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

Establishing a viable internal control system is the responsibility of ______________________________.

(Short Answer)

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Question 141

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

(Short Answer)

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Question 142

_____________ control plans relate to a multitude of goals and processes.

(Multiple Choice)

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Question 143

place the capital letter of the control goal that best matches the situation described. HINT: Some letters may be used more than once. Conversely, some letters may not apply at all.

A batch of documents sent by the mail room to the accounts receivable department were lost in the intercompany mail and never recorded...

Ensure update accuracy.

The cost of the people and computers needed to process incoming checks is less than the benefit obtained from the incoming funds...

Ensure efficient employment of resources.

In a manual bookkeeping system, cash receipts recorded correctly in the cash receipts journal but some were inadvertently posted to the wrong customer accounts.

Ensure input validity.

Correct Answer:

Verified

A batch of documents sent by the mail room to the accounts receivable department were lost in the intercompany mail and never recorded...

The cost of the people and computers needed to process incoming checks is less than the benefit obtained from the incoming funds...

In a manual bookkeeping system, cash receipts recorded correctly in the cash receipts journal but some were inadvertently posted to the wrong customer accounts.

In a manual bookkeeping system, an accounts receivable clerk failed to post an entire page of transactions from the cash receipts journal to the accounts receivable subsidiary ledger.

A mail room clerk fabricated a phony document for a friend to make it look like the friend had paid his account receivable balance. The phony document got recorded.

An accounts receivable clerk made a copy of the company's accounts receivable master data and sold this customer information to a competing company.

The company's accounts receivable system was infiltrated by a hacker.

A flaw in the processing logic of a computer program resulted in cash received from customers being added to their accounts receivable balances rather than subtracted...

(Matching)

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Question 144

A sale to a customer is entered into the system properly, but the event does not accurately update the customer's outstanding balance. This type of processing error would be classified as a user error.

(True/False)

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Question 145

According to the COSO Fraudulent Financial Reporting 1998- 2007 update:

(Multiple Choice)

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Question 146

The section of Sarbanes Oxley that prohibits audit firms from providing a wide array of nonaudit services to audit clients is ______________________________.

(Short Answer)

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Question 147

Which of the following is not a requirement of SOX Section 404?

(Multiple Choice)

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Question 148

The section of Sarbanes Oxley that provides for fines and imprisonment of up to 20 years to individuals who corruptly alter, destroy, mutilate, or conceal documents with the intent to impair the document's integrity or availability for use in an official proceeding, or to otherwise obstruct, influence or impede any official proceeding is:

(Multiple Choice)

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Question 149

______________________________ are automated business process controls contained within computer programs.

(Short Answer)

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Question 150

A deliberate act or untruth intended to obtain unfair or unlawful gain is a(n):

(Multiple Choice)

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Question 151

Risk assessment is the entity's identification and analysis of relevant risks to the achievement of its objectives, forming a basis for determining how the risks should be managed.

(True/False)

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Question 152

The third level of protection in the control hierarchy is:

(Multiple Choice)

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Question 153

The section of Sarbanes Oxley that sets forth criminal penalties applicable to CEOs and CFOs of up to $5 million and up to 20 years imprisonment if they knowingly or willfully certify false or misleading periodic reports is ______________________________.

(Short Answer)

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Question 154

The control goal called ensure ______________________________ is a measure of success in meting one or more goals for the operations process.

(Short Answer)

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Question 155

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

(Short Answer)

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Question 156

A batch of business events is accurately entered into a business event data store, but the computer operator fails to use the data to update master data. This type of processing error would be classified as an operational error.

(True/False)

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Question 157

______________________________ provides guidance on how an organization's IT might affect any of COSO's five components of internal control. This standard guides auditors in understanding the impact of IT on internal control and assessing IT-related control risks.

(Short Answer)

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Question 158

Expected gross risk is a function of the initial expected gross risk, reduced risk exposure due to controls, and cost of controls.

(True/False)

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Question 159

______________________________ is software designed specifically to damage or disrupt computer systems.

(Short Answer)

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Question 160

Showing 141 - 160 of 161

Establishing a viable internal control system is the responsibility of ______________________________.

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

_____________ control plans relate to a multitude of goals and processes.

A sale to a customer is entered into the system properly, but the event does not accurately update the customer's outstanding balance. This type of processing error would be classified as a user error.

According to the COSO Fraudulent Financial Reporting 1998- 2007 update:

The section of Sarbanes Oxley that prohibits audit firms from providing a wide array of nonaudit services to audit clients is ______________________________.

Which of the following is not a requirement of SOX Section 404?

______________________________ are automated business process controls contained within computer programs.

A deliberate act or untruth intended to obtain unfair or unlawful gain is a(n):

Risk assessment is the entity's identification and analysis of relevant risks to the achievement of its objectives, forming a basis for determining how the risks should be managed.

The third level of protection in the control hierarchy is:

The section of Sarbanes Oxley that sets forth criminal penalties applicable to CEOs and CFOs of up to $5 million and up to 20 years imprisonment if they knowingly or willfully certify false or misleading periodic reports is ______________________________.

The control goal called ensure ______________________________ is a measure of success in meting one or more goals for the operations process.

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

A batch of business events is accurately entered into a business event data store, but the computer operator fails to use the data to update master data. This type of processing error would be classified as an operational error.

______________________________ provides guidance on how an organization's IT might affect any of COSO's five components of internal control. This standard guides auditors in understanding the impact of IT on internal control and assessing IT-related control risks.

Expected gross risk is a function of the initial expected gross risk, reduced risk exposure due to controls, and cost of controls.

______________________________ is software designed specifically to damage or disrupt computer systems.

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

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