Question 1

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 2

Personnel responsible for performing internal verification procedures must be independent of those originally responsible for preparing the data.

Accepted Answer

A) True 
 B)False

Question 3

In IT systems, if general controls are effective, it increases the auditor's ability to rely on application controls to reduce control risk.

Accepted Answer

A) True 
 B)False

Question 4

Programmers should only be allowed to work with test copies of programs and data.

Accepted Answer

A) True 
 B)False

Question 5

Output controls need to be designed for which of the following data integrity objectives?

Accepted Answer

A)  detecting errors after the processing is completed 
B)  preventing errors before the processing is completed 
C)  detecting errors in the general ledger adjustment process 
D)  preventing errors in separation of duties for IT personnel 
A)  detecting errors after the processing is completed 
B)  preventing errors before the processing is completed 
C)  detecting errors in the general ledger adjustment process 
D)  preventing errors in separation of duties for IT personnel

Question 6

Which of the following is not one of the subcomponents of the control environment?

Accepted Answer

A)  management's philosophy and operating style 
B)  organizational structure 
C)  adequate separation of duties 
D)  commitment to competence 
A)  management's philosophy and operating style 
B)  organizational structure 
C)  adequate separation of duties 
D)  commitment to competence

Question 7

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

Accepted Answer

Management is responsible for the design

Question 8

Parallel testing can be used in combination with pilot testing to test new systems.

Accepted Answer

A) True 
 B)False

Question 9

An example of a physical control is

Accepted Answer

A)  a hash total. 
B)  a parallel test. 
C)  the matching of employee fingerprints to a database before access to the system is allowed. 
D)  the use of backup generators to prevent data loss during power outages. 
A)  a hash total. 
B)  a parallel test. 
C)  the matching of employee fingerprints to a database before access to the system is allowed. 
D)  the use of backup generators to prevent data loss during power outages.

Question 10

Internal controls are not designed to provide reasonable assurance that

Accepted Answer

A)  all frauds will be detected. 
B)  transactions are executed in accordance with management's authorization. 
C)  the company's resources are used efficiently and effectively. 
D)  company personnel comply with applicable rules and regulations. 
A)  all frauds will be detected. 
B)  transactions are executed in accordance with management's authorization. 
C)  the company's resources are used efficiently and effectively. 
D)  company personnel comply with applicable rules and regulations.

Question 11

Even without an effective control environment, it is likely that the other four components of the COSO framework can result in effective internal controls.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Companies using e-commerce systems to transact business electronically do not need to be concerned about how their e-commerce partners manage IT systems risks.

Accepted Answer

A) True 
 B)False

Question 14

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 15

If an auditor wishes to rely on the work of internal auditors (IA), the auditor must obtain satisfactory evidence related to the IA's competence, integrity, and objectivity.

Accepted Answer

A) True 
 B)False

Question 16

A database management system

Accepted Answer

A)  allows clients to create databases that include information that can be shared across multiple applications. 
B)  stores data on different files for different purposes, but always knows where they are and how to retrieve them. 
C)  allows quick retrieval of data, but at a cost of inefficient use of file space. 
D)  allows quick retrieval of data, but it needs to update files continually. 
A)  allows clients to create databases that include information that can be shared across multiple applications. 
B)  stores data on different files for different purposes, but always knows where they are and how to retrieve them. 
C)  allows quick retrieval of data, but at a cost of inefficient use of file space. 
D)  allows quick retrieval of data, but it needs to update files continually.

Question 17

Which of the following best explains the relationship between general controls and application controls?

Accepted Answer

A)  Application controls are effective even if general controls are extremely weak. 
B)  Application controls are likely to be effective only when general controls are effective. 
C)  General controls have no impact on application controls. 
D)  None of the above. 
A)  Application controls are effective even if general controls are extremely weak. 
B)  Application controls are likely to be effective only when general controls are effective. 
C)  General controls have no impact on application controls. 
D)  None of the above.

Question 18

Control activities are a subcomponent of the information and communication component of internal control.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following factors may increase risks to an organization?

Accepted Answer

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

Question 20

Controls which are built in by the manufacturer to detect equipment failure are called

Accepted Answer

A)  input controls. 
B)  data integrity controls. 
C)  hardware controls. 
D)  manufacturer's controls. 
A)  input controls. 
B)  data integrity controls. 
C)  hardware controls. 
D)  manufacturer's controls.

Exam 11: Internal Control and Coso Framework

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

Personnel responsible for performing internal verification procedures must be independent of those originally responsible for preparing the data.

In IT systems, if general controls are effective, it increases the auditor's ability to rely on application controls to reduce control risk.

Programmers should only be allowed to work with test copies of programs and data.

Output controls need to be designed for which of the following data integrity objectives?

Which of the following is not one of the subcomponents of the control environment?

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

Parallel testing can be used in combination with pilot testing to test new systems.

An example of a physical control is

Internal controls are not designed to provide reasonable assurance that

Even without an effective control environment, it is likely that the other four components of the COSO framework can result in effective internal controls.

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

Companies using e-commerce systems to transact business electronically do not need to be concerned about how their e-commerce partners manage IT systems risks.

Which of the following is not a general control?

If an auditor wishes to rely on the work of internal auditors (IA), the auditor must obtain satisfactory evidence related to the IA's competence, integrity, and objectivity.

A database management system

Which of the following best explains the relationship between general controls and application controls?

Control activities are a subcomponent of the information and communication component of internal control.

Which of the following factors may increase risks to an organization?

Controls which are built in by the manufacturer to detect equipment failure are called

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