Question 1

Timely performance reports contribute towards achieving the monitoring component of an internal control system.

Accepted Answer

A) True 
 B)False

Question 2

The introduction of a computer into an organization's data processing system will normally eliminate problems associated with following the organization's audit trail.

Accepted Answer

A) True 
 B)False

Question 3

The COSO report stresses that:

Accepted Answer

A) Internal control is a process 
B) An internal control system,if properly designed,can become a substitute for management 
C) People only at high levels of an organization are an important part of an internal control system 
D) An internal control system should consist of three interrelated components: the control environment,risk assessment,and control activities 
A) Internal control is a process 
B) An internal control system,if properly designed,can become a substitute for management 
C) People only at high levels of an organization are an important part of an internal control system 
D) An internal control system should consist of three interrelated components: the control environment,risk assessment,and control activities

Question 4

The 1992 COSO report identifies five components for an effective internal control system.Which of those five establishes the tone of a company and influences the control awareness of the company's employees?

Accepted Answer

A) Control procedures 
B) Control environment 
C) Control activities 
D) Information and communication 
A) Control procedures 
B) Control environment 
C) Control activities 
D) Information and communication

Question 5

Which one of the following types of audits would be most likely to focus on objectives related to the efficient use of resources?

Accepted Answer

A) Compliance audit 
B) Information systems audit 
C) Independent audit 
D) Operational audit 
A) Compliance audit 
B) Information systems audit 
C) Independent audit 
D) Operational audit

Question 6

Which of the following statements is true regarding timely performance reports?

Accepted Answer

A) In many companies,these reports are the major means of providing information to management concerning the actual operations of the companies' internal control systems 
B) These reports should only include monetary data 
C) Since these reports fail to provide feedback to management on the operations of previously implemented internal control procedures,other techniques are needed to provide this feedback to managers 
D) The complexity that a computer introduces into a company's information system will typically prevent the preparation of timely performance reports for the company's management 
A) In many companies,these reports are the major means of providing information to management concerning the actual operations of the companies' internal control systems 
B) These reports should only include monetary data 
C) Since these reports fail to provide feedback to management on the operations of previously implemented internal control procedures,other techniques are needed to provide this feedback to managers 
D) The complexity that a computer introduces into a company's information system will typically prevent the preparation of timely performance reports for the company's management

Question 7

Which one of the following would be most effective in deterring the commission of fraud?

Accepted Answer

A) Policies of strong internal control,segregation of duties,and requiring employees to take vacations 
B) Policies of strong internal control and punishments for unethical behavior 
C) Employee training,segregation of duties,and punishment for unethical behavior 
D) Hiring ethical employees,employee training,and segregation of duties 
A) Policies of strong internal control,segregation of duties,and requiring employees to take vacations 
B) Policies of strong internal control and punishments for unethical behavior 
C) Employee training,segregation of duties,and punishment for unethical behavior 
D) Hiring ethical employees,employee training,and segregation of duties

Question 8

Which of the following fundamental concepts is stressed by the COSO report?

Accepted Answer

A) Internal control is not affected by people 
B) Internal control is geared to the achievement of a company's objectives in the financial reporting area only 
C) Internal control is designed to detect all errors and irregularities that occur within a company's system 
D) Internal control is a process 
A) Internal control is not affected by people 
B) Internal control is geared to the achievement of a company's objectives in the financial reporting area only 
C) Internal control is designed to detect all errors and irregularities that occur within a company's system 
D) Internal control is a process

Question 9

The Enterprise Risk Management (ERM)framework is based on the 1992 COSO report and adds three additional components for an effective internal control system.Which of the following is not one of those three?

Accepted Answer

A) Objective setting 
B) Event identification 
C) Control assessment 
D) Risk response 
A) Objective setting 
B) Event identification 
C) Control assessment 
D) Risk response

Question 10

Which one of the following methods,for the distribution of employees' paychecks,would provide the best internal control for the organization?

Accepted Answer

A) Delivery of the paychecks to each department supervisor,who in turn would distribute paychecks directly to the employees in his/her department 
B) Direct deposit in each employee's personal bank account 
C) Distribution of paychecks directly to each employee by a representative of the Human Resource department 
D) Distribution of paychecks directly to each employee by the payroll manager 
A) Delivery of the paychecks to each department supervisor,who in turn would distribute paychecks directly to the employees in his/her department 
B) Direct deposit in each employee's personal bank account 
C) Distribution of paychecks directly to each employee by a representative of the Human Resource department 
D) Distribution of paychecks directly to each employee by the payroll manager

Question 11

An organization should always attempt to implement ideal controls into its system.

Accepted Answer

A) True 
 B)False

Timely performance reports contribute towards achieving the monitoring component of an internal control system.

The introduction of a computer into an organization's data processing system will normally eliminate problems associated with following the organization's audit trail.

The COSO report stresses that:

The 1992 COSO report identifies five components for an effective internal control system.Which of those five establishes the tone of a company and influences the control awareness of the company's employees?

Which one of the following types of audits would be most likely to focus on objectives related to the efficient use of resources?

Which of the following statements is true regarding timely performance reports?

Which one of the following would be most effective in deterring the commission of fraud?

Which of the following fundamental concepts is stressed by the COSO report?

The Enterprise Risk Management (ERM)framework is based on the 1992 COSO report and adds three additional components for an effective internal control system.Which of the following is not one of those three?

Which one of the following methods,for the distribution of employees' paychecks,would provide the best internal control for the organization?

An organization should always attempt to implement ideal controls into its system.

Accounting Information Systems and the Accountant

Information Technology and Aiss

Data Modeling

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Documenting Accounting Information Systems

Documenting Accounting Information Systems

Accounting Information Systems and Business Processes: Part II

Computer Controls for Organizations and Accounting Information Systems

Computer Crime,fraud,ethics,and Privacy

Information Technology Auditing

Developing and Implementing Effective Accounting Information Systems

Accounting on the Internet

Accounting on the Internet

Filters

Exam 9: Introduction to Internal Control Systems

Timely performance reports contribute towards achieving the monitoring component of an internal control system.

The introduction of a computer into an organization's data processing system will normally eliminate problems associated with following the organization's audit trail.

The COSO report stresses that:

The 1992 COSO report identifies five components for an effective internal control system.Which of those five establishes the tone of a company and influences the control awareness of the company's employees?

Which one of the following types of audits would be most likely to focus on objectives related to the efficient use of resources?

Which of the following statements is true regarding timely performance reports?

Which one of the following would be most effective in deterring the commission of fraud?

Which of the following fundamental concepts is stressed by the COSO report?

The Enterprise Risk Management (ERM)framework is based on the 1992 COSO report and adds three additional components for an effective internal control system.Which of the following is not one of those three?

Which one of the following methods,for the distribution of employees' paychecks,would provide the best internal control for the organization?

An organization should always attempt to implement ideal controls into its system.

Accounting Information Systems and the Accountant

Information Technology and Aiss

Data Modeling

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Documenting Accounting Information Systems

Documenting Accounting Information Systems

Accounting Information Systems and Business Processes: Part II

Computer Controls for Organizations and Accounting Information Systems

Computer Crime,fraud,ethics,and Privacy

Information Technology Auditing

Developing and Implementing Effective Accounting Information Systems

Accounting on the Internet

Accounting on the Internet

Filters