Question 1

A control goal that is a measure of success in meeting a set of established goals is called:

Accepted Answer

A)  effectiveness 
B)  monitoring 
C)  efficiency 
D)  risk 
A)  effectiveness 
B)  monitoring 
C)  efficiency 
D)  risk

Question 2

According to the 2012 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by audits or internal controls than through tips.

Accepted Answer

A) True 
 B)False

Question 3

A process captures only authorized transactions but fails to record them only once. Which control goal does this fail to achieve?

Accepted Answer

A)  validity 
B)  accuracy 
C)  completeness 
D)  effectiveness 
A)  validity 
B)  accuracy 
C)  completeness 
D)  effectiveness

Question 4

This component of the ERM framework concerns the entirety of enterprise risk management and is accomplished through ongoing management activities, separate evaluations, or both.

Accepted Answer

A)  control activities 
B)  Monitoring 
C)  objective setting 
D)  risk response 
A)  control activities 
B)  Monitoring 
C)  objective setting 
D)  risk response

Question 5

Monitoring is a process that assesses the quality of internal control performance over time.

Accepted Answer

A) True 
 B)False

Question 6

A tool designed to assist you in evaluating the potential effectiveness of controls in a business process by matching control goals with relevant control plans is:

Accepted Answer

A)  ERM 
B)  control plans 
C)  control matrix 
D)  internal controls 
A)  ERM 
B)  control plans 
C)  control matrix 
D)  internal controls

Question 7

Failing to record a customer's order for the purchase of inventory violates the control goal of:

Accepted Answer

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

Question 8

Establishing a viable internal control system is primarily the responsibility of:

Accepted Answer

A)  the external auditors 
B)  management 
C)  programmers 
D)  government authorities 
A)  the external auditors 
B)  management 
C)  programmers 
D)  government authorities

Question 9

According to the 2012 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by:

Accepted Answer

A)  Audits 
B)  internal controls 
C)  Managers 
D)  Tips 
A)  Audits 
B)  internal controls 
C)  Managers 
D)  Tips

Question 10

This framework was issued in 1996 (and updated in 2007) by the Information Systems Audit and Control Association (ISACA) because of the influence of IT over information systems, financial reporting and auditing.

Accepted Answer

A)  COBIT 
B)  COSO 
C)  ERM 
D)  All of the above. 
A)  COBIT 
B)  COSO 
C)  ERM 
D)  All of the above.

Question 11

The business process objectives that an internal control system is designed to achieve are:

Accepted Answer

A)  control goals 
B)  control plans 
C)  general controls 
D)  the control matrix 
A)  control goals 
B)  control plans 
C)  general controls 
D)  the control matrix

Question 12

Control plans that relate to a multitude of goals and processes are called ______________________________.

Accepted Answer

pervasive

Question 13

A corrective control plan is designed to discover problems that have occurred.

Accepted Answer

A) True 
 B)False

Question 14

Organizational governance is a process by which organizations select objectives, establish processes to achieve objectives, and monitor performance.

Accepted Answer

A) True 
 B)False

Question 15

Figure TB-7.1 depicts the objective setting process shown in Chapter 7 but with all labels removed.
Required:
Complete Figure TB-7.1 by inserting the following labels where they belong in the model:
 $\begin{array}{c}
\begin{array}{lll}
\underline {\text { Box Title }}\
 \text {A. Related objectives}\
\
 \text {B. Strategy}\
\
 \text {C. Mission, vision, purpose}\
\
\
 \text {D. Strategic objectives}\
\ 
\end{array}
\begin{array}{lll}
\underline{\text { Box Description }}\
\text {E. e.g., to be in the top quartile of product sales for}\
\text { retailers of our products}\
\text {F. e.g., to be the leading producer of household}\
 \text {products in the regions in which we operate}\
\text {G. increase production of \( x $ by $ 15 \% $}\
\text {- hire 180 qualified new staff}\
\text {- maintain product quality}\
\text {H. e.g., expand production of our top-five selling}\
\text { retail products to meet increased demand}

\end{array}
\end{array}\)

Accepted Answer

The answer of Figure TB-7.1 depicts the objective setting process...

Question 16

Risk assessment is best described by:

Accepted Answer

A)  Internal and external events affecting achievement of an entity's objectives must be identified, distinguishing between risks and opportunities. 
B)  Management selects whether to avoid, accept, reduce, or share risk -developing a set of actions to align risks with the entity's risk tolerances and risk appetite. 
C)  The entirety of enterprise risk management is monitored and modifications made as necessary. 
D)  The likelihood and impact of risks are analyzed, as a basis for determining how they should be managed. 
A)  Internal and external events affecting achievement of an entity's objectives must be identified, distinguishing between risks and opportunities. 
B)  Management selects whether to avoid, accept, reduce, or share risk -developing a set of actions to align risks with the entity's risk tolerances and risk appetite. 
C)  The entirety of enterprise risk management is monitored and modifications made as necessary. 
D)  The likelihood and impact of risks are analyzed, as a basis for determining how they should be managed.

Question 17

The section of Sarbanes Oxley that makes it a felony to knowingly destroy, alter, or create records and or documents with the intent to impede, obstruct, or influence an ongoing or contemplated federal investigation and offers legal protection to whistle blowers is:

Accepted Answer

A)  Title V - Analysts Conflicts of Interests 
B)  Title VIII - Corporate and Criminal Fraud Accountability 
C)  Title IX - White-Collar Crime Penalty Enhancements 
D)  Title XI - Corporate Fraud and Accountability 
A)  Title V - Analysts Conflicts of Interests 
B)  Title VIII - Corporate and Criminal Fraud Accountability 
C)  Title IX - White-Collar Crime Penalty Enhancements 
D)  Title XI - Corporate Fraud and Accountability

Question 18

The control goal called ensure ______________________________ is a measure of the productivity of resources applied to achieve a set of goals.

Accepted Answer

efficient

Question 19

____ relate to a specific AIS process, such as billing or cash receipts.

Accepted Answer

A)  Control procedures 
B)  Information processing procedures 
C)  Business process control plans 
D)  Operations system control plans 
A)  Control procedures 
B)  Information processing procedures 
C)  Business process control plans 
D)  Operations system control plans

Question 20

A computer abuse technique called a ____ involves a virus that replicates itself on disks, in memory, or across networks.

Accepted Answer

A)  worm 
B)  back door 
C)  logic bomb 
D)  Trojan horse 
A)  worm 
B)  back door 
C)  logic bomb 
D)  Trojan horse

A control goal that is a measure of success in meeting a set of established goals is called:

According to the 2012 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by audits or internal controls than through tips.

A process captures only authorized transactions but fails to record them only once. Which control goal does this fail to achieve?

This component of the ERM framework concerns the entirety of enterprise risk management and is accomplished through ongoing management activities, separate evaluations, or both.

Monitoring is a process that assesses the quality of internal control performance over time.

A tool designed to assist you in evaluating the potential effectiveness of controls in a business process by matching control goals with relevant control plans is:

Failing to record a customer's order for the purchase of inventory violates the control goal of:

Establishing a viable internal control system is primarily the responsibility of:

According to the 2012 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by:

This framework was issued in 1996 (and updated in 2007) by the Information Systems Audit and Control Association (ISACA) because of the influence of IT over information systems, financial reporting and auditing.

The business process objectives that an internal control system is designed to achieve are:

Control plans that relate to a multitude of goals and processes are called ______________________________.

A corrective control plan is designed to discover problems that have occurred.

Organizational governance is a process by which organizations select objectives, establish processes to achieve objectives, and monitor performance.

Risk assessment is best described by:

The section of Sarbanes Oxley that makes it a felony to knowingly destroy, alter, or create records and or documents with the intent to impede, obstruct, or influence an ongoing or contemplated federal investigation and offers legal protection to whistle blowers is:

The control goal called ensure ______________________________ is a measure of the productivity of resources applied to achieve a set of goals.

____ relate to a specific AIS process, such as billing or cash receipts.

A computer abuse technique called a ____ involves a virus that replicates itself on disks, in memory, or across networks.

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and SQL

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Billingaccounts Receivablecash Receipts Barcr Process

The Purchasing Process

The Accounts Payablecash Disbursements Apcd Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

The General Ledger and Business Reporting GLBR Process

Acquiring and Implementing Accounting Information Systems

Filters

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

A control goal that is a measure of success in meeting a set of established goals is called:

According to the 2012 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by audits or internal controls than through tips.

A process captures only authorized transactions but fails to record them only once. Which control goal does this fail to achieve?

This component of the ERM framework concerns the entirety of enterprise risk management and is accomplished through ongoing management activities, separate evaluations, or both.

Monitoring is a process that assesses the quality of internal control performance over time.

A tool designed to assist you in evaluating the potential effectiveness of controls in a business process by matching control goals with relevant control plans is:

Failing to record a customer's order for the purchase of inventory violates the control goal of:

Establishing a viable internal control system is primarily the responsibility of:

According to the 2012 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by:

This framework was issued in 1996 (and updated in 2007) by the Information Systems Audit and Control Association (ISACA) because of the influence of IT over information systems, financial reporting and auditing.

The business process objectives that an internal control system is designed to achieve are:

Control plans that relate to a multitude of goals and processes are called ______________________________.

A corrective control plan is designed to discover problems that have occurred.

Organizational governance is a process by which organizations select objectives, establish processes to achieve objectives, and monitor performance.

Risk assessment is best described by:

The section of Sarbanes Oxley that makes it a felony to knowingly destroy, alter, or create records and or documents with the intent to impede, obstruct, or influence an ongoing or contemplated federal investigation and offers legal protection to whistle blowers is:

The control goal called ensure ______________________________ is a measure of the productivity of resources applied to achieve a set of goals.

____ relate to a specific AIS process, such as billing or cash receipts.

A computer abuse technique called a ____ involves a virus that replicates itself on disks, in memory, or across networks.

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and SQL

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Billingaccounts Receivablecash Receipts Barcr Process

The Purchasing Process

The Accounts Payablecash Disbursements Apcd Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

The General Ledger and Business Reporting GLBR Process

Acquiring and Implementing Accounting Information Systems

Filters