Question 1

In this age of high technology and computer based information systems,why are accountants concerned about physical (human)controls?

Accepted Answer

Virtually all systems,regardless of thei

Question 2

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

Accepted Answer

Expense reimbursement fraud involve fict

Question 3

What is the relationship between COSO and SAS 78? How are they similar/different?

Accepted Answer

The COSO framework was the basis for SAS

Question 4

Identify to indicate whether each procedure is a preventive or detective control.

Accepted Answer

A.preventive;B.detec

Question 5

Preventive controls are passive techniques designed to reduce fraud.

Accepted Answer

A) True 
 B)False

Question 6

Use the internal control procedures listed below to complete the statements.
  
-The internal audit department recalculates payroll for several employees each pay period.This is an example of __________________________.

Accepted Answer

independen

Question 7

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records

Accepted Answer

A) True 
 B)False

Question 8

Use the internal control procedures listed below to complete the statements.
  
-Approving a price reduction because goods are damaged is an example of __________________________.

Accepted Answer

specific a

Question 9

What are the key points of the "Issuer and Management Disclosure" of the Sarbanes-Oxley Act?

Accepted Answer

1.Public companies must report all off b

Question 10

Opportunity involves direct access to assets and/or access to information that controls assets.

Accepted Answer

A) True 
 B)False

Question 11

What are the key points of the section 404 of the Sarbanes-Oxley Act?

Accepted Answer

Section 404 requires the management of p

Question 12

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Accepted Answer

A) True 
 B)False

Question 13

Forces which may permit fraud to occur do not include

Accepted Answer

A)  a gambling addiction 
B)  lack of segregation of duties 
C)  centralized decision making environment 
D)  questionable integrity of employees 
A)  a gambling addiction 
B)  lack of segregation of duties 
C)  centralized decision making environment 
D)  questionable integrity of employees

Question 14

Control activities under SA 78/COSO include

Accepted Answer

A)  IT Controls, preventative controls, and Corrective controls 
B)  physical controls, preventative controls, and corrective controls. 
C)  general controls, application controls, and physical controls. 
D)  transaction authorizations, segregation of duties, and risk assessment 
A)  IT Controls, preventative controls, and Corrective controls 
B)  physical controls, preventative controls, and corrective controls. 
C)  general controls, application controls, and physical controls. 
D)  transaction authorizations, segregation of duties, and risk assessment

Question 15

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

Accepted Answer

A) True 
 B)False

Question 16

According to SAS 78,an effective accounting system performs all of the following except

Accepted Answer

A)  identifies and records all valid financial transactions 
B)  records financial transactions in the appropriate accounting period 
C)  separates the duties of data entry and report generation 
D)  records all financial transactions promptly 
A)  identifies and records all valid financial transactions 
B)  records financial transactions in the appropriate accounting period 
C)  separates the duties of data entry and report generation 
D)  records all financial transactions promptly

Question 17

Explain the pass through fraud.

Accepted Answer

A pay-and-return scheme involves a clerk

Question 18

Which of the following is not an internal control procedure?

Accepted Answer

A)  authorization 
B)  management's operating style 
C)  independent verification 
D)  accounting records 
A)  authorization 
B)  management's operating style 
C)  independent verification 
D)  accounting records

Question 19

Computer programs are intellectual property.

Accepted Answer

A) True 
 B)False

Question 20

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Accepted Answer

A) True 
 B)False

In this age of high technology and computer based information systems,why are accountants concerned about physical (human)controls?

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

What is the relationship between COSO and SAS 78? How are they similar/different?

Identify to indicate whether each procedure is a preventive or detective control.

Preventive controls are passive techniques designed to reduce fraud.

Use the internal control procedures listed below to complete the statements. -The internal audit department recalculates payroll for several employees each pay period.This is an example of __________________________.

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records

Use the internal control procedures listed below to complete the statements. -Approving a price reduction because goods are damaged is an example of __________________________.

What are the key points of the "Issuer and Management Disclosure" of the Sarbanes-Oxley Act?

Opportunity involves direct access to assets and/or access to information that controls assets.

What are the key points of the section 404 of the Sarbanes-Oxley Act?

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Forces which may permit fraud to occur do not include

Control activities under SA 78/COSO include

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

According to SAS 78,an effective accounting system performs all of the following except

Explain the pass through fraud.

Which of the following is not an internal control procedure?

Computer programs are intellectual property.

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 3: Ethics, Fraud, and Internal Control

In this age of high technology and computer based information systems,why are accountants concerned about physical (human)controls?

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

What is the relationship between COSO and SAS 78? How are they similar/different?

Identify to indicate whether each procedure is a preventive or detective control.

Preventive controls are passive techniques designed to reduce fraud.

Use the internal control procedures listed below to complete the statements. -The internal audit department recalculates payroll for several employees each pay period.This is an example of __________________________.

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records

Use the internal control procedures listed below to complete the statements. -Approving a price reduction because goods are damaged is an example of __________________________.

What are the key points of the "Issuer and Management Disclosure" of the Sarbanes-Oxley Act?

Opportunity involves direct access to assets and/or access to information that controls assets.

What are the key points of the section 404 of the Sarbanes-Oxley Act?

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Forces which may permit fraud to occur do not include

Control activities under SA 78/COSO include

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

According to SAS 78,an effective accounting system performs all of the following except

Explain the pass through fraud.

Which of the following is not an internal control procedure?

Computer programs are intellectual property.

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters