Exam 3: Fundamentals I: Accounting Information Systems

Ethics and corporate culture, management philosophy and operating style and an effective and independent audit committee are all part of which internal control component?

The SAP module approach is inherently better than the transaction cycle approach.

What is an example of a customer audit?

Offering a reward to customers if they don't get a sales receipt is an example of a:

The Foreign Corrupt Practices Act and the Sarbanes-Oxley Act hold whom criminally liable for weak internal control processes?

When employees use a cash register, how should each register drawer be maintained?

If a manager is ensuring accuracy, integrity and security of their processes, then he or she is exercising good applications control.

One traditional approach for designing an AIS is to divide the major operational activities into:

Explain the Specific objectives of internal control?

Internal controls over cash involve daily cash receipts and money received in the mail from customers.

The golden rule of separation of duties is:

Which of the following is NOT a component of internal control?

When it comes time to replenish petty cash, how should it occur?

Transaction processing controls are those controls that are relevant to auditing internal control processes within specific transaction cycles.

Controls in manual systems will be exactly the same as controls in computer-based systems.

When a systems developer is working with company employees to identify needs and priorities, he or she is using the:

One specific objective on internal control is ensuring compliance with applicable laws, regulations, professional rules, and contractual obligations.

One specific component of internal control is risk assessment and management.

Explain the special controls needed for cash?

Describe what segregation of duties means to you.