Question 1

Which of the following is an independent check on performance?

Accepted Answer

A) The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B) Production teams perform quality evaluations of the products that they produce. 
C) The General Manager compares budgeted amounts with expenditure records from all departments. 
D) Petty cash is disbursed by the Fred Haynes in the Cashier's Office.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance. 
A) The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B) Production teams perform quality evaluations of the products that they produce. 
C) The General Manager compares budgeted amounts with expenditure records from all departments. 
D) Petty cash is disbursed by the Fred Haynes in the Cashier's Office.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance.

Question 2

Hiring decisions at Frazier's Razors are made by Sheila Frazier,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 Sheila,who prepares paycheck requisitions.Paychecks are then distributed through the company's mail room.This represents a(an)___________ segregation of duties.

Accepted Answer

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

Question 3

Congress passed this federal law for the purpose of preventing financial statement fraud,to make financial reports more transparent and to strengthen the internal control of public companies.

Accepted Answer

A) Foreign Corrupt Practices Act of 1977 
B) The Securities Exchange Act of 1934 
C) The Sarbanes-Oxley Act of 2002 
D) The Control Provision of 1998 
A) Foreign Corrupt Practices Act of 1977 
B) The Securities Exchange Act of 1934 
C) The Sarbanes-Oxley Act of 2002 
D) The Control Provision of 1998

Question 4

What are the two categories of internal controls?

Accepted Answer

General an

Question 5

Chuck Hewitt was relaxing after work with a colleague at a local watering hole.Well into his second martini,he began expressing his opinion about government regulation.It seems that,as a result of "government interference" the company's longstanding policy of making low-interest loans to top management was being terminated.The regulation that Chuck is referring to is the

Accepted Answer

A) Foreign Corrupt Practices Act 
B) McCain-Feingold Act 
C) Truth in Lending Act 
D) Sarbanes-Oxley Act 
A) Foreign Corrupt Practices Act 
B) McCain-Feingold Act 
C) Truth in Lending Act 
D) Sarbanes-Oxley Act

Question 6

The plan of organization that a business uses to safeguard assets,provide accurate and reliable information,and promote and improve operational efficiency is known as

Accepted Answer

A) a phenomenon. 
B) internal control. 
C) an AIS threat. 
D) a preventive control. 
A) a phenomenon. 
B) internal control. 
C) an AIS threat. 
D) a preventive control.

Question 7

Safeguarding assets is one of the primary purposes of internal control.Which of the following is not one of the other primary purposes?

Accepted Answer

A) providing accurate and reliable accounting records 
B) promoting operational efficiency 
C) ensuring that no fraud has occurred 
D) encouraging adherence to management policies 
A) providing accurate and reliable accounting records 
B) promoting operational efficiency 
C) ensuring that no fraud has occurred 
D) encouraging adherence to management policies

Question 8

The risk that remains after management implements internal controls 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 9

Which of the following is accomplished by corrective controls?

Accepted Answer

A) identify the cause of the problem 
B) correct the resulting errors 
C) modify the system to prevent future occurrences of the problem 
D) All of the above are accomplished by corrective controls. 
A) identify the cause of the problem 
B) correct the resulting errors 
C) modify the system to prevent future occurrences of the problem 
D) All of the above are accomplished by corrective controls.

Question 10

Global Economic Strategies,L.L.D.,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.They are 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 11

Chuck Hewitt was relaxing after work with a colleague at a local watering hole.Well into his second martini,he began expressing his opinions about his work environment.It seems that,as a result of "feminazi" interference,the suggestive banter that had been prevalent in the workplace during his youth was no longer acceptable.He even had to sit through a sexual harassment workshop! The lever of control that the company is using in this case is a

Accepted Answer

A) boundary system. 
B) belief system. 
C) interactive control system. 
D) diagnostic control system. 
A) boundary system. 
B) belief system. 
C) interactive control system. 
D) diagnostic control system.

Question 12

Management can authorize employees to handle routine transactions without special approval.This is known as

Accepted Answer

A) Authorization 
B) General authorization 
C) Special authorization 
D) Specific authorization 
A) Authorization 
B) General authorization 
C) Special authorization 
D) Specific authorization

Question 13

Chuck Hewitt was relaxing after work with a colleague at a local watering hole.Well into his second martini,he began expressing his opinions about his company's budgeting practices.It seems that,as a result of "budget handcuffs" that require managers to explain material deviations from budgeted expenditures,his ability to creatively manage his department's activities have been curtailed.The lever of control that the company is using in this case is a

Accepted Answer

A) boundary system. 
B) belief system. 
C) interactive control system. 
D) diagnostic control system. 
A) boundary system. 
B) belief system. 
C) interactive control system. 
D) diagnostic control system.

Question 14

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Folding Squid Technologies

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 head of the external audit team as company CFO six months after completion of the previous 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 head of the external audit team as company CFO six months after completion of the previous 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 15

Regarding project development and acquisition controls,this is developed to show all projects that must be completed to achieve long-range company goals.

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 16

Ferdinand Waldo Demara was known as the great imposter.He had an astounding ability to convince people that he was who he truly was not.He worked as a naval officer,physician,college teacher,prison warden,and other jobs without any of the prerequisite qualifications.The organizations fooled by Demara (including the Canadian Navy)apparently chose to _______ the risk of fraud.

Accepted Answer

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

Question 17

What is COSO?

Accepted Answer

The COSO defines internal control as a p

Question 18

Regarding project development and acquisition controls,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

The Sarbanes-Oxley Act (SOX)applies to

Accepted Answer

A) all companies with gross annual revenues exceeding $500 million. 
B) only publicly held companies. 
C) only privately held companies. 
D) corporations and partnerships but not sole proprietorships. 
A) all companies with gross annual revenues exceeding $500 million. 
B) only publicly held companies. 
C) only privately held companies. 
D) corporations and partnerships but not sole proprietorships.

Question 20

The stock exchange or FASB is best described as external influences that directly affect an organization's

Accepted Answer

A) hiring practices 
B) philosophy and operating style 
C) internal environment 
D) methods of assigning authority 
A) hiring practices 
B) philosophy and operating style 
C) internal environment 
D) methods of assigning authority

Which of the following is an independent check on performance?

Congress passed this federal law for the purpose of preventing financial statement fraud,to make financial reports more transparent and to strengthen the internal control of public companies.

What are the two categories of internal controls?

The plan of organization that a business uses to safeguard assets,provide accurate and reliable information,and promote and improve operational efficiency is known as

Safeguarding assets is one of the primary purposes of internal control.Which of the following is not one of the other primary purposes?

The risk that remains after management implements internal controls is

Which of the following is accomplished by corrective controls?

Management can authorize employees to handle routine transactions without special approval.This is known as

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Folding Squid Technologies

Regarding project development and acquisition controls,this is developed to show all projects that must be completed to achieve long-range company goals.

What is COSO?

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

The Sarbanes-Oxley Act (SOX)applies to

The stock exchange or FASB is best described as external influences that directly affect an organization's

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Revenue Cycle: Sales an Cash Collections

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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 6: Control and Accounting Information Systems

Which of the following is an independent check on performance?

Congress passed this federal law for the purpose of preventing financial statement fraud,to make financial reports more transparent and to strengthen the internal control of public companies.

What are the two categories of internal controls?

The plan of organization that a business uses to safeguard assets,provide accurate and reliable information,and promote and improve operational efficiency is known as

Safeguarding assets is one of the primary purposes of internal control.Which of the following is not one of the other primary purposes?

The risk that remains after management implements internal controls is

Which of the following is accomplished by corrective controls?

Management can authorize employees to handle routine transactions without special approval.This is known as

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Folding Squid Technologies

Regarding project development and acquisition controls,this is developed to show all projects that must be completed to achieve long-range company goals.

What is COSO?

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

The Sarbanes-Oxley Act (SOX)applies to

The stock exchange or FASB is best described as external influences that directly affect an organization's

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Revenue Cycle: Sales an Cash Collections

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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