Question 1

Why did COSO develop the Enterprise Risk Management framework?

Accepted Answer

A) to improve the audit process 
B) to improve the risk management process 
C) to improve the financial reporting process 
D) to improve the manufacturing process 
A) to improve the audit process 
B) to improve the risk management process 
C) to improve the financial reporting process 
D) to improve the manufacturing process

Question 2

The COBIT5 framework primarily relates to

Accepted Answer

A) best practices and effective governance and management of private companies. 
B) best practices and effective governance and management of public companies. 
C) best practices and effective governance and management of information technology. 
D) best practices and effective governance and management of organizational assets. 
A) best practices and effective governance and management of private companies. 
B) best practices and effective governance and management of public companies. 
C) best practices and effective governance and management of information technology. 
D) best practices and effective governance and management of organizational assets.

Question 3

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 4

________ is not a risk responses 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 5

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.In response,you decided to drive 5 miles under the speed limit.You chose to ________ the risk of being injured in an auto accident.

Accepted Answer

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

Question 6

True or False: Using the COSO definition of an event,an event represents uncertainty.

Accepted Answer

A) True 
 B)False

Question 7

The SEC and FASB are best described as external influences that directly affect an organization's

Accepted Answer

A) hiring practices. 
B) philosophy and operating style. 
C) internal environment. 
D) methods of assigning authority. 
A) hiring practices. 
B) philosophy and operating style. 
C) internal environment. 
D) methods of assigning authority.

Question 8

Irene Pacifica was relaxing after work with a colleague at a local watering hole.Well into her second martini,she began expressing her feelings about her work environment.Recently,every employee of the firm was required to attend a sexual harassment workshop.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 9

Duplicate checking of calculations 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 10

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.You decided to buckle your seat belt in response.You chose to ________ the risk of being injured in an auto accident.

Accepted Answer

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

Question 11

________ 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

Question 12

According to the ERM,high level goals that are aligned with and support the company's mission are

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 13

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 14

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

Accepted Answer

It is incumbent on management to identif

Question 15

Identify the most correct statement with regards to an event.

Accepted Answer

A) An event identified by management will occur. 
B) An event identified by management may or may not occur. 
C) An event identified by management may not trigger other events. 
D) It is easy to determine which events are most likely to occur. 
A) An event identified by management will occur. 
B) An event identified by management may or may not occur. 
C) An event identified by management may not trigger other events. 
D) It is easy to determine which events are most likely to occur.

Question 16

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 17

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 impact of this risk without insurance?

Accepted Answer

A) $50 
B) $650 
C) $50,000 
D) $650,000 
A) $50 
B) $650 
C) $50,000 
D) $650,000

Question 18

Describe the differences between general and specific authorization.

Accepted Answer

Authorizations are often documented by s

Question 19

________ remains after management implements internal control(s).

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 20

Why are threats to accounting information systems increasing?

Accepted Answer

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

Why did COSO develop the Enterprise Risk Management framework?

The COBIT5 framework primarily relates to

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

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

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.In response,you decided to drive 5 miles under the speed limit.You chose to ________ the risk of being injured in an auto accident.

True or False: Using the COSO definition of an event,an event represents uncertainty.

The SEC and FASB are best described as external influences that directly affect an organization's

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

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.You decided to buckle your seat belt in response.You chose to ________ the risk of being injured in an auto accident.

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

According to the ERM,high level goals that are aligned with and support the company's mission are

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

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

Identify the most correct statement with regards to an event.

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

Describe the differences between general and specific authorization.

________ remains after management implements internal control(s).

Why are threats to accounting information systems increasing?

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

Why did COSO develop the Enterprise Risk Management framework?

The COBIT5 framework primarily relates to

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

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

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.In response,you decided to drive 5 miles under the speed limit.You chose to ________ the risk of being injured in an auto accident.

True or False: Using the COSO definition of an event,an event represents uncertainty.

The SEC and FASB are best described as external influences that directly affect an organization's

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

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.You decided to buckle your seat belt in response.You chose to ________ the risk of being injured in an auto accident.

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

According to the ERM,high level goals that are aligned with and support the company's mission are

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

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

Identify the most correct statement with regards to an event.

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

Describe the differences between general and specific authorization.

________ remains after management implements internal control(s).

Why are threats to accounting information systems increasing?

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

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