Exam 10: Accounting Information Systems and Internal Controls

According to the Sarbanes-Oxley Act of 2002,it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.

Put the listed steps in the corresponding parentheses in the risk assessment and response approach diagram below. (A)Avoid,share or accept risk (B)Reduce risk by implementing controls (C)Is it cost beneficial to protect the firm from the risk? (D)Estimate the likelihood of each risk occurring (E)Identify control to mitigate the risk (F)Estimate the costs and benefits from instituting controls (G)Identify the risks (H)Estimate the impact or potential loss,from each risk

A firm must establish control policies,procedures,and practices that ensure the firm's business objectives are achieved and its risk mitigation strategies are carried out.

The internal control provisions of SOX apply to which companies in the United States?

According to COSO,which of the following components of the enterprise risk management addresses an entity's integrity and ethical values?

Which of the following input controls is a numeric value computed to provide assurance that the original value has not been altered in construction or transmission?

Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

In a large pubic corporation,evaluating internal control procedures should be responsibility of:

Proper segregation of duties calls for separation of the following functions:

What are the three main functions of COSO ERM?

Segregation of duties reduces the risk of errors and irregularities in accounting records.

Which of the following is an example of a validity check?

Reconciliation of cash accounts may be referred to as what type of control?

Which of the following is not a component of internal control as defined by COSO?

The chief executive officer is ultimately responsible for enterprise risk management.

When considering internal control,an auditor should be aware of reasonable assurance,which recognizes that

Each of the following types of controls is considered to be an entity-level control,except those:

Which of the following is considered an application input control?

Review of the audit log is an example of which of the following types of security control?

Which of the following most likely would not be considered as an inherent limitation of the effectiveness of a firm's internal control?