Question 1

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

Accepted Answer

The act is important to accountants beca

Question 2

What are some of the ways to assign authority and responsibility within an organization?

Accepted Answer

It is incumbent on management to identif

Question 3

A ________ is created to guide and oversee systems development and acquisition.

Accepted Answer

A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan 
A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan

Question 4

A ________ shows how a project will be completed,including tasks and who will perform them as well as a timeline and cost estimates.

Accepted Answer

A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan 
A)  performance evaluation 
B)  project development plan 
C)  steering committee 
D)  strategic master plan

Question 5

Duplicate checking of calculations is an example of a ________ control,and procedures to resubmit rejected transactions is 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 6

Which of the following is not one of the important aspects of the Sarbanes-Oxley Act?

Accepted Answer

A)  The creation of the Public Company Accounting Oversight Board 
B)  New rules for auditors and management 
C)  New roles for audit committees 
D)  New rules for information systems development 
A)  The creation of the Public Company Accounting Oversight Board 
B)  New rules for auditors and management 
C)  New roles for audit committees 
D)  New rules for information systems development

Question 7

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?

Accepted Answer

A)  Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn.) 
B)  A group of kids snuck into the theater through a back door when customers left after a show. 
C)  The box office cashier accidentally gives too much change to a customer. 
D)  The ticket taker admits his friends without tickets. 
A)  Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn.) 
B)  A group of kids snuck into the theater through a back door when customers left after a show. 
C)  The box office cashier accidentally gives too much change to a customer. 
D)  The ticket taker admits his friends without tickets.

Question 8

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

Accepted Answer

The internal environment embraces indivi

Question 9

Which of the following would be considered a "red flag" for problems with management operating style if the question were answered "yes"?

Accepted Answer

A)  Does management take undue business risks to achieve its objectives? 
B)  Does management attempt to manipulate performance measures such as net income? 
C)  Does management pressure employees to achieve results regardless of the methods? 
D)  All of the above statements would raise "red flags" if answered "yes." 
A)  Does management take undue business risks to achieve its objectives? 
B)  Does management attempt to manipulate performance measures such as net income? 
C)  Does management pressure employees to achieve results regardless of the methods? 
D)  All of the above statements would raise "red flags" if answered "yes."

Question 10

Hiring decisions at Frazier's Razors are made by Sheila Frazier,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 Sheila,who prepares paycheck requisitions.Paychecks are then distributed through the company's mail room.This represents a(an)________ segregation of duties.

Accepted Answer

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

Question 11

Discuss four reasons why AIS threats are increasing.

Accepted Answer

1.Client/server systems have proliferate

Question 12

________ controls are designed to make sure an organization's control environment is stable and well managed.

Accepted Answer

A)  Application 
B)  Detective 
C)  General 
D)  Preventive 
A)  Application 
B)  Detective 
C)  General 
D)  Preventive

Question 13

Corporate policy that requires a purchasing agent and purchasing department manager to sign off on asset purchases over $1,500 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 14

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 15

FranticHouse Partners,L.L.C.,does home remodeling and repair.The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services.The firm's risk exposure to costly post-installation services is

Accepted Answer

A)  reduced. 
B)  shared. 
C)  avoided. 
D)  accepted. 
A)  reduced. 
B)  shared. 
C)  avoided. 
D)  accepted.

Question 16

The risk that remains after management implements internal controls is

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 17

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

Accepted Answer

A)  Analyzing past financial performance and reporting 
B)  Providing sufficient resources to knowledgeable employees to carry out duties 
C)  Disciplining employees for violations of expected behavior 
D)  Setting realistic targets for long-term performance 
A)  Analyzing past financial performance and reporting 
B)  Providing sufficient resources to knowledgeable employees to carry out duties 
C)  Disciplining employees for violations of expected behavior 
D)  Setting realistic targets for long-term performance

Question 18

________ controls prevent,detect and correct transaction errors and fraud.

Accepted Answer

A)  Application 
B)  Detective 
C)  General 
D)  Preventive 
A)  Application 
B)  Detective 
C)  General 
D)  Preventive

Question 19

Ferdinand Waldo Demara was known as the great imposter.He had an astounding ability to convince people that he was who he truly was not.He worked as a naval officer,physician,college teacher,prison warden,and other jobs without any of the prerequisite qualifications.By not diligently checking references,the organizations fooled by Demara (including the Canadian Navy)apparently chose to ________ the risk of fraud.

Accepted Answer

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

Question 20

This control framework addresses the issue of control from three vantage points: business objectives,information technology resources,and information technology processes.

Accepted Answer

A)  ISACA's control objectives for information and related technology 
B)  COSO's internal control framework 
C)  COSO's enterprise risk management framework 
D)  none of the above 
A)  ISACA's control objectives for information and related technology 
B)  COSO's internal control framework 
C)  COSO's enterprise risk management framework 
D)  none of the above

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

What are some of the ways to assign authority and responsibility within an organization?

A ________ is created to guide and oversee systems development and acquisition.

A ________ shows how a project will be completed,including tasks and who will perform them as well as a timeline and cost estimates.

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

Which of the following is not one of the important aspects of the Sarbanes-Oxley Act?

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

Which of the following would be considered a "red flag" for problems with management operating style if the question were answered "yes"?

Discuss four reasons why AIS threats are increasing.

________ controls are designed to make sure an organization's control environment is stable and well managed.

Corporate policy that requires a purchasing agent and purchasing department manager to sign off on asset purchases over $1,500 is an example of

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

FranticHouse Partners,L.L.C.,does home remodeling and repair.The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services.The firm's risk exposure to costly post-installation services is

The risk that remains after management implements internal controls is

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

________ controls prevent,detect and correct transaction errors and fraud.

This control framework addresses the issue of control from three vantage points: business objectives,information technology resources,and information technology processes.

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

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

What are some of the ways to assign authority and responsibility within an organization?

A ________ is created to guide and oversee systems development and acquisition.

A ________ shows how a project will be completed,including tasks and who will perform them as well as a timeline and cost estimates.

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

Which of the following is not one of the important aspects of the Sarbanes-Oxley Act?

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

Which of the following would be considered a "red flag" for problems with management operating style if the question were answered "yes"?

Discuss four reasons why AIS threats are increasing.

________ controls are designed to make sure an organization's control environment is stable and well managed.

Corporate policy that requires a purchasing agent and purchasing department manager to sign off on asset purchases over $1,500 is an example of

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

FranticHouse Partners,L.L.C.,does home remodeling and repair.The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services.The firm's risk exposure to costly post-installation services is

The risk that remains after management implements internal controls is

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

________ controls prevent,detect and correct transaction errors and fraud.

This control framework addresses the issue of control from three vantage points: business objectives,information technology resources,and information technology processes.

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

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