Question 1

The audit committee of the board of directors

Accepted Answer

A) is usually chaired by the CFO. 
B) conducts testing of controls on behalf of the external auditors. 
C) provides a check and balance on management. 
D) does all of the above. 
A) is usually chaired by the CFO. 
B) conducts testing of controls on behalf of the external auditors. 
C) provides a check and balance on management. 
D) does all of the above.

Question 2

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

Accepted Answer

A) preventive control. 
B) detective control. 
C) corrective control. 
D) authorization control. 
A) preventive control. 
B) detective control. 
C) corrective control. 
D) authorization control.

Question 3

Which of the following is not an example of something monitored by a responsibility accounting system?

Accepted Answer

A) budgets 
B) quotas 
C) vendor analysis 
D) quality standards 
A) budgets 
B) quotas 
C) vendor analysis 
D) quality standards

Question 4

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 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 5

Which of the following is not one of the five principles of COBIT5?

Accepted Answer

A) meeting stakeholder needs 
B) covering the enterprise end-to-end 
C) enabling a holistic approach 
D) improving organization efficiency 
A) meeting stakeholder needs 
B) covering the enterprise end-to-end 
C) enabling a holistic approach 
D) improving organization efficiency

Question 6

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 company's budgeting practices.It seems that as a result of controls put in place by the company,her ability to creatively manage his department's activities have been curtailed.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 7

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

Accepted Answer

A) It more efficiently deals with control implementation and documentation issues. 
B) It more effectively deals with control implementation and documentation issues. 
C) It provides users with more precise guidance. 
D) It adds many new examples to clarify the framework concepts. 
A) It more efficiently deals with control implementation and documentation issues. 
B) It more effectively deals with control implementation and documentation issues. 
C) It provides users with more precise guidance. 
D) It adds many new examples to clarify the framework concepts.

Question 8

Rauol is a receptionist for The South American Paper Company,which has strict corporate policies on appropriate use of corporate resources.The first week of March,Rauol saw Jim (the branch manager)putting printer paper and toner into his briefcase on his way out the door.This situation best reflects a weakness in which aspect of internal environment,as discussed in the COSO Enterprise Risk Management Framework?

Accepted Answer

A) integrity and ethical values 
B) risk management philosophy 
C) restrict access to assets 
D) methods of assigning authority and responsibility 
A) integrity and ethical values 
B) risk management philosophy 
C) restrict access to assets 
D) methods of assigning authority and responsibility

Question 9

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

Accepted Answer

A) is a violation of the Sarbanes-Oxley Act. 
B) violates the Securities and Exchange Act. 
C) increases the risk associated with an audit. 
D) must be changed before your audit firm could accept the audit engagement. 
A) is a violation of the Sarbanes-Oxley Act. 
B) violates the Securities and Exchange Act. 
C) increases the risk associated with an audit. 
D) must be changed before your audit firm could accept the audit engagement.

Question 10

The amount of risk a company is willing to accept in order to achieve its goals and objectives 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 11

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

Accepted Answer

A) hiring and firing the external auditors. 
B) performing tests of the company's internal control structure. 
C) certifying the accuracy of the company's financial reporting process. 
D) overseeing day-to-day operations of the internal audit department. 
A) hiring and firing the external auditors. 
B) performing tests of the company's internal control structure. 
C) certifying the accuracy of the company's financial reporting process. 
D) overseeing day-to-day operations of the internal audit department.

Question 12

________ objectives help ensure the accuracy,completeness and reliability of internal and external company reports,Applying the ERM framework.

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

One of the key objectives of segregating duties is to

Accepted Answer

A) ensure that no collusion will occur. 
B) achieve an optimal division of labor for efficient operations. 
C) make sure that different people handle different transactions. 
D) make sure that different people handle different parts of the same transaction. 
A) ensure that no collusion will occur. 
B) achieve an optimal division of labor for efficient operations. 
C) make sure that different people handle different transactions. 
D) make sure that different people handle different parts of the same transaction.

Question 14

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Accepted Answer

A) performance evaluation. 
B) project development plan. 
C) data processing schedule. 
D) strategic master plan. 
A) performance evaluation. 
B) project development plan. 
C) data processing schedule. 
D) strategic master plan.

Question 15

Applying the COBIT5 framework,monitoring is the responsibility of

Accepted Answer

A) the CEO. 
B) the CFO. 
C) the board of directors. 
D) all of the above 
A) the CEO. 
B) the CFO. 
C) the board of directors. 
D) all of the above

Question 16

The first step of the risk assessment process is generally to

Accepted Answer

A) identify controls to reduce all risk to zero. 
B) estimate the exposure from negative events. 
C) identify the threats that the company currently faces. 
D) estimate the risk probability of negative events occurring. 
A) identify controls to reduce all risk to zero. 
B) estimate the exposure from negative events. 
C) identify the threats that the company currently faces. 
D) estimate the risk probability of negative events occurring.

Question 17

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 18

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

Accepted Answer

A) enforcing a written code of conduct 
B) holding employees accountable for achieving objectives 
C) restricting access to assets 
D) avoiding unrealistic expectations 
A) enforcing a written code of conduct 
B) holding employees accountable for achieving objectives 
C) restricting access to assets 
D) avoiding unrealistic expectations

Question 19

Which of the following is a control related to design and use of documents and records?

Accepted Answer

A) locking blank checks in a drawer or safe 
B) sequentially prenumbering sales invoices 
C) reconciling the bank statement to the general ledger 
D) comparing physical inventory counts with perpetual inventory records 
A) locking blank checks in a drawer or safe 
B) sequentially prenumbering sales invoices 
C) reconciling the bank statement to the general ledger 
D) comparing physical inventory counts with perpetual inventory records

Question 20

Which of the following is an independent check on performance?

Accepted Answer

A) The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B) Production teams perform quality evaluations of the products that they produce. 
C) The General Manager compares budgeted amounts with expenditure records from all departments. 
D) Petty cash is disbursed by Fred Haynes.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance. 
A) The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed. 
B) Production teams perform quality evaluations of the products that they produce. 
C) The General Manager compares budgeted amounts with expenditure records from all departments. 
D) Petty cash is disbursed by Fred Haynes.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance.

The audit committee of the board of directors

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

Which of the following is not an example of something monitored by a responsibility accounting system?

Which of the following is not one of the five principles of COBIT5?

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

The amount of risk a company is willing to accept in order to achieve its goals and objectives is

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

________ objectives help ensure the accuracy,completeness and reliability of internal and external company reports,Applying the ERM framework.

One of the key objectives of segregating duties is to

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Applying the COBIT5 framework,monitoring is the responsibility of

The first step of the risk assessment process is generally to

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

Which of the following is a control related to design and use of documents and records?

Which of the following is an independent check on performance?

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

The audit committee of the board of directors

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)

Which of the following is not an example of something monitored by a responsibility accounting system?

Which of the following is not one of the five principles of COBIT5?

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework.

Best Friends,Incorporated is a publicly traded company where three BFF's (best friends forever)serve as its key officers.This situation

The amount of risk a company is willing to accept in order to achieve its goals and objectives is

According to The Sarbanes-Oxley Act of 2002,the audit committee of the board of directors is directly responsible for

________ objectives help ensure the accuracy,completeness and reliability of internal and external company reports,Applying the ERM framework.

One of the key objectives of segregating duties is to

A document that shows all projects that must be completed and the related IT needs in order to achieve long-range company goals is known as a

Applying the COBIT5 framework,monitoring is the responsibility of

The first step of the risk assessment process is generally to

Which attribute below is not an aspect of the COSO ERM Framework internal environment?

Which of the following is a control related to design and use of documents and records?

Which of the following is an independent check on performance?

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