Question 1

The 2013 COSO Report identifies five components for an effective internal control system.These are:

Accepted Answer

A) Control environment, risk assessment, control activities, information and communication, and monitoring 
B) Control environment, control procedures, control activities, communication, and monitoring 
C) Control procedures, control activities, information, communication, and monitoring 
D) Control procedures, risk assessment, control activities, information and communication, and monitoring 
A) Control environment, risk assessment, control activities, information and communication, and monitoring 
B) Control environment, control procedures, control activities, communication, and monitoring 
C) Control procedures, control activities, information, communication, and monitoring 
D) Control procedures, risk assessment, control activities, information and communication, and monitoring

Question 2

A good internal control system will contribute towards detecting accidental errors made by employees.

Accepted Answer

A) True 
 B)False

Question 3

COBIT 5's principles guide effective management and governance of IT within the enterprise.

Accepted Answer

A) True 
 B)False

Question 4

When assessing a company's internal control structure policies and procedures, the primary consideration is whether they

Accepted Answer

A) Prevent management override 
B) Relate to the control environment 
C) Reflect management's philosophy and operating style 
D) Affect the financial statement assertions 
A) Prevent management override 
B) Relate to the control environment 
C) Reflect management's philosophy and operating style 
D) Affect the financial statement assertions

Question 5

Segregation of duties is a fundamental concept in an effective system of internal control.Nevertheless, the internal auditor must be aware that this safeguard can be compromised through

Accepted Answer

A) Lack of training of employees 
B) Collusion among employees 
C) Irregular employee reviews 
D) Absence of internal auditing 
A) Lack of training of employees 
B) Collusion among employees 
C) Irregular employee reviews 
D) Absence of internal auditing

Question 6

Many organizations have an internal audit function that makes periodic reviews of each department within the organization.The focus of these reviews is to:

Accepted Answer

A) Conduct an investigation of each department to be sure fraud is not taking place 
B) Evaluate the efficiency and effectiveness of the department 
C) Evaluate the performance of the manager of the department 
D) Report to the organization's top managers and board of directors 
A) Conduct an investigation of each department to be sure fraud is not taking place 
B) Evaluate the efficiency and effectiveness of the department 
C) Evaluate the performance of the manager of the department 
D) Report to the organization's top managers and board of directors

Question 7

Both cash and credit customers are educated to expect a sales ticket.Tickets are serially numbered.All numbers are accounted for daily.

Accepted Answer

A) Customers complain that their monthly bills contain items that have been paid 
B) Some customers have the correct change for the merchandise purchased; they pay and do not wait for a sales ticket 
C) Customers complain that they are billed for goods they did not purchase 
D) Customers complain that goods ordered are not received 
E) Salesclerks destroy duplicate sales tickets for the amount of cash stolen 
A) Customers complain that their monthly bills contain items that have been paid 
B) Some customers have the correct change for the merchandise purchased; they pay and do not wait for a sales ticket 
C) Customers complain that they are billed for goods they did not purchase 
D) Customers complain that goods ordered are not received 
E) Salesclerks destroy duplicate sales tickets for the amount of cash stolen

Question 8

The five components of internal control articulated in the 2013 COSO Report include Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

Accepted Answer

A) True 
 B)False

Question 9

COSO did not change its definition of enterprise risk management when it released the 2017 COSO ERM Report.

Accepted Answer

A) True 
 B)False

Question 10

Risk portfolio represents the amount and type of risk that an organization is willing to accept in pursuit of its goals and objectives.

Accepted Answer

A) True 
 B)False

Question 11

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

Accepted Answer

A) Internal controls 
B) A control environment 
C) Risk assessment 
D) Management consultants 
A) Internal controls 
B) A control environment 
C) Risk assessment 
D) Management consultants

Question 12

The 2013 COSO Report stresses that:

Accepted Answer

A) Internal control is a process 
B) An internal control system, if properly designed, can become a substitute for management 
C) People only at high levels of an organization are an important part of an internal control system 
D) An internal control system should consist of three interrelated components: the control environment, risk assessment, and control activities 
A) Internal control is a process 
B) An internal control system, if properly designed, can become a substitute for management 
C) People only at high levels of an organization are an important part of an internal control system 
D) An internal control system should consist of three interrelated components: the control environment, risk assessment, and control activities

Question 13

The 2013 COSO Report identifies five components for an effective internal control system.Which of those five includes the methods used to record, process, summarize, and report a company's transactions?

Accepted Answer

A) Control procedures 
B) Control environment 
C) Control activities 
D) Information and communication 
A) Control procedures 
B) Control environment 
C) Control activities 
D) Information and communication

The 2013 COSO Report identifies five components for an effective internal control system.These are:

A good internal control system will contribute towards detecting accidental errors made by employees.

COBIT 5's principles guide effective management and governance of IT within the enterprise.

When assessing a company's internal control structure policies and procedures, the primary consideration is whether they

Segregation of duties is a fundamental concept in an effective system of internal control.Nevertheless, the internal auditor must be aware that this safeguard can be compromised through

Many organizations have an internal audit function that makes periodic reviews of each department within the organization.The focus of these reviews is to:

Both cash and credit customers are educated to expect a sales ticket.Tickets are serially numbered.All numbers are accounted for daily.

The five components of internal control articulated in the 2013 COSO Report include Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

COSO did not change its definition of enterprise risk management when it released the 2017 COSO ERM Report.

Risk portfolio represents the amount and type of risk that an organization is willing to accept in pursuit of its goals and objectives.

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

The 2013 COSO Report stresses that:

The 2013 COSO Report identifies five components for an effective internal control system.Which of those five includes the methods used to record, process, summarize, and report a company's transactions?

Accounting Information Systems and the Accountant

Accounting on the Internet

Information Technology and Aiss

Accounting and Data Analytics

Integrated Accounting and Enterprise Software

Computer Controls for Organizations and Accounting Information Systems

Accounting Information Systems and Business Processes: Part I

Accounting Information Systems and Business Processes: Part II

Cybercrime, Fraud, and Ethics

Information Technology Auditing

Documenting Accounting Information Systems

Developing and Implementing Effective Accounting Information Systems

Database Design

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Filters

Exam 6: Introduction to Internal Control Systems and Risk Management

The 2013 COSO Report identifies five components for an effective internal control system.These are:

A good internal control system will contribute towards detecting accidental errors made by employees.

COBIT 5's principles guide effective management and governance of IT within the enterprise.

When assessing a company's internal control structure policies and procedures, the primary consideration is whether they

Segregation of duties is a fundamental concept in an effective system of internal control.Nevertheless, the internal auditor must be aware that this safeguard can be compromised through

Many organizations have an internal audit function that makes periodic reviews of each department within the organization.The focus of these reviews is to:

Both cash and credit customers are educated to expect a sales ticket.Tickets are serially numbered.All numbers are accounted for daily.

The five components of internal control articulated in the 2013 COSO Report include Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

COSO did not change its definition of enterprise risk management when it released the 2017 COSO ERM Report.

Risk portfolio represents the amount and type of risk that an organization is willing to accept in pursuit of its goals and objectives.

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

The 2013 COSO Report stresses that:

The 2013 COSO Report identifies five components for an effective internal control system.Which of those five includes the methods used to record, process, summarize, and report a company's transactions?

Accounting Information Systems and the Accountant

Accounting on the Internet

Information Technology and Aiss

Accounting and Data Analytics

Integrated Accounting and Enterprise Software

Computer Controls for Organizations and Accounting Information Systems

Accounting Information Systems and Business Processes: Part I

Accounting Information Systems and Business Processes: Part II

Cybercrime, Fraud, and Ethics

Information Technology Auditing

Documenting Accounting Information Systems

Developing and Implementing Effective Accounting Information Systems

Database Design

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Filters