Question 1

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Accepted Answer

A) True 
 B)False  False

Question 2

Who is responsible for establishing and maintaining the internal control system?

Accepted Answer

A)  the internal auditor 
B)  the accountant 
C)  management 
D)  the external auditor 
A)  the internal auditor 
B)  the accountant 
C)  management 
D)  the external auditor C

Question 3

Describe factors that influence the number of backup files needed for each application.

Accepted Answer

The systems designer determines the number of backup master files needed for each application.Two factors influence this decision: (1)the financial significance of the system and (2)the degree of file activity.For example,a master file that is updated several times a day may require 30 or 40 generations of backup,whereas a file that is updated only once each month may need only four or five backup versions.This decision is important because certain types of system failures can result in the destruction of large numbers of backup versions within the same family of files.

Question 4

Which statement is not correct? The goal of batch controls is to ensure that during processing

Accepted Answer

A)  transactions are not omitted 
B)  transactions are not added 
C)  transactions are free from clerical errors 
D)  an audit trail is created 
A)  transactions are not omitted 
B)  transactions are not added 
C)  transactions are free from clerical errors 
D)  an audit trail is created

Question 5

Which of the following is an example of an input error correction technique?

Accepted Answer

A)  immediate correction 
B)  rejection of batch 
C)  creation of error file 
D)  all are examples of input error correction techniques 
A)  immediate correction 
B)  rejection of batch 
C)  creation of error file 
D)  all are examples of input error correction techniques

Question 6

Describe the factors that constitute the fraud triangle.Why is it important to auditors?

Accepted Answer

The fraud triangle consists of three fac

Question 7

A physical inventory count is an example of a

Accepted Answer

A)  preventive control 
B)  detective control 
C)  corrective control 
D)  feedforward control 
A)  preventive control 
B)  detective control 
C)  corrective control 
D)  feedforward control

Question 8

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 9

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a limitation of the internal control system?

Accepted Answer

A)  errors are made due to employee fatigue 
B)  fraud occurs because of collusion between two employees 
C)  the industry is inherently risky 
D)  management instructs the bookkeeper to make fraudulent journal entries 
A)  errors are made due to employee fatigue 
B)  fraud occurs because of collusion between two employees 
C)  the industry is inherently risky 
D)  management instructs the bookkeeper to make fraudulent journal entries

Question 11

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

Accepted Answer

Expense reimbursement fraud involve fict

Question 12

In a computerized environment,all input controls are implemented after data is input.

Accepted Answer

A) True 
 B)False

Question 13

Input controls are intended to detect errors in transaction data after processing.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Spooling is a form of processing control.

Accepted Answer

A) True 
 B)False

Question 16

What are the key points of the section 404 of the Sarbanes-Oxley Act?

Accepted Answer

Section 404 requires the management of p

Question 17

If input and processing controls are adequate,why are output controls needed?

Accepted Answer

Output controls are designed to ensure t

Question 18

Database management fraud includes altering,updating,and deleting an organization's data.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following indicates a strong internal control environment?

Accepted Answer

A)  the internal audit group reports to the audit committee of the board of directors 
B)  there is no segregation of duties between organization functions 
C)  there are questions about the integrity of management 
D)  adverse business conditions exist in the industry 
A)  the internal audit group reports to the audit committee of the board of directors 
B)  there is no segregation of duties between organization functions 
C)  there are questions about the integrity of management 
D)  adverse business conditions exist in the industry

Question 20

What is check tampering?

Accepted Answer

Check tampering involves forging or chan

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Who is responsible for establishing and maintaining the internal control system?

Describe factors that influence the number of backup files needed for each application.

Which statement is not correct? The goal of batch controls is to ensure that during processing

Which of the following is an example of an input error correction technique?

Describe the factors that constitute the fraud triangle.Why is it important to auditors?

A physical inventory count is an example of a

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.

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Which of the following is not a limitation of the internal control system?

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

In a computerized environment,all input controls are implemented after data is input.

Input controls are intended to detect errors in transaction data after processing.

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

Spooling is a form of processing control.

What are the key points of the section 404 of the Sarbanes-Oxley Act?

If input and processing controls are adequate,why are output controls needed?

Database management fraud includes altering,updating,and deleting an organization's data.

Which of the following indicates a strong internal control environment?

What is check tampering?

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

Exam 3: Ethics,fraud,and Internal Control

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Who is responsible for establishing and maintaining the internal control system?

Describe factors that influence the number of backup files needed for each application.

Which statement is not correct? The goal of batch controls is to ensure that during processing

Which of the following is an example of an input error correction technique?

Describe the factors that constitute the fraud triangle.Why is it important to auditors?

A physical inventory count is an example of a

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.

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Which of the following is not a limitation of the internal control system?

Misappropriation of assets can involve various schemes: expense reimbursement fraud,lapping,and payroll fraud.Explain each and give an example.

In a computerized environment,all input controls are implemented after data is input.

Input controls are intended to detect errors in transaction data after processing.

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

Spooling is a form of processing control.

What are the key points of the section 404 of the Sarbanes-Oxley Act?

If input and processing controls are adequate,why are output controls needed?

Database management fraud includes altering,updating,and deleting an organization's data.

Which of the following indicates a strong internal control environment?

What is check tampering?

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters