Question 1

Explain why the Foreign Corrupt Practices Act was important to accountants.

Accepted Answer

The act is important to accountants beca

Question 2

Which of the following is not a basic principle of the COSO ERM framework?

Accepted Answer

A) Companies are formed to create value for society. 
B) Management must decide how much uncertainty it will accept to create value. 
C) Uncertainty results in risk. 
D) Uncertainty results in opportunity. 
A) Companies are formed to create value for society. 
B) Management must decide how much uncertainty it will accept to create value. 
C) Uncertainty results in risk. 
D) Uncertainty results in opportunity.

Question 3

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

Accepted Answer

A) The Sarbanes-Oxley Act. 
B) New accounting rules. 
C) Audit fee increases. 
D) Pressure from boards of directors. 
A) The Sarbanes-Oxley Act. 
B) New accounting rules. 
C) Audit fee increases. 
D) Pressure from boards of directors.

Question 4

According to the ERM model,________ help the company address all applicable laws and regulations.

Accepted Answer

A) compliance objectives 
B) operations objectives 
C) reporting objectives 
D) strategic objectives 
A) compliance objectives 
B) operations objectives 
C) reporting objectives 
D) strategic objectives

Question 5

Lauren Smith was relaxing after work with a colleague at a local bar.After a few drinks,she began expressing her feelings about her company's new control initiatives.It seems that as a result of controls put in place by the company,she now has to find ways to help her staff to better understand the company's vision and core values.The level of control that the company is using in this case is a(n)

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 6

A store policy that allows retail clerks to process sales returns for $1,000 or less,with a receipt dated within the past 30 days,is an example of

Accepted Answer

A) general authorization. 
B) specific authorization. 
C) special authorization. 
D) generic authorization. 
A) general authorization. 
B) specific authorization. 
C) special authorization. 
D) generic authorization.

Question 7

Applying the COBIT5 framework,governance is the responsibility of

Accepted Answer

A) internal audit. 
B) external audit. 
C) management. 
D) the board of directors. 
A) internal audit. 
B) external audit. 
C) management. 
D) the board of directors.

Question 8

Which type of control is associated with making sure an organization's control environment is stable?

Accepted Answer

A) general 
B) application 
C) detective 
D) preventive 
A) general 
B) application 
C) detective 
D) preventive

Question 9

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

Accepted Answer

A) violates the Sarbanes-Oxley Act. 
B) violates the Securities and Exchange Act. 
C) increases the risk associated with an audit. 
D) All of the above. 
A) violates the Sarbanes-Oxley Act. 
B) violates the Securities and Exchange Act. 
C) increases the risk associated with an audit. 
D) All of the above.

Question 10

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Lasalle Investment group

Accepted Answer

A) asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process. 
B) did not mention to auditors that the company had experienced material weaknesses in the company's internal control systems during the past year. 
C) selected the company's CEO to chair the audit committee. 
D) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit. 
A) asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process. 
B) did not mention to auditors that the company had experienced material weaknesses in the company's internal control systems during the past year. 
C) selected the company's CEO to chair the audit committee. 
D) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit.

Question 11

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.Based on cost-benefit analysis,what is the most that the business should pay for the insurance?

Accepted Answer

A) $100 
B) $500 
C) $750 
D) $850 
A) $100 
B) $500 
C) $750 
D) $850

Question 12

Hiring qualified personnel 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 13

The principle of selecting and developing controls that might help mitigate risks to an acceptable level 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 14

Which internal control framework is widely accepted as the authority on internal controls?

Accepted Answer

A) COBIT. 
B) ISACA framework. 
C) COSO Integrated Control. 
D) Sarbanes-Oxley control framework. 
A) COBIT. 
B) ISACA framework. 
C) COSO Integrated Control. 
D) Sarbanes-Oxley control framework.

Question 15

Petty cash is disbursed by the Manuela Luisina in the Cashier's Office.Manuela also maintains records of disbursements,places requests to the Finance Department to replace expended funds,and periodically reconciles the petty cash balance.This represents a(n)________ segregation of duties.

Accepted Answer

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

Question 16

A(n)________ helps employees act ethically.

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 17

The Sarbanes-Oxley Act (SOX)applies to

Accepted Answer

A) all companies with gross annual revenues exceeding $500 million. 
B) publicly traded companies with gross annual revenues exceeding $500 million. 
C) all private and public companies incorporated in the United States. 
D) all publicly traded companies. 
A) all companies with gross annual revenues exceeding $500 million. 
B) publicly traded companies with gross annual revenues exceeding $500 million. 
C) all private and public companies incorporated in the United States. 
D) all publicly traded companies.

Question 18

________ is not a risk response identified in the COSO Enterprise Risk Management Framework.

Accepted Answer

A) Acceptance 
B) Avoidance 
C) Monitoring 
D) Sharing 
A) Acceptance 
B) Avoidance 
C) Monitoring 
D) Sharing

Question 19

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 expected loss with insurance?

Accepted Answer

A) $100 
B) $850 
C) $100,000 
D) $850,000 
A) $100 
B) $850 
C) $100,000 
D) $850,000

Question 20

________ is the risk that exists before management takes any steps to mitigate it.

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

Explain why the Foreign Corrupt Practices Act was important to accountants.

Which of the following is not a basic principle of the COSO ERM framework?

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

According to the ERM model,________ help the company address all applicable laws and regulations.

A store policy that allows retail clerks to process sales returns for $1,000 or less,with a receipt dated within the past 30 days,is an example of

Applying the COBIT5 framework,governance is the responsibility of

Which type of control is associated with making sure an organization's control environment is stable?

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Lasalle Investment group

Hiring qualified personnel is an example of a control,and procedures to resubmit rejected transactions are an example of a control.

The principle of selecting and developing controls that might help mitigate risks to an acceptable level belongs to which of the COSO's Internal Control Model's component?

Which internal control framework is widely accepted as the authority on internal controls?

Petty cash is disbursed by the Manuela Luisina in the Cashier's Office.Manuela also maintains records of disbursements,places requests to the Finance Department to replace expended funds,and periodically reconciles the petty cash balance.This represents a(n)________ segregation of duties.

A(n)________ helps employees act ethically.

The Sarbanes-Oxley Act (SOX)applies to

________ is not a risk response identified in the COSO Enterprise Risk Management Framework.

________ is the risk that exists before management takes any steps to mitigate it.

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

Explain why the Foreign Corrupt Practices Act was important to accountants.

Which of the following is not a basic principle of the COSO ERM framework?

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

According to the ERM model,________ help the company address all applicable laws and regulations.

A store policy that allows retail clerks to process sales returns for $1,000 or less,with a receipt dated within the past 30 days,is an example of

Applying the COBIT5 framework,governance is the responsibility of

Which type of control is associated with making sure an organization's control environment is stable?

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Lasalle Investment group

Hiring qualified personnel is an example of a ________ control,and procedures to resubmit rejected transactions are an example of a ________ control.

The principle of selecting and developing controls that might help mitigate risks to an acceptable level belongs to which of the COSO's Internal Control Model's component?

Which internal control framework is widely accepted as the authority on internal controls?

Petty cash is disbursed by the Manuela Luisina in the Cashier's Office.Manuela also maintains records of disbursements,places requests to the Finance Department to replace expended funds,and periodically reconciles the petty cash balance.This represents a(n)________ segregation of duties.

A(n)________ helps employees act ethically.

The Sarbanes-Oxley Act (SOX)applies to

________ is not a risk response identified in the COSO Enterprise Risk Management Framework.

________ is the risk that exists before management takes any steps to mitigate it.

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

Hiring qualified personnel is an example of a control,and procedures to resubmit rejected transactions are an example of a control.