Question 1

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 information systems development 
D)  the creation of the Public Company Accounting Oversight Board 
A)  new roles for audit committees 
B)  new rules for auditors and management 
C)  new rules for information systems development 
D)  the creation of the Public Company Accounting Oversight Board C

Question 2

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 C

Question 3

Explain why management's philosophy and operating style are considered to be the most important element of the internal environment.

Accepted Answer

Management truly sets the tone for the control environment of a business.If top management takes good control seriously and makes this known to everyone in the organization,then employees down the line will tend to do likewise.Management's attitude toward risk taking and the assessment of risk before acting are indications.Willingness to manipulate performance measures or to encourage employees to do likewise is another indication of attitude.Finally,pressure on subordinates to achieve certain results regardless of the methods used can be a very persuasive indicator of problems.Management concerned about control will assess risk and act prudently,manipulation of performance measures will not be tolerated,and ethical behavior will be instilled in and required of employees.

Question 4

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 5

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 6

Nolwenn Limited has been diligent in ensuring that their operations meet modern control standards.Recently,they have extended their control compliance system by incorporating policies and procedures that require the specification of company objectives,uncertainties associated with objectives,and contingency plans.Nolwenn Limited is transitioning from a ________ to a ________ control framework.

Accepted Answer

A)  COSO-Integrated Framework; COBIT 
B)  COBIT; COSO-Integrated Framework 
C)  COBIT; COSO-ERM 
D)  COSO-Integrated Framework; COSO-ERM 
E)  COSO-ERM; COBIT 
A)  COSO-Integrated Framework; COBIT 
B)  COBIT; COSO-Integrated Framework 
C)  COBIT; COSO-ERM 
D)  COSO-Integrated Framework; COSO-ERM 
E)  COSO-ERM; COBIT

Question 7

Which of the following is not a basic principle of the COSO ERM framework?

Accepted Answer

A)  Companies are formed to create value for society. 
B)  Management must decide how much uncertainty it will accept to create value. 
C)  Uncertainty results in risk. 
D)  Uncertainty results in opportunity. 
A)  Companies are formed to create value for society. 
B)  Management must decide how much uncertainty it will accept to create value. 
C)  Uncertainty results in risk. 
D)  Uncertainty results in opportunity.

Question 8

Hiring decisions at Maarja's Razors are made by Maimu Maarja,the Director of Human Resources.Pay rates are approved by the Vice President for Operations.At the end of each pay period,supervisors submit time cards to Kasheena,who prepares paycheck requisitions.Paychecks are then distributed through the company's mail room.This represents a(n)________ segregation of duties.

Accepted Answer

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

Question 9

A store policy that allows retail clerks to process sales returns for $500 or less,with a receipt dated within the past 30 days,is an example of

Accepted Answer

A)  general authorization. 
B)  specific authorization. 
C)  special authorization. 
D)  generic authorization. 
A)  general authorization. 
B)  specific authorization. 
C)  special authorization. 
D)  generic authorization.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of the five principles of COBIT5?

Accepted Answer

A)  meeting stakeholder needs 
B)  covering the enterprise end-to-end 
C)  enabling a holistic approach 
D)  improving organization efficiency 
A)  meeting stakeholder needs 
B)  covering the enterprise end-to-end 
C)  enabling a holistic approach 
D)  improving organization efficiency

Question 12

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

Accepted Answer

A)  It more efficiently deals with control implementation and documentation issues. 
B)  It more effectively deals with control implementation and documentation issues. 
C)  It provides users with more precise guidance. 
D)  It adds many new examples to clarify the framework concepts. 
A)  It more efficiently deals with control implementation and documentation issues. 
B)  It more effectively deals with control implementation and documentation issues. 
C)  It provides users with more precise guidance. 
D)  It adds many new examples to clarify the framework concepts.

Question 13

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 14

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.In response,you decided to drive 5 miles under the speed limit.You chose to ________ the risk of being injured in an auto accident.

Accepted Answer

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

Question 15

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

Accepted Answer

A)  the external auditor 
B)  appropriate federal, state, or local authorities 
C)  the board of directors 
D)  the audit committee 
A)  the external auditor 
B)  appropriate federal, state, or local authorities 
C)  the board of directors 
D)  the audit committee

Question 16

The definition of the lines of authority and responsibility and the overall framework for planning,directing,and controlling is laid out by the

Accepted Answer

A)  control activities. 
B)  organizational structure. 
C)  budget framework. 
D)  internal environment. 
A)  control activities. 
B)  organizational structure. 
C)  budget framework. 
D)  internal environment.

Question 17

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

Accepted Answer

It is incumbent on management to identif

Question 18

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.Then,ticket stubs collected at the theater entrance are 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.

Question 19

________ objectives help ensure the accuracy,completeness and reliability of internal and external company reports,Applying the ERM framework.

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 20

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

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

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.

Explain why management's philosophy and operating style are considered to be the most important element of the internal environment.

One of the key objectives of segregating duties is to

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

Which of the following is not a basic principle of the COSO ERM framework?

A store policy that allows retail clerks to process sales returns for $500 or less,with a receipt dated within the past 30 days,is an example of

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

Which of the following is not one of the five principles of COBIT5?

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

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.

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.In response,you decided to drive 5 miles under the speed limit.You chose to ________ the risk of being injured in an auto accident.

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

The definition of the lines of authority and responsibility and the overall framework for planning,directing,and controlling is laid out by the

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

________ objectives help ensure the accuracy,completeness and reliability of internal and external company reports,Applying the ERM framework.

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

Accounting Information Systems: an Overview

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

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.

Explain why management's philosophy and operating style are considered to be the most important element of the internal environment.

One of the key objectives of segregating duties is to

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

Which of the following is not a basic principle of the COSO ERM framework?

A store policy that allows retail clerks to process sales returns for $500 or less,with a receipt dated within the past 30 days,is an example of

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

Which of the following is not one of the five principles of COBIT5?

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

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.

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.In response,you decided to drive 5 miles under the speed limit.You chose to ________ the risk of being injured in an auto accident.

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

The definition of the lines of authority and responsibility and the overall framework for planning,directing,and controlling is laid out by the

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

________ objectives help ensure the accuracy,completeness and reliability of internal and external company reports,Applying the ERM framework.

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

Accounting Information Systems: an Overview

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