Question 1

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

Accepted Answer

A) True 
 B)False

Question 2

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Accepted Answer

A) True 
 B)False

Question 3

Cash larceny involves

Accepted Answer

A) stealing cash from an organization before it is recorded 
B) stealing cash from an organization after it has been recorded 
C) manufacturing false purchase orders, receiving reports, and invoices 
D) paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor 
A) stealing cash from an organization before it is recorded 
B) stealing cash from an organization after it has been recorded 
C) manufacturing false purchase orders, receiving reports, and invoices 
D) paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor

Question 4

Contrast management fraud with employee fraud.

Accepted Answer

Employee fraud is usually designed to di

Question 5

An input control that tests time card records to verify that no employee has worked more 50 hours in a pay period is an example of a range test.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not an issue to be addressed in a business code of ethics required by the SEC?

Accepted Answer

A) conflicts of interest 
B) full and fair disclosures 
C) equitable access to records by all classes of employees 
D) internal reporting of code violations 
A) conflicts of interest 
B) full and fair disclosures 
C) equitable access to records by all classes of employees 
D) internal reporting of code violations

Question 7

Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an input control?

Accepted Answer

A) reasonableness check 
B) run-to-run check 
C) spooling check 
D) batch check 
A) reasonableness check 
B) run-to-run check 
C) spooling check 
D) batch check

Question 9

The correct purchase order number is 123456.Which of the following is an example of a transcription error?

Accepted Answer

A) 1234567 
B) 12345 
C) 124356 
D) 123454 
A) 1234567 
B) 12345 
C) 124356 
D) 123454

Question 10

Which characteristic is not associated with software as intellectual property?

Accepted Answer

A) uniqueness of the product 
B) possibility of exact replication 
C) automated monitoring to detect intruders 
D) ease of dissemination 
A) uniqueness of the product 
B) possibility of exact replication 
C) automated monitoring to detect intruders 
D) ease of dissemination

Question 11

Explain the pay-and-return scheme.

Accepted Answer

A pay-and-return scheme involves a clerk

Question 12

Name three types of transcription errors.

Accepted Answer

1.Addition errors occur when an extra di

Question 13

Which of the following is correct statement about check digits?

Accepted Answer

A) Check digits should be used for all data codes. 
B) Check digits must be placed at the end of a data code. 
C) Check digits do not affect processing efficiency. 
D) Check digits are designed to detect transcription and transposition errors. 
A) Check digits should be used for all data codes. 
B) Check digits must be placed at the end of a data code. 
C) Check digits do not affect processing efficiency. 
D) Check digits are designed to detect transcription and transposition errors.

Question 14

Which check is not an input control?

Accepted Answer

A) reasonableness check 
B) validity check 
C) spooling check 
D) missing data check 
A) reasonableness check 
B) validity check 
C) spooling check 
D) missing data check

Question 15

Define and describe the importance of physical controls.

Accepted Answer

Virtually all systems,regardless of thei

Question 16

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

Accepted Answer

A) reduced cost of an external audit 
B) preventing employee collusion to commit fraud 
C) availability of reliable data for decision-making purposes 
D) some assurance that important documents and records are protected 
A) reduced cost of an external audit 
B) preventing employee collusion to commit fraud 
C) availability of reliable data for decision-making purposes 
D) some assurance that important documents and records are protected

Question 17

Which input control check would detect a posting to the wrong customer account?

Accepted Answer

A) missing data check 
B) check digit 
C) reasonableness check 
D) validity check 
A) missing data check 
B) check digit 
C) reasonableness check 
D) validity check

Question 18

The Sarbanes-Oxley Act requires only that a firm keep good records.

Accepted Answer

A) True 
 B)False

Question 19

Methods used to maintain an audit trail in a computerized environment include all of the following except

Accepted Answer

A) transaction logs 
B) transaction listings 
C) data encryption 
D) log of automatic transactions 
A) transaction logs 
B) transaction listings 
C) data encryption 
D) log of automatic transactions

Question 20

A shell company fraud involves

Accepted Answer

A) stealing cash from an organization before it is recorded 
B) stealing cash from an organization after it has been recorded 
C) manufacturing false purchase orders, receiving reports, and invoices 
D) paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor 
A) stealing cash from an organization before it is recorded 
B) stealing cash from an organization after it has been recorded 
C) manufacturing false purchase orders, receiving reports, and invoices 
D) paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Cash larceny involves

Contrast management fraud with employee fraud.

An input control that tests time card records to verify that no employee has worked more 50 hours in a pay period is an example of a range test.

Which of the following is not an issue to be addressed in a business code of ethics required by the SEC?

Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.

Which of the following is an input control?

The correct purchase order number is 123456.Which of the following is an example of a transcription error?

Which characteristic is not associated with software as intellectual property?

Explain the pay-and-return scheme.

Name three types of transcription errors.

Which of the following is correct statement about check digits?

Which check is not an input control?

Define and describe the importance of physical controls.

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

Which input control check would detect a posting to the wrong customer account?

The Sarbanes-Oxley Act requires only that a firm keep good records.

Methods used to maintain an audit trail in a computerized environment include all of the following except

A shell company fraud involves

The Information System: an Accountants Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 3: Ethics,fraud,and Internal Control

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Cash larceny involves

Contrast management fraud with employee fraud.

An input control that tests time card records to verify that no employee has worked more 50 hours in a pay period is an example of a range test.

Which of the following is not an issue to be addressed in a business code of ethics required by the SEC?

Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.

Which of the following is an input control?

The correct purchase order number is 123456.Which of the following is an example of a transcription error?

Which characteristic is not associated with software as intellectual property?

Explain the pay-and-return scheme.

Name three types of transcription errors.

Which of the following is correct statement about check digits?

Which check is not an input control?

Define and describe the importance of physical controls.

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

Which input control check would detect a posting to the wrong customer account?

The Sarbanes-Oxley Act requires only that a firm keep good records.

Methods used to maintain an audit trail in a computerized environment include all of the following except

A shell company fraud involves

The Information System: an Accountants Perspective

Introduction to Transaction Processing

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters