Exam 4: Transaction Processing and the Internal Control Process

The FCPA requires that a system of internal accounting controls

Many companies have adopted ethics codes of conduct which provide guidance for conducting business in an ethical manner.

COBIT stands for Control Objectives for Businesses in Technology fields.

Intentional or reckless conduct,whether intentional or not,and which results in materially misleading financial statements,is called

Which of the objectives listed below is not considered part of the internal control process?

Listed below is a list of terms relating to internal control processes,followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once. ________ 1.Check digit ________ 2.Upstream resubmission ________ 3.Exposure ________ 4.Control register ________ 5.Hash total ________ 6.Internal control questionnaire ________ 7.Physical controls ________ 8.Preventive controls ________ 9.Run-to-run totals ________ 10.General controls A.These affect all transaction processing B.An internal control analysis technique C.A detective control used to determine if input is correct D.A log indicating the disposition and control values of batches or transactions E.A detective control use to determine if processing is complete F.The sum of a batch's preprinted check numbers is an example G.Segregation of duties is an example H.A limited access area,for example I.Business interruption is an example J.This is an example of a corrective control

Recent survey results indicate that the most frequent reason frauds are discovered is due to internal controls.

One way in which a company can produce a corporate culture that supports ethical behavior is through

Internal control should be looked upon as part of a larger process within the organization.

Deficient revenues and excessive costs reduce ________.

The general term for any type of control total or count applied to a number of transaction documents is

Internal control is affected by an organization's

ERM is defined by ________ as a process applied in strategy setting and across the enterprise,to manage risk.

Audit committees are usually charged with evaluation and assessment of a corporation's internal control processes.

The two broad categories of transaction control are

Some believe that every corporation has its own corporate culture,and it is such a culture that ultimately either promotes or hinders ethical behavior within the corporation.