Question 1

Which of the following is not a general control?

Accepted Answer

A) Computer performed validation tests of input accuracy. 
B) Equipment failure causes error messages on monitor. 
C) There is a separation of duties between programmer and operators. 
D) There are adequate program run instructions for operating the computer. 
A) Computer performed validation tests of input accuracy. 
B) Equipment failure causes error messages on monitor. 
C) There is a separation of duties between programmer and operators. 
D) There are adequate program run instructions for operating the computer.

Question 2

Which of the following is not an application control?

Accepted Answer

A) reprocessing authorization of sales transactions 
B) reasonableness test for unit selling price of sale 
C) post-processing review of sales transactions by the sales department 
D) logging in to the company's information systems via a password 
A) reprocessing authorization of sales transactions 
B) reasonableness test for unit selling price of sale 
C) post-processing review of sales transactions by the sales department 
D) logging in to the company's information systems via a password

Question 3

Which of the following is not a general control?

Accepted Answer

A) separation of IT duties 
B) systems development 
C) processing controls 
D) hardware controls 
A) separation of IT duties 
B) systems development 
C) processing controls 
D) hardware controls

Question 4

What tools do companies use to limit access to sensitive company data?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 5

Which of the following is an accurate statement regarding the auditor's responsibility for understanding internal control?

Accepted Answer

A) Transaction-related audit objectives typically have no impact on the rights and obligations objectives. 
B) Transaction-related audit objectives typically have a significant impact on the balance-related audit objective of realizable value. 
C) Auditors generally emphasize internal control over account balances rather than classes of transactions. 
D) Auditors and management are both equally concerned about controls that affect the efficiency and effectiveness of company operations. 
A) Transaction-related audit objectives typically have no impact on the rights and obligations objectives. 
B) Transaction-related audit objectives typically have a significant impact on the balance-related audit objective of realizable value. 
C) Auditors generally emphasize internal control over account balances rather than classes of transactions. 
D) Auditors and management are both equally concerned about controls that affect the efficiency and effectiveness of company operations.

Question 6

Firewalls are used to protect from

Accepted Answer

A) erroneous internal handling of data. 
B) insufficient documentation of transactions. 
C) illogical programming commands. 
D) unauthorized external users. 
A) erroneous internal handling of data. 
B) insufficient documentation of transactions. 
C) illogical programming commands. 
D) unauthorized external users.

Question 7

Old and new systems operating simultaneously in all locations is a test approach known as

Accepted Answer

A) pilot testing. 
B) horizontal testing. 
C) integrative testing. 
D) parallel testing. 
A) pilot testing. 
B) horizontal testing. 
C) integrative testing. 
D) parallel testing.

Question 8

Authorizations can be either general or specific.Which of the following is not an example of a general authorization?

Accepted Answer

A) automatic reorder points for raw materials inventory 
B) a sales manager's authorization for a sales return 
C) credit limits for various classes of customers 
D) a sales price list for merchandise 
A) automatic reorder points for raw materials inventory 
B) a sales manager's authorization for a sales return 
C) credit limits for various classes of customers 
D) a sales price list for merchandise

Question 9

When considering internal controls,

Accepted Answer

A) auditors can ignore controls affecting internal management information. 
B) auditors are concerned with the client's internal controls over the safeguarding of assets if they affect the financial statements. 
C) management is responsible for understanding and testing internal control over financial reporting. 
D) companies must use the COSO framework to establish internal controls. 
A) auditors can ignore controls affecting internal management information. 
B) auditors are concerned with the client's internal controls over the safeguarding of assets if they affect the financial statements. 
C) management is responsible for understanding and testing internal control over financial reporting. 
D) companies must use the COSO framework to establish internal controls.

Question 10

Controls specific to IT include all of the following except for

Accepted Answer

A) adequately designed input screens. 
B) pull-down menu lists. 
C) validation tests of input accuracy. 
D) separation of duties. 
A) adequately designed input screens. 
B) pull-down menu lists. 
C) validation tests of input accuracy. 
D) separation of duties.

Question 11

Match between columns
                        Premises: Controls that relate to all aspects of the IT system.
Controls such as proper authorization of documents,check digits,and adequate documentation,designed to assure that the information to be entered into the computer is authorized,complete,and accurate.
Controls that apply to processing of transactions.
The new and old systems operate simultaneously in all locations.
Controls such as review of data for reasonableness,designed to assure that data generated by the computer is valid,accurate,complete,and distributed only to authorized people.
A new system is implemented in one part of the organization while other locations continue to rely on the old system.

Accepted Answer

The Answer of General controls and Parallel testing and Pilot is...

Question 12

An example of a specific authorization is management setting a policy authorizing the ordering of inventory when less than a one-week supply is on hand.

Accepted Answer

A) True 
 B)False

Question 13

Separation of duties is essential in preventing errors and intentional misstatements on the financial statements.List below the four general guidelines.

Accepted Answer

1. separation of custody of the assets f

Question 14

LANs link equipment within a single or small cluster of buildings and are used within a company.

Accepted Answer

A) True 
 B)False

Question 15

With which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?

Accepted Answer

A) efficiency of operations 
B) reliability of financial reporting 
C) effectiveness of operations 
D) compliance with applicable laws and regulations 
A) efficiency of operations 
B) reliability of financial reporting 
C) effectiveness of operations 
D) compliance with applicable laws and regulations

Question 16

From an internal control perspective,what challenges arise when a company outsources computer functions?

Accepted Answer

Management is responsible for the design

Question 17

A control that relates to all parts of the IT system is called a(n)

Accepted Answer

A) general control. 
B) systems control. 
C) universal control. 
D) applications control. 
A) general control. 
B) systems control. 
C) universal control. 
D) applications control.

Question 18

Adequate documents and records is a subcomponent of the control environment.

Accepted Answer

A) True 
 B)False

Question 19

An act of two or more employees to steal assets and cover their theft by misstating the accounting records would be referred to as

Accepted Answer

A) collusion. 
B) a material weakness. 
C) a control deficiency. 
D) a significant deficiency. 
A) collusion. 
B) a material weakness. 
C) a control deficiency. 
D) a significant deficiency.

Question 20

The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on

Accepted Answer

A) the company's board of directors. 
B) the audit committee of the board of directors. 
C) management. 
D) the CFO and the independent auditors. 
A) the company's board of directors. 
B) the audit committee of the board of directors. 
C) management. 
D) the CFO and the independent auditors.

Exam 11: Internal Control and Coso Framework

Which of the following is not a general control?

Which of the following is not an application control?

Which of the following is not a general control?

What tools do companies use to limit access to sensitive company data?

Which of the following is an accurate statement regarding the auditor's responsibility for understanding internal control?

Firewalls are used to protect from

Old and new systems operating simultaneously in all locations is a test approach known as

Authorizations can be either general or specific.Which of the following is not an example of a general authorization?

When considering internal controls,

Controls specific to IT include all of the following except for

An example of a specific authorization is management setting a policy authorizing the ordering of inventory when less than a one-week supply is on hand.

Separation of duties is essential in preventing errors and intentional misstatements on the financial statements.List below the four general guidelines.

LANs link equipment within a single or small cluster of buildings and are used within a company.

With which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?

From an internal control perspective,what challenges arise when a company outsources computer functions?

A control that relates to all parts of the IT system is called a(n)

Adequate documents and records is a subcomponent of the control environment.

An act of two or more employees to steal assets and cover their theft by misstating the accounting records would be referred to as

The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters