Question 1

A ________ is created to guide and oversee systems development and acquisition.

Accepted Answer

A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan 
A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan

Question 2

The Sarbanes-Oxley Act (SOX)applies to

Accepted Answer

A)  all companies with gross annual revenues exceeding $500 million. 
B)  publicly traded companies with gross annual revenues exceeding $500 million. 
C)  all private and public companies incorporated in the United States. 
D)  all publicly traded companies. 
A)  all companies with gross annual revenues exceeding $500 million. 
B)  publicly traded companies with gross annual revenues exceeding $500 million. 
C)  all private and public companies incorporated in the United States. 
D)  all publicly traded companies.

Question 3

Which of the following is not an example of something monitored by a responsibility accounting system?

Accepted Answer

A)  budgets 
B)  quotas 
C)  vendor analysis 
D)  quality standards 
A)  budgets 
B)  quotas 
C)  vendor analysis 
D)  quality standards

Question 4

As a result of an internal risk assessment,Allstate Insurance decided it was not profitable to provide hurricane insurance in the state of Florida.Allstate apparently chose to ________ the risk of paying hurricane claims in Florida.

Accepted Answer

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

Question 5

The largest differences between the COSO Integrated Control (IC)framework and the COSO Enterprise Risk Management (ERM)framework is

Accepted Answer

A)  IC is controls-based, while the ERM is risk-based. 
B)  IC is risk-based, while ERM is controls-based. 
C)  IC is required, while ERM is optional. 
D)  IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted accounting principles. 
A)  IC is controls-based, while the ERM is risk-based. 
B)  IC is risk-based, while ERM is controls-based. 
C)  IC is required, while ERM is optional. 
D)  IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted accounting principles.

Question 6

The amount of risk a company is willing to accept in order to achieve its goals and objectives is

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 7

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 8

Duplicate checking of calculations is an example of a ________ control,and procedures to resubmit rejected transactions are an example of a ________ control.

Accepted Answer

A)  corrective; detective 
B)  detective; corrective 
C)  preventive; corrective 
D)  detective; preventive 
A)  corrective; detective 
B)  detective; corrective 
C)  preventive; corrective 
D)  detective; preventive

Question 9

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

Question 10

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

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 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 internal control framework is widely accepted as the authority on internal controls?

Accepted Answer

A)  COBIT 
B)  COSO Integrated Control 
C)  COSO Enterprise Risk Management 
D)  Sarbanes-Oxley Control Framework 
A)  COBIT 
B)  COSO Integrated Control 
C)  COSO Enterprise Risk Management 
D)  Sarbanes-Oxley Control Framework

Question 13

The COSO ERM contains all five of the same COSO-Integrated Framework components.

Accepted Answer

A) True 
 B)False

Question 14

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

Accepted Answer

A)  hiring and firing the external auditors. 
B)  performing tests of the company's internal control structure. 
C)  certifying the accuracy of the company's financial reporting process. 
D)  overseeing day-to-day operations of the internal audit department. 
A)  hiring and firing the external auditors. 
B)  performing tests of the company's internal control structure. 
C)  certifying the accuracy of the company's financial reporting process. 
D)  overseeing day-to-day operations of the internal audit department.

Question 15

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

Accepted Answer

A)  enforcing a written code of conduct 
B)  holding employees accountable for achieving objectives 
C)  restricting access to assets 
D)  avoiding unrealistic expectations 
A)  enforcing a written code of conduct 
B)  holding employees accountable for achieving objectives 
C)  restricting access to assets 
D)  avoiding unrealistic expectations

Question 16

An accounting policy that requires a purchasing manager to sign off on all purchases over $5,000 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 17

Which of the following is not a commonly used technique used to identify potential events?

Accepted Answer

A)  performing internal analysis 
B)  monitoring leading events 
C)  conducting interviews 
D)  none of the above 
A)  performing internal analysis 
B)  monitoring leading events 
C)  conducting interviews 
D)  none of the above

Question 18

A ________ shows how a project will be completed,including tasks and who will perform them as well as a timeline and cost estimates.

Accepted Answer

A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan 
A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan

Question 19

Identify the statement below which is true.

Accepted Answer

A)  Requiring two signatures on checks over $20,000 is an example of segregation of duties. 
B)  Although forensic specialists utilize computers, only people can accurately identify fraud. 
C)  Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. 
D)  Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check. 
A)  Requiring two signatures on checks over $20,000 is an example of segregation of duties. 
B)  Although forensic specialists utilize computers, only people can accurately identify fraud. 
C)  Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. 
D)  Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check.

Question 20

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Accepted Answer

A)  performance evaluation. 
B)  project development plan. 
C)  data processing schedule. 
D)  strategic master plan. 
A)  performance evaluation. 
B)  project development plan. 
C)  data processing schedule. 
D)  strategic master plan.

Exam 7: Control and Accounting Information Systems

A ________ is created to guide and oversee systems development and acquisition.

The Sarbanes-Oxley Act (SOX)applies to

Which of the following is not an example of something monitored by a responsibility accounting system?

As a result of an internal risk assessment,Allstate Insurance decided it was not profitable to provide hurricane insurance in the state of Florida.Allstate apparently chose to ________ the risk of paying hurricane claims in Florida.

The largest differences between the COSO Integrated Control (IC)framework and the COSO Enterprise Risk Management (ERM)framework is

The amount of risk a company is willing to accept in order to achieve its goals and objectives is

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

Duplicate checking of calculations is an example of a ________ control,and procedures to resubmit rejected transactions are an example of a ________ control.

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

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

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 internal control framework is widely accepted as the authority on internal controls?

The COSO ERM contains all five of the same COSO-Integrated Framework components.

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

An accounting policy that requires a purchasing manager to sign off on all purchases over $5,000 is an example of

Which of the following is not a commonly used technique used to identify potential events?

A ________ shows how a project will be completed,including tasks and who will perform them as well as a timeline and cost estimates.

Identify the statement below which is true.

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

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

Duplicate checking of calculations is an example of a control,and procedures to resubmit rejected transactions are an example of a control.