Question 1

What are the three broad categories of application controls?

Accepted Answer

input,proc

Question 2

Explain the problems associated with inappropriate accounting practices.

Accepted Answer

The use of inappropriate accounting tech

Question 3

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

Accepted Answer

A) True 
 B)False

Question 4

Explain the grandfather-father-son backup technique.

Accepted Answer

GFS backup technique begins when the cur

Question 5

Describe two types of transposition errors.

Accepted Answer

1.Single transposition errors occur when

Question 6

When certain customers made cash payments to reduce their accounts receivable,the bookkeeper embezzled the cash and wrote off the accounts as uncollectible.Which control procedure would most likely prevent this irregularity?

Accepted Answer

A) segregation of duties 
B) accounting records 
C) accounting system 
D) access controls 
A) segregation of duties 
B) accounting records 
C) accounting system 
D) access controls

Question 7

The concept of reasonable assurance suggests that

Accepted Answer

A) the cost of an internal control should be less than the benefit it provides 
B) a well-designed system of internal controls will detect all fraudulent activity 
C) the objectives achieved by an internal control system vary depending on the data processing method 
D) the effectiveness of internal controls is a function of the industry environment 
A) the cost of an internal control should be less than the benefit it provides 
B) a well-designed system of internal controls will detect all fraudulent activity 
C) the objectives achieved by an internal control system vary depending on the data processing method 
D) the effectiveness of internal controls is a function of the industry environment

Question 8

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Accepted Answer

A) True 
 B)False

Question 9

Internal control systems have limitations.These include all of the following except

Accepted Answer

A) possibility of honest error 
B) circumvention 
C) management override 
D) stability of systems 
A) possibility of honest error 
B) circumvention 
C) management override 
D) stability of systems

Question 10

All of the following are factors in the fraud triangle except

Accepted Answer

A) ethical behavior of an individual 
B) pressure exerted on an individual at home and job related 
C) materiality of the assets 
D) opportunity to gain access to assets 
A) ethical behavior of an individual 
B) pressure exerted on an individual at home and job related 
C) materiality of the assets 
D) opportunity to gain access to assets

Question 11

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

Accepted Answer

Collusion among employees in the commiss

Question 12

SAS 109 requires auditors to obtain sufficient knowledge of the organization's risk assessment procedures to understand how management identifies,prioritizes,and manages financial reporting risk.List five circumstances that can cause risks to arise or change.

Accepted Answer

Changes in the operating environment tha

Question 13

Output controls ensure that output is not lost,misdirected,or corrupted and that privacy is not violated.What are some output exposures or situations where output is at risk?

Accepted Answer

output spooling,prin

Question 14

What are management responsibilities under Sections 302 and 404 of SOX?

Accepted Answer

Section 302 requires that corporate mana

Question 15

What are the main issues to be addressed in a business code of ethics required by the SEC?

Accepted Answer

conflicts of interest,full and

Question 16

Giving,receiving,offering,or soliciting something of value because of an official act that has been taken is

Accepted Answer

A) bribery 
B) a conflict of interest 
C) an illegal gratuity 
D) economic extortion 
A) bribery 
B) a conflict of interest 
C) an illegal gratuity 
D) economic extortion

Question 17

Spooling is a form of processing control.

Accepted Answer

A) True 
 B)False

Question 18

The office manager forgot to record in the accounting records the daily bank deposit.Which control procedure would most likely prevent or detect this error?

Accepted Answer

A) segregation of duties 
B) independent verification 
C) accounting records 
D) supervision 
A) segregation of duties 
B) independent verification 
C) accounting records 
D) supervision

Question 19

A company's board of directors should,at a minimum,adopt the provisions of SOX.Discuss three of the six established best practices that a board should also follow.

Accepted Answer

The roles of CEO and board chairman shou

Question 20

List the four broad objectives of the internal control system.

Accepted Answer

safeguard assets,
ensure the a

What are the three broad categories of application controls?

Explain the problems associated with inappropriate accounting practices.

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

Explain the grandfather-father-son backup technique.

Describe two types of transposition errors.

When certain customers made cash payments to reduce their accounts receivable,the bookkeeper embezzled the cash and wrote off the accounts as uncollectible.Which control procedure would most likely prevent this irregularity?

The concept of reasonable assurance suggests that

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Internal control systems have limitations.These include all of the following except

All of the following are factors in the fraud triangle except

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

SAS 109 requires auditors to obtain sufficient knowledge of the organization's risk assessment procedures to understand how management identifies,prioritizes,and manages financial reporting risk.List five circumstances that can cause risks to arise or change.

Output controls ensure that output is not lost,misdirected,or corrupted and that privacy is not violated.What are some output exposures or situations where output is at risk?

What are management responsibilities under Sections 302 and 404 of SOX?

What are the main issues to be addressed in a business code of ethics required by the SEC?

Giving,receiving,offering,or soliciting something of value because of an official act that has been taken is

Spooling is a form of processing control.

The office manager forgot to record in the accounting records the daily bank deposit.Which control procedure would most likely prevent or detect this error?

A company's board of directors should,at a minimum,adopt the provisions of SOX.Discuss three of the six established best practices that a board should also follow.

List the four broad objectives of the internal control system.

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

What are the three broad categories of application controls?

Explain the problems associated with inappropriate accounting practices.

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

Explain the grandfather-father-son backup technique.

Describe two types of transposition errors.

When certain customers made cash payments to reduce their accounts receivable,the bookkeeper embezzled the cash and wrote off the accounts as uncollectible.Which control procedure would most likely prevent this irregularity?

The concept of reasonable assurance suggests that

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Internal control systems have limitations.These include all of the following except

All of the following are factors in the fraud triangle except

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

SAS 109 requires auditors to obtain sufficient knowledge of the organization's risk assessment procedures to understand how management identifies,prioritizes,and manages financial reporting risk.List five circumstances that can cause risks to arise or change.

Output controls ensure that output is not lost,misdirected,or corrupted and that privacy is not violated.What are some output exposures or situations where output is at risk?

What are management responsibilities under Sections 302 and 404 of SOX?

What are the main issues to be addressed in a business code of ethics required by the SEC?

Giving,receiving,offering,or soliciting something of value because of an official act that has been taken is

Spooling is a form of processing control.

The office manager forgot to record in the accounting records the daily bank deposit.Which control procedure would most likely prevent or detect this error?

A company's board of directors should,at a minimum,adopt the provisions of SOX.Discuss three of the six established best practices that a board should also follow.

List the four broad objectives of the internal control system.

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