Question 1

Which of the following is not one of the important aspects of the Sarbanes-Oxley Act?

Accepted Answer

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

Question 2

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 3

Regarding the issue of internal control,the internal environment itself consists of many factors.An issue regarding a conflict of interest should be addressed as a component of which factor?

Accepted Answer

A) organization structure 
B) commitment to integrity and ethical values 
C) the audit committee of the board of directors 
D) management's philosophy and operating style 
A) organization structure 
B) commitment to integrity and ethical values 
C) the audit committee of the board of directors 
D) management's philosophy and operating style

Question 4

What was the primary objective of the Foreign Corrupt Practices Act?

Accepted Answer

The primary objective of the F

Question 5

The audit committee is responsible for

Accepted Answer

A) overseeing the internal control structure. 
B) overseeing the financial reporting process. 
C) working with the internal and external auditors. 
D) All of the above are responsibilities. 
A) overseeing the internal control structure. 
B) overseeing the financial reporting process. 
C) working with the internal and external auditors. 
D) All of the above are responsibilities.

Question 6

Which of the following federal laws incorporated the language of the AICPA about controls into a law applying to all registered companies?

Accepted Answer

A) Foreign Corrupt Practices Act of 1977 
B) The Securities Exchange Act of 1934 
C) Federal Corruption Prevention Act of 1987 
D) The Securities Act of 1933 
A) Foreign Corrupt Practices Act of 1977 
B) The Securities Exchange Act of 1934 
C) Federal Corruption Prevention Act of 1987 
D) The Securities Act of 1933

Question 7

River Rafting Adventures of Iowa provides rafts and tour guides to tourists eager to ride the wild rivers of Iowa.Management has determined that there is one chance in a thousand of a client 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) $50,000 
B) $650,000 
C) $650 
D) $50 
A) $50,000 
B) $650,000 
C) $650 
D) $50

Question 8

Why is management's philosophy and operating style considered to be the most important component of the control environment?

Accepted Answer

Management truly sets the tone for the c

Question 9

__________ controls are designed to make sure an organization's control environment is stable and well managed.

Accepted Answer

A) Application 
B) Detective 
C) General 
D) Preventive 
A) Application 
B) Detective 
C) General 
D) Preventive

Question 10

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) payroll irregularities 
A) unintentional errors 
B) employee fraud or embezzlement 
C) fraud by outsiders 
D) payroll irregularities

Question 11

When undertaking risk assessment,the expected loss is calculated like this.

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 12

FranticHouse Partners,L.L.C.,does home remodeling and repair.The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services.The firm's risk exposure to this source of cost

Accepted Answer

A) reduced. 
B) shared. 
C) avoided. 
D) accepted. 
A) reduced. 
B) shared. 
C) avoided. 
D) accepted.

Question 13

Regarding project development and acquisition controls,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 14

This control framework defines internal controls and provides guidance for evaluating and enhancing internal control systems.

Accepted Answer

A) ISACF's control objectives for information and related technology 
B) COSO's internal control framework 
C) COSO's enterprise risk management framework 
D) None of the above 
A) ISACF's control objectives for information and related technology 
B) COSO's internal control framework 
C) COSO's enterprise risk management framework 
D) None of the above

Question 15

Which of the following is not one of the eight interrelated risk and control components of COSO?

Accepted Answer

A) Internal environment 
B) Monitoring 
C) Risk response 
D) Event assessment 
A) Internal environment 
B) Monitoring 
C) Risk response 
D) Event assessment

Question 16

The internal control model developed by COSO is comprised of five interrelated components.Among these components is the internal environment.Which attribute below is not part of the internal environment?

Accepted Answer

A) the competence of an organization's people 
B) the integrity of an organization's people 
C) monitoring activities within the organization itself 
D) the ethical values of an organization's people 
A) the competence of an organization's people 
B) the integrity of an organization's people 
C) monitoring activities within the organization itself 
D) the ethical values of an organization's people

Question 17

According to the ERM,these 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 18

Any potential adverse occurrence or unwanted event that could be injurious to either the AIS or the organization is referred to as a(n)

Accepted Answer

A) threat. 
B) exposure. 
C) risk. 
D) phenomenon. 
A) threat. 
B) exposure. 
C) risk. 
D) phenomenon.

Question 19

Classify the following controls as preventive,detective,or corrective: Periodic bank reconciliation.Separation of cash and accounting records.Maintaining backup copies of master and transaction files.Pre-numbering of sales invoices.Chart of accounts.Retina scan before entering a sensitive R & D facility.Resubmission of transactions for subsequent processing.Internal auditor rechecking the debits and credits on the payment voucher.Depositing all cash receipts intact.Qualified accounting personnel

Accepted Answer

Detective.Preventive.Correctiv

Question 20

What is the difference between general and specific authorization?

Accepted Answer

Authorizations are often documented by s

Which of the following is not one of the important aspects of the Sarbanes-Oxley Act?

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

Regarding the issue of internal control,the internal environment itself consists of many factors.An issue regarding a conflict of interest should be addressed as a component of which factor?

What was the primary objective of the Foreign Corrupt Practices Act?

The audit committee is responsible for

Which of the following federal laws incorporated the language of the AICPA about controls into a law applying to all registered companies?

Why is management's philosophy and operating style considered to be the most important component of the control environment?

__________ controls are designed to make sure an organization's control environment is stable and well managed.

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

When undertaking risk assessment,the expected loss is calculated like this.

FranticHouse Partners,L.L.C.,does home remodeling and repair.The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services.The firm's risk exposure to this source of cost

Regarding project development and acquisition controls,a ________ is created to guide and oversee systems development and acquisition.

This control framework defines internal controls and provides guidance for evaluating and enhancing internal control systems.

Which of the following is not one of the eight interrelated risk and control components of COSO?

The internal control model developed by COSO is comprised of five interrelated components.Among these components is the internal environment.Which attribute below is not part of the internal environment?

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

Any potential adverse occurrence or unwanted event that could be injurious to either the AIS or the organization is referred to as a(n)

What is the difference between general and specific authorization?

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 not one of the important aspects of the Sarbanes-Oxley Act?

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

Regarding the issue of internal control,the internal environment itself consists of many factors.An issue regarding a conflict of interest should be addressed as a component of which factor?

What was the primary objective of the Foreign Corrupt Practices Act?

The audit committee is responsible for

Which of the following federal laws incorporated the language of the AICPA about controls into a law applying to all registered companies?

Why is management's philosophy and operating style considered to be the most important component of the control environment?

__________ controls are designed to make sure an organization's control environment is stable and well managed.

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

When undertaking risk assessment,the expected loss is calculated like this.

FranticHouse Partners,L.L.C.,does home remodeling and repair.The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services.The firm's risk exposure to this source of cost

Regarding project development and acquisition controls,a ________ is created to guide and oversee systems development and acquisition.

This control framework defines internal controls and provides guidance for evaluating and enhancing internal control systems.

Which of the following is not one of the eight interrelated risk and control components of COSO?

The internal control model developed by COSO is comprised of five interrelated components.Among these components is the internal environment.Which attribute below is not part of the internal environment?

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

Any potential adverse occurrence or unwanted event that could be injurious to either the AIS or the organization is referred to as a(n)

What is the difference between general and specific authorization?

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