Question 1

A(n)________ measures company progress by comparing actual performance to planned performance.

Accepted Answer

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

Question 2

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware

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. B

Question 3

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

Accepted Answer

A) event 
B) activity 
C) process 
D) system 
A) event 
B) activity 
C) process 
D) system C

Question 4

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 5

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

Accepted Answer

A) periodically conduct software audits 
B) update the operating system frequently 
C) buy software from legitimate suppliers 
D) adopt cloud operating platforms 
A) periodically conduct software audits 
B) update the operating system frequently 
C) buy software from legitimate suppliers 
D) adopt cloud operating platforms

Question 6

The Director of Information Technology for the city of Tampa,Florida formed a company to sell computer supplies and software.All purchases made on behalf of the City were made from her company.She was later charged with fraud for overcharging the City,but was not convicted by a jury.The control issue in this case arose because the Director had both ________ and ________ duties.

Accepted Answer

A) custody; authorization 
B) custody; recording 
C) recording; authorization 
D) management; custody 
A) custody; authorization 
B) custody; recording 
C) recording; authorization 
D) management; custody

Question 7

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 8

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 9

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) to more effectively address technological advancements 
D) to comply with International accounting standards 
A) Congress required COSO to modernize. 
B) U.S.stock exchanges required more disclosure. 
C) to more effectively address technological advancements 
D) to comply with International accounting standards

Question 10

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

Accepted Answer

A) the external auditor 
B) appropriate federal,state,or local authorities 
C) the board of directors 
D) the audit committee 
A) the external auditor 
B) appropriate federal,state,or local authorities 
C) the board of directors 
D) the audit committee

Question 11

Independent checks on performance include all the following except

Accepted Answer

A) data input validation checks. 
B) reconciling hash totals. 
C) preparing a trial balance report. 
D) supervisor review of journal entries and supporting documentation. 
A) data input validation checks. 
B) reconciling hash totals. 
C) preparing a trial balance report. 
D) supervisor review of journal entries and supporting documentation.

Question 12

Which of the following is not a commonly used technique used to identify potential events?

Accepted Answer

A) performing internal analysis 
B) monitoring leading events 
C) conducting interviews 
D) none of the above 
A) performing internal analysis 
B) monitoring leading events 
C) conducting interviews 
D) none of the above

Question 13

How is expected loss calculated when performing risk assessment?

Accepted Answer

A) impact times expected loss 
B) impact times likelihood 
C) inherent risk times likelihood 
D) residual risk times likelihood 
A) impact times expected loss 
B) impact times likelihood 
C) inherent risk times likelihood 
D) residual risk times likelihood

Question 14

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

Accepted Answer

The internal environment embraces indivi

Question 15

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 16

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 $650,000.Insurance with a $50,000 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) $50 
B) $650 
C) $50,000 
D) $650,000 
A) $50 
B) $650 
C) $50,000 
D) $650,000

Question 17

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 18

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 19

A(n)________ helps top-level managers with high-level activities that demand frequent and regular attention.

Accepted Answer

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

Question 20

Nolwenn Limited 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.Nolwenn Limited is 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

A(n)________ measures company progress by comparing actual performance to planned performance.

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

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

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

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

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

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

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

Independent checks on performance include all the following except

Which of the following is not a commonly used technique used to identify potential events?

How is expected loss calculated when performing risk assessment?

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

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

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

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 top-level managers with high-level activities that demand frequent and regular attention.

Accounting Information Systems: an Overview

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

A(n)________ measures company progress by comparing actual performance to planned performance.

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware

Internal control is often referred to as a(n)________,because it permeates an organization's operating activities and is an integral part of management activities.

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

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

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

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

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

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

Independent checks on performance include all the following except

Which of the following is not a commonly used technique used to identify potential events?

How is expected loss calculated when performing risk assessment?

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

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

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

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 top-level managers with high-level activities that demand frequent and regular attention.

Accounting Information Systems: an Overview

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