question

Control and Accounting Information Systems

answer

Control and Accounting Information Systems

question

65) Which of the following is not one of the risk responses identified in the COSO Enterprise Risk Management Framework?

answer

A) Monitoring

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66) 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)

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A) preventive control.

question

67) Which of the following is an example of a preventive control?

answer

A) approving customer credit prior to approving a sales order

question

What is the question number 68???

answer

A) data input validation checks.

question

69) A computer operator is allowed to work as a programmer on a new payroll software project. Does this create a potential internal control problem?

answer

A) Yes, the computer operator could alter the payroll program to increase her salary.

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70) One of the objectives of the segregation of duties is to

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A) make sure that different people handle different parts of the same transaction.

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

answer

A) hiring and firing the external auditors.

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

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A) Sequentially prenumbering sales invoices

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

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A) Approving accounting software change requests and testing production scheduling software changes

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74) With a limited work force and a desire to maintain strong internal control, which combination of duties would result in the lowest risk exposure?

answer

D) Entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal

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

answer

A) Analyzing past financial performance and reporting

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76) Which of the following statements about internal environment is false?

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A) Management's attitudes toward internal control and ethical behavior have only minimal impact on employee beliefs or actions.

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77) One reason why many organizations do not adequately protect their systems is because

answer

B) productivity and cost cutting cause management to forgo implementing and maintaining internal controls.

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78) Accountants must try to protect the AIS from threats. Which of the following would be a measure that should be taken?

answer

A) Take a proactive approach to eliminate threats. B) Detect threats that do occur. C) Correct and recover from threats that do occur. D) All of the above are proper measures for the accountant to take. Answer: D

question

79) The process that a business uses to safeguard assets, provide accurate and reliable information, and promote and improve operational efficiency is known as

answer

B) internal control.

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80) Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities.

answer

C) process

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81) Which of the following is accomplished by corrective controls?

answer

A) Identify the cause of the problem. B) Correct the resulting errors. C) Modify the system to prevent future occurrences of the problem. D) All of the above are accomplished by corrective controls. Answer: D

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

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B) detective; corrective

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83) ________ controls prevent, detect and correct transaction errors and fraud.

answer

A) Application

question

84) The primary purpose of the Foreign Corrupt Practices Act of 1977 was

answer

B) to prevent the bribery of foreign officials by American companies.

question

85) Congress passed this federal law for the purpose of preventing financial statement fraud, to make financial reports more transparent and to strengthen the internal control of public companies.

answer

C) The Sarbanes-Oxley Act of 2002

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86) Which of the following is not one of the important aspects of the Sarbanes-Oxley Act?

answer

D) New rules for information systems development

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87) This control framework addresses the issue of control from three vantage points: business objectives, information technology resources, and information technology processes.

answer

A) ISACA's control objectives for information and related technology

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88) This control framework's intent includes helping the organization to provide reasonable assurance that objectives are achieved and problems are minimized, and to avoid adverse publicity and damage to the organization's reputation.

answer

C) COSO's enterprise risk management framework

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89) The COSO Enterprise Risk Management Framework includes eight components. Which of the following is not one of them?

answer

C) compliance with federal, state, or local laws

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90) Which of the following is not one of the eight interrelated risk and control components of COSO Enterprise Risk Management Framework?

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D) Event assessment

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91) The COSO Enterprise Risk Management Integrated Framework stresses that

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A) risk management activities are an inherent part of all business operations and should be considered during strategy setting.

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92) 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?

answer

A) Information and communication

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93) The COSO Enterprise Risk Management Integrated Framework identifies four objectives necessary to achieve corporate goals. Objectives specifically identified include all of the following except

answer

A) implementation of newest technologies.

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

answer

C) Restricting access to assets

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95) The risk that exists before management takes any steps to control the likelihood or impact of a risk is A) Inherent risk

answer

A) Inherent risk

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96) When undertaking risk assessment, the expected loss is calculated like this.

answer

B) Impact times likelihood

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97) The Sarbanes-Oxley Act (SOX) applies to

answer

D) all publicly held companies.

question

98) Global Economic Strategies, L.L.D., has been diligent in ensuring that their operations meet modern control standards. Recently, they have extended their control compliance system by incorporating policies and procedures that require the specification of company objectives, uncertainties associated with objectives, and contingency plans. They are transitioning from a ________ to a ________ control framework.

answer

D) COSO-Integrated Framework; COSO-ERM

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99) According to the COSO Enterprise Risk Management Framework, the risk assessment process incorporates all of the following components except

answer

A) reporting potential risks to auditors.

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100) Change management refers to

answer

D) controls designed to ensure that updates in information technology do not have negative consequences.

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Database Design Using the REA Data Model

answer

Database Design Using the REA Data Model

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101) The REA data model is so named because it classifies entities into three distinct categories. These categories include all of the following except: A) The Entities that are identified for a business B) The Resources the organization acquires and uses C) The Events that are the business activities in which the organization engages D) The Agents participating in these events Answer: A

answer

A) The Entities that are identified for a business

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102) Which of the following statements about REA modeling and REA diagrams is true?

answer

A) REA is an acronym for Resources, Events, and Agents.

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103) The process of defining a database so that it faithfully represents all aspects of the organization including its interactions with the external environment is called

answer

A) data modeling.

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104) In which stage(s) of the database design process does data modeling occur?

answer

C) in both the systems analysis and design stages

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105) A(n) ________ diagram graphically depicts a database's contents by showing entities and relationships.

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C) entity-relationship

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106) On an entity-relationship (E-R) diagram, anything about which an organization wants to collect and store information is called

answer

B) an entity.

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107) In a relational database, entities such as shown in a E-R diagram are contained in

answer

D) tables

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108) In a relational database, the relationship between tables (entities) is always

answer

C) 1-to-many

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109) A "1-to-many" relationship between Customer Number in the Customer Table and Customer Number in the Sales Order Table means there can be _________.

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A) Many sales orders for a given customer, but only one customer per sales order

question

110) You define a relationship between the Sales Order (Child) table and the Customer (parent) table using a 1-to-many link between

answer

B) the Foreign Key in the Sales Order Table and the Primary Key in the Customer table

question

111) When you define a relationship between the Customer Number in the Sales Order (Child) Table and the Customer Number in the Customer (Parent) Table using a 1-to-many link, setting the Referential Integrity control on the relationship means:

answer

C) You cannot use a Customer Number in entering a new Sales Order that does not already exist in the Customer Table

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Introduction to Systems Development and Systems Analysis

answer

Introduction to Systems Development and Systems Analysis

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112) What is the correct sequence of the phases in the systems development life cycle?

answer

C) system analysis, conceptual design, physical design, implementation and conversion, and operations and maintenance

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Use the following information to answer 113 and 114

answer

During the first two phases of the SDLC, systems analysis and conceptual design, control requirements are considered. During the third phase of SDLC, the physical design stage, input, output, and database attributes are designed, as well as specific controls. Programs and procedures are developed during this stage as well. A final part of this stage is the delivery of the developed system, which will be further enhanced during the implementation and conversion stage of the SDLC.

question

113) In developing new systems using the SDLC,

answer

D) It is best to analyze, design, test and implement IT controls at the same time that you analyze, design, test and implement non-control functionality.

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114) An example of a detective control that a new system implementation team may introduce during the physical design phase of a SDLC for implementing a new ERP system for discrete manufacturing is:

answer

C) A report that shown any zero cost parts.

question

115) Instead of using the SDLC to develop a new system "in-house," a company may choose to purchase an "Off-the-Shelf" (OTS) system from a software company. This situation means:

answer

B) The OTS will need to be configured (set up) so it can effectively support the business C) Any data in the legacy system that will be loaded into the OTS may need to be converted so that the data can be processed in the new OTS D) Both B and C Answer: D

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