Which of the Following Is an Example of Input Fraud

question 2

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:

Engineers

Professionals who apply scientific and mathematical principles to solve problems and design, construct, and maintain structures, machines, and systems.

Functional Departmentation

Organizing a business into departments based on functions such as marketing, finance, or production.

Product Departmentation

Product Departmentation is an organizational structure method where a company is divided into departments based on the products or product lines they manage or produce.

Organization Size

The scale or extent of an organization, typically measured by the number of employees, revenue, or operational scope.