Which of the Following Is an Example of Input Fraud

question 28

Multiple Choice

Which of the following is an example of input fraud?

• A)A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills.
• B)Two accountants without the appropriate access rights hacked into Cisco''s stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch.
• C)The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities.
• D)A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
• The payee and amount,and printed fictitious paychecks.

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Definitions:

Scientific Management

An approach to management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity, through scientific methods.

Mass Manufacturing

The production of large quantities of standardized products, often utilizing assembly lines and automation to achieve efficiency and economies of scale.

Shift Workers

Employees who work schedules outside the traditional 9-5 working hours, often including evenings, nights, or rotating shifts.

Competitive Advantage

The unique attributes or circumstances that allow an organization or country to produce goods or services at a lower price or in a more desirable fashion than competitors.