Question 1

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 2

Which of the following is not an internal control procedure?

Accepted Answer

A)  authorization 
B)  management's operating style 
C)  independent verification 
D)  accounting records 
A)  authorization 
B)  management's operating style 
C)  independent verification 
D)  accounting records

Question 3

Explain the problems associated with lack of director independence

Accepted Answer

Many boards of directors are comprised o

Question 4

In balancing the risks and benefits that are part of every ethical decision,managers receive guidance from each of the following except

Accepted Answer

A)  justice 
B)  self interest 
C)  risk minimization 
D)  proportionality 
A)  justice 
B)  self interest 
C)  risk minimization 
D)  proportionality

Question 5

Distinguish between exposure and risk.

Accepted Answer

Exposure is the absence or wea

Question 6

Which of the following is not an example of independent verification?

Accepted Answer

A)  comparing fixed assets on hand to the accounting records 
B)  performing a bank reconciliation 
C)  comparing the accounts payable subsidiary ledger to the control account 
D)  permitting authorized users only to access the accounting system 
A)  comparing fixed assets on hand to the accounting records 
B)  performing a bank reconciliation 
C)  comparing the accounts payable subsidiary ledger to the control account 
D)  permitting authorized users only to access the accounting system

Question 7

An input control that tests time card records to verify than 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 8

An example of a hash total is

Accepted Answer

A)  total payroll checks-$12,315 
B)  total number of employees-10 
C)  sum of the social security numbers-12,555,437,251 
D)  none of the above 
A)  total payroll checks-$12,315 
B)  total number of employees-10 
C)  sum of the social security numbers-12,555,437,251 
D)  none of the above

Question 9

Which of the following suggests a weakness in the internal control environment?

Accepted Answer

A)  the firm has an up-to-date organizational chart 
B)  monthly reports comparing actual performance to budget are distributed to managers 
C)  performance evaluations are prepared every three years 
D)  the audit committee meets quarterly with the external auditors 
A)  the firm has an up-to-date organizational chart 
B)  monthly reports comparing actual performance to budget are distributed to managers 
C)  performance evaluations are prepared every three years 
D)  the audit committee meets quarterly with the external auditors

Question 10

A run-to-run control is an example of an output control.

Accepted Answer

A) True 
 B)False

Question 11

Distinguish between skimming and cash larceny.Give an example of each

Accepted Answer

Skimming involves stealing cash from an

Question 12

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

Accepted Answer

A) True 
 B)False

Question 13

One characteristic of employee fraud is that the fraud

Accepted Answer

A)  is perpetrated at a level to which internal controls do not apply 
B)  involves misstating financial statements 
C)  involves the direct conversion of cash or other assets to the employee's personal benefit 
D)  involves misappropriating assets in a series of complex transactions involving third parties 
A)  is perpetrated at a level to which internal controls do not apply 
B)  involves misstating financial statements 
C)  involves the direct conversion of cash or other assets to the employee's personal benefit 
D)  involves misappropriating assets in a series of complex transactions involving third parties

Question 14

Explain the problems associated with Questionable Executive Compensation Schemes

Accepted Answer

A survey by Thompson Financial revealed

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Discuss the non accounting services that external auditors are no longer permitted to render to audit clients under SOX legislation.

Accepted Answer

The Act addresses auditor independence b

Question 17

According to common law,there are five conditions that must be present for an act to be deemed fraudulent.Name and

Accepted Answer

In order for an act to be deemed fraudul

Question 18

Use the internal control procedures listed below to complete the statements.
 $\begin{array}{ll}
\text { segregation of duties } & \text { specific authorization } \
\text { general authorization } & \text { accounting records } \
\text { access controls } & \text { independent verification } \
\text { supervision } &
\end{array}$

-Using cameras to monitor the activities of cashiers is an example of __________________________.

Accepted Answer

The answer of Use the internal control procedures listed below...

Question 19

When duties cannot be segregated,the most important internal control procedure is

Accepted Answer

A)  supervision 
B)  independent verification 
C)  access controls 
D)  accounting records 
A)  supervision 
B)  independent verification 
C)  access controls 
D)  accounting records

Question 20

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

Which characteristic is not associated with software as intellectual property?

Which of the following is not an internal control procedure?

Explain the problems associated with lack of director independence

In balancing the risks and benefits that are part of every ethical decision,managers receive guidance from each of the following except

Distinguish between exposure and risk.

Which of the following is not an example of independent verification?

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

An example of a hash total is

Which of the following suggests a weakness in the internal control environment?

A run-to-run control is an example of an output control.

Distinguish between skimming and cash larceny.Give an example of each

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

One characteristic of employee fraud is that the fraud

Explain the problems associated with Questionable Executive Compensation Schemes

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

Discuss the non accounting services that external auditors are no longer permitted to render to audit clients under SOX legislation.

According to common law,there are five conditions that must be present for an act to be deemed fraudulent.Name and

When duties cannot be segregated,the most important internal control procedure is

All of the following are factors in the fraud triangle except

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

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Exam 3: Ethics,fraud,and Internal Control

Which characteristic is not associated with software as intellectual property?

Which of the following is not an internal control procedure?

Explain the problems associated with lack of director independence

In balancing the risks and benefits that are part of every ethical decision,managers receive guidance from each of the following except

Distinguish between exposure and risk.

Which of the following is not an example of independent verification?

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

An example of a hash total is

Which of the following suggests a weakness in the internal control environment?

A run-to-run control is an example of an output control.

Distinguish between skimming and cash larceny.Give an example of each

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

One characteristic of employee fraud is that the fraud

Explain the problems associated with Questionable Executive Compensation Schemes

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

Discuss the non accounting services that external auditors are no longer permitted to render to audit clients under SOX legislation.

According to common law,there are five conditions that must be present for an act to be deemed fraudulent.Name and

When duties cannot be segregated,the most important internal control procedure is

All of the following are factors in the fraud triangle except

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