Exam 7: Control and Accounting Information Systems

Whitewater Rapids provides canoes to tourists eager to ride Whitewater River's rapids.Management has determined that there is one chance in a thousand of a customer being injured or killed.Settlement of resulting lawsuits has an average cost of $850,000.Insurance with a $100,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.What is the impact of this risk without insurance?

Which type of audit assesses employee compliance with management policies and procedures?

One of the key objectives of segregating duties is to

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

Applying the COBIT5 framework,monitoring is the responsibility of

Describe the four ways that management can use to respond to risk.Provide an example for each of them.

The primary purpose of the Foreign Corrupt Practices Act of 1977 was

At a movie theater box office,all tickets are sequentially prenumbered.At the end of each day,the beginning ticket number is subtracted from the ending number to calculate the number of tickets sold.Cash is counted and compared with the number of tickets sold.Which of the following situations does this control detect?

Discuss the weaknesses in COSO's internal control framework that led to the development of the COSO Enterprise Risk Management framework.

How is expected loss calculated when performing risk assessment?

The audit committee of the board of directors

Maintaining backup copies of files,correcting data entry errors,and resubmitting transactions for subsequent processing are examples of what type of control?

Discuss the internal environment and identify the elements that comprise the internal environment.

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

An accounting policy that requires a purchasing manager to sign off on all purchases over $10,000 is an example of

Identify the preventive control below.

According to the ERM model,________ help to ensure the accuracy,completeness and reliability of internal and external company reports.

In a system with effective separation of duties,it is difficult for any single employee to embezzle successfully.

Duplicate checking of calculations and preparing bank reconciliations and monthly trial balances are examples of what type of control?

As a result of an internal risk assessment,Berryhill Insurance decided it was no longer profitable to provide flood insurance in the southern states without a general rate increase.Berryhill apparently chose to ________ the risk of paying flood claims in the southern states by raising its insurance rate.