1. The Enron Scandal has shocked the world of finance and corporate accounting.

Give at
least three key takeaways as to what happened with Enron. It can be its timeline, its
consequences, its impact.
 Enron's leadership fooled regulators with fake holdings and off-the-books
accounting practices.
 Enron used special purpose vehicles (SPVs), or special purposes entities
(SPEs), to hide its mountains of debt and toxic assets from investors and
creditors.
 The price of Enron's shares went from $90.75 at its peak to $0.26 at bankruptcy.
 The company paid its creditors more than $21.7 billion from 2004 to 2011.

2. Pick two of the given techniques in order to combat IT crimes. Describe them in your
own words, and given concrete examples.

Encrypting files.

Encryption is the process of encoding data in a way that keeps it concealed from or
inaccessible to unauthorized users. It can effectively safeguard private information and
sensitive data, as well as improve the security of client-server communication. In other
words, even if an unauthorized person or entity acquires access to encrypted data, they
will be unable to read it.

Using secure firewalls.

Firewalls are the first line of defense against external threats, malware, and hackers
attempting to access data and systems. Firewalls monitor network traffic, disrupt virus
attacks, and keep hackers at bay. In today's data-driven environment, a firewall protects
privacy while also preventing spyware from gaining access and infiltrating networks.

3. IT crimes where computers are accessories to the crime include all of the following,
except:
Select the correct response:
Identity Theft
Cyber Bullying
Child Pornography
Human Trafficking
Control Choice (Do not choose)

4. Pick two of the salient provisions of the SOX law, and explain them in your own words.
Section 302 of the SOX Act of 2002

Section 302 of the SOX Act of 2002 establishes rules for publicly traded companies and
accounting firms. SOX was intended to improve the accuracy and reliability of financial
statement disclosures and to protect investors from fraudulent accounting practices. The
act requires a company's CEO and CFO to personally attest that all records are
 complete and accurate, as well as to confirm that they assume personal responsibility for
and have examined all internal controls.

Section 404 of the SOX Act of 2002

Internal controls over the financial reporting process are identified and tested under
Section 404 of the SOX Act of 2002. Furthermore, they necessitate the production of
particular financial certifications in quarterly and yearly reports to the Securities and
Exchange Commission (SEC). It also specifies additional standards for the monitoring
and maintenance of internal controls connected to a company's accounting and
financials, as well as a requirement for an annual audit of these controls by an
independent firm.

5. The Enron Scandal has involved a large accounting firm, Arthur Andersen, by helping
Enron conceal the true financial status of the company. Which of the following was
Arthur Andersen accused of?
Select the correct response:
Willful neglect
Collusion
Embezzlement
Paper-shredding
Control Choice (Do not choose)

6. Elle Woods, an employee of the Legally Blonde, Inc., received a notice from the bank,
informing her of a 20,000 dollar transaction for April 7, 2021. She never remembers any
transactions during the day, nor did she use her card for any transactions for the first half
of April. Upon close inspection and bank investigation, it was found that someone used
Elle's personal information in order to fool a store using Elle's bank information they got
from a fake e-mail duly responded into by Elle. Which of the following is false?

Select the correct response:

This is a classic example of identity theft, a common IT crime where technology is usually
the target
Control Choice (Do not choose)
The store who got fooled had a poor control over transaction authorizations.
Elle is a victim of a scheme called Phishing using fraudulent emails.
No statement is false. All statements are correct.

7. Do you think that what happened to Enron can still happen today, despite the
advancements in IT, and fortification of laws? Explain.

With the advancements of IT and fortified laws, fraud can still happen. However, I don’t
think cases as scandalous as Enron’s misconducts can still happen today. It will be
difficult to conceal financial documents, perform conspiracy, insider trading, and
securities fraud in because of the present fortified regulations. Laws such as Sarbanes-
Oxley (SOX) Act of 2002 are developed in order to strict new rules for accountants,
 auditors, and corporate officers and imposed more stringent recordkeeping
requirements. The act also added new criminal penalties for violating securities laws.

8. Andy Sachs fears that the magazine cover tries which were approved by Miranda
Priestly might get lost or stolen, the copyright of which is theirs. As such, she made a
hard copy file in print and a soft copy file in a USB flash disk, secured with Norton®,
timestamped for added traceability. Andy Sachs used:
Select the correct response:
Document duplication
Control Choice (Do not choose)
Physical Backup
Cloud Backup
Time-tracing

9. The three statements below talk about IT Crimes.

Statement 1: IT Crimes always require technology to be regarded as such, regardless of
whether it is necessary or not.
Statement 2: IT Crimes may not require technology in order to work.
Statement 3: IT Crimes can either damage technology, information, or even human dignity.

Select the correct response:

All statements are false
Two statements are true
Control Choice (Do not choose)
All the statements are true
One statement is true

10. The Enron Scandal has redefined the world of finance and corporate accounting. Some
of its tremendous effects are the following, except:

Select the correct response:

Heavier punishments for corporate fraud
All of them are effects of the Enron Scandal
The creation of an oversight board for corporate accounting function
General loss of public trust in accounting and audit
Control Choice
The greater scrutiny in the accounting profession

11. The following statements talk about IT Crimes where computers are the TARGET:
Statement 1: Techno-trespass is tantamount to unauthorized modification of computerized
records.
Statement 2: Techno-vandalism means unauthorized amendment of certain data in a
computerized record.
Statement 3: Both Techno-trespass and Techno-vandalism ought to invade confidentiality or
privacy, but never both.
Statement 4: A super-user may be a backdoor user, or a system administrator.
Select the correct response:
All the statements are true
Control Choice (Do not choose)
Three Statements statements are true
One Statement is true
Two statements are true

12. The Sarbanes - Oxley Law has created the Public Corporate Accounting Oversight
Board (PCAOB) in the United States. Its Filipino equivalent is the

Select the correct response:

FRSC (Financial Reporting Standards Council)
SEC (Securities and Exchange Commission)
JPIA (Junior Philippine Institute of Accountants)
PICPA (Philippine Institute of CPAs)
BOA (Board of Accountancy)
Control Choice

13. The Sarbanes - Oxley Law has become a global standard in the accounting and audit
professions, in general. The following are its global impacts, except:

Select the correct response:

Fortification of the financial reporting and auditing standards worldwide
Adoption of a comprehensive notes to financial statements
The Auditor Independence Principle
Lesser reliance in the accounting and audit function
Adoption of the law in different countries around the world
Control Choice

14. Taylor Swift fears losing her Instagram account to a hacker, given how prominent her
account is, that she is actually paranoid about it. What is the best thing that she can do?

Select the correct response:

Control Choice (Do not choose)
Delete the account
Have someone maintain the account securely
Have a backup account in case her main account gets hacked
Use one-time PIN number using a unique phone number