Question 1

Applying the COBIT5 framework,governance is the responsibility of

Accepted Answer

A) internal audit. 
B) external audit. 
C) management. 
D) the board of directors. 
A) internal audit. 
B) external audit. 
C) management. 
D) the board of directors. D

Question 2

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

Accepted Answer

A) Analyzing past financial performance and reporting. 
B) Providing sufficient resources to knowledgeable employees to carry out duties. 
C) Disciplining employees for violations of expected behavior. 
D) Setting realistic targets for long-term performance. 
A) Analyzing past financial performance and reporting. 
B) Providing sufficient resources to knowledgeable employees to carry out duties. 
C) Disciplining employees for violations of expected behavior. 
D) Setting realistic targets for long-term performance. A

Question 3

At a movie theater box office,all tickets are sequentially prenumbered.At the end of each day,the beginning ticket number is subtracted from the ending number to calculate the number of tickets sold.Cash is counted and compared with the number of tickets sold.Which of the following situations does this control detect?

Accepted Answer

A) Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn. ) 
B) A group of kids snuck into the theater through a back door when customers left after a show. 
C) The box office cashier accidentally gives too much change to a customer. 
D) The ticket taker admits his friends without tickets. 
A) Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn. ) 
B) A group of kids snuck into the theater through a back door when customers left after a show. 
C) The box office cashier accidentally gives too much change to a customer. 
D) The ticket taker admits his friends without tickets. C

Question 4

Identify the detective control below.

Accepted Answer

A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Ensuring that the employee who records cash received from customers does not also have access to the cash itself. 
A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Ensuring that the employee who records cash received from customers does not also have access to the cash itself.

Question 5

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

Accepted Answer

A) Updating the inventory subsidiary ledgers and recording purchases in the purchases journal. 
B) Approving a sales return on a customer's account and depositing customers' checks in the bank. 
C) Updating the general ledger and working in the inventory warehouse. 
D) Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal. 
A) Updating the inventory subsidiary ledgers and recording purchases in the purchases journal. 
B) Approving a sales return on a customer's account and depositing customers' checks in the bank. 
C) Updating the general ledger and working in the inventory warehouse. 
D) Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal.

Question 6

A(n)________ helps employees understand management's vision.It communicates company core values and inspires employees to live by those values.

Accepted Answer

A) boundary system 
B) diagnostic control system 
C) interactive control system 
D) belief system 
A) boundary system 
B) diagnostic control system 
C) interactive control system 
D) belief system

Question 7

The principle of obtaining or generating relevant,high-quality information to support internal control belongs to which of the COSO's Internal Control Model's component?

Accepted Answer

A) Control environment. 
B) Risk assessment. 
C) Control activities. 
D) Information and communication. 
A) Control environment. 
B) Risk assessment. 
C) Control activities. 
D) Information and communication.

Question 8

Whitewater Rapids provides canoes to tourists eager to ride Whitewater river's rapids.Management has determined that there is one chance in a thousand of a customer being injured or killed.Settlement of resulting lawsuits has an average cost of $850,000.Insurance with a $100,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.Based on cost-benefit analysis,what is the most that the business should pay for the insurance?

Accepted Answer

A) $100 
B) $500 
C) $750 
D) $850 
A) $100 
B) $500 
C) $750 
D) $850

Question 9

________ is the risk that exists before management takes any steps to mitigate it.

Accepted Answer

A) Inherent risk 
B) Residual risk 
C) Risk appetite 
D) Risk assessment 
A) Inherent risk 
B) Residual risk 
C) Risk appetite 
D) Risk assessment

Question 10

Explain why the Foreign Corrupt Practices Act was important to accountants.

Accepted Answer

The act is important to accountants beca

Question 11

Identify the corrective control below.

Accepted Answer

A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Counting inventory on hand and comparing counts to the perpetual inventory records. 
A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Counting inventory on hand and comparing counts to the perpetual inventory records.

Question 12

Which of the following is not a component of the COSO Enterprise Risk Management Integrated Framework (ERM)?

Accepted Answer

A) Monitoring. 
B) Ethical culture. 
C) Risk assessment. 
D) Control environment. 
A) Monitoring. 
B) Ethical culture. 
C) Risk assessment. 
D) Control environment.

Question 13

One of the key objectives of segregating duties is to

Accepted Answer

A) ensure that no collusion will occur. 
B) achieve an optimal division of labor for efficient operations. 
C) make sure that different people handle different transactions. 
D) make sure that different people handle different parts of the same transaction. 
A) ensure that no collusion will occur. 
B) achieve an optimal division of labor for efficient operations. 
C) make sure that different people handle different transactions. 
D) make sure that different people handle different parts of the same transaction.

Question 14

Describe the five components of the COSO's Internal Control Model.

Accepted Answer

The five components of the COSO's Intern

Question 15

Which type of control prevents,detects,and corrects transaction errors and fraud?

Accepted Answer

A) general 
B) application 
C) detective 
D) preventive 
A) general 
B) application 
C) detective 
D) preventive

Question 16

Identify the most correct statement with regards to an event.

Accepted Answer

A) An event identified by management will occur. 
B) An event identified by management may or may not occur. 
C) An event identified by management may not trigger other events. 
D) It is easy to determine which events are most likely to occur. 
A) An event identified by management will occur. 
B) An event identified by management may or may not occur. 
C) An event identified by management may not trigger other events. 
D) It is easy to determine which events are most likely to occur.

Question 17

Which of the following is the most effective way in uncovering fraud schemes that require ongoing perpetrator's attention?

Accepted Answer

A) Hiring a forensic specialist. 
B) Requiring employees to take mandatory vacations. 
C) Installing security cameras to monitor employees activities. 
D) Implementing a fraud hotline. 
A) Hiring a forensic specialist. 
B) Requiring employees to take mandatory vacations. 
C) Installing security cameras to monitor employees activities. 
D) Implementing a fraud hotline.

Question 18

Whitewater Rapids provides canoes to tourists eager to ride Whitewater river's rapids.Management has determined that there is one chance in a thousand of a customer being injured or killed.Settlement of resulting lawsuits has an average cost of $850,000.Insurance with a $100,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.What is the expected loss without insurance?

Accepted Answer

A) $10 
B) $850 
C) $100,000 
D) $850,000 
A) $10 
B) $850 
C) $100,000 
D) $850,000

Question 19

Using the COSO definition of an event,an event represents uncertainty.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an independent check on performance?

Accepted Answer

A) The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B) Production teams perform quality evaluations of the products that they produce. 
C) The General Manager compares budgeted amounts with expenditure records from all departments. 
D) Petty cash is disbursed by Fred Haynes.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance. 
A) The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B) Production teams perform quality evaluations of the products that they produce. 
C) The General Manager compares budgeted amounts with expenditure records from all departments. 
D) Petty cash is disbursed by Fred Haynes.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance.

Applying the COBIT5 framework,governance is the responsibility of

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

Identify the detective control below.

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

A(n)________ helps employees understand management's vision.It communicates company core values and inspires employees to live by those values.

The principle of obtaining or generating relevant,high-quality information to support internal control belongs to which of the COSO's Internal Control Model's component?

________ is the risk that exists before management takes any steps to mitigate it.

Explain why the Foreign Corrupt Practices Act was important to accountants.

Identify the corrective control below.

Which of the following is not a component of the COSO Enterprise Risk Management Integrated Framework (ERM)?

One of the key objectives of segregating duties is to

Describe the five components of the COSO's Internal Control Model.

Which type of control prevents,detects,and corrects transaction errors and fraud?

Identify the most correct statement with regards to an event.

Which of the following is the most effective way in uncovering fraud schemes that require ongoing perpetrator's attention?

Using the COSO definition of an event,an event represents uncertainty.

Which of the following is an independent check on performance?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 7: Control and Accounting Information Systems

Applying the COBIT5 framework,governance is the responsibility of

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

Identify the detective control below.

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

A(n)________ helps employees understand management's vision.It communicates company core values and inspires employees to live by those values.

The principle of obtaining or generating relevant,high-quality information to support internal control belongs to which of the COSO's Internal Control Model's component?

________ is the risk that exists before management takes any steps to mitigate it.

Explain why the Foreign Corrupt Practices Act was important to accountants.

Identify the corrective control below.

Which of the following is not a component of the COSO Enterprise Risk Management Integrated Framework (ERM)?

One of the key objectives of segregating duties is to

Describe the five components of the COSO's Internal Control Model.

Which type of control prevents,detects,and corrects transaction errors and fraud?

Identify the most correct statement with regards to an event.

Which of the following is the most effective way in uncovering fraud schemes that require ongoing perpetrator's attention?

Using the COSO definition of an event,an event represents uncertainty.

Which of the following is an independent check on performance?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters