Question 1

Identify the most correct statement with regards to an event.

Accepted Answer

A)  An event identified by management will occur. 
B)  An event identified by management may or may not occur. 
C)  An event identified by management may not trigger other events. 
D)  It is easy to determine which events are most likely to occur. 
A)  An event identified by management will occur. 
B)  An event identified by management may or may not occur. 
C)  An event identified by management may not trigger other events. 
D)  It is easy to determine which events are most likely to occur.

Question 2

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

Accepted Answer

A)  updating the inventory subsidiary ledgers and recording purchases in the purchases journal 
B)  approving a sales return on a customer's account and depositing customers' checks in the bank 
C)  updating the general ledger and working in the inventory warehouse 
D)  entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal 
A)  updating the inventory subsidiary ledgers and recording purchases in the purchases journal 
B)  approving a sales return on a customer's account and depositing customers' checks in the bank 
C)  updating the general ledger and working in the inventory warehouse 
D)  entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal

Question 3

Which type of control prevents,detects,and corrects transaction errors and fraud?

Accepted Answer

A)  general 
B)  application 
C)  detective 
D)  preventive 
A)  general 
B)  application 
C)  detective 
D)  preventive

Question 4

Why did COSO develop the Enterprise Risk Management framework?

Accepted Answer

A)  to improve the audit process 
B)  to improve the risk management process 
C)  to improve the financial reporting process 
D)  to improve the manufacturing process 
A)  to improve the audit process 
B)  to improve the risk management process 
C)  to improve the financial reporting process 
D)  to improve the manufacturing process

Question 5

Which type of audit assesses employee compliance with management policies and procedures?

Accepted Answer

A)  external audit 
B)  internal audit 
C)  network security audit 
D)  all of the above 
A)  external audit 
B)  internal audit 
C)  network security audit 
D)  all of the above

Question 6

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 7

The COSO Enterprise Risk Management Integrated Framework stresses that

Accepted Answer

A)  risk management activities are an inherent part of all business operations and should be considered during strategy setting. 
B)  effective risk management is comprised of just three interrelated components; internal environment, risk assessment, and control activities. 
C)  risk management is the sole responsibility of top management. 
D)  risk management policies, if enforced, guarantee achievement of corporate objectives. 
A)  risk management activities are an inherent part of all business operations and should be considered during strategy setting. 
B)  effective risk management is comprised of just three interrelated components; internal environment, risk assessment, and control activities. 
C)  risk management is the sole responsibility of top management. 
D)  risk management policies, if enforced, guarantee achievement of corporate objectives.

Question 8

Why are threats to accounting information systems increasing?

Accepted Answer

A)  Many companies do not realize that data security is crucial to their survival. 
B)  LANs and client/server systems are easier to control than centralized, mainframe systems. 
C)  Many companies believe that protecting information is a strategic requirement. 
D)  Computer control problems are often overestimated and overly emphasized by management. 
A)  Many companies do not realize that data security is crucial to their survival. 
B)  LANs and client/server systems are easier to control than centralized, mainframe systems. 
C)  Many companies believe that protecting information is a strategic requirement. 
D)  Computer control problems are often overestimated and overly emphasized by management.

Question 9

Rauol is a receptionist for The South American Paper Company,which has strict corporate policies on appropriate use of corporate resources.The first week of March,Rauol saw Jim (the branch manager)putting printer paper and toner into his briefcase on his way out the door.This situation best reflects a weakness in which aspect of internal environment,as discussed in the COSO Enterprise Risk Management Framework?

Accepted Answer

A)  integrity and ethical values 
B)  risk management philosophy 
C)  restrict access to assets 
D)  methods of assigning authority and responsibility 
A)  integrity and ethical values 
B)  risk management philosophy 
C)  restrict access to assets 
D)  methods of assigning authority and responsibility

Question 10

Describe the differences between general and specific authorization.

Accepted Answer

Authorizations are often documented by s

Question 11

________ is not a risk responses identified in the COSO Enterprise Risk Management Framework.

Accepted Answer

A)  Acceptance 
B)  Avoidance 
C)  Monitoring 
D)  Sharing 
A)  Acceptance 
B)  Avoidance 
C)  Monitoring 
D)  Sharing

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

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

Accepted Answer

A)  is a violation of the Sarbanes-Oxley Act. 
B)  violates the Securities and Exchange Act. 
C)  increases the risk associated with an audit. 
D)  must be changed before your audit firm could accept the audit engagement. 
A)  is a violation of the Sarbanes-Oxley Act. 
B)  violates the Securities and Exchange Act. 
C)  increases the risk associated with an audit. 
D)  must be changed before your audit firm could accept the audit engagement.

Question 14

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 15

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 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 16

________ is the risk that exists before management takes any steps to mitigate it.

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 17

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)  Mike issues credit cards to him and Maxine, and when the credit card balances are just under $1,000, Maxine writes off the accounts as bad debt. Mike 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)  Mike issues credit cards to him and Maxine, and when the credit card balances are just under $1,000, Maxine writes off the accounts as bad debt. Mike then issues new cards.

Question 18

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

Accepted Answer

A)  performing internal control evaluation 
B)  employing a chief risk officer 
C)  implementing effective supervision 
D)  monitoring system activities 
A)  performing internal control evaluation 
B)  employing a chief risk officer 
C)  implementing effective supervision 
D)  monitoring system activities

Question 19

Which of the following is not a principle related to information and communicating in the updated COSO Integrated Control framework?

Accepted Answer

A)  Communicate relevant internal control matters to external parties. 
B)  Obtain or generate relevant, high-quality information to support internal control. 
C)  Surround internal control processes with information technology that enables discrepancies to be identified. 
D)  Internally communicate the information necessary to support the other components of internal control. 
A)  Communicate relevant internal control matters to external parties. 
B)  Obtain or generate relevant, high-quality information to support internal control. 
C)  Surround internal control processes with information technology that enables discrepancies to be identified. 
D)  Internally communicate the information necessary to support the other components of internal control.

Question 20

Why was the original 1992 COSO - Integrated Control framework updated in 2013?

Accepted Answer

A)  Congress required COSO to modernize. 
B)  U.S. stock exchanges required more disclosure. 
C)  to more effectively address technological advancements 
D)  to comply with International accounting standards 
A)  Congress required COSO to modernize. 
B)  U.S. stock exchanges required more disclosure. 
C)  to more effectively address technological advancements 
D)  to comply with International accounting standards

Identify the most correct statement with regards to an event.

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

Which type of control prevents,detects,and corrects transaction errors and fraud?

Why did COSO develop the Enterprise Risk Management framework?

Which type of audit assesses employee compliance with management policies and procedures?

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

The COSO Enterprise Risk Management Integrated Framework stresses that

Why are threats to accounting information systems increasing?

Describe the differences between general and specific authorization.

________ is not a risk responses identified in the COSO Enterprise Risk Management Framework.

A neural network is a software program that has

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

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

________ is the risk that exists before management takes any steps to mitigate it.

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 is not a key method of monitoring performance?

Which of the following is not a principle related to information and communicating in the updated COSO Integrated Control framework?

Why was the original 1992 COSO - Integrated Control framework updated in 2013?

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 most correct statement with regards to an event.

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

Which type of control prevents,detects,and corrects transaction errors and fraud?

Why did COSO develop the Enterprise Risk Management framework?

Which type of audit assesses employee compliance with management policies and procedures?

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

The COSO Enterprise Risk Management Integrated Framework stresses that

Why are threats to accounting information systems increasing?

Describe the differences between general and specific authorization.

________ is not a risk responses identified in the COSO Enterprise Risk Management Framework.

A neural network is a software program that has

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

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

________ is the risk that exists before management takes any steps to mitigate it.

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 is not a key method of monitoring performance?

Which of the following is not a principle related to information and communicating in the updated COSO Integrated Control framework?

Why was the original 1992 COSO - Integrated Control framework updated in 2013?

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