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

Which component of the ERM framework is best described here: 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.

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

The _________________________ sets the tone of the organization, influencing the control consciousness of its people.

The control goal called _______________________________________________________ strives to ensure that a given operation is completed with a minimum of resources.

Listed below are 8 descriptions of sections of the Sarbanes-Oxley Act of 2002 (SOX) followed by the names of 8 sections of SOX.Required: On the blank line next to the numbered section description enter a letter of the corresponding section name.Section Descriptions Section Titles a.Public Company Accounting Oversight Board b.Auditor Independence c.Corporate Responsibility d.Enhanced Financial Disclosures e.Analysts Conflicts of Interest f.Studies and Reports g.Corporate and Criminal Fraud Accountability h.Corporate Tax Returns

A ___________________________________ relates to a specific AIS process or to the technology used to implement the process

A programming error causes the sale of an inventory item to be added to the quantity on hand attribute in the inventory master data.Which control goal was not achieved?

The control goal of ensure ___________________________________ provides assurance that all valid objects or events which were entered into the computer are in turn reflected in their respective master data.

Information-processing policies and procedures that assist in accomplishing control goals are known as:

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: Box Title Box Description $\bullet$ Related objectives $\bullet$ e.g., expand production of our top-five selling retail products to meet increased demand e.g., to be in the top quartile of product sales for retailers of our products $\bullet$ Strategy $\bullet$ e.g., to be the leading producer of household products in the regions in which we operate $\bullet$ Mission, vision, purpose $\bullet$ increase production of x by 15% $\bullet$ hire 180 qualified new staff $\bullet$ maintain product quality $\bullet$ Strategic objectives $\bullet$

According to the 2008 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by audits or internal controls than through tips.

____ relate to a specific AIS process or to the technology used to implement the process.

________________________________________ is a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

The section of Sarbanes Oxley that prohibits audit firms from providing a wide array of non-audit services to audit clients is ________________________________________.

______________________________ are the policies and procedures that help ensure that management directives are carried out.

Under the Sarbanes Oxley Act of 2002, the section on Corporate Responsibility requires a company's CEO and CFO to certify quarterly and annual reports.

A control that involves reprocessing transactions that are rejected during initial processing is an example of:

A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance is

A(n) ______________________________ is a program that secretly takes over another Internet -attached computer and then uses that computer to launch attacks that can't be traced to the creator.

A(n) ______________________________ is 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.