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182 Cards in this Set
- Front
- Back
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Match the following terms: An organizing framework for business processes, beginning with vendors and ending with customers |
Value chain |
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Match the following terms: exchanges or transactions between an enterprise and its customers |
Sales cycle |
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Match the following terms: Accounting transactions related to specific business processes |
Transaction cycle |
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Match the following terms: Shares data across functional areas within the enterprise |
Integrated enterprise system |
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Match the following terms: transactions with employees |
Payroll cycle |
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Match the following terms: related activities performed by an enterprise to create vale by transforming input into output |
Business processes |
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Match the following terms: a system that supports business activities throughout the enterprise, including inputs, processing, and outputs |
Enterprise system |
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Match the following terms: transactions related to purchasing items from vendors |
Purchasing cycle |
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Match the following terms: a model that provides an enterprise-wide view of the firm's accounting system |
Baseline accounting system |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): General ledger |
Financial cycle |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): Account Transactions |
Financial cycle |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): time worked |
Payroll cycle |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): employee |
Payroll cycle |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): purchase order |
Purchase cycle |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): Cash receipts |
Sales cycle |
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Match the database table to the appropriate transaction cycle (Financial, Payroll, Purchasing, Sales): Customer |
Sales cycle |
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Recording and processing information about a transaction at the time it takes place is referred to as which of the following? (chart of accounts processing, online, real-time processing, batch processing, captured transaction processing) |
online, real-time processing |
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Which of the following is NOT a means by which information improves decision making? (reduces uncertainty, increases information overload, identifies situations requiring management action, provides feedback aboutt he effectiveness of prior decisions) |
Increases information overload |
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Match the following accounting cycle to the appropriate subsystems (supply chain management, operations/production system, customer relationship management): Purchasing cycle |
Supply Chain management |
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Match the following accounting cycle to the appropriate subsystems (supply chain management, operations/production system, customer relationship management): Payroll cycle |
Operations/production management |
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Match the following accounting cycle to the appropriate subsystems (supply chain management, operations/production system, customer relationship management): Sales cycle |
Customer relationship management |
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Match the following cycles with their corresponding accounting system module (customers, financial, vendors, employees, banking): Payroll cycle |
Employees module |
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Match the following cycles with their corresponding accounting system module (customers, financial, vendors, employees, banking): Sales cycle |
Customers module |
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Match the following cycles with their corresponding accounting system module (customers, financial, vendors, employees, banking): Financial cycle |
Financial module |
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Match the following cycles with their corresponding accounting system module (customers, financial, vendors, employees, banking): Purchasing cycle |
Vendors module |
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Match the following enterprise subsystem with the business processes it supports: (tracking and coordinating operations, marketing and sales, purhasing items): Supply chain management |
Purchasing items from vendors |
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Match the following enterprise subsystem with the business processes it supports: (tracking and coordinating operations, marketing and sales, purchasing items): Operations/Production system |
Tracking and coordinating operations to make the service, product, or experience. |
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Match the following enterprise subsystem with the business processes it supports: (tracking and coordinating operations, marketing and sales, punching items): Customer relationship management |
Marketing and sales activities |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): vendor address |
Vendor table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Vendor number |
Vendor table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Customer name |
Customer table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Customer number |
Customer table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Employee address |
Employee table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Account number |
Accounts table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Account type |
Accounts table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Sales order number |
Sales order table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Sales order date |
Sales order table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Sales order total |
Sales order table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Item quantity sold |
Sales order line table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Purchase order date |
Purchase order table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Purchase order number |
Purchase order table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Purchase order total |
Purchase order table |
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Match the following database fields with the appropriate database table (purchase order line, sales order, customer, vendor, purchase order, sales order line, employee, accounts): Item quantity purchased |
Purchase order line table |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Create purchase orders |
Purchasing cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Create invoices |
Sales cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Make deposits |
Sales cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Calculate payroll |
Payroll cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): receive customer payments |
Sales cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Pay bills |
Purchasing cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Enter time |
Payroll cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Enter bills |
Purchasing cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Receive items |
Purchasing cycle |
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Match each of the following accounting events to the accounting transaction cycle (sales, purchasing, payroll): Pay employees |
Payroll cycle |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Create purchase orders |
Vendors module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Adjusting entries |
Financial module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Make deposits |
Banking module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Calculate payroll |
Employees module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Receive customer payments |
Banking module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Pay bills |
Banking module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Tax reports |
Reports module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Enter time |
Employees module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Enter bills |
Vendors module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Create invoices |
Customers module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Pay employees |
Banking module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Receive items |
Vendors module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Sustainability reports |
Reports module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Pay payroll liabilities |
Banking module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Correcting entries |
Financial module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Management reports |
Reports module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Closing |
Financial module |
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Match each of the following accounting events to the baseline accounting system module in which it occurs (customers, employees, vendors, financial, reports, banking): Financial reports |
Reports module |
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Information is: (basically the same as data, raw facts about transactions, the inputs to an information system, organized meaningful and useful outputs of an information system) |
Organized, meaningful, and useful outputs of an information system |
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Which system is not part of the expenditure cycle (cash disbursements, purchasing, production planning/control, accounts payable) |
Production planning/control |
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Which system is not part of the revenue cycle (cash disbursements, sales order processing, shipping, accounts receivable) |
Cash disbursements |
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In contrast to a real-time transaction processing system, in a batch transaction processing system (there is a lag between the time, relatively more dedicating computing, master files are always up to date, processing takes place when the economic event occurs) |
There is a lag between the time when the economic event occurs and the financial records are updated |
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What is a major advantage of a database management system over a file-oriented transaction processing system (a dmbs requires fewer people to operate, a dbms helps to avoid data redundancy/inconsistency, no difference) |
A DBMS helps to avoid data redundancy and data inconsistency |
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What is the purpose of a database query (to search the database to answer a question, to provide a format for viewing, to connect related tables, to uniquely identify a record in a database table) |
To search the database to answer a specific question |
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Q1-5 in the baseline accounting system |
Purchasing cycle, create purchase orders, receive items, enter bills, write checks to pay bills |
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Q6-9 in the baseline accounting system |
Sales cycle, create invoices, receive customer payments, make deposits |
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Q10-13 in the baseline accounting system |
Payroll cycle, enter time, calculate payroll, pay employees & pay payroll liabilities |
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Q14 in the baseline accounting system (Financial |
Adjusting, correcting, and closing entries |
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Q15 in the baseline accounting system (Reports) |
Management reports, tax reports, external financial reports, and sustainability reports |
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A report on internal control effectiveness by the management team of public companies is required by? (the sarbanes-oxley act, PCAOB, AICPA, the auditors) |
The sarbanes-oxley act of 2002 |
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A sales clerk enters a customer's six-number customer account. The computer program uses the first five numbers to calculate a sixth number. This resulting number is then compared to the sixth number entered by the sales clerk. This is an example of? (valid character test, missing data test, reasonableness test, check digit) |
Check digit |
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A set of characteristics that helps to define a seriousness about employees' attitudes about the control activities in a company is referred to as? (management assertions, the control environment, control risk assessment, functional responsibilities) |
The control environment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The organization demonstrates a commitment to integrity and ethical values |
Control environment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The board of directors demonstrates independence from management and exercises oversight of the development and performance of internal control |
control environment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): Management establishes, with board oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives |
Control environment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization demonstrates a commitment to attract, develop, and retain competent individuals in alignment with objectives |
Control environment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization holds individuals accountable for their internal control responsibilities in the pursuit of objectives |
Control environment. |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The organization specifies objectives with sufficient clarity to enable the identification and assessment of risks relating to objectives |
Risk assessment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The organization identifies risks to the achievement of its objectives across the entity and analyzes risks as a basis for determining how the risks should be managed |
Risk assessment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization considers the potential for fraud in assessing risks to the achievement of objectives |
Risk assessment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization identifies and assesses changes that could significantly impact the system of internal control |
Risk assessment |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization selects and develops control activities that contribute to the mitigation of risks |
Control activities |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization selects and develops general control activities over technology to support the achievement of objectives |
Control activities |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization deploys control activities through policies |
Control activities |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The organization obtains or generates and uses relevant, quality information to support the functioning of internal control |
Information and communication |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization internally communicates information, including objectives and responsibilities for internal control |
Information and communication |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The organization communicates with external parties regarding matters affecting the functioning of internal control |
Information and communication |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): the organization selects, develop,s and performs ongoing and/or separate evaluations |
Monitoring activites |
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All principles apply to operations, reporting, and compliance objectives (control activities, risk assessment, information and communication, monitoring activities, control environment): The organization evaluates and communicates internal control deficiencies in a timely manner |
Monitoring activites |
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Controls are not designed to prove assurance that: (transactions are executed in accordance with management's authorization, fraud will be eliminated, access to assets is permitted only in accordance, the recorded accountability for assets is compared with the existing assets) |
Fraud will be eliminated |
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Each of the following types of controls is considered to be an entity-level control, except those: (relating to the control environment, pertaining to the company's risk assessment process, regarding the company's annual stockholder meeting, addressing policies over significant risk management practices) |
Regarding the company's annual stockholder meeting |
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For effective internal control, which of the following functions should NOT be assigned to the company's accounting department? (reconciling accounting records with existing assets, recording financial transactions, signing payroll checks, preparing financial reports) |
Signing payroll checks |
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If a control total were to be computed on each of the following data items, which would be best identified as a hash total for a payroll IT application? (hours worked, total debits and credits, net pay, department numbers) |
Department numbers |
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In computer systems, the information technology general controls would NOT include? (processing control activities, separation of various computer system functions, appropriate documentation of the data processing system, control over physical access to computer hardware) |
Processing control activities |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Access to the asset or financial statements in order to carry out the fraud |
Opportunity |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Controls designed to discover fraud when it occurs and alert management |
Detect |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Includes misstating financial statements to meet earnings targets |
Fraudulent financial reporting |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Includes illegal acts such as bribery, kickbacks, money laundering and rigging bids |
Corruption |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Investigate and take corrective actions to remedy harm caused |
Correct |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Controls designed to prevent or reduce the likelihood of a fraud risk occurring |
Prevent |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Reason for committing the fraud, such as financial difficulties |
Motive |
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Match with motive, opportunity, corruption, fraudulent financial reporting, misappropriation of assets, detect, correct, prevent: Involves theft of assets for personal gain |
Misappropriation of assets |
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Match the following control activities (segregation of duties, physical controls, reconcile assets to accounts): Take a physical inventory count and compare it to the inventor balance in the accounting system |
Reconcile assets to accounts |
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Match the following control activities (segregation of duties, physical controls, reconcile assets to accounts): The cashier does not have access to the accounting reocrd |
Segregation of duties |
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Match the following control activities (segregation of duties, physical controls, reconcile assets to accounts): Security cameras |
Physical controls |
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Match the following control activities (segregation of duties, physical controls, reconcile assets to accounts): The sales clerks in a retail tore do not have access to the accounting system |
Segregation of duties |
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Match the following control activities (segregation of duties, physical controls, reconcile assets to accounts): Bank reconciliations |
Reconcile assets to accounts |
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Match the following control activities (segregation of duties, physical controls, reconcile assets to accounts): Key cards to access offices |
Physical controls |
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Obtaining an understanding of an internal control involves evaluating the design of the control and determining whether the control has been (authorized, implemented, tested, monitored) |
Implemented |
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Of the following about internal control which is NOT valid (no one person should be responsible for the custodial responsibility of an asset, transactions must be property authorized, because of the cost/benefit relationship, control activities reasonably insure) |
Control activities reasonably insure that collusion among employees cannot occur |
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Proper separation of duties reduces the opportunities to allow persons to be in positions to both (journalize entries and prepare financial statements, record cash receipts and cash disbursements, establish internal controls and authorize transactions, perpetrate a fraud and then conceal it in the books) |
Perpetrate a fraud and then conceal it in the books |
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Relationship of the cube (component, objectives, organizational structure): Compliance |
Objectives |
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Relationship of the cube (component, objectives, organizational structure): Operations |
Objectives |
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Relationship of the cube (component, objectives, organizational structure): Reporting |
Objectives |
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Relationship of the cube (component, objectives, organizational structure): Control Environment |
Component |
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Relationship of the cube (component, objectives, organizational structure): Control Activities |
Component |
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Relationship of the cube (component, objectives, organizational structure): Information & Communication |
Component |
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Relationship of the cube (component, objectives, organizational structure): Monitoring activities |
Component |
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Relationship of the cube (component, objectives, organizational structure): Legal entities |
Organizational structure |
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Relationship of the cube (component, objectives, organizational structure): Operating units |
Organizational structure |
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Relationship of the cube (component, objectives, organizational structure): Division |
Organizational structure |
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Relationship of the cube (component, objectives, organizational structure): Function |
Organizational structure |
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Sound internal control can be described as separating all of the following duties and responsibilities except for (transaction authorization, record keeping, custody of assets, hiring of employees) |
Hiring of employees |
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The internal control in small business is highly dependent on the (separation of functional responsibilities, complexity of the client's internal controls, owner-manager's competence, as well as his/her ethics and integrity, bonding of employees) |
Owner-manager's competence, as well as his/her ethics and integrity |
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The overall attitude and awareness of an entity's board of directors concerning the importance of the client's internal control usually is reflect in its (computer-based control actives, system of separation of duties, control environment, safeguard over access to assets) |
Control environment |
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This data entry control compares the ID number in transaction data to a master file to verify that the ID number exists (user review, reasonableness test, validity check, data matching) |
Validity check |
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What control are file labels an example of? (data entry controls, output controls, source data controls, processing controls) |
Processing controls |
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Which of the following is a factor in the control environment? (Segregation of duties, information processing, performance reviews, management's philosophy and operating style) |
Management's philosophy and operation style |
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Which of the following is an information technology general control? (Check digit, run-to-run totals, distribution of computerized output, separation of duties in the IT department) |
Separation fo duties in the IT department |
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Which of the following is not a component of the control environment? (integrity and ethical values, risk assessment, commitment to attracting, organizational structure) |
Risk assessment |
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Which of the following is NOT a factor that is considering a part of the client's overall control environment? (the organizational structure, the information system, management philosophy, board of directors) |
The information system |
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Which of the following is NOT considered one of of the five major components of internal control? (risk assessment, segregation of duties, control activities, monitoring) |
Segregation of duties |
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Which of the following most likely would not be considered an inherent limitation of the potential effectiveness of an entity's internal controls? (incompatible duties, management override, mistakes in judgement, collusion among employees) |
Incompatible duties |
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Which of the following payroll control activities would most effectively ensure that payment is made only for work performed? (require all employees to record arrival, have a payroll clerk recalculate all time cards, require all employees to sign their time cards, require employees to have their direct supervisors) |
Require employees to have their direct supervisors approve their time cards |
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Which type of control prevents, detects, and corrects transaction error and fraud? (detective, preventive, application, general) |
Application |
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Which type of control is associated with making sure an organization's control environment is stable? (preventive, general, application, detective) |
General |
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Which of the following measures can protect a company from AIS threats? (take proactive approach to eliminate threats, correct and recover from threats that do occur, detect threats that do occur, all of the above) |
All of the above are proper measures for the accountant to take |
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What is not a violation of the Sarbanes-Oxlet act? |
Hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit. |
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Which of the following is NOT a principle related to information and communicating in the updated COSO (obtain or generate relevant high quality information, communicate relevant internal control matters, internally communicate the information necessary, surround internal control processes with IT) |
Surround internal control processes with information technology that enables discrepancies to be identified |
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Which of the following is NOT a key method of monitoring performance? (monitoring system activities, employing a chief risk officer, performing internal control evaluation, implementing effective supervision) |
Employing a chief risk officer. |
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The first step of the risk assessment process is generally to (estimate the risk probability of negative events, identify the threats that the company currently faces, identify controls to reduce all risk to zero, estimate the exposure from negative events) |
Identify the threats that the company currently faces |
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The audit committee of the board of directors (provides a check and balance on management, conducts testing of controls on behalf of the external auditors, is usually chaired by the CFO, does all of the above) |
Provides a check and balance on management |
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The Sarbanes-Oxley Act applies to (all companies with gross annual revenues exceeding $500 million, publicly traded companies with gross annual revenues exceeding $500 million, all private and public companies incorporated in the US, all publicly traded companies) |
All publicly traded companies |
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Independent checks on performance include all of the following except (preparing a trial balance report, data input validation checks, supervisor review of journal entries and supporting documentation, reconciling hash totals) |
Data input validation checks |
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Identify the preventive control below (counting inventory on hand and comparing counts to the perpetual inventory record, maintaining frequent backup record to prevent loss of data, reconciling the bank statement to the cash control account, approving customer credit prior to approving a sales order) |
Approving customer credit prior to approving a sales order. |
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How many principles are there in the 2013 updated COSO? (17, 21, 5, 8) |
17 |
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"Management override" (refers to actions taken by management in an attempt to override the entity's controls for an illegitimate purpose, is the same as management intervention, all of the above, none of the above) |
Refers to actions taken by management in an attempt to override the entity's controls for an illegitimate purpose. |
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Copy of Controls are NOT designed to provide assurance that: (transactions are executed in accordance with management's authorization, fraud will be eliminated, access to assets is permitted online in accordance with management's authorization, the recorded accountability for assets is compared with the existing assets at reasonable intervals) |
Fraud will be eliminated |
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The overall attitude and awareness of an entity's board of directors concerning the importance of the client's internal control usually is reflected in it (computer-based control activities, system of separation of duties, control environment, safeguards over access to assets) |
Control environment |
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A set of characteristics that helps to define a seriousness about employees' attitudes about the control activities in a company is referred to as (management assertions, the control environment, control risk assessment, functional responsibilities) |
The control environment |
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Which of the following is a factor in the control environment? (segregation of duties, information processing, performance reviews, management's philosophy and operating style) |
Management's philosophy and orating style |
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Which of the following is an Information Technology General Control? (check digit, run-to-run totals, distributions of computerized output, separation of duties in the IT department) |
Separation of duties int eh IT department |
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Proper separation of duties reduce the opportunities to allow persons to be in positions to both: (journalize entries and prepare financial statements, record cash receipts and cash disbursements, establish internal control and authorize transactions, perpetrate a fraud and then conceal it in the books) |
Perpetrate a fraud and then conceal it in the books. |
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If a control total were to be compute red on each of the following data items, which would best be identified as a hash total for a payroll IT application? (hours worked, total debits/credits, net pay, department numbers) |
Department numbers |
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The overall attitude and awareness of an entity's board of directors concerning the important of the client's internal control usually is reflected in its (computer-based control activities, system of separation of duties, control environment, safeguard over access to assets) |
Control environment |
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Which of the following payroll control activities would most effectively ensure that payment is made only for work performed? (require all employees to record arrival and departure by time clocks, have a payroll clerk recalculate all time cards, require all employees to sign their time card, require employees to have their direct supervisors approve their time cards) |
Require employes to have their direct supervisors approve their time cards |
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Each of the following types of controls is considered to be an entity-level control, except those (relating to the control environment, pertaining to the company's risk assessment process, regarding the company's annual stockholder meeting, addressing policies over significant risk management practices) |
regarding the company's annual stockholder meeting. |
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Obtaining an understanding of an internal control involves evaluation the design of the control and determining whether the control has been (authorized, implemented, tested, monitored) |
Implemented |
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In computer systems, the information technology general controls would NOT include (pressing control activities, separation of various computer system functions, appropriate documentation of the data processing system, control over physical access to computer hardware) |
Processing control activities |
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A report on internal control effectiveness by the management team of public companies is required by (the sarbanes-oxlet act, PCAOB, AICPA, the auditors) |
The sarbanes-oxey act |
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Controls are NOT designed to provide assurance that: (transactions are executed in accordance with management's authorization, fraud will be eliminated, access to assets is permitted only in accordance with management's authorization, the recorded accountability for assets is compared) |
Fraud will be eliminated |
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Of the following statements about internal control, which one is NOT valid? (no one person should be responsible for the custodial responsibility, transactions must be properly authorized before such transactions are processed, because of the cost/benefit relationship, control activities reasonably insure that collusion among employees cannot occur) |
Control activities reasonably insure that collusion among employees cannot occur. |
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Which of the following is NOT considered one for eh five major components of internal control? (risk assessment, segregation of duties, control activities, monitoring) |
Segregation of duties |
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Which of the following is NOT a component of the control environment? (integrity and ethical values, risk assessment, commitment to attracting employees, organizational structure) |
Risk assessment |
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For effective internal control, which of the following functions should NOT be assigned to the company's accounting department? (reconciling accounting records with existing assets, recording financial transactions, signing payroll checks preparing financial reports) |
Signing payroll checks |
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Which of the following is NOT a factor that is considered a part of the client's overall control environment? (the organizational structure, the information system, management philosophy and operating style, board of directors) |
The information system |
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Sound internal control can be described as separating all of the following duties and responsibilities except for: (transaction authorization, record keeping, custody of assets, hiring of employees) |
hiring of employees |
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The internal control in small business is highly dependent on the (separation of functional responsibilities, complexity of the client's internal controls, owner-manager's competence, bonding of employees) |
Owner-manager's competence, as well as his/her ethics and integrity |
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This data control compares the ID number in transaction data to a master file to verify that the ID number exists (validity check, user review, data matching, reasonableness test) |
Validity check |
