Question 1

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

Accepted Answer

A) The Sarbanes-Oxley Act. 
B) New accounting rules. 
C) Audit fee increases. 
D) Pressure from boards of directors. 
A) The Sarbanes-Oxley Act. 
B) New accounting rules. 
C) Audit fee increases. 
D) Pressure from boards of directors.

Question 2

The audit committee of the board of directors

Accepted Answer

A) is usually chaired by the CFO. 
B) conducts testing of controls on behalf of the external auditors. 
C) provides a check and balance on management. 
D) does all of the above. 
A) is usually chaired by the CFO. 
B) conducts testing of controls on behalf of the external auditors. 
C) provides a check and balance on management. 
D) does all of the above.

Question 3

Which type of audits can detect fraud and errors?

Accepted Answer

A) External audits. 
B) Internal audits. 
C) Network security audits. 
D) all of the above 
A) External audits. 
B) Internal audits. 
C) Network security audits. 
D) all of the above

Question 4

Melissa is a staff accountant for Quality Paper Company,which has strict corporate policies on appropriate use of corporate resources.The first week of March,Melissa saw Kent,the branch manager putting printer paper and toner into his briefcase on his way out the door.This situation best reflects a weakness in which aspect of internal environment,as discussed in the COSO Enterprise Risk Management Framework?

Accepted Answer

A) Integrity and ethical values. 
B) Risk management philosophy. 
C) Restrict access to assets. 
D) Methods of assigning authority and responsibility. 
A) Integrity and ethical values. 
B) Risk management philosophy. 
C) Restrict access to assets. 
D) Methods of assigning authority and responsibility.

Question 5

Maintaining backup copies of files,correcting data entry errors,and resubmitting transactions for subsequent processing are examples of what type of control?

Accepted Answer

A) Preventive control 
B) Detective control 
C) Corrective control 
D) Authorization control 
A) Preventive control 
B) Detective control 
C) Corrective control 
D) Authorization control

Question 6

Discuss the weaknesses in COSO's internal control framework that led to the development of the COSO Enterprise Risk Management framework.

Accepted Answer

COSO's internal control framework 1.had

Question 7

The primary purpose of the Foreign Corrupt Practices Act of 1977 was

Accepted Answer

A) to require corporations to maintain a good system of internal control. 
B) to prevent the bribery of foreign officials by American companies. 
C) to require the reporting of any material fraud by a business. 
D) All of the above are required by the act. 
A) to require corporations to maintain a good system of internal control. 
B) to prevent the bribery of foreign officials by American companies. 
C) to require the reporting of any material fraud by a business. 
D) All of the above are required by the act.

Question 8

The COSO Enterprise Risk Management Integrated Framework stresses that

Accepted Answer

A) risk management activities are an inherent part of all business operations and should be considered during strategy setting. 
B) effective risk management is comprised of just three interrelated components;internal environment,risk assessment,and control activities. 
C) risk management is the sole responsibility of top management. 
D) risk management policies,if enforced,guarantee achievement of corporate objectives. 
A) risk management activities are an inherent part of all business operations and should be considered during strategy setting. 
B) effective risk management is comprised of just three interrelated components;internal environment,risk assessment,and control activities. 
C) risk management is the sole responsibility of top management. 
D) risk management policies,if enforced,guarantee achievement of corporate objectives.

Question 9

Effective segregation of accounting duties is achieved when which of the following functions are separated?

Accepted Answer

A) Authorization,recording,and custody. 
B) Recording,monitoring,and information system. 
C) Authorization,monitoring,and risk assessment. 
D) Recording,risk assessment,and control procedures. 
A) Authorization,recording,and custody. 
B) Recording,monitoring,and information system. 
C) Authorization,monitoring,and risk assessment. 
D) Recording,risk assessment,and control procedures.

Question 10

What are some of the ways to assign authority and responsibility within an organization?

Accepted Answer

It is incumbent on management to identif

Question 11

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated,data are captured and processed,and information is reported?

Accepted Answer

A) Information and communication. 
B) Internal environment. 
C) Event identification. 
D) Objective setting. 
A) Information and communication. 
B) Internal environment. 
C) Event identification. 
D) Objective setting.

Question 12

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

Accepted Answer

A) New roles for audit committees 
B) New rules for auditors and management 
C) New rules for internal control requirements 
D) New rules for information systems development 
A) New roles for audit committees 
B) New rules for auditors and management 
C) New rules for internal control requirements 
D) New rules for information systems development

Question 13

The SEC,PCAOB,and FASB are best described as external influences that directly affect an organization's

Accepted Answer

A) hiring practices. 
B) philosophy and operating style. 
C) internal environment. 
D) methods of assigning authority. 
A) hiring practices. 
B) philosophy and operating style. 
C) internal environment. 
D) methods of assigning authority.

Question 14

A(n)________ helps employees act ethically.

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 15

Lauren Smith was relaxing after work with a colleague at a local bar.After a few drinks,she began expressing her feelings about her company's new control initiatives.It seems that as a result of controls put in place by the company,she now has to be more creative in solving problems and avoiding actions that might have a negative effect on her company's reputation.The level of control that the company is using in this case is a(n)

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 16

Which type of control is associated with making sure an organization's control environment is stable?

Accepted Answer

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

Question 17

Helping employees understand entity goals and objectives and then holding them accountable for achieving them are all related to which aspect of internal environment?

Accepted Answer

A) Organizational structure. 
B) Methods of assigning authority and responsibility. 
C) Management philosophy and operating style. 
D) Commitment to competence. 
A) Organizational structure. 
B) Methods of assigning authority and responsibility. 
C) Management philosophy and operating style. 
D) Commitment to competence.

Question 18

Which of the following is a commonly used technique to identify potential events?

Accepted Answer

A) Using data mining. 
B) Browsing news articles. 
C) Hiring a business process consultant. 
D) None of the above. 
A) Using data mining. 
B) Browsing news articles. 
C) Hiring a business process consultant. 
D) None of the above.

Question 19

A(n)________ measures company progress by comparing actual performance to planned performance.

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 20

Preventive controls are usually superior to detective controls

Accepted Answer

A) True 
 B)False

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

The audit committee of the board of directors

Which type of audits can detect fraud and errors?

Maintaining backup copies of files,correcting data entry errors,and resubmitting transactions for subsequent processing are examples of what type of control?

Discuss the weaknesses in COSO's internal control framework that led to the development of the COSO Enterprise Risk Management framework.

The primary purpose of the Foreign Corrupt Practices Act of 1977 was

The COSO Enterprise Risk Management Integrated Framework stresses that

Effective segregation of accounting duties is achieved when which of the following functions are separated?

What are some of the ways to assign authority and responsibility within an organization?

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated,data are captured and processed,and information is reported?

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

The SEC,PCAOB,and FASB are best described as external influences that directly affect an organization's

A(n)________ helps employees act ethically.

Which type of control is associated with making sure an organization's control environment is stable?

Helping employees understand entity goals and objectives and then holding them accountable for achieving them are all related to which aspect of internal environment?

Which of the following is a commonly used technique to identify potential events?

A(n)________ measures company progress by comparing actual performance to planned performance.

Preventive controls are usually superior to detective controls

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

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

The audit committee of the board of directors

Which type of audits can detect fraud and errors?

Maintaining backup copies of files,correcting data entry errors,and resubmitting transactions for subsequent processing are examples of what type of control?

Discuss the weaknesses in COSO's internal control framework that led to the development of the COSO Enterprise Risk Management framework.

The primary purpose of the Foreign Corrupt Practices Act of 1977 was

The COSO Enterprise Risk Management Integrated Framework stresses that

Effective segregation of accounting duties is achieved when which of the following functions are separated?

What are some of the ways to assign authority and responsibility within an organization?

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated,data are captured and processed,and information is reported?

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

The SEC,PCAOB,and FASB are best described as external influences that directly affect an organization's

A(n)________ helps employees act ethically.

Which type of control is associated with making sure an organization's control environment is stable?

Helping employees understand entity goals and objectives and then holding them accountable for achieving them are all related to which aspect of internal environment?

Which of the following is a commonly used technique to identify potential events?

A(n)________ measures company progress by comparing actual performance to planned performance.

Preventive controls are usually superior to detective controls

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