Question 1

Internal control system have limitations.These include all of the following except

Accepted Answer

A)  possibility of honest error 
B)  circumvention 
C)  management override 
D)  stability of systems 
A)  possibility of honest error 
B)  circumvention 
C)  management override 
D)  stability of systems

Question 2

What are the five conditions necessary for an act to be considered fraudulent?

Accepted Answer

A) True 
 B)False

Question 3

Contrast management fraud with employee fraud.

Accepted Answer

Employee fraud is usually designed to di

Question 4

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

Accepted Answer

A)  para computer ethics 
B)  pop computer ethics 
C)  theoretical computer ethics 
D)  practical computer ethics 
A)  para computer ethics 
B)  pop computer ethics 
C)  theoretical computer ethics 
D)  practical computer ethics

Question 5

The external auditor is responsible for establishing and maintaining the internal control system.

Accepted Answer

A) True 
 B)False

Question 6

A shell company fraud involves

Accepted Answer

A)  stealing cash from an organization before it is recorded 
B)  Stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor. 
A)  stealing cash from an organization before it is recorded 
B)  Stealing cash from an organization after it has been recorded 
C)  manufacturing false purchase orders, receiving reports, and invoices 
D)  A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Question 7

A physical inventory count is an example of a

Accepted Answer

A)  preventive control 
B)  detective control 
C)  corrective control 
D)  feedforward control 
A)  preventive control 
B)  detective control 
C)  corrective control 
D)  feedforward control

Question 8

Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.

Accepted Answer

A) True 
 B)False

Question 9

When duties cannot be segregated,the most important internal control procedure is

Accepted Answer

A)  supervision 
B)  independent verification 
C)  access controls 
D)  accounting records 
A)  supervision 
B)  independent verification 
C)  access controls 
D)  accounting records

Question 10

Use the internal control procedures listed below to complete the statements.
  
-Sequentially numbering all sales invoices is an example of __________________________.

Accepted Answer

The answer of Use the internal control procedures listed below...

Question 11

Explain the problems associated with lack of auditor independence.

Accepted Answer

Auditing firms who are also engaged by t

Question 12

All of the following are factors in the fraud triangle except

Accepted Answer

A)  Ethical behavior of an individual 
B)  Pressure exerted on an individual at home and job related 
C)  Materiality of the assets 
D)  Opportunity to gain access to assets 
A)  Ethical behavior of an individual 
B)  Pressure exerted on an individual at home and job related 
C)  Materiality of the assets 
D)  Opportunity to gain access to assets

Question 13

Distinguish between exposure and risk.

Accepted Answer

Exposure is the absence or wea

Question 14

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Accepted Answer

A) True 
 B)False

Question 15

Why is an Independent Audit Committee important to a company?

Accepted Answer

The Sarbanes-Oxley Act requires all audi

Question 16

Discuss the non accounting services that external auditors are no longer permitted to render to audit clients under SOX legislation.

Accepted Answer

The Act addresses auditor independence b

Question 17

Ethical issues and legal issues are essentially the same.

Accepted Answer

A) True 
 B)False

Question 18

The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in

Accepted Answer

A)  the accounting system 
B)  the control environment 
C)  control procedures 
D)  this is not a weakness 
A)  the accounting system 
B)  the control environment 
C)  control procedures 
D)  this is not a weakness

Question 19

According to common law,there are five conditions that must be present for an act to be deemed fraudulent.Name and explain each.

Accepted Answer

In order for an act to be deemed fraudul

Question 20

What is check tampering?

Accepted Answer

Check tampering involves forging or chan

Internal control system have limitations.These include all of the following except

What are the five conditions necessary for an act to be considered fraudulent?

Contrast management fraud with employee fraud.

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

The external auditor is responsible for establishing and maintaining the internal control system.

A shell company fraud involves

A physical inventory count is an example of a

Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.

When duties cannot be segregated,the most important internal control procedure is

Use the internal control procedures listed below to complete the statements. -Sequentially numbering all sales invoices is an example of __________________________.

Explain the problems associated with lack of auditor independence.

All of the following are factors in the fraud triangle except

Distinguish between exposure and risk.

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Why is an Independent Audit Committee important to a company?

Discuss the non accounting services that external auditors are no longer permitted to render to audit clients under SOX legislation.

Ethical issues and legal issues are essentially the same.

The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in

According to common law,there are five conditions that must be present for an act to be deemed fraudulent.Name and explain each.

What is check tampering?

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

Internal control system have limitations.These include all of the following except

What are the five conditions necessary for an act to be considered fraudulent?

Contrast management fraud with employee fraud.

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

The external auditor is responsible for establishing and maintaining the internal control system.

A shell company fraud involves

A physical inventory count is an example of a

Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.

When duties cannot be segregated,the most important internal control procedure is

Use the internal control procedures listed below to complete the statements. -Sequentially numbering all sales invoices is an example of __________________________.

Explain the problems associated with lack of auditor independence.

All of the following are factors in the fraud triangle except

Distinguish between exposure and risk.

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Why is an Independent Audit Committee important to a company?

Discuss the non accounting services that external auditors are no longer permitted to render to audit clients under SOX legislation.

Ethical issues and legal issues are essentially the same.

The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in

According to common law,there are five conditions that must be present for an act to be deemed fraudulent.Name and explain each.

What is check tampering?

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