Question 1

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Accepted Answer

A) True 
 B)False

Question 2

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

Accepted Answer

A)  para computer ethics 
B)  pop computer ethics 
C)  theoretical computer ethics 
D)  practical computer ethics 
A)  para computer ethics 
B)  pop computer ethics 
C)  theoretical computer ethics 
D)  practical computer ethics

Question 3

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

Accepted Answer

The systems designer determines the numb

Question 4

Which of the following is a preventive control?

Accepted Answer

A)  credit check before approving a sale on account 
B)  bank reconciliation 
C)  physical inventory count 
D)  comparing the accounts receivable subsidiary ledger to the control account 
A)  credit check before approving a sale on account 
B)  bank reconciliation 
C)  physical inventory count 
D)  comparing the accounts receivable subsidiary ledger to the control account

Question 5

Which statement is not correct?

Accepted Answer

A)  only successful transactions are recorded on a transaction log 
B)  unsuccessful transactions are recorded in an error file 
C)  a transaction log is a temporary file 
D)  a hardcopy transaction listing is provided to users 
A)  only successful transactions are recorded on a transaction log 
B)  unsuccessful transactions are recorded in an error file 
C)  a transaction log is a temporary file 
D)  a hardcopy transaction listing is provided to users

Question 6

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 7

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file. As a result, the accounts receivable master file was erased. Which control would prevent this from happening?

Accepted Answer

A)  header label check 
B)  expiration date check 
C)  version check 
D)  validity check 
A)  header label check 
B)  expiration date check 
C)  version check 
D)  validity check

Question 8

Internal control system 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 9

The bank reconciliation uncovered a transposition error in the books. This is an example of a

Accepted Answer

A)  preventive control 
B)  detective control 
C)  corrective control 
D)  none of the above 
A)  preventive control 
B)  detective control 
C)  corrective control 
D)  none of the above

Question 10

Which of the following is an example of an input control test?

Accepted Answer

A)  sequence check 
B)  zero value check 
C)  spooling check 
D)  range check 
A)  sequence check 
B)  zero value check 
C)  spooling check 
D)  range check

Question 11

What are the six categories of physical control activities discussed in the text?

Accepted Answer

Transaction authorization, seg

Question 12

According to the ACFE study, when it comes to fraud losses

Accepted Answer

A)  the median fraud loss caused by males is more than double that caused by females 
B)  most frauds are committed by individuals acting alone 
C)  managers commit more frauds that employees 
D)  all of the above. 
A)  the median fraud loss caused by males is more than double that caused by females 
B)  most frauds are committed by individuals acting alone 
C)  managers commit more frauds that employees 
D)  all of the above.

Question 13

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

Accepted Answer

Output controls are designed to ensure t

Question 14

Which of the following is not an example of a processing control?

Accepted Answer

A)  hash total. 
B)  record count. 
C)  batch total. 
D)  check digit 
A)  hash total. 
B)  record count. 
C)  batch total. 
D)  check digit

Question 15

What are the three categories of processing control?

Accepted Answer

Batch controls, run-

Question 16

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 17

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 th

Question 18

Distinguish between exposure and risk.

Accepted Answer

Exposure is the absence or wea

Question 19

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Accepted Answer

A) True 
 B)False

Question 20

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

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

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

Which of the following is a preventive control?

Which statement is not correct?

One characteristic of employee fraud is that the fraud

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file. As a result, the accounts receivable master file was erased. Which control would prevent this from happening?

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

The bank reconciliation uncovered a transposition error in the books. This is an example of a

Which of the following is an example of an input control test?

What are the six categories of physical control activities discussed in the text?

According to the ACFE study, when it comes to fraud losses

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

Which of the following is not an example of a processing control?

What are the three categories of processing control?

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

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.

Distinguish between exposure and risk.

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

A physical inventory count is an example of a

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

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

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

Which of the following is a preventive control?

Which statement is not correct?

One characteristic of employee fraud is that the fraud

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file. As a result, the accounts receivable master file was erased. Which control would prevent this from happening?

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

The bank reconciliation uncovered a transposition error in the books. This is an example of a

Which of the following is an example of an input control test?

What are the six categories of physical control activities discussed in the text?

According to the ACFE study, when it comes to fraud losses

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

Which of the following is not an example of a processing control?

What are the three categories of processing control?

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

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.

Distinguish between exposure and risk.

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

A physical inventory count is an example of a

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