Question 1

After identifying risks,management will decide on appropriate policies and procedures to address the risks.These policies and procedures are called:

Accepted Answer

A) control policies 
B) control activities 
C) control procedures 
D) control processes 
A) control policies 
B) control activities 
C) control procedures 
D) control processes

Question 2

Provide at least five examples of processing controls.

Accepted Answer

Run-to-run totals will help identify whe

Question 3

The control matrix does NOT tell us:

Accepted Answer

A) the control objectives of a control system 
B) how control objectives would ideally be attained 
C) whether control objectives actually exist within a system 
D) the effectiveness of the control objectives 
A) the control objectives of a control system 
B) how control objectives would ideally be attained 
C) whether control objectives actually exist within a system 
D) the effectiveness of the control objectives

Question 4

How does a computer system know that a sales manager has authorised a credit transaction over $1000?

Accepted Answer

A) The input terminal has bio-security check eg retina scanning. 
B) A combination of checks on the size of the credit required and the access rights of the manager when she logged in with her username and password 
C) The system must insist on the sales manager entering the transaction 
D) The control comes from the work practices outside the computer 
A) The input terminal has bio-security check eg retina scanning. 
B) A combination of checks on the size of the credit required and the access rights of the manager when she logged in with her username and password 
C) The system must insist on the sales manager entering the transaction 
D) The control comes from the work practices outside the computer

Question 5

Checking for accuracy is performed by ____________ checks.

Accepted Answer

A) edit 
B) range 
C) reasonableness 
D) all of the above 
A) edit 
B) range 
C) reasonableness 
D) all of the above

Question 6

Which of the following controls will best help detect inventory input accuracy concerns when entering credit sales into a system?

Accepted Answer

A) A batch total of the number of sales invoices in the batch. 
B) A hash total of the number of inventory items ordered across all invoices. 
C) A hash total of customer numbers from all sales invoices. 
D) A sequence check on sales invoice numbers. 
A) A batch total of the number of sales invoices in the batch. 
B) A hash total of the number of inventory items ordered across all invoices. 
C) A hash total of customer numbers from all sales invoices. 
D) A sequence check on sales invoice numbers.

Question 7

A cash disbursement clerk issues a cheque that has been approved by the treasurer.This is an example of:

Accepted Answer

A) Separating record-keeping from asset custody 
B) Separating transaction processing to transaction authorisation 
C) Separating asset custody from transaction processing. 
D) Separating transaction authorisation from record-keeping. 
A) Separating record-keeping from asset custody 
B) Separating transaction processing to transaction authorisation 
C) Separating asset custody from transaction processing. 
D) Separating transaction authorisation from record-keeping.

Question 8

Describe the checks that can be performed during data entry.

Accepted Answer

Validity checks take a given input for a

Question 9

Which of the following is NOT one of the main aims for an organisation in the event of a natural disaster that disrupts business operations?

Accepted Answer

A) Limit the time the business is out of operation. 
B) Minimise the extent of loss to existing business resources. 
C) Limit the extended harm done to business partners. 
D) Minimise the loss of data and information. 
A) Limit the time the business is out of operation. 
B) Minimise the extent of loss to existing business resources. 
C) Limit the extended harm done to business partners. 
D) Minimise the loss of data and information.

Question 10

Describe the advantages and disadvantages of batch processing.

Accepted Answer

Batch processing operates by accumulatin

Question 11

Which aspect of document collection are pre-numbered documents used to establish?

Accepted Answer

A) input data is accurate 
B) data from source documents is recorded in a timely manner 
C) all source documents are accounted for 
D) all source documents have been authorised 
A) input data is accurate 
B) data from source documents is recorded in a timely manner 
C) all source documents are accounted for 
D) all source documents have been authorised

Question 12

Information processing controls are those that are put in place within the organisation to work towards the ____________ of transactions.

Accepted Answer

A) efficiency,effectiveness,and accuracy 
B) timeliness,efficiency,and completeness 
C) accuracy,completeness,and authorisation 
D) authorisation,processing,accuracy 
A) efficiency,effectiveness,and accuracy 
B) timeliness,efficiency,and completeness 
C) accuracy,completeness,and authorisation 
D) authorisation,processing,accuracy

Question 13

Briefly describe and compare preventive control,detective control,and corrective control.

Accepted Answer

Preventive controls are designed to stop

Question 14

Which of the following is an example of a turnaround document?

Accepted Answer

A) balance sheet 
B) sales order 
C) remittance advice 
D) payslip 
A) balance sheet 
B) sales order 
C) remittance advice 
D) payslip

Question 15

The system documentation tool that is most useful for documenting controls is …

Accepted Answer

A) process map 
B) structured narrative 
C) logical data flow diagram 
D) system flowchart 
A) process map 
B) structured narrative 
C) logical data flow diagram 
D) system flowchart

Question 16

Which of the following is an example of poor segregation of duties?

Accepted Answer

A) Inventory control department is allowed to receive incoming goods. 
B) Warehouse personnel are allowed to ship goods to customers. 
C) The purchasing department is allowed to generate purchase requisitions. 
D) All of the options are correct. 
A) Inventory control department is allowed to receive incoming goods. 
B) Warehouse personnel are allowed to ship goods to customers. 
C) The purchasing department is allowed to generate purchase requisitions. 
D) All of the options are correct.

Question 17

With respect to the recording of transactions,which of the following statements is true?

Accepted Answer

A) Proper recording of transactions is essentially about completeness. 
B) Proper recording of transactions is essentially about accuracy. 
C) Proper recording of transactions is essentially about storing data in only one place. 
D) None of the options are correct. 
A) Proper recording of transactions is essentially about completeness. 
B) Proper recording of transactions is essentially about accuracy. 
C) Proper recording of transactions is essentially about storing data in only one place. 
D) None of the options are correct.

Question 18

Which control would best help achieve the aim of correct valuation for purchase transactions entered into a system?

Accepted Answer

A) Range checks - checking the quantity ordered against acceptable ranges. 
B) Validity checks - checking the supplier is listed in our supplier master file. 
C) Sequence check - ensuring the purchase order number is the next number in the sequence. 
D) Authorisation - getting a manager to approve all purchases. 
A) Range checks - checking the quantity ordered against acceptable ranges. 
B) Validity checks - checking the supplier is listed in our supplier master file. 
C) Sequence check - ensuring the purchase order number is the next number in the sequence. 
D) Authorisation - getting a manager to approve all purchases.

Question 19

Briefly describe and compare general controls and application controls.

Accepted Answer

General controls are those policies and

Question 20

Computer-based controls are extremely dependent on: (i)a sound control environment (ii)sound general controls (iii)the COBIT framework

Accepted Answer

A) (i)(ii) 
B) (i)(iii) 
C) (ii)(iii) 
D) (i)(ii)(iii) 
A) (i)(ii) 
B) (i)(iii) 
C) (ii)(iii) 
D) (i)(ii)(iii)

After identifying risks,management will decide on appropriate policies and procedures to address the risks.These policies and procedures are called:

Provide at least five examples of processing controls.

The control matrix does NOT tell us:

How does a computer system know that a sales manager has authorised a credit transaction over $1000?

Checking for accuracy is performed by ____________ checks.

Which of the following controls will best help detect inventory input accuracy concerns when entering credit sales into a system?

A cash disbursement clerk issues a cheque that has been approved by the treasurer.This is an example of:

Describe the checks that can be performed during data entry.

Which of the following is NOT one of the main aims for an organisation in the event of a natural disaster that disrupts business operations?

Describe the advantages and disadvantages of batch processing.

Which aspect of document collection are pre-numbered documents used to establish?

Information processing controls are those that are put in place within the organisation to work towards the ____________ of transactions.

Briefly describe and compare preventive control,detective control,and corrective control.

Which of the following is an example of a turnaround document?

The system documentation tool that is most useful for documenting controls is …

Which of the following is an example of poor segregation of duties?

With respect to the recording of transactions,which of the following statements is true?

Which control would best help achieve the aim of correct valuation for purchase transactions entered into a system?

Briefly describe and compare general controls and application controls.

Computer-based controls are extremely dependent on: (i)a sound control environment (ii)sound general controls (iii)the COBIT framework

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Transaction Cycle The Revenue Cycle

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters

Exam 8: Internal Controls II

After identifying risks,management will decide on appropriate policies and procedures to address the risks.These policies and procedures are called:

Provide at least five examples of processing controls.

The control matrix does NOT tell us:

How does a computer system know that a sales manager has authorised a credit transaction over $1000?

Checking for accuracy is performed by ____________ checks.

Which of the following controls will best help detect inventory input accuracy concerns when entering credit sales into a system?

A cash disbursement clerk issues a cheque that has been approved by the treasurer.This is an example of:

Describe the checks that can be performed during data entry.

Which of the following is NOT one of the main aims for an organisation in the event of a natural disaster that disrupts business operations?

Describe the advantages and disadvantages of batch processing.

Which aspect of document collection are pre-numbered documents used to establish?

Information processing controls are those that are put in place within the organisation to work towards the ____________ of transactions.

Briefly describe and compare preventive control,detective control,and corrective control.

Which of the following is an example of a turnaround document?

The system documentation tool that is most useful for documenting controls is …

Which of the following is an example of poor segregation of duties?

With respect to the recording of transactions,which of the following statements is true?

Which control would best help achieve the aim of correct valuation for purchase transactions entered into a system?

Briefly describe and compare general controls and application controls.

Computer-based controls are extremely dependent on: (i)a sound control environment (ii)sound general controls (iii)the COBIT framework

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Transaction Cycle The Revenue Cycle

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters