Question 1

Internal controls are often segregated into

Accepted Answer

A) detective controls and preventive controls. 
B) general controls and application controls. 
C) process controls and general controls. 
D) system controls and application controls. 
A) detective controls and preventive controls. 
B) general controls and application controls. 
C) process controls and general controls. 
D) system controls and application controls.

Question 2

According to the ERM model,________ help to deal with the effectiveness and efficiency of company operations,such as performance and profitability goals.

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 3

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 4

Which of the following is not a key method of monitoring performance?

Accepted Answer

A) Performing internal control evaluation. 
B) Implementing a benefit incentive plan. 
C) Implementing effective supervision. 
D) Implementing a whistleblower hotline. 
A) Performing internal control evaluation. 
B) Implementing a benefit incentive plan. 
C) Implementing effective supervision. 
D) Implementing a whistleblower hotline.

Question 5

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 6

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

Accepted Answer

A) A mail room employee steals a check received from a customer and destroys the documentation. 
B) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods. 
C) An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car. 
D) A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards. 
A) A mail room employee steals a check received from a customer and destroys the documentation. 
B) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods. 
C) An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car. 
D) A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards.

Question 7

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 8

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 9

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 10

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

Accepted Answer

COSO defines an event as "an incident or

Question 11

Describe the reasons organizations have not adequately protected data.

Accepted Answer

The reasons organizations have not adequ

Question 12

A neural network is a software program that has

Accepted Answer

A) the ability to read text. 
B) the ability to learn. 
C) the capability to extract information from an individual's brain. 
D) the capability to inject information into an individual's brain. 
A) the ability to read text. 
B) the ability to learn. 
C) the capability to extract information from an individual's brain. 
D) the capability to inject information into an individual's brain.

Question 13

According to the ERM model,________ help to align high level goals with the company's mission.

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 14

Which of the following measures can protect a company from AIS threats?

Accepted Answer

A) Take a proactive approach to eliminate threats. 
B) Detect threats that do occur. 
C) Correct and recover from threats that do occur. 
D) All of the above are proper measures for the accountant to take. 
A) Take a proactive approach to eliminate threats. 
B) Detect threats that do occur. 
C) Correct and recover from threats that do occur. 
D) All of the above are proper measures for the accountant to take.

Question 15

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 16

Upon acquiring a new computer operating system,management at Berryhill worried that computer virus might cripple the company's operation.Despite the concern,management did not think that the risk was high enough to justify the purchase of an anti-virus software.Berryhill chose to ________ the risk of being crippled by computer virus.

Accepted Answer

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

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

Explain how a company could safeguard its assets,records,and data.

Accepted Answer

A company can safeguard its assets,recor

Question 19

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 20

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

Internal controls are often segregated into

According to the ERM model,________ help to deal with the effectiveness and efficiency of company operations,such as performance and profitability goals.

Which of the following is not a key method of monitoring performance?

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

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

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

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

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

Describe the reasons organizations have not adequately protected data.

A neural network is a software program that has

According to the ERM model,________ help to align high level goals with the company's mission.

Which of the following measures can protect a company from AIS threats?

Which type of audits can detect fraud and errors?

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

Explain how a company could safeguard its assets,records,and data.

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

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

Internal controls are often segregated into

According to the ERM model,________ help to deal with the effectiveness and efficiency of company operations,such as performance and profitability goals.

Which of the following is not a key method of monitoring performance?

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

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

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

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

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

Describe the reasons organizations have not adequately protected data.

A neural network is a software program that has

According to the ERM model,________ help to align high level goals with the company's mission.

Which of the following measures can protect a company from AIS threats?

Which type of audits can detect fraud and errors?

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

Explain how a company could safeguard its assets,records,and data.

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

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