Question 1

Explain input controls.

Accepted Answer

Input controls are programmed

Question 2

Preventive controls are passive techniques designed to reduce fraud.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Name three types of transcription errors.

Accepted Answer

1. Addition errors occur when an extra d

Question 5

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

Accepted Answer

The fraud triangle consists of three fac

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Not permitting the computer programmer to enter the computer room is an example of _______________________________.

Accepted Answer

segregatio

Question 8

Systems that use sequential master files employ a backup technique called destructive update.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling) include all of the following actions by a computer criminal except

Accepted Answer

A)  gaining access to the output file and changing critical data values 
B)  using a remote printer and incurring operating inefficiencies 
C)  making a copy of the output file and using the copy to produce illegal output reports 
D)  printing an extra hardcopy of the output file 
A)  gaining access to the output file and changing critical data values 
B)  using a remote printer and incurring operating inefficiencies 
C)  making a copy of the output file and using the copy to produce illegal output reports 
D)  printing an extra hardcopy of the output file

Question 12

Name four input controls and describe what they test.

Accepted Answer

1. numeric-alphabetic checks look for th

Question 13

Economic extortion

Accepted Answer

A)  involves giving, offering, soliciting, or receiving things of value to influence an official in the performance of his or her lawful duties 
B)  occurs when an employee acts of behalf of a third party during the discharge or his or her duties 
C)  is the use of threat of force by an individual or organization to obtain something of value 
D)  involves stealing cash from an organization before it is recorded in its books and records 
A)  involves giving, offering, soliciting, or receiving things of value to influence an official in the performance of his or her lawful duties 
B)  occurs when an employee acts of behalf of a third party during the discharge or his or her duties 
C)  is the use of threat of force by an individual or organization to obtain something of value 
D)  involves stealing cash from an organization before it is recorded in its books and records

Question 14

The internal audit department recalculates payroll for several employees each pay period. This is an example of __________________________.

Accepted Answer

independen

Question 15

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 16

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)  Legal Compliance 
D)  Internal Reporting of Code Violations 
E)  All of the above are issues to be addressed 
A)  Conflicts of interest 
B)  Full and Fair Disclosures 
C)  Legal Compliance 
D)  Internal Reporting of Code Violations 
E)  All of the above are issues to be addressed

Question 17

List the four broad objectives of the internal control system.

Accepted Answer

safeguard assets,
ensure the a

Question 18

Describe two types of transposition errors.

Accepted Answer

1. Single transposition errors occur whe

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

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

Accepted Answer

A) True 
 B)False

Explain input controls.

Preventive controls are passive techniques designed to reduce fraud.

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

Name three types of transcription errors.

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

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

Not permitting the computer programmer to enter the computer room is an example of _______________________________.

Systems that use sequential master files employ a backup technique called destructive update.

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

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?

Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling) include all of the following actions by a computer criminal except

Name four input controls and describe what they test.

Economic extortion

The internal audit department recalculates payroll for several employees each pay period. This is an example of __________________________.

Which of the following is not an internal control procedure?

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

List the four broad objectives of the internal control system.

Describe two types of transposition errors.

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

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

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

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

Explain input controls.

Preventive controls are passive techniques designed to reduce fraud.

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

Name three types of transcription errors.

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

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

Not permitting the computer programmer to enter the computer room is an example of _______________________________.

Systems that use sequential master files employ a backup technique called destructive update.

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

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?

Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling) include all of the following actions by a computer criminal except

Name four input controls and describe what they test.

Economic extortion

The internal audit department recalculates payroll for several employees each pay period. This is an example of __________________________.

Which of the following is not an internal control procedure?

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

List the four broad objectives of the internal control system.

Describe two types of transposition errors.

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

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

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

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