Question 1

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

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 2

What is one reason why AIS threats are increasing?

Accepted Answer

A)  LANs and client/server systems are easier to control than centralized, mainframe systems. 
B)  Many companies do not realize that data security is crucial to their survival. 
C)  Computer control problems are often overestimated and overly emphasized by management. 
D)  Many companies believe that protecting information is a strategic requirement. 
A)  LANs and client/server systems are easier to control than centralized, mainframe systems. 
B)  Many companies do not realize that data security is crucial to their survival. 
C)  Computer control problems are often overestimated and overly emphasized by management. 
D)  Many companies believe that protecting information is a strategic requirement.

Question 3

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

Accepted Answer

A)  to require corporations to maintain a good system of internal control. 
B)  to prevent the bribery of foreign officials by American companies. 
C)  to require the reporting of any material fraud by a business. 
D)  All of the above are required by the act. 
A)  to require corporations to maintain a good system of internal control. 
B)  to prevent the bribery of foreign officials by American companies. 
C)  to require the reporting of any material fraud by a business. 
D)  All of the above are required by the act.

Question 4

Global Economic Strategies,L.L.D.,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.They are 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 5

Chuck Hewitt was relaxing after work with a colleague at a local watering hole.Well into his second martini,he began expressing his opinions about his company's budgeting practices.It seems that,as a result of "budget handcuffs" that require managers to explain material deviations from budgeted expenditures,his ability to creatively manage his department's activities have been curtailed.The level of control that the company is using in this case is a

Accepted Answer

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

Question 6

Accountants must try to protect the AIS from threats.Which of the following would be a measure that should be taken?

Accepted Answer

A)  Take a proactive approach to eliminate threats. 
B)  Detect threats that do occur. 
C)  Correct and recover from threats that do occur. 
D)  All of the above are proper measures for the accountant to take. 
A)  Take a proactive approach to eliminate threats. 
B)  Detect threats that do occur. 
C)  Correct and recover from threats that do occur. 
D)  All of the above are proper measures for the accountant to take.

Question 7

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

Accepted Answer

A)  preventive control. 
B)  detective control. 
C)  corrective control. 
D)  authorization control. 
A)  preventive control. 
B)  detective control. 
C)  corrective control. 
D)  authorization control.

Question 8

Which of the following is not a reason for the increase in security problems for AIS?

Accepted Answer

A)  Confidentiality issues caused by interlinked inter-company networks 
B)  Difficult to control distributed computing networks 
C)  Increasing efficiency resulting from more automation 
D)  Increasing numbers of information systems and users 
A)  Confidentiality issues caused by interlinked inter-company networks 
B)  Difficult to control distributed computing networks 
C)  Increasing efficiency resulting from more automation 
D)  Increasing numbers of information systems and users

Question 9

Which of the following is an independent check on performance?

Accepted Answer

A)  The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B)  Production teams perform quality evaluations of the products that they produce. 
C)  The General Manager compares budgeted amounts with expenditure records from all departments. 
D)  Petty cash is disbursed by Fred Haynes. He also maintains records of disbursements, places requests to finance to replace expended funds, and periodically reconciles the petty cash balance. 
A)  The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B)  Production teams perform quality evaluations of the products that they produce. 
C)  The General Manager compares budgeted amounts with expenditure records from all departments. 
D)  Petty cash is disbursed by Fred Haynes. He also maintains records of disbursements, places requests to finance to replace expended funds, and periodically reconciles the petty cash balance.

Question 10

Which of the following is not one of the risk responses identified in the COSO Enterprise Risk Management Framework?

Accepted Answer

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

Question 11

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 Control Provision of 1998 
A)  Foreign Corrupt Practices Act of 1977 
B)  The Securities Exchange Act of 1934 
C)  The Sarbanes-Oxley Act of 2002 
D)  The Control Provision of 1998

Question 12

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 13

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Folding Squid Technologies

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

Question 14

Generally in a risk assessment process,the first step is to

Accepted Answer

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

Question 15

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 16

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

Accepted Answer

COSO's internal control framework 
1.had

Question 17

The COSO Enterprise Risk Management Integrated Framework identifies four objectives necessary to achieve corporate goals.Objectives specifically identified include all of the following except

Accepted Answer

A)  implementation of newest technologies. 
B)  compliance with laws and regulations. 
C)  effective and efficient operations. 
D)  reliable reporting. 
A)  implementation of newest technologies. 
B)  compliance with laws and regulations. 
C)  effective and efficient operations. 
D)  reliable reporting.

Question 18

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

Accepted Answer

A)  Jim issues credit cards to him and Marie, and when the credit card balances are just under $1,000, Marie writes off the accounts as bad debt. Jim then issues new cards. 
B)  An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car. 
C)  A mail room employee steals a check received from a customer and destroys the documentation. 
D)  The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods. 
A)  Jim issues credit cards to him and Marie, and when the credit card balances are just under $1,000, Marie writes off the accounts as bad debt. Jim then issues new cards. 
B)  An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car. 
C)  A mail room employee steals a check received from a customer and destroys the documentation. 
D)  The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.

Question 19

According to the COSO Enterprise Risk Management Framework,the risk assessment process incorporates all of the following components except

Accepted Answer

A)  reporting potential risks to auditors. 
B)  identifying events that could impact the enterprise. 
C)  evaluating the impact of potential events on achievement of objectives. 
D)  establishing objectives for the enterprise. 
A)  reporting potential risks to auditors. 
B)  identifying events that could impact the enterprise. 
C)  evaluating the impact of potential events on achievement of objectives. 
D)  establishing objectives for the enterprise.

Question 20

Which of the following statements is true?

Accepted Answer

A)  Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. 
B)  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. 
C)  Requiring two signatures on checks over $20,000 is an example of segregation of duties. 
D)  Although forensic specialists utilize computers, only people can accurately identify fraud. 
A)  Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. 
B)  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. 
C)  Requiring two signatures on checks over $20,000 is an example of segregation of duties. 
D)  Although forensic specialists utilize computers, only people can accurately identify fraud.

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

What is one reason why AIS threats are increasing?

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

Accountants must try to protect the AIS from threats.Which of the following would be a measure that should be taken?

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

Which of the following is not a reason for the increase in security problems for AIS?

Which of the following is an independent check on performance?

Which of the following is not one of the risk responses identified in the COSO Enterprise Risk Management Framework?

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.

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

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Folding Squid Technologies

Generally in a risk assessment process,the first step is to

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

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

The COSO Enterprise Risk Management Integrated Framework identifies four objectives necessary to achieve corporate goals.Objectives specifically identified include all of the following except

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

According to the COSO Enterprise Risk Management Framework,the risk assessment process incorporates all of the following components except

Which of the following statements is true?

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 7: Control and Accounting Information Systems

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

What is one reason why AIS threats are increasing?

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

Accountants must try to protect the AIS from threats.Which of the following would be a measure that should be taken?

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

Which of the following is not a reason for the increase in security problems for AIS?

Which of the following is an independent check on performance?

Which of the following is not one of the risk responses identified in the COSO Enterprise Risk Management Framework?

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.

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

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Folding Squid Technologies

Generally in a risk assessment process,the first step is to

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

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

The COSO Enterprise Risk Management Integrated Framework identifies four objectives necessary to achieve corporate goals.Objectives specifically identified include all of the following except

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

According to the COSO Enterprise Risk Management Framework,the risk assessment process incorporates all of the following components except

Which of the following statements is true?

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters