Question 1

The framework to be used by management in its internal control assessment under requirements of SOX is the:

Accepted Answer

A) COSO internal control framework. 
B) COSO enterprise risk management framework. 
C) COBIT framework. 
D) All of the choices are correct. 
A) COSO internal control framework. 
B) COSO enterprise risk management framework. 
C) COBIT framework. 
D) All of the choices are correct.

Question 2

The Sarbanes-Oxley Act (SOX)was passed as a response to which of the following events?

Accepted Answer

A) The savings & loan scandals of the 1980s. 
B) The bust of dot-com bubble companies such as pets.com and Webvan. 
C) Corporate reporting scandals by companies such as WorldCom,Enron,and Tyco. 
D) Securities manipulation and insider trading in the 1930s. 
A) The savings & loan scandals of the 1980s. 
B) The bust of dot-com bubble companies such as pets.com and Webvan. 
C) Corporate reporting scandals by companies such as WorldCom,Enron,and Tyco. 
D) Securities manipulation and insider trading in the 1930s.

Question 3

A firm must establish control policies,procedures,and practices that ensure the firm's business objectives are achieved and its risk mitigation strategies are carried out.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a component of COSO ERM 2017?

Accepted Answer

A) Governance and culture. 
B) Strategy and objective setting. 
C) Performance. 
D) Review and revision. 
E) All of the choices are correct. 
A) Governance and culture. 
B) Strategy and objective setting. 
C) Performance. 
D) Review and revision. 
E) All of the choices are correct.

Question 5

Ethical principals are derived from all of the following except:

Accepted Answer

A) Personal attitudes on issues of right and wrong. 
B) Cost benefit analysis. 
C) Cultural values. 
D) Societal traditions. 
A) Personal attitudes on issues of right and wrong. 
B) Cost benefit analysis. 
C) Cultural values. 
D) Societal traditions.

Question 6

Controls in the information technology area are classified into preventive,detective,and corrective categories.Which of the following is preventive control?

Accepted Answer

A) Contingency planning. 
B) Hash total. 
C) Echo check. 
D) Access control software. 
A) Contingency planning. 
B) Hash total. 
C) Echo check. 
D) Access control software.

Question 7

According to the Sarbanes-Oxley Act of 2002,it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following represents an inherent risk for a financial institution?

Accepted Answer

A) Bank reconciliations are not performed on a timely basis. 
B) The economy goes into a recession. 
C) Customer credit check not performed. 
D) An error occurs in a loan loss calculation. 
A) Bank reconciliations are not performed on a timely basis. 
B) The economy goes into a recession. 
C) Customer credit check not performed. 
D) An error occurs in a loan loss calculation.

Question 9

Which of the following is not a component of COSO ERM 2017?

Accepted Answer

A) Information communication and reporting. 
B) Strategy and objective setting. 
C) Control activities. 
D) Review and revision. 
A) Information communication and reporting. 
B) Strategy and objective setting. 
C) Control activities. 
D) Review and revision.

Question 10

The Public Company Accounting Oversight Board (PCAOB)is not responsible for standards related to:

Accepted Answer

A) Accounting practice. 
B) Attestation. 
C) Auditing. 
D) Quality control over attestation and/or assurance. 
A) Accounting practice. 
B) Attestation. 
C) Auditing. 
D) Quality control over attestation and/or assurance.

Question 11

Which of the following items is one of the eight components of COSO's enterprise risk management 2004 framework?

Accepted Answer

A) Operations. 
B) Reporting. 
C) Monitoring. 
D) Compliance. 
A) Operations. 
B) Reporting. 
C) Monitoring. 
D) Compliance.

Question 12

Which of the following represents a control risk for a retail business?

Accepted Answer

A) Bank reconciliations are not performed on a timely basis. 
B) Two employees are colluding to facilitate theft. 
C) There are many competitors in the region. 
D) A bank reconciliation is not performed correctly. 
A) Bank reconciliations are not performed on a timely basis. 
B) Two employees are colluding to facilitate theft. 
C) There are many competitors in the region. 
D) A bank reconciliation is not performed correctly.

Question 13

Which of the following best describes what is meant by corporate governance?

Accepted Answer

A) The organizational structure and responsibilities of the executive team and board of directors of a corporation. 
B) Regulatory bodies,such as the SEC and PCAOB,that govern the behavior of corporations. 
C) The ability of a corporation's management team to meet earnings forecasts over an extended period of time. 
D) Management's processes,policies,and ethical approach to safeguarding stakeholder interests. 
A) The organizational structure and responsibilities of the executive team and board of directors of a corporation. 
B) Regulatory bodies,such as the SEC and PCAOB,that govern the behavior of corporations. 
C) The ability of a corporation's management team to meet earnings forecasts over an extended period of time. 
D) Management's processes,policies,and ethical approach to safeguarding stakeholder interests.

Question 14

According to AS 5,control risk should be assessed in terms of

Accepted Answer

A) Specific controls. 
B) Types of potential fraud. 
C) Financial statement assertions. 
D) Control environment factors. 
A) Specific controls. 
B) Types of potential fraud. 
C) Financial statement assertions. 
D) Control environment factors.

Question 15

Which of the following is not one of the responses to risk presented in COSO ERM?

Accepted Answer

A) Share the risk. 
B) Accept the risk. 
C) Eliminate the risk. 
D) Reduce the risk. 
A) Share the risk. 
B) Accept the risk. 
C) Eliminate the risk. 
D) Reduce the risk.

Question 16

Internal controls help safeguard an organization's assets.

Accepted Answer

A) True 
 B)False

Question 17

The risk of a company's internal auditing processes failing to catch the misstated dollar amount of revenue on the company's income statement is classified as inherent risk.

Accepted Answer

A) True 
 B)False

Question 18

Review of the audit log is an example of which of the following types of security control?

Accepted Answer

A) Governance. 
B) Detective. 
C) Preventive. 
D) Corrective. 
A) Governance. 
B) Detective. 
C) Preventive. 
D) Corrective.

Question 19

COBIT framework takes the view that all IT processes should provide clear links between all of the following except:

Accepted Answer

A) IT processes. 
B) IT controls. 
C) IT components. 
D) IT governance requirements. 
A) IT processes. 
B) IT controls. 
C) IT components. 
D) IT governance requirements.

Question 20

Processing controls are IT general controls.

Accepted Answer

A) True 
 B)False

The framework to be used by management in its internal control assessment under requirements of SOX is the:

The Sarbanes-Oxley Act (SOX)was passed as a response to which of the following events?

A firm must establish control policies,procedures,and practices that ensure the firm's business objectives are achieved and its risk mitigation strategies are carried out.

Which of the following is a component of COSO ERM 2017?

Ethical principals are derived from all of the following except:

Controls in the information technology area are classified into preventive,detective,and corrective categories.Which of the following is preventive control?

According to the Sarbanes-Oxley Act of 2002,it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.

Which of the following represents an inherent risk for a financial institution?

Which of the following is not a component of COSO ERM 2017?

The Public Company Accounting Oversight Board (PCAOB)is not responsible for standards related to:

Which of the following items is one of the eight components of COSO's enterprise risk management 2004 framework?

Which of the following represents a control risk for a retail business?

Which of the following best describes what is meant by corporate governance?

According to AS 5,control risk should be assessed in terms of

Which of the following is not one of the responses to risk presented in COSO ERM?

Internal controls help safeguard an organization's assets.

The risk of a company's internal auditing processes failing to catch the misstated dollar amount of revenue on the company's income statement is classified as inherent risk.

Review of the audit log is an example of which of the following types of security control?

COBIT framework takes the view that all IT processes should provide clear links between all of the following except:

Processing controls are IT general controls.

Accounting Information Systems and Firm Value

Accountants As Business Analysts

Data Modeling

Relational Databases and Enterprise Systems

Sales and Collections Business Process

Purchases and Payments Business Process

Conversion Business Process

Reporting Processes and Extensible Business Reporting Language Xbrl

Data Analytics in Accounting: Concepts and the Amps Model

Data Analytics in Accounting: Tools and Practice

Emerging Technologies: Blockchain and Ai Automation

Information Security and Computer Fraud

Monitoring and Auditing Ais

The Balanced Scorecard, Business Model Canvas, and Business Value of Information Technology

Evaluating Ais Investments

Filters

Exam 13: Accounting Information Systems and Internal Controls

The framework to be used by management in its internal control assessment under requirements of SOX is the:

The Sarbanes-Oxley Act (SOX)was passed as a response to which of the following events?

A firm must establish control policies,procedures,and practices that ensure the firm's business objectives are achieved and its risk mitigation strategies are carried out.

Which of the following is a component of COSO ERM 2017?

Ethical principals are derived from all of the following except:

Controls in the information technology area are classified into preventive,detective,and corrective categories.Which of the following is preventive control?

According to the Sarbanes-Oxley Act of 2002,it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.

Which of the following represents an inherent risk for a financial institution?

Which of the following is not a component of COSO ERM 2017?

The Public Company Accounting Oversight Board (PCAOB)is not responsible for standards related to:

Which of the following items is one of the eight components of COSO's enterprise risk management 2004 framework?

Which of the following represents a control risk for a retail business?

Which of the following best describes what is meant by corporate governance?

According to AS 5,control risk should be assessed in terms of

Which of the following is not one of the responses to risk presented in COSO ERM?

Internal controls help safeguard an organization's assets.

The risk of a company's internal auditing processes failing to catch the misstated dollar amount of revenue on the company's income statement is classified as inherent risk.

Review of the audit log is an example of which of the following types of security control?

COBIT framework takes the view that all IT processes should provide clear links between all of the following except:

Processing controls are IT general controls.

Accounting Information Systems and Firm Value

Accountants As Business Analysts

Data Modeling

Relational Databases and Enterprise Systems

Sales and Collections Business Process

Purchases and Payments Business Process

Conversion Business Process

Reporting Processes and Extensible Business Reporting Language Xbrl

Data Analytics in Accounting: Concepts and the Amps Model

Data Analytics in Accounting: Tools and Practice

Emerging Technologies: Blockchain and Ai Automation

Information Security and Computer Fraud

Monitoring and Auditing Ais

The Balanced Scorecard, Business Model Canvas, and Business Value of Information Technology

Evaluating Ais Investments

Filters