Question 1

According to COSO ERM,which of the following is not one of the bases that should be used to analyze the risks of an identified event?

Accepted Answer

A) Inherent risk. 
B) Organizational risk. 
C) Residual risk. 
D) Control risk. 
A) Inherent risk. 
B) Organizational risk. 
C) Residual risk. 
D) Control risk.

Question 2

According to COSO which of the following is not a component of internal control?

Accepted Answer

A) Control risk. 
B) Control activities. 
C) Monitoring. 
D) Control environment. 
A) Control risk. 
B) Control activities. 
C) Monitoring. 
D) Control environment.

Question 3

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

Accepted Answer

A) Risk reduction. 
B) Prospect theory. 
C) Risk sharing. 
D) Risk acceptance. 
A) Risk reduction. 
B) Prospect theory. 
C) Risk sharing. 
D) Risk acceptance.

Question 4

Which of the following best describes why firms choose to create codes of ethics?

Accepted Answer

A) Because most people will not behave ethically without a written set of guidelines. 
B) Codes of ethics protect firms against lawsuits that may be filed due to corporate fraud. 
C) They allow firms to create a formal set of expectations for employees who may have different sets of personal values. 
D) Companies must have a written code of ethics in order to conduct interstate commerce in the U.S. 
A) Because most people will not behave ethically without a written set of guidelines. 
B) Codes of ethics protect firms against lawsuits that may be filed due to corporate fraud. 
C) They allow firms to create a formal set of expectations for employees who may have different sets of personal values. 
D) Companies must have a written code of ethics in order to conduct interstate commerce in the U.S.

Question 5

COBIT (Control Objectives for Information and related Technology)is a generally accepted framework for IT governance in the U.S.

Accepted Answer

A) True 
 B)False

Question 6

A customer intended to order 100 units of a product A,but incorrectly ordered nonexistent product B.Which of the following controls most likely would detect this error?

Accepted Answer

A) Validity check 
B) Record count 
C) Hash total 
D) Parity check 
A) Validity check 
B) Record count 
C) Hash total 
D) Parity check

Question 7

In addition to focusing on controls,COBIT 5 expands its scope by incorporating which of the following broad perpsectives?

Accepted Answer

A) How IT brings value to the firm. 
B) How IT can automate specific business processess. 
C) IT networking requirements. 
D) IT cost reductions. 
A) How IT brings value to the firm. 
B) How IT can automate specific business processess. 
C) IT networking requirements. 
D) IT cost reductions.

Question 8

Public Company Accounting Oversight Board (PCAOB)encourages auditors to start from the basic/bottom of financial transaction records to identify the key controls.

Accepted Answer

A) True 
 B)False

Question 9

The ISO 27000 Series of standards are designed to address which of the following?

Accepted Answer

A) Corporate governance. 
B) Internal controls. 
C) Information security issues. 
D) IT value. 
A) Corporate governance. 
B) Internal controls. 
C) Information security issues. 
D) IT value.

Question 10

In a computerized environment,internal controls can be categorized as general controls and application controls.

Accepted Answer

A) True 
 B)False

Question 11

If a Chief Technology Officer wanted to ensure a new system had appropriate input controls which of the following would he/she require?

Accepted Answer

A) Disposal of documents. 
B) Access control. 
C) Sequence checks. 
D) URL Class diagram. 
A) Disposal of documents. 
B) Access control. 
C) Sequence checks. 
D) URL Class diagram.

Question 12

The main objective of the ISO 27000 series is to provide a model for establishing,implementing,operating,monitoring,maintaining,and improving information security.

Accepted Answer

A) True 
 B)False

Question 13

The COSO ERM framework encourages a review of risks as they apply to achieving firms' objectives.Which of the following is not one of the listed categories of objectives to be considered?

Accepted Answer

A) Environment. 
B) Operations. 
C) Strategic. 
D) Compliance. 
A) Environment. 
B) Operations. 
C) Strategic. 
D) Compliance.

Question 14

The internal control provisions of SOX apply to which companies in the United States?

Accepted Answer

A) All companies. 
B) SEC registrants. 
C) All issuer (public)companies and nonissuer (nonpublic)companies with more than $100,000,000 of net worth. 
D) All nonissuer companies. 
A) All companies. 
B) SEC registrants. 
C) All issuer (public)companies and nonissuer (nonpublic)companies with more than $100,000,000 of net worth. 
D) All nonissuer companies.

Question 15

All of the following are examples of internal control procedures except

Accepted Answer

A) Using pre-numbered documents 
B) Reconciling the bank statement 
C) Processing customer satisfaction surveys 
D) Insistence that employees take vacations 
A) Using pre-numbered documents 
B) Reconciling the bank statement 
C) Processing customer satisfaction surveys 
D) Insistence that employees take vacations

Question 16

Which of the following is considered an application input control?

Accepted Answer

A) Run control total. 
B) Edit check. 
C) Reporting distribution log. 
D) Exception report. 
A) Run control total. 
B) Edit check. 
C) Reporting distribution log. 
D) Exception report.

Question 17

Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

Accepted Answer

A) True 
 B)False

Question 18

The IT Infrastructure Libarary (ITIL)is considered a de facto standard in which of the following regions?

Accepted Answer

A) Asia and Australia. 
B) North America. 
C) The UK. 
D) Europe. 
A) Asia and Australia. 
B) North America. 
C) The UK. 
D) Europe.

Question 19

Which of the following represents a residual risk for a services company?

Accepted Answer

A) Two employees are colluding to facilitate theft. 
B) All checks require two signatures. 
C) Bank accounts are reconciled weekly. 
D) A manager reviews all account reconciliations. 
A) Two employees are colluding to facilitate theft. 
B) All checks require two signatures. 
C) Bank accounts are reconciled weekly. 
D) A manager reviews all account reconciliations.

Question 20

The overall attitude and awareness of a firm's top management and board of directors concerning the importance of internal control is often reflected in its:

Accepted Answer

A) Computer-based controls. 
B) System of segregation of duties. 
C) Control environment. 
D) Safeguards over access to assets. 
A) Computer-based controls. 
B) System of segregation of duties. 
C) Control environment. 
D) Safeguards over access to assets.

According to COSO ERM,which of the following is not one of the bases that should be used to analyze the risks of an identified event?

According to COSO which of the following is not a component of internal control?

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

Which of the following best describes why firms choose to create codes of ethics?

COBIT (Control Objectives for Information and related Technology)is a generally accepted framework for IT governance in the U.S.

A customer intended to order 100 units of a product A,but incorrectly ordered nonexistent product B.Which of the following controls most likely would detect this error?

In addition to focusing on controls,COBIT 5 expands its scope by incorporating which of the following broad perpsectives?

Public Company Accounting Oversight Board (PCAOB)encourages auditors to start from the basic/bottom of financial transaction records to identify the key controls.

The ISO 27000 Series of standards are designed to address which of the following?

In a computerized environment,internal controls can be categorized as general controls and application controls.

If a Chief Technology Officer wanted to ensure a new system had appropriate input controls which of the following would he/she require?

The main objective of the ISO 27000 series is to provide a model for establishing,implementing,operating,monitoring,maintaining,and improving information security.

The COSO ERM framework encourages a review of risks as they apply to achieving firms' objectives.Which of the following is not one of the listed categories of objectives to be considered?

The internal control provisions of SOX apply to which companies in the United States?

All of the following are examples of internal control procedures except

Which of the following is considered an application input control?

Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

The IT Infrastructure Libarary (ITIL)is considered a de facto standard in which of the following regions?

Which of the following represents a residual risk for a services company?

The overall attitude and awareness of a firm's top management and board of directors concerning the importance of internal control is often reflected in its:

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

According to COSO ERM,which of the following is not one of the bases that should be used to analyze the risks of an identified event?

According to COSO which of the following is not a component of internal control?

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

Which of the following best describes why firms choose to create codes of ethics?

COBIT (Control Objectives for Information and related Technology)is a generally accepted framework for IT governance in the U.S.

A customer intended to order 100 units of a product A,but incorrectly ordered nonexistent product B.Which of the following controls most likely would detect this error?

In addition to focusing on controls,COBIT 5 expands its scope by incorporating which of the following broad perpsectives?

Public Company Accounting Oversight Board (PCAOB)encourages auditors to start from the basic/bottom of financial transaction records to identify the key controls.

The ISO 27000 Series of standards are designed to address which of the following?

In a computerized environment,internal controls can be categorized as general controls and application controls.

If a Chief Technology Officer wanted to ensure a new system had appropriate input controls which of the following would he/she require?

The main objective of the ISO 27000 series is to provide a model for establishing,implementing,operating,monitoring,maintaining,and improving information security.

The COSO ERM framework encourages a review of risks as they apply to achieving firms' objectives.Which of the following is not one of the listed categories of objectives to be considered?

The internal control provisions of SOX apply to which companies in the United States?

All of the following are examples of internal control procedures except

Which of the following is considered an application input control?

Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

The IT Infrastructure Libarary (ITIL)is considered a de facto standard in which of the following regions?

Which of the following represents a residual risk for a services company?

The overall attitude and awareness of a firm's top management and board of directors concerning the importance of internal control is often reflected in its:

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