Question 1

The COSO ERM contains all five of the same COSO-Integrated Framework components.

Accepted Answer

A) True 
 B)False

Question 2

The organization chart for Renata Corporation includes a controller and an information processing manager,both of whom report to the vice president of finance.Which of the following would be a control weakness?

Accepted Answer

A) Assigning the programming and operating of the computer system to an independent control group which reports to the controller 
B) Providing for maintenance of input data controls by an independent control group which reports to the controller 
C) Periodically rotating assignment of application processing among machine operators, who all report to the information processing manager 
D) Providing for review and distribution of system-generated reports by an independent control group which reports to the controller 
A) Assigning the programming and operating of the computer system to an independent control group which reports to the controller 
B) Providing for maintenance of input data controls by an independent control group which reports to the controller 
C) Periodically rotating assignment of application processing among machine operators, who all report to the information processing manager 
D) Providing for review and distribution of system-generated reports by an independent control group which reports to the controller

Question 3

Reducing management layers,creating self-directed work teams,and emphasizing continuous improvement are all related to which aspect of internal environment?

Accepted Answer

A) Organizational structure. 
B) Methods of assigning authority and responsibility. 
C) Management philosophy and operating style. 
D) Commitment to competence. 
A) Organizational structure. 
B) Methods of assigning authority and responsibility. 
C) Management philosophy and operating style. 
D) Commitment to competence.

Question 4

Applying the COBIT5 framework,planning is the responsibility of

Accepted Answer

A) the CEO. 
B) the CFO. 
C) the board of directors. 
D) all of the above 
A) the CEO. 
B) the CFO. 
C) the board of directors. 
D) all of the above

Question 5

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated,data are captured and processed,and information is reported?

Accepted Answer

A) Information and communication. 
B) Internal environment. 
C) Event identification. 
D) Objective setting. 
A) Information and communication. 
B) Internal environment. 
C) Event identification. 
D) Objective setting.

Question 6

The COBIT5 framework primarily relates to

Accepted Answer

A) best practices and effective governance and management of private companies. 
B) best practices and effective governance and management of public companies. 
C) best practices and effective governance and management of information technology. 
D) best practices and effective governance and management of organizational assets. 
A) best practices and effective governance and management of private companies. 
B) best practices and effective governance and management of public companies. 
C) best practices and effective governance and management of information technology. 
D) best practices and effective governance and management of organizational assets.

Question 7

Why was the original 1992 COSO - Integrated Control framework updated in 2013?

Accepted Answer

A) Congress required COSO to modernize. 
B) U.S. stock exchanges required more disclosure. 
C) As an effort to more effectively address technological advancements. 
D) As an effort to comply with the Information System Audit and Control Association requirements. 
A) Congress required COSO to modernize. 
B) U.S. stock exchanges required more disclosure. 
C) As an effort to more effectively address technological advancements. 
D) As an effort to comply with the Information System Audit and Control Association requirements.

Question 8

Describe some of the most important aspects of Sarbanes-Oxley Act (SOX)and discuss why SOX was important to accountants.

Accepted Answer

Some of the most important aspects of SO

Question 9

How many principles are there in the 2013 updated COSO - Internal Control Framework?

Accepted Answer

A) 5 
B) 8 
C) 17 
D) 21 
A) 5 
B) 8 
C) 17 
D) 21

Question 10

Which of the following is the most effective way in uncovering fraud schemes that require ongoing perpetrator's attention?

Accepted Answer

A) Hiring a forensic specialist. 
B) Requiring employees to take mandatory vacations. 
C) Installing security cameras to monitor employees activities. 
D) Implementing a fraud hotline. 
A) Hiring a forensic specialist. 
B) Requiring employees to take mandatory vacations. 
C) Installing security cameras to monitor employees activities. 
D) Implementing a fraud hotline.

Question 11

As a result of an internal risk assessment,Berryhill Insurance decided it was no longer profitable to provide flood insurance in the southern states.Berryhill apparently chose to ________ the risk of paying flood claims in the southern states.

Accepted Answer

A) reduce 
B) share 
C) avoid 
D) accept 
A) reduce 
B) share 
C) avoid 
D) accept

Question 12

A(n)________ helps employees understand management's vision.It communicates company core values and inspires employees to live by those values.

Accepted Answer

A) boundary system 
B) diagnostic control system 
C) interactive control system 
D) belief system 
A) boundary system 
B) diagnostic control system 
C) interactive control system 
D) belief system

Question 13

The first step of the risk assessment process is generally to

Accepted Answer

A) identify controls to reduce all risk to zero. 
B) estimate the exposure from negative events. 
C) identify the threats that the company currently faces. 
D) estimate the risk probability of negative events occurring. 
A) identify controls to reduce all risk to zero. 
B) estimate the exposure from negative events. 
C) identify the threats that the company currently faces. 
D) estimate the risk probability of negative events occurring.

Question 14

The SEC,PCAOB,and FASB are best described as external influences that directly affect an organization's

Accepted Answer

A) hiring practices. 
B) philosophy and operating style. 
C) internal environment. 
D) methods of assigning authority. 
A) hiring practices. 
B) philosophy and operating style. 
C) internal environment. 
D) methods of assigning authority.

Question 15

Identify the detective control below.

Accepted Answer

A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Ensuring that the employee who records cash received from customers does not also have access to the cash itself. 
A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Ensuring that the employee who records cash received from customers does not also have access to the cash itself.

Question 16

Using the COSO definition of an event,an event represents uncertainty.

Accepted Answer

A) True 
 B)False

Question 17

Explain why management's philosophy and operating style are considered to be the most important element of the internal environment.

Accepted Answer

Management truly sets the tone for the c

Question 18

Identify the corrective control below.

Accepted Answer

A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Counting inventory on hand and comparing counts to the perpetual inventory records. 
A) Reconciling the bank statement to the cash control account. 
B) Approving customer credit prior to approving a sales order. 
C) Maintaining frequent backup records to prevent loss of data. 
D) Counting inventory on hand and comparing counts to the perpetual inventory records.

Question 19

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

Accepted Answer

A) Updating the inventory subsidiary ledgers and recording purchases in the purchases journal. 
B) Approving a sales return on a customer's account and depositing customers' checks in the bank. 
C) Updating the general ledger and working in the inventory warehouse. 
D) Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal. 
A) Updating the inventory subsidiary ledgers and recording purchases in the purchases journal. 
B) Approving a sales return on a customer's account and depositing customers' checks in the bank. 
C) Updating the general ledger and working in the inventory warehouse. 
D) Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal.

Question 20

Which of the following is not a component of the COSO Enterprise Risk Management Integrated Framework (ERM)?

Accepted Answer

A) Monitoring. 
B) Ethical culture. 
C) Risk assessment. 
D) Control environment. 
A) Monitoring. 
B) Ethical culture. 
C) Risk assessment. 
D) Control environment.

Exam 7: Control and Accounting Information Systems

The COSO ERM contains all five of the same COSO-Integrated Framework components.

The organization chart for Renata Corporation includes a controller and an information processing manager,both of whom report to the vice president of finance.Which of the following would be a control weakness?

Reducing management layers,creating self-directed work teams,and emphasizing continuous improvement are all related to which aspect of internal environment?

Applying the COBIT5 framework,planning is the responsibility of

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated,data are captured and processed,and information is reported?

The COBIT5 framework primarily relates to

Why was the original 1992 COSO - Integrated Control framework updated in 2013?

Describe some of the most important aspects of Sarbanes-Oxley Act (SOX)and discuss why SOX was important to accountants.

How many principles are there in the 2013 updated COSO - Internal Control Framework?

Which of the following is the most effective way in uncovering fraud schemes that require ongoing perpetrator's attention?

As a result of an internal risk assessment,Berryhill Insurance decided it was no longer profitable to provide flood insurance in the southern states.Berryhill apparently chose to ________ the risk of paying flood claims in the southern states.

A(n)________ helps employees understand management's vision.It communicates company core values and inspires employees to live by those values.

The first step of the risk assessment process is generally to

The SEC,PCAOB,and FASB are best described as external influences that directly affect an organization's

Identify the detective control below.

Using the COSO definition of an event,an event represents uncertainty.

Explain why management's philosophy and operating style are considered to be the most important element of the internal environment.

Identify the corrective control below.

With a limited work force and a desire to maintain strong internal control,which combination of duties would result in the lowest risk exposure?

Which of the following is not a component of the COSO Enterprise Risk Management Integrated Framework (ERM)?

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

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