Five Things We Need To Know About Technology Change

1. All technology change and advancement is a tradeoff. This means: (5 Points)

2. The advantages and disadvantages of a new technology are never distributed evenly among the population. This means: (5 Points)

3. Embedded in every technology there is a powerful idea, perhaps two or three powerful ideas. These ideas are often hidden from our view because they are of a somewhat abstract nature. But this should not be taken to mean they do not have practical consequences. This means: (5 Points)

4. Technology change is not additive; it is ecological. This means: (5 Points)

Managing the Risk of Fraud and Misconduct

5. Select the best answer: The sun will always rise in the east and when it does we will call it morning. The sun will always set in the west and when it does we will call it evening. This has always been; it is part of nature - it is mythic. When a technology becomes mythic: (3 Points)
Select one:
a. It is always dangerous because it is then accepted as is
b. It is not easily susceptible to modification or control
c. It is perceived to be part of the natural order of things
d. It tends to control more of our lives than is good for us
e. All of the above
f. None of the above

6. "The printing press annihilated the oral story-telling tradition; telegraphy annihilated space, television has humiliated the printed word; the computer, it seems, is degrading family and community togetherness." Which of the Five Things We Need To Know About Technology is this an example? (3 Points)
Select one:
a. There is embedded in every great technology and epistemological, political or social prejudice.
b. There is always a price for technology
c. There are always winners and losers
d. Technology change is not additive; it is ecological; that is, it changes everything.
e. Technology tends to become mythic, that is, perceived as part of the natural order of things.

7. The three conditions that must be present for fraud to occur are: Select one: (3 Points)
a. Opportunity, incentive, and cooperation
b. Cohering, pressure, and opportunity
c. Opportunity, incentive, and rationalization
d. Rationalization, opportunity, and collaboration
e. None of the above

8. Select the best answer. The previous question dealt with three conditions to occur necessary for fraud. These three conditions are known as: (3 Points)
Select one:
a. The Fraud Triangle
b. The Three Incentives for Crime
c. The Triple Paradigm of Fraud
d. The Asset Misappropriation Trisector

9. Select the best answer: The American Institute of Certified Public Accountants has labeled "what" as the Achilles' heel of fraud prevention? (3 Points)
Select one:
a. Computer password hackers
b. Management override
c. Lack of accounting control supervision
d. Computer maintenance down time
e. The constantly changing accounting policies requiring software updates and opportunity for hackers

10. Match the best definition that most accurately applies to the term. Enter the letter of the term in the blank preceding the definition. (3 Points each, total 27 Points)

I) ____The misappropriation of cash from an organization prior to being recorded
II) ____The misappropriation of cash from an organization after it has been recorded
III) ____Crediting one account with the receipts intended for a different account
IV) ____Where funds are distributed under the guise of a legitimate payment for invoiced goods or services. Personal purchase schemes, non-accomplish vendor schemes, schemes involving shell companies
V) ____Fraudulent disbursements that are perpetrated through the creation of false documentation
VI) ____Placing orders for inventory that exceed the amount actually needed to complete the project
VII) ____Fraudulent business ventures where investors are paid from other investors' funds rather than operations
VIII) ____When an employee engages in the unauthorized use of company assets
IX) ____Inventory theft, Fictitious Sales, Purchasing and Receiving Fraud

A. Asset Misuse
B. Noncash Fraud
C. Asset Requisition and Transfer Fraud
D. Larceny
E. Lapping
F. Fraudulent Billing
G. Payroll Schemes
H. Skimming
I. Ponzi Schemes

PowerPoint Slides on Electricity

11. a. Like charges _____________ each other.
b. Opposite charges ____________each other. (4 points)

12. a. Every time there is an alternating electric current, an _______________ _________________ is created. (2 Points)
b. Every time an alternating magnetic field crosses a conductor, an _________________ ______________
__________________ is created. (2 Points)

c. This ______________________ ______________________ leaves the conductor and travels through space at the speed of light. (2 Points)

13. True or False An atom is composed of a nucleus containing positively charged protons, negatively charged neutrons, and is orbited by neutrally charged electrons. (2 Points)

14. True or False The carrier particle foe the electromagnetic force is the electron. (2 Points)

15. True or False The flow of electrons in a wire, amperes, and current are basically the same thing. (2 Points)

16. What is a wavelength (in your own words)? (5 Points)

17. What is a frequency (in your own words)? (5 Points)

ESSAY:
18. In 500 words: How do you feel about the possibility of Facebook or other social media being used to secretly influence your choices? Do you feel you are being unknowingly manipulated if this technique was used to sell products or influence your social or political decisions? Has this happened to you? (12 points)

Electronic Crime
Tri-C - Summer 2016
Quiz Two

Chapter 6 - Building an Integrated and Comprehensive Compliance Program for Sustainable Value
Select the best answer.
1.  Effective fraud and misconduct risk management should begin with:
      a. A well designed and properly executed ethics and compliance
      b. A program that seeks to prevent, detect, and respond to fraud and misconduct.
      c. The program should be thoroughly integrated into the organization's overall guidance and risk-management framework
      d. The program should be thoroughly integrated into the company's business strategy and operations
      e. The program should not be an isolated set of activities within the organization
      f.  All of the above.

Chapter 6 - Building an Integrated and Comprehensive Compliance Program for Sustainable Value
2. Select the best answer. Because managers, officers, and CEOs of corporations are frequently the ones committing electronic crime, the success or failure of a compliance program will rest on the organization's ability to embed a culture of ethics and integrity.
      Circle One: TRUE or FALSE

Chapter 6 - Building an Integrated and Comprehensive Compliance Program for Sustainable Value
3. Select the best answer. An affective GRC program is Government, Risk, and Compliance program that protects, but does not enhance business values by fostering a risk-aware culture.
      Circle One: TRUE or FALSE

Chapter 6 - Building an Integrated and Comprehensive Compliance Program for Sustainable Value
Select the best answer.
4. The key attributes to an effective Compliance Function are:
     a. Authority, Responsibility, Competency, Objectivity and  Resources
     b. Authority, Responsibility, Due Diligence, Objectivity, and Coordination
     c. Authority, Coordination, Auditing, Responsibility, and Coordination
     d. Coordination, Responsibility, Authority, Auditing, and Cooperation

Chapter 6 - Building an Integrated and Comprehensive Compliance Program for Sustainable Value
Select the best answer.
5. An effective Board of Directors overseeing a corporation's compliance program needs information regarding:
     a. Aligning oversight, assessing risk, preventing misconduct, detecting and responding to misconduct, allow the CEO to evaluate the effectiveness of the program.
     b. Evaluate the effectiveness of the program by responding to the prevention of misconduct and assigning managers to asses risking taking.
     c. Aligning oversight, assessing risk, preventing misconduct, detecting and responding to misconduct, and evaluating effectiveness of the program.
     d. Aligning oversight, assessing risk, preventing misconduct, detecting and responding to misconduct, and evaluating effectiveness of the program.

What is Alternating Current?
Matching:
6.  Match the best definition in column B with the most appropriate answer in column A.
                    A                                            B

A. Zero	1. ____Cycles per second
B. Remains constant	2. ____Time interval between any two successive wave crests
C. Constantly changing	3. ____The mazimum positive amplitude of a wave in the opposite direction
D. Crests	4. ____Maximum positive amplitude of a wave
E. Trough	5. ____The amplitude of an AC current
F. Period	6. ____Amplitude of a DC voltage
G. Frequency	7. ____Any point along the time axis

                             

 Article: Relationships, Community, and Identity in the New Virtual Society
Select the best answer.
7. In this phenomenon, relationships for young people can be just as powerful and meaningful as those in the real world.
     a. Virtual Society or virtual space
     b. The the Internet Only
     c. Chat Rooms Exclusively
     d. Emailting
     e. Texting above asll other mediums

Article: Relationships, Community, and Identity in the New Virtual Society
Select the best answer.
 8.  When the VCR was invented, many people predicted the demise of movie theaters; after all, if you can watch a movie at home why would anyone pay to go out to a theater? Today, movie theaters are doing a record business.
     When video conferencing was developed, some people predicted that many airlines and hotels would go out of business; after all, why would businessmen spend thousands of dollars on airfare, hotels, and meals to attend a business conference when they could stay in the office and do it on line? Well, airlines and hotels are busier than ever.
     The social turmoil of the 1970s was proclaimed by many to be the end of the nuclear family. But the family is still here; it's just different.
     People are now predicting that texting, email, chat rooms, cell phones, blogs, Facebook relationships, tweeting, on-line dating, and other social media are going to diminish our person-to-person interactions and destroy human personal interaction.
     What actually will happen is some human relationships will become shallower through cyber space relationship while others will become stronger. Things will change, but still be meaningful. As stated in Article 1 - Technology giveth and technology taketh away.

Circle One: TRUE or FALSE

Article: Relationships, Community, and Identity in the New Virtual Society
Select the best answer.
9.   Your found identity is one created by your circumstances - who your parents were, your ethnicity, your religion, your gender, your history and education and past experiences.  Your made identity is...
     a. ...the style of clothes and jewelry you wear
     b. ...your chosen behaviors
     c. ...your selected automobile, activities, and clubs you have joined
     d. ...how you want others to see you
     e. All of the above

Article: Are U Friends 4 Real?
Select the best answer.
10.  "Flaming" is a cyber term meaning text or email that invokes anger or other high emotions resulting from the hostile interpretation of such messages.  But texting, email, and Facebook are void of the human voice, the voice tone indicating anger, sadness, or frustration; the pauses between words indicating thought or concern, and the speed of the speech possibly indicating anxiousness.
     The phrase "You can make a marketing plan," can be said many different ways where one is a complement, the other is an insult, yet a third filled with sarcasm. It depends on where the pauses are, where the voice volume increases, and the voice tone.  Such communication is also void of body language and facial expressions which often make up over 80% of our personal communications.
      I once wrote what I considered to be a very grateful email of thanks and appreciation to a colleague for the effort he and his staff put into a wonderful weekend wedding. Shortly after sending the letter, I  received a very defensive phone call asking how I could be so unfair and insulting when he tried so hard to make the event successful. Somewhat dismayed, I went to his office and read to him my email with a kind voice tone, concerned inflections, appreciative pauses, and accompanied by facial expressions showing happiness and gratitude. What a difference! He was amazed!
      Friendships, romantic relationships, business memos, colleague correspondence, and instructions to employees, spouses, and children are often in the form of texts. Should care be taken in these messages to avoid "flaming" interpretations?

     a. Yes, care should always be taken to avoid "flaming interpretations" even though success is not guaranteed.
     b. No; flaming can't be avoided.
     c. No, if 50 people read the same message there will be 50 different interpretations. How can one attempt to overcome that?
     d. No, email and texting and other written forms of communication should always be replaced with phone calls to avoid flaming.

Article: Hacking the Lights Out
Select the best answer
11. The Stuxnet virus was planted into Iran's nuclear program computers by:
     a. Internet virus attack through email
     b. A back door attack through a computer's firewall
     c. Through a USB stick handed to an unsuspecting employee
     d. Through the power grid at the local power station
     e. From a trojan horse implanted into a didigital procedures manual

Article: Hacking the Lights Out
Select the best answer
12. When Iran's nuclear centrifuges were spinning out of control at a dangerous RPM, why didn't the control personnel intervene before the centrifuges were destroyed?
     a. The virus hit the centrifuges in the middle of the night when the neclear plants were closed
     b. The virus send false signals to the supervising controllers indicating all operations were operating normally
     c. The Stuxnet virus stopped the control mechanisms sent to supervisory personnel.
     d. The Stuxnet virus struck Iran's nuclear facilities on a holy holiday and the plants were closed

Article: Hacking the Lights Out
Select the best answer
13. All electricity furnished for home and industrial use in the United States uses 60-cycle alternating current. The power grid is the electrical supply circuits of thousands of power companies in United States all connected together. The 60 cycle AC current coming from any power company must match (be in sync) with the 60 cycle timing on the grid. The Aurora cyberattack in 2007 was staged by a pretend hacker working for the Department of Homeland Security to bring down an electric generator in a power company attached to the grid. How did this attack function?
     a.  The hacker created and out-of-sync 60 cycle current in opposition to the generators 60 cycle output.
     b.  The hacker planted a bomb under the generator
     c.  The hacker planted a bomb under the generator
     d.  The hacker pulled the generator's circuit breaker shutting the generator down

Article: Hacking the Lights Out
Select the best answer
14. Computers are subject to attack. The nation's electric power grid is also subject to attack by cybercriminals and it is much easier to hack than many protected computers.
      Circle One: TRUE or FALSE

Article The Bride of Stuxnet
Select the five answers that apply.
15. Once the virus Flame infects a computer, what happens?
     a. It records every keystroke
     b. It creates a perfect log of all activities
     c. It takes pictures of the monitor screen every 60 seconds
     d. It sends out bogus emails to everyone on the computer's email list
     e. It takes control of Bluetooth capability turning into a hub for a wireless network
     f.  It copies documents and files on the computer's hard drive

Article The Bride of Stuxnet
Select the besat answer
16. Stuxnet was a virus designed to work quickly, and in doing so it can be discovered quickly, so it must do its damage fast. Flame was a virus concerned with stealth and patience, moving very slowing, and infecting fewer machines.
     Circle OneL: TRUE or FALSE

Chapter 7 - Prevention: Risk Assessment
Select the best answer
17. The definition of what is as follows: A step-by-step process for identifying the quantitative and qualitative nature of potential integrity breakdown?
     a. Design considerations
     b. Risk Assessment
     c. Business goals and stategy
     d. Control Optimazion
     e. Risk Taking

Chapter 7 - Prevention: Risk Assessment
Select the best answer
18. What is the below procedure entitled?
(1) Identify Business Units, locations, or processes to assets
(2) Inventory and categorize fraud and misconduct risks
(3) Rate risks based on likelihood and significance of occurrence
(4) Remediate risks through control optimization

     a.  The four fundamental steps of risk assessment
     b.  The four fundamental steps of risk assessment
     c.  The four levels of crime, fraud, and misconduct
     d.  The four basics of the fraud rectangle
     e.  The control optimization for risk procedures

Chapter 7 - Prevention: Risk Assessment
Select the best answer
19. The first step is starting a risk assessment program is:
     a.  Putting someone responsible in charge
     b.  Deciding those aspects or parts of the organization that will be subject to the risk assessment.
     c.  Establishing a focus group to evaluate the overall risk of the company
     d.  Review documentation from previous risk assessment groups
     e. Have the focus group consult with the risk assessment team.

Chapter 7 - Prevention: Risk Assessment
Select the best answers - There are FOUR (4) correct answers
20. It is wise for the risk assessment team to have a company document review take place in order to determine company policies, procedures, and internal control.  These documents to be reviewed include: 
     a.  Code of Conduct
     b.  Applicable job descriptions
     c.  Employee attendance records
     d. Organizational charts
     e. Responce and improvement systems
     f.  Competitor's violation records
     g. All of the above

Chapter 7: Prevention: Risk Assessment
Select the best answer
21. Once the assessment team has estimated risk likelihood and significance, it is helpful to plot risks on an axis representing their significance and likelihood of occurrence using a heat map.
       Circle One: TRUE or FALSE

Chapter 7
Secelct the best answer
22. The primary coil of a transformer has 200 volts applied to it and 100 coils. The secondary side of the transformer has 50 coils. What is the voltage output on the secondary side?
     a. 50 volts
     b. 100 volts
     c. 200 Volts
     d. 100 amps
     e.  4 volts

Select the best answer
23. If you cut the resistance in half in an electrical circuit with 100 volts, the the amperes will double.
     Circle One: TRUE or FALSE

Chapter 7
Select the best answer
24. If the primary input side of a transformer has 500 turns and 100 volts, how many turns (coils) would you need on the secondary output side for the output to be 20 volts?
     a.  100 coil turns
     b.  50 coil turns
     c.  200 coil turns
     d. 20 coil turns
     e. None of the above

All your Ohm's law formulas are listed in the above wheel.
Refer to Chapter 3 on Electricity DeMystified if necessary.
     A spy for a competitive industry wants to listen to private conversations being broadcast over a competitor's private walkie-talkie network where management discuss test results in the field with engineers. The spy's office is too far away to receive the competitor's walkie-talkie signals. Somehow the spy needs to double the power output of the competitor's walkie-talkie signal. In order to accomplish this, the spy visits the competitor impersonating a communications walkie-talkie and radio company, J & B Communications, offering a free introductory deal. The introductory offer is to clean and tune all the competitor's walkie-talkies for free with the understanding that J & B Communications would be considered for any repair jobs in the future. The competitor agrees to the deal and give the spy 10 walkiw talkies to be cleaned, reconditioned, and returned in the morning. This is called social engineering.

The spy takes the walkie-talkies to his office and opens them up. The circuit on the antenna looks like the one below.
Do not be discouraged about this electronic circuit. Let's say it is the power output circuit to each walkie-talkie's antenna. The power to the antenna is 2 watts.
I = E/R  =  (Amps equals voltage divided by resistance)
I = 10/50 = (Amps equals 10 volts divided by 50 ohms) = .2 amps
The power output of the antenna is measured in watts. P = watts
P = EI (Power equals voltage times amps)

P = 10 X .2 = 2 watts. The walkie-talkies currently transmits a 2 watt signal.  The spy wants to double this power output to 4 watts. This would make the walkie-talkies more powerful, transmitt a longer distance, and allow the spy to monitor his competitor's conversations.
The spy decided to change the 50 Ohm resistor R3 in each walkie- talkie to a different value.  What value in ohms should the new resistor be in order to double the output power of each walkie talkie?

I = E/R  =  (Amps equals voltage divided by resistance)
I = 10/? = (Amps equals 10 volta divided by ? ohms) = .4 amps
The power output of the antenna is measured in watts. P = watts
P = EI (Power equals voltage times amps)
P = 10 X .4 = 4 watts.

Do you see now why you learned ohm's law? It is frequently used in electronic crime. (The actual circuit above would require different formulas beyond the scope of this course.)

     a. 50 ohms
     b. 200 ohms
     c. 35 ohms
     d. 25 ohms
     e. None of the above

Select the best answers from the matching table
26. Insert the best answer from column A into Column B