Question 1

Establishing a viable internal control system is the responsibility of ______________________________.

Accepted Answer

The answer of Establishing a viable internal control system is...

Question 2

The section of Sarbanes Oxley that requires a company's CEO and CFO to certify quarterly and annual reports is ______________________________.

Accepted Answer

The answer of The section of Sarbanes Oxley that requires...

Question 3

_____________ control plans relate to a multitude of goals and processes.

Accepted Answer

A)  Pervasive 
B)  IT general 
C)  Business process 
D)  Preventive

Question 4

Match between columns
                        Premises: A batch of documents sent by the mail room to the accounts receivable department were lost in the intercompany mail and never recorded...
The cost of the people and computers needed to process incoming checks is less than the benefit obtained from the incoming funds...
In a manual bookkeeping system, cash receipts recorded correctly in the cash receipts journal but some were inadvertently posted to the wrong customer accounts.
In a manual bookkeeping system, an accounts receivable clerk failed to post an entire page of transactions from the cash receipts journal to the accounts receivable subsidiary ledger.
A mail room clerk fabricated a phony document for a friend to make it look like the friend had paid his account receivable balance. The phony document got recorded.
An accounts receivable clerk made a copy of the company's accounts receivable master data and sold this customer information to a competing company.
The company's accounts receivable system was infiltrated by a hacker.
A flaw in the processing logic of a computer program resulted in cash received from customers being added to their accounts receivable balances rather than subtracted...
Customer checks received in the mail room are batched and sent to the cashier several times a day so that they can be deposited as fast as possible.
In keying remittance advices into his computer terminal, an accounts receivable clerk entered a receipt of $200 as $2,000.

Accepted Answer

The Answer of Ensure update accuracy. and Ensure efficient employment is...

Question 5

A sale to a customer is entered into the system properly, but the event does not accurately update the customer's outstanding balance. This type of processing error would be classified as a user error.

Accepted Answer

A) True 
 B)False

Question 6

According to the COSO Fraudulent Financial Reporting 1998- 2007 update:

Accepted Answer

A)  The most common fraud scheme used was improper revenue recognition. 
B)  Most companies engaged in fraudulent activities were able to recover and resume operations. 
C)  CEO's and CFO's were named by the SEC for involvement in approximately 50% of fraud cases. 
D)  All of the above.

Question 7

The section of Sarbanes Oxley that prohibits audit firms from providing a wide array of nonaudit services to audit clients is ______________________________.

Accepted Answer

The answer of The section of Sarbanes Oxley that prohibits...

Question 8

Which of the following is not a requirement of SOX Section 404?

Accepted Answer

A)  Evaluate the design of the company's controls to determine if they adequately address the risk that a material misstatement of the financial statements would not be prevented or detected in a timely manner. 
B)  Gather and evaluate evidence about the operation of controls. 
C)  Implement key controls to determine their operating efficiency. 
D)  Present a written assessment of the effectiveness of internal control over financial reporting.

Question 9

The section of Sarbanes Oxley that provides for fines and imprisonment of up to 20 years to individuals who corruptly alter, destroy, mutilate, or conceal documents with the intent to impair the document's integrity or availability for use in an official proceeding, or to otherwise obstruct, influence or impede any official proceeding is:

Accepted Answer

A)  Title V- Analysts Conflicts of Interests 
B)  Title VIII - Corporate and Criminal Fraud Accountability 
C)  Title IX - White-Collar Crime Penalty Enhancements 
D)  Title XI - Corporate Fraud and Accountability

Question 10

______________________________ are automated business process controls contained within computer programs.

Accepted Answer

The answer of ______________________________ are automated business process controls contained...

Question 11

A deliberate act or untruth intended to obtain unfair or unlawful gain is a(n):

Accepted Answer

A)  audit 
B)  embezzlement 
C)  fraud 
D)  Theft

Question 12

Risk assessment is the entity's identification and analysis of relevant risks to the achievement of its objectives, forming a basis for determining how the risks should be managed.

Accepted Answer

A) True 
 B)False

Question 13

The third level of protection in the control hierarchy is:

Accepted Answer

A)  the control environment 
B)  business process control plans 
C)  pervasive control plans 
D)  IT general controls

Question 14

The section of Sarbanes Oxley that sets forth criminal penalties applicable to CEOs and CFOs of up to $5 million and up to 20 years imprisonment if they knowingly or willfully certify false or misleading periodic reports is ______________________________.

Accepted Answer

The answer of The section of Sarbanes Oxley that sets...

Question 15

The control goal called ensure ______________________________ is a measure of success in meting one or more goals for the operations process.

Accepted Answer

The answer of The control goal called ensure ______________________________ is...

Question 16

The section of Sarbanes Oxley that requires each annual report filed with the SEC to include an internal control report is ______________________________.

Accepted Answer

The answer of The section of Sarbanes Oxley that requires...

Question 17

A batch of business events is accurately entered into a business event data store, but the computer operator fails to use the data to update master data. This type of processing error would be classified as an operational error.

Accepted Answer

A) True 
 B)False

Question 18

______________________________ provides guidance on how an organization's IT might affect any of COSO's five components of internal control. This standard guides auditors in understanding the impact of IT on internal control and assessing IT-related control risks.

Accepted Answer

The answer of ______________________________ provides guidance on how an organization's...

Question 19

Expected gross risk is a function of the initial expected gross risk, reduced risk exposure due to controls, and cost of controls.

Accepted Answer

A) True 
 B)False

Question 20

______________________________ is software designed specifically to damage or disrupt computer systems.

Accepted Answer

The answer of ______________________________ is software designed specifically to damage...

Exam 7: Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Establishing a viable internal control system is the responsibility of ______________________________.

The section of Sarbanes Oxley that requires a company's CEO and CFO to certify quarterly and annual reports is ______________________________.

_____________ control plans relate to a multitude of goals and processes.

place the capital letter of the control goal that best matches the situation described. HINT: Some letters may be used more than once. Conversely, some letters may not apply at all.

A sale to a customer is entered into the system properly, but the event does not accurately update the customer's outstanding balance. This type of processing error would be classified as a user error.

According to the COSO Fraudulent Financial Reporting 1998- 2007 update:

The section of Sarbanes Oxley that prohibits audit firms from providing a wide array of nonaudit services to audit clients is ______________________________.

Which of the following is not a requirement of SOX Section 404?

______________________________ are automated business process controls contained within computer programs.

A deliberate act or untruth intended to obtain unfair or unlawful gain is a(n) :

Risk assessment is the entity's identification and analysis of relevant risks to the achievement of its objectives, forming a basis for determining how the risks should be managed.

The third level of protection in the control hierarchy is:

The section of Sarbanes Oxley that sets forth criminal penalties applicable to CEOs and CFOs of up to $5 million and up to 20 years imprisonment if they knowingly or willfully certify false or misleading periodic reports is ______________________________.

The control goal called ensure ______________________________ is a measure of success in meting one or more goals for the operations process.

The section of Sarbanes Oxley that requires each annual report filed with the SEC to include an internal control report is ______________________________.

A batch of business events is accurately entered into a business event data store, but the computer operator fails to use the data to update master data. This type of processing error would be classified as an operational error.

______________________________ provides guidance on how an organization's IT might affect any of COSO's five components of internal control. This standard guides auditors in understanding the impact of IT on internal control and assessing IT-related control risks.

Expected gross risk is a function of the initial expected gross risk, reduced risk exposure due to controls, and cost of controls.

______________________________ is software designed specifically to damage or disrupt computer systems.