Exam 7: Control and Accounting Information Systems

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

Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002?

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

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated,data are captured and processed,and information is reported?

Identify the statement below which is true.

Which type of control prevents,detects,and corrects transaction errors and fraud?

Which of the following is not a basic principle of the COSO ERM 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 ride your bike instead.You chose to ________ the risk of being injured in an auto accident.

True or False: The COSO ERM contains all five of the same COSO-Integrated Framework components.

Which of the following duties could be performed by the same individual without violating segregation of duties controls?

As a result of an internal risk assessment,Allstate Insurance decided it was not profitable to provide hurricane insurance in the state of Florida.Allstate apparently chose to ________ the risk of paying hurricane claims in Florida.

The largest differences between the COSO Integrated Control (IC)framework and the COSO Enterprise Risk Management (ERM)framework is

Which of the below is not a component of the COSO ERM?

Which of the following measures can protect a company from AIS threats?

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.Then,ticket stubs collected at the theater entrance are counted and compared with the number of tickets sold.Which of the following situations does this control detect?

The COSO Enterprise Risk Management Integrated Framework stresses that

A store policy that allows retail clerks to process sales returns for $500 or less,with a receipt dated within the past 30 days,is an example of

According to the ERM,these help the company address all applicable laws and regulations.

According to the ERM,________ deal with the effectiveness and efficiency of company operations,such as performance and profitability goals.

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.Based on cost-benefit analysis,what is the most that the business should pay for the insurance?