Question 1

Describe the three principles that apply to the information and communication process.

Accepted Answer

The following three principles apply to

Question 2

Petty cash is disbursed by the Manuela Luisina in the Cashier's Office.Manuela also maintains records of disbursements,places requests to the Finance Department to replace expended funds,and periodically reconciles the petty cash balance.This represents a(n)________ segregation of duties.

Accepted Answer

A) ideal 
B) effective 
C) ineffective 
D) limited 
A) ideal 
B) effective 
C) ineffective 
D) limited

Question 3

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

Accepted Answer

A) event 
B) activity 
C) process 
D) system 
A) event 
B) activity 
C) process 
D) system

Question 4

According to the COSO Enterprise Risk Management Framework,the risk assessment process incorporates all of the following components except

Accepted Answer

A) reporting potential risks to auditors. 
B) identifying events that could impact the enterprise. 
C) evaluating the impact of potential events on achievement of objectives. 
D) establishing objectives for the enterprise. 
A) reporting potential risks to auditors. 
B) identifying events that could impact the enterprise. 
C) evaluating the impact of potential events on achievement of objectives. 
D) establishing objectives for the enterprise.

Question 5

Which of the following duties could be performed by the same individual without violating segregation of duties controls?

Accepted Answer

A) Approving accounting software change requests and testing production scheduling software changes. 
B) Programming new code for accounting software and testing accounting software upgrades. 
C) Approving software changes and implementing the upgraded software. 
D) Managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices. 
A) Approving accounting software change requests and testing production scheduling software changes. 
B) Programming new code for accounting software and testing accounting software upgrades. 
C) Approving software changes and implementing the upgraded software. 
D) Managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices.

Question 6

Why are most fraud not being reported or prosecuted?

Accepted Answer

Most fraud is not reported or prosecuted

Question 7

Describe the differences between general and specific authorization.

Accepted Answer

Authorizations are often documented by s

Question 8

The purpose of the COSO Enterprise Risk Management framework is

Accepted Answer

A) to improve the organization's risk management process. 
B) to improve the organization's financial reporting process. 
C) to improve the organization's manufacturing process. 
D) to improve the organization's internal audit process. 
A) to improve the organization's risk management process. 
B) to improve the organization's financial reporting process. 
C) to improve the organization's manufacturing process. 
D) to improve the organization's internal audit process.

Question 9

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Lasalle Investment group

Accepted Answer

A) asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process. 
B) did not mention to auditors that the company had experienced material weaknesses in the company's internal control systems during the past year. 
C) selected the company's CEO to chair the audit committee. 
D) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit. 
A) asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process. 
B) did not mention to auditors that the company had experienced material weaknesses in the company's internal control systems during the past year. 
C) selected the company's CEO to chair the audit committee. 
D) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit.

Question 10

The second step of the risk assessment process is generally to

Accepted Answer

A) identify controls to reduce all risk to zero. 
B) estimate the exposure from negative events. 
C) identify the threats that the company currently faces. 
D) estimate the risk probability of negative events occurring. 
A) identify controls to reduce all risk to zero. 
B) estimate the exposure from negative events. 
C) identify the threats that the company currently faces. 
D) estimate the risk probability of negative events occurring.

Question 11

The Director of Information Technology for the city of Tampa,Florida formed a company to sell computer supplies and software.All purchases made on behalf of the City were made from her company.She was later charged with fraud for overcharging the City,but was not convicted by a jury.The control issue in this case arose because the Director had both ________ and ________ duties.

Accepted Answer

A) custody;authorization 
B) custody;recording 
C) recording;authorization 
D) management;custody 
A) custody;authorization 
B) custody;recording 
C) recording;authorization 
D) management;custody

Question 12

As a result of an internal risk assessment,Berryhill Insurance decided it was no longer profitable to provide flood insurance in the southern states.Berryhill apparently chose to ________ the risk of paying flood claims in the southern states.

Accepted Answer

A) reduce 
B) share 
C) avoid 
D) accept 
A) reduce 
B) share 
C) avoid 
D) accept

Question 13

Explain how a company could be the victim of fraud,even if ideal segregation of duties is enforced.

Accepted Answer

When a system effectively incorporates a

Question 14

The COBIT5 framework primarily relates to

Accepted Answer

A) best practices and effective governance and management of private companies. 
B) best practices and effective governance and management of public companies. 
C) best practices and effective governance and management of information technology. 
D) best practices and effective governance and management of organizational assets. 
A) best practices and effective governance and management of private companies. 
B) best practices and effective governance and management of public companies. 
C) best practices and effective governance and management of information technology. 
D) best practices and effective governance and management of organizational assets.

Question 15

According to the ERM model,________ help to ensure the accuracy,completeness and reliability of internal and external company reports.

Accepted Answer

A) compliance objectives 
B) operations objectives 
C) reporting objectives 
D) strategic objectives 
A) compliance objectives 
B) operations objectives 
C) reporting objectives 
D) strategic objectives

Question 16

SOX suggested the fraud hotline as a mechanism for employees to report fraud and abuse.

Accepted Answer

A) True 
 B)False

Question 17

Describe the four ways that management can use to respond to risk.Provide an example for each of them.

Accepted Answer

Management can respond to risk in one of

Question 18

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 find ways to help her staff to better understand the company's vision and core values.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 19

Which of the following is a control related to design and use of documents and records?

Accepted Answer

A) Locking blank checks in a drawer or safe. 
B) Sequentially prenumbering sales invoices. 
C) Reconciling the bank statement to the general ledger. 
D) Comparing physical inventory counts with perpetual inventory records. 
A) Locking blank checks in a drawer or safe. 
B) Sequentially prenumbering sales invoices. 
C) Reconciling the bank statement to the general ledger. 
D) Comparing physical inventory counts with perpetual inventory records.

Question 20

Describe what is an event using the COSO definition and provide an example.

Accepted Answer

COSO defines an event as "an incident or

Describe the three principles that apply to the information and communication process.

Petty cash is disbursed by the Manuela Luisina in the Cashier's Office.Manuela also maintains records of disbursements,places requests to the Finance Department to replace expended funds,and periodically reconciles the petty cash balance.This represents a(n)________ segregation of duties.

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

According to the COSO Enterprise Risk Management Framework,the risk assessment process incorporates all of the following components except

Which of the following duties could be performed by the same individual without violating segregation of duties controls?

Why are most fraud not being reported or prosecuted?

Describe the differences between general and specific authorization.

The purpose of the COSO Enterprise Risk Management framework is

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Lasalle Investment group

The second step of the risk assessment process is generally to

As a result of an internal risk assessment,Berryhill Insurance decided it was no longer profitable to provide flood insurance in the southern states.Berryhill apparently chose to ________ the risk of paying flood claims in the southern states.

Explain how a company could be the victim of fraud,even if ideal segregation of duties is enforced.

The COBIT5 framework primarily relates to

According to the ERM model,________ help to ensure the accuracy,completeness and reliability of internal and external company reports.

SOX suggested the fraud hotline as a mechanism for employees to report fraud and abuse.

Describe the four ways that management can use to respond to risk.Provide an example for each of them.

Which of the following is a control related to design and use of documents and records?

Describe what is an event using the COSO definition and provide an example.

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

Describe the three principles that apply to the information and communication process.

Petty cash is disbursed by the Manuela Luisina in the Cashier's Office.Manuela also maintains records of disbursements,places requests to the Finance Department to replace expended funds,and periodically reconciles the petty cash balance.This represents a(n)________ segregation of duties.

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

According to the COSO Enterprise Risk Management Framework,the risk assessment process incorporates all of the following components except

Which of the following duties could be performed by the same individual without violating segregation of duties controls?

Why are most fraud not being reported or prosecuted?

Describe the differences between general and specific authorization.

The purpose of the COSO Enterprise Risk Management framework is

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Lasalle Investment group

The second step of the risk assessment process is generally to

As a result of an internal risk assessment,Berryhill Insurance decided it was no longer profitable to provide flood insurance in the southern states.Berryhill apparently chose to ________ the risk of paying flood claims in the southern states.

Explain how a company could be the victim of fraud,even if ideal segregation of duties is enforced.

The COBIT5 framework primarily relates to

According to the ERM model,________ help to ensure the accuracy,completeness and reliability of internal and external company reports.

SOX suggested the fraud hotline as a mechanism for employees to report fraud and abuse.

Describe the four ways that management can use to respond to risk.Provide an example for each of them.

Which of the following is a control related to design and use of documents and records?

Describe what is an event using the COSO definition and provide an example.

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