Question 1

Describe the five components of the COSO's Internal Control Model.

Accepted Answer

The five components of the COSO's Internal Control Model are: (1)Control environment.This is the foundation for all other components of internal control.The core of any business is its people their individual attributes,including integrity,discipline,ethical values,and competence-and the environment in which they operate.They are the engine that drives the organization and the foundation on which everything rests.
(2)Risk assessment.The organization must identify,analyze,and manage its risks.Managing risk is a dynamic process.Management must consider changes in the external environment and within the business that may be obstacles to its objectives.
(3)Control activities.Control policies and procedures help ensure that the actions identified by management to address risks and achieve the organization's objectives are effectively carried out.Control activities are performed at all levels and at various stages within the business process and over technology.
(4)Information and communication.Information and communication systems capture and exchange the information needed to conduct,manage,and control the organization's operations.Communication must occur internally and externally to provide information needed to carry out day-to-day internal control activities.All personnel must understand their responsibilities.
(5)Monitoring.The entire process must be monitored,and modifications made as necessary so the system can change as conditions warrant.Evaluations ascertain whether each component of internal control is present and functioning.Deficiencies are communicated in a timely manner,with serious matters reported to senior management and the board.

Question 2

Congress passed this federal law for the purpose of preventing financial statement fraud,to make financial reports more transparent and to strengthen the internal control of public companies.

Accepted Answer

A) Foreign Corrupt Practices Act of 1977 
B) The Securities Exchange Act of 1934 
C) The Sarbanes-Oxley Act of 2002 
D) The Securities Exchange Act of 1933 
A) Foreign Corrupt Practices Act of 1977 
B) The Securities Exchange Act of 1934 
C) The Sarbanes-Oxley Act of 2002 
D) The Securities Exchange Act of 1933 C

Question 3

Which of the following is not an example of something monitored by a responsibility accounting system?

Accepted Answer

A) Budgets. 
B) Quotas. 
C) Vendor analysis. 
D) Quality standards 
A) Budgets. 
B) Quotas. 
C) Vendor analysis. 
D) Quality standards C

Question 4

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Accepted Answer

A) performance evaluation. 
B) project development plan. 
C) data processing schedule. 
D) strategic master plan. 
A) performance evaluation. 
B) project development plan. 
C) data processing schedule. 
D) strategic master plan.

Question 5

Hiring decisions at Maarja's Razors are made by Maimu Maarja,the Director of Human Resources.Pay rates are approved by the Vice President for Operations.At the end of each pay period,supervisors submit time cards to Kasheena,who prepares paycheck requisitions.Paychecks are then distributed through the company's mail room.This represents a(n)________ segregation of duties.

Accepted Answer

A) partial 
B) effective 
C) ineffective 
D) limited 
A) partial 
B) effective 
C) ineffective 
D) limited

Question 6

Detecting fraud where two or more people are in collusion to override controls is less difficult because it is much easier to for one or more fraud perpetrators to reveal the fraud.

Accepted Answer

A) True 
 B)False

Question 7

________ remains after management implements internal control(s).

Accepted Answer

A) Inherent risk 
B) Residual risk 
C) Risk appetite 
D) Risk assessment 
A) Inherent risk 
B) Residual risk 
C) Risk appetite 
D) Risk assessment

Question 8

Identify the statement below which is true.

Accepted Answer

A) Requiring two signatures on checks over $20,000 is an example of segregation of duties. 
B) Although forensic specialists utilize computers, only people can accurately identify fraud. 
C) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. 
D) Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check. 
A) Requiring two signatures on checks over $20,000 is an example of segregation of duties. 
B) Although forensic specialists utilize computers, only people can accurately identify fraud. 
C) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. 
D) Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check.

Question 9

Why are most fraud not being reported or prosecuted?

Accepted Answer

Most fraud is not reported or prosecuted

Question 10

The principle of holding individuals accountable for their internal control responsibilities in pursuit of objectives belongs to which of the COSO's Internal Control Model's component?

Accepted Answer

A) Control environment. 
B) Risk assessment. 
C) Control activities. 
D) Information and communication. 
A) Control environment. 
B) Risk assessment. 
C) Control activities. 
D) Information and communication.

Question 11

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

Accepted Answer

A) New roles for audit committees 
B) New rules for auditors and management 
C) New rules for internal control requirements 
D) New rules for information systems development 
A) New roles for audit committees 
B) New rules for auditors and management 
C) New rules for internal control requirements 
D) New rules for information systems development

Question 12

Personnel policies such as background checks,mandatory vacations,and rotation of duties tend to deter

Accepted Answer

A) unintentional errors. 
B) employee fraud or embezzlement. 
C) fraud by outsiders. 
D) disgruntled employees. 
A) unintentional errors. 
B) employee fraud or embezzlement. 
C) fraud by outsiders. 
D) disgruntled employees.

Question 13

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

Accepted Answer

A) event 
B) activity 
C) process 
D) system 
A) event 
B) activity 
C) process 
D) system

Question 14

The largest differences between the COSO Integrated Control (IC)framework and the COSO Enterprise Risk Management (ERM)framework is

Accepted Answer

A) IC is controls-based, while the ERM is risk-based. 
B) IC is risk-based, while ERM is controls-based. 
C) IC is required, while ERM is optional. 
D) IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted accounting principles. 
A) IC is controls-based, while the ERM is risk-based. 
B) IC is risk-based, while ERM is controls-based. 
C) IC is required, while ERM is optional. 
D) IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted accounting principles.

Question 15

Describe the three principles that apply to the information and communication process.

Accepted Answer

The following three principles apply to

Question 16

Describe the differences between general and specific authorization.

Accepted Answer

Authorizations are often documented by s

Question 17

Nolwenn Limited has been diligent in ensuring that their operations meet modern control standards.Recently,they have extended their control compliance system by incorporating policies and procedures that require the specification of company objectives,uncertainties associated with objectives,and contingency plans.Nolwenn Limited is transitioning from a ________ to a ________ control framework.

Accepted Answer

A) COSO-Integrated Framework; COBIT 
B) COBIT; COSO-Integrated Framework 
C) COBIT; COSO-ERM 
D) COSO-Integrated Framework; COSO-ERM 
E) COSO-ERM; COBIT 
A) COSO-Integrated Framework; COBIT 
B) COBIT; COSO-Integrated Framework 
C) COBIT; COSO-ERM 
D) COSO-Integrated Framework; COSO-ERM 
E) COSO-ERM; COBIT

Question 18

Duplicate checking of calculations is an example of a ________ control,and procedures to resubmit rejected transactions are an example of a ________ control.

Accepted Answer

A) corrective; detective 
B) detective; corrective 
C) preventive; corrective 
D) detective; preventive 
A) corrective; detective 
B) detective; corrective 
C) preventive; corrective 
D) detective; preventive

Question 19

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

Accepted Answer

A) Enforcing a written code of conduct. 
B) Holding employees accountable for achieving objectives. 
C) Restricting access to assets. 
D) Avoiding unrealistic expectations. 
A) Enforcing a written code of conduct. 
B) Holding employees accountable for achieving objectives. 
C) Restricting access to assets. 
D) Avoiding unrealistic expectations.

Question 20

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

Accepted Answer

A) hiring and firing the external auditors. 
B) performing tests of the company's internal control structure. 
C) certifying the accuracy of the company's financial reporting process. 
D) overseeing day-to-day operations of the internal audit department. 
A) hiring and firing the external auditors. 
B) performing tests of the company's internal control structure. 
C) certifying the accuracy of the company's financial reporting process. 
D) overseeing day-to-day operations of the internal audit department.

Describe the five components of the COSO's Internal Control Model.

Congress passed this federal law for the purpose of preventing financial statement fraud,to make financial reports more transparent and to strengthen the internal control of public companies.

Which of the following is not an example of something monitored by a responsibility accounting system?

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Detecting fraud where two or more people are in collusion to override controls is less difficult because it is much easier to for one or more fraud perpetrators to reveal the fraud.

________ remains after management implements internal control(s).

Identify the statement below which is true.

Why are most fraud not being reported or prosecuted?

The principle of holding individuals accountable for their internal control responsibilities in pursuit of objectives belongs to which of the COSO's Internal Control Model's component?

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

Personnel policies such as background checks,mandatory vacations,and rotation of duties tend to deter

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

The largest differences between the COSO Integrated Control (IC)framework and the COSO Enterprise Risk Management (ERM)framework is

Describe the three principles that apply to the information and communication process.

Describe the differences between general and specific authorization.

Duplicate checking of calculations is an example of a control,and procedures to resubmit rejected transactions are an example of a control.

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 7: Control and Accounting Information Systems

Describe the five components of the COSO's Internal Control Model.

Congress passed this federal law for the purpose of preventing financial statement fraud,to make financial reports more transparent and to strengthen the internal control of public companies.

Which of the following is not an example of something monitored by a responsibility accounting system?

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Detecting fraud where two or more people are in collusion to override controls is less difficult because it is much easier to for one or more fraud perpetrators to reveal the fraud.

________ remains after management implements internal control(s).

Identify the statement below which is true.

Why are most fraud not being reported or prosecuted?

The principle of holding individuals accountable for their internal control responsibilities in pursuit of objectives belongs to which of the COSO's Internal Control Model's component?

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

Personnel policies such as background checks,mandatory vacations,and rotation of duties tend to deter

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

The largest differences between the COSO Integrated Control (IC)framework and the COSO Enterprise Risk Management (ERM)framework is

Describe the three principles that apply to the information and communication process.

Describe the differences between general and specific authorization.

Duplicate checking of calculations is an example of a ________ control,and procedures to resubmit rejected transactions are an example of a ________ control.

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Duplicate checking of calculations is an example of a control,and procedures to resubmit rejected transactions are an example of a control.