Question 1

Provide at least three examples of risk exposures in a business:

Accepted Answer

Asset losses due to theft or spoilage, accounting errors and their consequences, revenue losses, expense overruns, business interruptions, fraud and embezzlement, fines and penalties, civil liabilities, and losses of competitive advantage.

Question 2

Application controls can be classified as:

Accepted Answer

A)  general controls. 
B)  process controls. 
C)  transaction processing controls. 
D)  input, processing, and output controls. 
A)  general controls. 
B)  process controls. 
C)  transaction processing controls. 
D)  input, processing, and output controls. D

Question 3

In regards to daily deposits and reconciliations, the deposits should consist of:

Accepted Answer

A)  Intact totals of both cash sales and money received from customers on account. 
B)  Intact totals from money received from customers, but not cash sales. 
C)  Intact totals from cash sales, but not money received from customers. 
D)  A total of all sales and cash receipts, less money used for petty cash. 
A)  Intact totals of both cash sales and money received from customers on account. 
B)  Intact totals from money received from customers, but not cash sales. 
C)  Intact totals from cash sales, but not money received from customers. 
D)  A total of all sales and cash receipts, less money used for petty cash. A

Question 4

Internal control is very much process oriented.

Accepted Answer

A) True 
 B)False

Question 5

The primary control in the purchasing side of the finance cycle is that:

Accepted Answer

A)  only purchasing officials should place the actual order. 
B)  payments only be made by an independent treasury function based on approved invoices from other departments. 
C)  payments only be made by the department that placed the order. 
D)  an audit trail must include a cost justification and vendor selection listing. 
A)  only purchasing officials should place the actual order. 
B)  payments only be made by an independent treasury function based on approved invoices from other departments. 
C)  payments only be made by the department that placed the order. 
D)  an audit trail must include a cost justification and vendor selection listing.

Question 6

In terms of application controls, what does accuracy refer to?

Accepted Answer

Accuracy means that the data a

Question 7

The ability to trace all transactions back to its original source document is called:

Accepted Answer

A)  the audit trail. 
B)  a component of internal control. 
C)  the audit principle. 
D)  the fifth step in an ERM. 
A)  the audit trail. 
B)  a component of internal control. 
C)  the audit principle. 
D)  the fifth step in an ERM.

Question 8

What are some examples of security measures within an AIS?

Accepted Answer

Input controls help ensure security by l

Question 9

Who has effect over the internal control of a business?

Accepted Answer

A)  management. 
B)  board of directors. 
C)  key personnel within the business. 
D)  all of the above. 
A)  management. 
B)  board of directors. 
C)  key personnel within the business. 
D)  all of the above.

Question 10

Which of the following is an example of an internal control question that an auditor may ask?

Accepted Answer

A)  Do you make daily intact deposits of each day's receipts? 
B)  Do you restrictively endorse checks "for deposit only?" 
C)  Do you reconcile bank deposit receipts against credits to accounts receivables? 
D)  All of the above. 
A)  Do you make daily intact deposits of each day's receipts? 
B)  Do you restrictively endorse checks "for deposit only?" 
C)  Do you reconcile bank deposit receipts against credits to accounts receivables? 
D)  All of the above.

Question 11

Every time cash changes hands within a business, it should be:

Accepted Answer

A)  audited. 
B)  counted. 
C)  rebundled. 
D)  reconciled to a sales total. 
A)  audited. 
B)  counted. 
C)  rebundled. 
D)  reconciled to a sales total.

Question 12

How are internal control objectives and components different?

Accepted Answer

The objectives of internal control are c

Question 13

The general plan of organization for data processing should include:

Accepted Answer

A)  general controls. 
B)  transaction processing controls. 
C)  segregation of duties. 
D)  all of the above. 
A)  general controls. 
B)  transaction processing controls. 
C)  segregation of duties. 
D)  all of the above.

Question 14

Events that can adversely affect the company, such as asset losses due to theft or spoilage, accounting errors and their consequences, revenue losses, expense overruns, business interruptions, fraud and embezzlement, fines and penalties, civil liabilities, and losses of competitive advantage are called:

Accepted Answer

A)  risk exposures. 
B)  loss exposures. 
C)  internal control areas. 
D)  audit exposures. 
A)  risk exposures. 
B)  loss exposures. 
C)  internal control areas. 
D)  audit exposures.

Question 15

Internal controls can be viewed as:

Accepted Answer

A)  a means to limit the amount of money paid in a fraud suit. 
B)  a hindrance to productive business practices. 
C)  loss prevention tools. 
D)  loss detection tools. 
A)  a means to limit the amount of money paid in a fraud suit. 
B)  a hindrance to productive business practices. 
C)  loss prevention tools. 
D)  loss detection tools.

Question 16

Your organizations coordinated activities and tasks that accomplish some organizational goal are called:

Accepted Answer

A)  an internal control. 
B)  a business practice. 
C)  a business sale. 
D)  a business process. 
A)  an internal control. 
B)  a business practice. 
C)  a business sale. 
D)  a business process.

Question 17

Internal controls specific to a simple job-order are part of internal controls in a:

Accepted Answer

A)  production cycle. 
B)  purchasing cycle. 
C)  finance cycle. 
D)  expenditure cycle 
A)  production cycle. 
B)  purchasing cycle. 
C)  finance cycle. 
D)  expenditure cycle

Question 18

Inventories and other physical assets should be:

Accepted Answer

A)  received and counted by the department which initially ordered it. 
B)  placed in service as soon as received to maximize profit. 
C)  received in a central receiving department before being routed to their destination. 
D)  reconciled and paid for prior to being routed to their destination. 
A)  received and counted by the department which initially ordered it. 
B)  placed in service as soon as received to maximize profit. 
C)  received in a central receiving department before being routed to their destination. 
D)  reconciled and paid for prior to being routed to their destination.

Question 19

How can management effect the control environment of a company?

Accepted Answer

The control environment represents the o

Question 20

Those controls that are relevant to implementing good internal control processes within specific transaction cycles are called:

Accepted Answer

A)  general controls. 
B)  transaction processing controls. 
C)  management controls. 
D)  all of the above. 
A)  general controls. 
B)  transaction processing controls. 
C)  management controls. 
D)  all of the above.

Provide at least three examples of risk exposures in a business:

Application controls can be classified as:

In regards to daily deposits and reconciliations, the deposits should consist of:

Internal control is very much process oriented.

The primary control in the purchasing side of the finance cycle is that:

In terms of application controls, what does accuracy refer to?

The ability to trace all transactions back to its original source document is called:

What are some examples of security measures within an AIS?

Who has effect over the internal control of a business?

Which of the following is an example of an internal control question that an auditor may ask?

Every time cash changes hands within a business, it should be:

How are internal control objectives and components different?

The general plan of organization for data processing should include:

Internal controls can be viewed as:

Your organizations coordinated activities and tasks that accomplish some organizational goal are called:

Internal controls specific to a simple job-order are part of internal controls in a:

Inventories and other physical assets should be:

How can management effect the control environment of a company?

Those controls that are relevant to implementing good internal control processes within specific transaction cycles are called:

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

Filters

Exam 3: Fundamentals I: Accounting Information Systems

Provide at least three examples of risk exposures in a business:

Application controls can be classified as:

In regards to daily deposits and reconciliations, the deposits should consist of:

Internal control is very much process oriented.

The primary control in the purchasing side of the finance cycle is that:

In terms of application controls, what does accuracy refer to?

The ability to trace all transactions back to its original source document is called:

What are some examples of security measures within an AIS?

Who has effect over the internal control of a business?

Which of the following is an example of an internal control question that an auditor may ask?

Every time cash changes hands within a business, it should be:

How are internal control objectives and components different?

The general plan of organization for data processing should include:

Internal controls can be viewed as:

Your organizations coordinated activities and tasks that accomplish some organizational goal are called:

Internal controls specific to a simple job-order are part of internal controls in a:

Inventories and other physical assets should be:

How can management effect the control environment of a company?

Those controls that are relevant to implementing good internal control processes within specific transaction cycles are called:

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Business Valuation

Dispute Resolution Services

Filters