Question 1

Which of the following is a control goal regarding master data?

Accepted Answer

A)  ensure input validity 
B)  ensure update accuracy 
C)  ensure input accuracy 
D)  ensure input completeness

Question 2

The section of Sarbanes Oxley that establishes an independent board to oversee public company audits is ______________________________.

Accepted Answer

The answer of The section of Sarbanes Oxley that establishes...

Question 3

The section of Sarbanes Oxley that requires each annual report filed with the SEC to include an internal control report is:

Accepted Answer

A)  Title I - Public Company Accounting Oversight Board 
B)  Title II - Auditor Independence 
C)  Title III - Corporate Responsibility 
D)  Title IV - Enhanced Financial Disclosures

Question 4

Regarding internal control systems:

Accepted Answer

A)  ultimate ownership of the system should rest with the board of directors. 
B)  a properly implemented system can be expected to provide 100 percent assurance that the organization will meet its objectives. 
C)  both a. and b. 
D)  neither a. not b.

Question 5

A process, effected by an entity's board of directors, management and other personnel, applied in strategy settings and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is:

Accepted Answer

A)  enterprise risk management 
B)  internal control 
C)  organizational governance 
D)  risk assessment

Question 6

______________________________ is a process, effected by an entity's board of directors, management and other personnel, applied in strategy settings and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

Accepted Answer

The answer of ______________________________ is a process, effected by an...

Question 7

A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance is:

Accepted Answer

A)  enterprise risk management 
B)  internal control 
C)  organizational governance 
D)  risk assessment

Question 8

The control goal of ensure ______________________________ requires that all valid objects or events are captured and entered into the computer once and only once.

Accepted Answer

The answer of The control goal of ensure ______________________________ requires...

Question 9

A computer crime technique called ______________________________ involves the systematic theft of very small amounts usually by rounding to the nearest cent in financial transactions such as the calculation of interest on savings accounts.

Accepted Answer

The answer of A computer crime technique called ______________________________ involves...

Question 10

Valid input data are appropriately authorized and represent actual economic events and objects.

Accepted Answer

A) True 
 B)False

Question 11

A(n) ______________________________ relates to a specific AIS process, such as billing or cash receipts.

Accepted Answer

The answer of A(n) ______________________________ relates to a specific AIS...

Question 12

PCAOB Auditing Standard No. 5 uses ______________________________ in its description of the conduct of an integrated audit under SOX 404.

Accepted Answer

The answer of PCAOB Auditing Standard No. 5 uses ______________________________...

Question 13

Information-processing policies and procedures that assist in accomplishing control goals are known as ______________________________.

Accepted Answer

The answer of Information-processing policies and procedures that assist in...

Question 14

The section of Sarbanes Oxley that requires a company's CEO and CFO to certify quarterly and annual reports is:

Accepted Answer

A)  Title I - Public Company Accounting Oversight Board 
B)  Title II - Auditor Independence 
C)  Title III -Corporate Responsibility 
D)  Title IV - Enhanced Financial Disclosures

Question 15

Which of the following statements regarding a system of internal control is false?

Accepted Answer

A)  Effective internal control systems provide complete assurance against the occurrence of material frauds and embezzlements. 
B)  Internal control systems depend largely on the competency and honesty of people. 
C)  Because internal control systems have a cost, management should evaluate the cost/benefit of each control plan. 
D)  The development of an internal control system is the responsibility of management.

Question 16

The ______________________________ framework suggests that organizations and auditors should continue to use COSO as a basis for internal control.

Accepted Answer

The answer of The ______________________________ framework suggests that organizations and...

Question 17

Management's legal responsibility to prevent fraud and other irregularities is implied by laws such as the Foreign Corrupt Practices Act.

Accepted Answer

A) True 
 B)False

Question 18

As a result of an inadequate design, a production process yields an abnormally high amount of raw material scrapped. Which control goal is being violated?

Accepted Answer

A)  ensure effectiveness of operations 
B)  ensure efficient employment of resources 
C)  ensure security of resources 
D)  ensure input accuracy

Question 19

The control goal of ensure ______________________________ strives to prevent fictitious items from entering an information system.

Accepted Answer

The answer of The control goal of ensure ______________________________ strives...

Question 20

The external environment is a system of integrated elements-people, structures, processes, and procedures-acting together to provide reasonable assurance that an organization achieves both its operations system and its information system goals.

Accepted Answer

A) True 
 B)False

Exam 7: Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Which of the following is a control goal regarding master data?

The section of Sarbanes Oxley that establishes an independent board to oversee public company audits is ______________________________.

The section of Sarbanes Oxley that requires each annual report filed with the SEC to include an internal control report is:

Regarding internal control systems:

A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance is:

The control goal of ensure ______________________________ requires that all valid objects or events are captured and entered into the computer once and only once.

A computer crime technique called ______________________________ involves the systematic theft of very small amounts usually by rounding to the nearest cent in financial transactions such as the calculation of interest on savings accounts.

Valid input data are appropriately authorized and represent actual economic events and objects.

A(n) ______________________________ relates to a specific AIS process, such as billing or cash receipts.

PCAOB Auditing Standard No. 5 uses ______________________________ in its description of the conduct of an integrated audit under SOX 404.

Information-processing policies and procedures that assist in accomplishing control goals are known as ______________________________.

The section of Sarbanes Oxley that requires a company's CEO and CFO to certify quarterly and annual reports is:

Which of the following statements regarding a system of internal control is false?

The ______________________________ framework suggests that organizations and auditors should continue to use COSO as a basis for internal control.

Management's legal responsibility to prevent fraud and other irregularities is implied by laws such as the Foreign Corrupt Practices Act.

As a result of an inadequate design, a production process yields an abnormally high amount of raw material scrapped. Which control goal is being violated?

The control goal of ensure ______________________________ strives to prevent fictitious items from entering an information system.

The external environment is a system of integrated elements-people, structures, processes, and procedures-acting together to provide reasonable assurance that an organization achieves both its operations system and its information system goals.