Question 1

Identify the preventive control below.

Accepted Answer

A)  reconciling the bank statement to the cash control account 
B)  approving customer credit prior to approving a sales order 
C)  maintaining frequent backup records to prevent loss of data 
D)  counting inventory on hand and comparing counts to the perpetual inventory records 
A)  reconciling the bank statement to the cash control account 
B)  approving customer credit prior to approving a sales order 
C)  maintaining frequent backup records to prevent loss of data 
D)  counting inventory on hand and comparing counts to the perpetual inventory records

Question 2

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

Accepted Answer

A)  periodically conduct software audits 
B)  update the operating system frequently 
C)  buy software from legitimate suppliers 
D)  adopt cloud operating platforms 
A)  periodically conduct software audits 
B)  update the operating system frequently 
C)  buy software from legitimate suppliers 
D)  adopt cloud operating platforms

Question 3

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 4

Irene Pacifica was relaxing after work with a colleague at a local watering hole.Well into her second martini,she began expressing her feelings about her company's budgeting practices.It seems that as a result of controls put in place by the company,her ability to creatively manage his department's activities have been curtailed.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 5

Reducing management layers,creating self-directed work teams,and emphasizing continuous improvement 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 6

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 $650,000.Insurance with a $50,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.What is the expected loss with insurance?

Accepted Answer

A)  $50 
B)  $650 
C)  $50,000 
D)  $650,000 
A)  $50 
B)  $650 
C)  $50,000 
D)  $650,000

Question 7

Explain why the Foreign Corrupt Practices Act was important to accountants.

Accepted Answer

The act is important to accountants beca

Question 8

How many principles are there in the 2013 updated COSO - Internal Control Framework?

Accepted Answer

A)  5 
B)  8 
C)  17 
D)  21 
A)  5 
B)  8 
C)  17 
D)  21

Question 9

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 10

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 $650,000.Insurance with a $50,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.What is the impact of this risk without insurance?

Accepted Answer

A)  $50 
B)  $650 
C)  $50,000 
D)  $650,000 
A)  $50 
B)  $650 
C)  $50,000 
D)  $650,000

Question 11

According to the ERM,________ 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 12

Discuss the internal environment and identify the elements that comprise the internal environment.

Accepted Answer

The internal environment embraces indivi

Question 13

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 14

Personnel policies such as background checks,mandatory vacations,and rotation of duties tend to deter

Accepted Answer

A)  unintentional errors. 
B)  employee fraud or embezzlement. 
C)  fraud by outsiders. 
D)  disgruntled employees. 
A)  unintentional errors. 
B)  employee fraud or embezzlement. 
C)  fraud by outsiders. 
D)  disgruntled employees.

Question 15

Which of the below is not a component of the COSO ERM?

Accepted Answer

A)  monitoring 
B)  control environment 
C)  risk assessment 
D)  compliance with federal, state, or local laws 
A)  monitoring 
B)  control environment 
C)  risk assessment 
D)  compliance with federal, state, or local laws

Question 16

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware

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

Question 17

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 18

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 $650,000.Insurance with a $50,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.Based on cost-benefit analysis,what is the most that the business should pay for the insurance?

Accepted Answer

A)  $50 
B)  $500 
C)  $600 
D)  $650 
A)  $50 
B)  $500 
C)  $600 
D)  $650

Question 19

How is expected loss calculated when performing risk assessment?

Accepted Answer

A)  impact times expected loss 
B)  impact times likelihood 
C)  inherent risk times likelihood 
D)  residual risk times likelihood 
A)  impact times expected loss 
B)  impact times likelihood 
C)  inherent risk times likelihood 
D)  residual risk times likelihood

Question 20

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.

Identify the preventive control below.

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

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

Reducing management layers,creating self-directed work teams,and emphasizing continuous improvement are all related to which aspect of internal environment?

Explain why the Foreign Corrupt Practices Act was important to accountants.

How many principles are there in the 2013 updated COSO - Internal Control Framework?

The COBIT5 framework primarily relates to

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

Discuss the internal environment and identify the elements that comprise the internal environment.

Which type of audits can detect fraud and errors?

Personnel policies such as background checks,mandatory vacations,and rotation of duties tend to deter

Which of the below is not a component of the COSO ERM?

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware

How is expected loss calculated when performing risk assessment?

The audit committee of the board of directors

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

Identify the preventive control below.

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

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

Reducing management layers,creating self-directed work teams,and emphasizing continuous improvement are all related to which aspect of internal environment?

Explain why the Foreign Corrupt Practices Act was important to accountants.

How many principles are there in the 2013 updated COSO - Internal Control Framework?

The COBIT5 framework primarily relates to

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

Discuss the internal environment and identify the elements that comprise the internal environment.

Which type of audits can detect fraud and errors?

Personnel policies such as background checks,mandatory vacations,and rotation of duties tend to deter

Which of the below is not a component of the COSO ERM?

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware

How is expected loss calculated when performing risk assessment?

The audit committee of the board of directors

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