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93 Cards in this Set
- Front
- Back
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1)Why are threats to accounting information systems increasing?
A)Many companies do not realize that data security is crucial to their survival. B)LANs and client/server systems are easier to control than centralized,mainframe systems. C)Many companies believe that protecting information is a strategic requirement. D)Computer control problems are often overestimated and overly emphasized by management. |
A)Many companies do not realize that data security is crucial to their survival.
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2)A control procedure designed so that the employee that records cash receivedfrom customers does not also have access to the cash itself is an example ofa(n)
A)preventive control. B)detective control. C)corrective control. D)authorization control. |
A)preventive control. |
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3)Identify the preventive control below. A)reconciling the bank statement to the cash control account B)approving customer credit prior to approving a sales order C)maintaining frequent backup records to prevent loss of data D)counting inventory on hand and comparing counts to the perpetual inventoryrecords |
B)approving customer credit prior to approving a sales orderч��o��
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4)According to The Sarbanes-Oxley Act of 2002, the audit committee of the boardof directors is directly responsible for
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 theinternal audit department.Z��}�[ |
A)hiring and firing the external auditors.bo&i
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5)Which of the following measures can protect a company from AIS threats?
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. 3Jv���\ |
D)All of the above are proper measures for the accountant to take. o5l\
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6)Internal control is often referred to as a(n) ________, because it permeates anorganization's operating activities and is an integral part of managementactivities.
A)event B)activity C)process D)system >ȋ��\ |
C)process
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7)Duplicate checking of calculations is an example of a ________ control, andprocedures to resubmit rejected transactions are an example of a ________control.
A)corrective; detective B)detective; corrective C)preventive; corrective D) detective; preventive l |
B)detective; corrective (; k
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8)Which type of control is associated with making sure an organization's controlenvironment is stable?A)general
B)application C)detective D)preventive |
A)generaly>"e
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9)Which type of control prevents, detects, and corrects transaction errors andfraud?
A)general B)application C)detective D)preventive |
B)application
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10)The primary purpose of the Foreign Corrupt Practices Act of 1977 was
A)to require corporations to maintain a good system of internal control. B)to prevent the bribery of foreign officials by American companies. C)to require the reporting of any material fraud by a business. D)All of the above are required by the act. ; |
B)to prevent the bribery of foreign officials by American companies. -size:1��݀m��
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11)Congress passed this federal law for the purpose of preventing financialstatement fraud, to make financial reports more transparent and to strengthenthe internal control of public companies.
A)Foreign Corrupt Practices Act of 1977 B)The Securities Exchange Act of 1934 C)The Sarbanes-Oxley Act of 2002 D)The Control Provision of 1998MCghn։�� |
C)The Sarbanes-Oxley Act of 2002p'h
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12)Which of the following was not an important change introduced by theSarbanes-Oxley Act of 2002? A)new roles for audit committees B)new rules for auditors and management C)new rules for information systems development D)the creation of the Public Company Accounting Oversight Board 91cF8w܉冿 |
C)new rules for information systems development |
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13)A(n) ________ measures company progress by comparing actual performance toplanned performance. A)boundary system B)diagnostic control system C)interactive control system D)internal control systemdy":ȉ |
B)diagnostic control system k |
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14)A(n) ________ helps top-level managers with high-level activities that demandfrequent and regular attention. A)boundary system B)diagnostic control system C)interactive control system D)internal control systemoIZ3Jvׂ嘿 |
C)interactive control system k |
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15) Which of thefollowing is not a violation of the Sarbanes-Oxley Act (SOX)? Themanagement at Oanez Dinnerware A) asked theirauditors to make recommendations for the redesign of their information technologysystem and to aid in the implementation process. B) hired themanager from the external audit team as company CFO twelve months after themanager had worked on the audit. C) selected thecompany's Chief Financial Officer to chair the audit committee. D) did not mentionto auditors that the company had experienced significant losses due to fraudduring the past year.¿d |
B) hired themanager from the external audit team as company CFO twelve months after themanager had worked on the audit.:lin*X |
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16) TheSarbanes-Oxley Act (SOX) applies to A) all companieswith gross annual revenues exceeding $500 million. B)publicly traded companies with gross annual revenues exceeding $500 million. C)all private and public companies incorporated in the United States. D) all publicly traded companies |
D)all publicly traded companies.k |
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17) Irene Pacificawas relaxing after work with a colleague at a local watering hole. Well intoher second martini, she began expressing her feelings about her company'sbudgeting practices. It seems that as a result of controls put in place by thecompany,her ability to creatively manage his department's activities have beencurtailed. The level of control that the company is using in this case is a(n) A) boundary system B) diagnostic control system. C) interactive control system. D) belief system.e_ݩԿ |
B) diagnostic controlsystem.>l |
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18) Irene Pacificawas relaxing after work with a colleague at a local watering hole. Well intoher second martini, she began expressing her feelings about her workenvironment. Recently, every employee of the firm was required to attend asexual harassment workshop. The level of control that the company is using inthis case is a(n) A) boundary system. B) diagnostic control system. C) interactive control system. D) belief system. rizoݩԿ |
A) boundarysystem. |
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1)Which of the below is not a component of the COSO ERM? A)monitoring B)control environment C)risk assessment D)compliance with federal, state, or local laws bnQY݂ |
D)compliance with federal, state, or local laws |
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2)The COSO Enterprise Risk Management Integrated Framework stresses that A)risk management activities are an inherent part of all business operations andshould be considered during strategy setting. B)effective risk management is comprised of just three interrelated components;internal environment, risk assessment, and control activities. C)risk management is the sole responsibility of top management. D) risk management policies, if enforced,guarantee achievement of corporate objectivese"ݴ |
A)risk management activities are an inherent part of all business operations andshould be considered during strategy setting. |
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3) Nolwenn Limitedhas been diligent in ensuring that their operations meet modern controlstandards. Recently, they have extended their control compliance system byincorporating policies and procedures that require the specification of companyobjectives, uncertainties associated with objectives, and contingency plans.Nolwenn Limited is transitioning from a ________ to a ________ control framework. A) COSO-IntegratedFramework; COBIT B) COBIT;COSO-Integrated Framework C) COBIT; COSO-ERM D) COSO-IntegratedFramework; COSO-ERM E) COSO-ERM; COBITLG1`RͿ |
D) COSO-IntegratedFramework; COSO-ERM3mk |
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5)True or False: The COSO ERM contains allfive of the same COSO-Integrated Framework components.k |
TRUE |
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6)How many principles are there in the 2013 updated COSO - Internal ControlFramework? A)5 B)8 C)17 D)21 |
C)17#d |
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7)Why was the original 1992 COSO - Integrated Control framework updated in 2013? A)Congress required COSO to modernize. B)U.S. stock exchanges required more disclosure. C)to more effectively address technological advancements D)to comply with International accounting standardsXBfMDQQݝ |
C)to more effectively address technological advancements |
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8)Which internal control framework is widely accepted as the authority oninternal controls?A)COBIT B)COSO Integrated Control C)COSO Enterprise Risk Management D)Sarbanes-Oxley Control Frameworkꕿ |
B) COSO Integrated Control |
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9)Identify the statement below that is not true of the 2013 COSO InternalControl updated framework. 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.KHlVNݒ |
A)It more efficiently deals with control implementation and documentation issues.alT |
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10) Which of the following is not one of the five principles of COBIT5? A) meeting stakeholder needs B) covering the enterprise end-to-end C) enabling a holistic approach D) improving organization efficiency |
D) improving organization efficiency |
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11) The COBIT5 framework primarily relates to A) best practices and effective governance and management of private companies. B) best practices and effective governance and management of public companies. C) best practices and effective governance and management of information technology. D) best practices and effective governance and management of organizational assets. |
D) best practices and effective governance and management of organizational assets. |
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12)Applying the COBIT5 framework, governance is the responsibility of A)internal audit. B)external audit. C)management. D)the board of directors.XR5ނ쓿 |
D) the board of directors. |
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13) Applying the COBIT5 framework, monitoring is the responsibility of A) the CEO. B) the CFO. C) the board of directors. D) all of the above |
D) all of the above |
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14)Why did COSO develop the Enterprise Risk Management framework ?A)to improve the audit process B)to improve the risk management process C)to improve the financial reporting process D)to improve the manufacturing process |
B) to improve the risk management process |
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15) Which of the following is not a basic principle of the COSO ERM framework? A) Companies are formed to create value for society. B) Management must decide how much uncertainty it will accept to create value. C) Uncertainty results in risk. D) Uncertainty results in opportunity. |
A) Companies are formed to create value for society. |
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16) The largest differences between the COSO Integrated Control (IC) framework and the COSO Enterprise Risk Management (ERM) framework is A) IC is controls-based, while the ERM is risk-based. B) IC is risk-based, while ERM is controls-based. C) IC is required, while ERM is optional. D) IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted accounting principles. |
A) IC is controls-based, while the ERM is risk-based. |
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1)Rauol is a receptionist for The South American Paper Company, which has strictcorporate policies on appropriate use of corporate resources. The first week ofMarch, Rauol saw Jim (the branch manager) putting printer paper and toner intohis briefcase on his way out the door. This situation best reflects a weaknessin which aspect of internal environment, as discussed in the COSO EnterpriseRisk Management Framework?uݹ# |
A) integrity and ethical values |
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2) Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework? A) analyzing past financial performance and reporting B) providing sufficient resources to knowledgeable employees to carry out duties C) disciplining employees for violations of expected behavior D) setting realistic targets for long-term performance |
A) analyzing past financial performance and reporting |
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3) The audit committee of the board of directors 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. |
C) provides a check and balance on management. |
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4) The definition of the lines of authority and responsibility and the overall framework for planning, directing, and controlling is laid out by the A) control activities. B) organizational structure. C) budget framework. D) internal environment. |
B)organizational structure.m k |
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5) Reducing management layers, creating self-directed work teams, and emphasizing continuous improvement are all related to which aspect of internal environment? A) organizational structure B) methods of assigning authority and responsibility C) management philosophy and operating style D) commitment to competence |
A) organizational structure |
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6)Personnel policies such as background checks, mandatory vacations, and rotationof duties tend to deter A)unintentional errors. B)employee fraud or embezzlement. C) fraud by outsiders. D)disgruntled employees.":trubV# |
B) employee fraud or embezzlement. |
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7) The SEC and FASB are best described as external influences that directly affect an organization's A) hiring practices. B) philosophy and operating style. C) internal environment. D) methods of assigning authority. |
7) The SEC and FASB are best described as external influences that directly affect an organization's A) hiring practices.B) philosophy and operating style.C) internal environment.D) methods of assigning authority. |
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8) Which attribute below is not an aspect of the COSO ERM Framework internal environment? A) enforcing a written code of conduct B) holding employees accountable for achieving objectives C) restricting access to assets D) avoiding unrealistic expectations |
C) restricting access to assets |
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9) The amount of risk a company is willing to accept in order to achieve its goals and objectives is A) inherent risk. B) residual risk. C) risk appetite. D) risk assessment. |
C) risk appetite. |
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1) According to the ERM, these help the company address all applicable laws and regulations. A) compliance objectives B) operations objectives C) reporting objectives D) strategic objectives |
A) compliance objectives |
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2) According to the ERM, high level goals that are aligned with and support the company's mission are A) compliance objectives. B) operations objectives. C) reporting objectives. D) strategic objectives |
D) strategic objectives. |
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3) According to the ERM, ________ deal with the effectiveness and efficiency of company operations, such as performance and profitability goals. A) compliance objectives B) operations objectives C) reporting objectives D) strategic objectives |
B) operations objectives |
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4) ________ objectives help ensure the accuracy, completeness and reliability of internal and external company reports, Applying the ERM framework. A) Compliance objectives B) Operations objectives C) Reporting objectives D) Strategic objectives |
C) Reporting objectives |
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1) True or False: Using the COSO definition of an event, an event represents uncertainty. |
TRUE |
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2) Identify the most correct statement with regards to an event. A) An event identified by management will occur. B) An event identified by management may or may not occur. C) An event identified by management may not trigger other events. D) It is easy to determine which events are most likely to occur |
B) An event identified by management may or may not occur. |
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3) Which of the following is not a commonly used technique used to identify potential events? A) performing internal analysis B) monitoring leading events C) conducting interviews D) none of the above |
D) none of the above |
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1) ________ is not a risk responses identified in the COSO Enterprise Risk Management Framework. A) Acceptance B) Avoidance C) Monitoring D) Sharing |
C) Monitoring |
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2) Best Friends, Incorporated is a publicly traded company where three BFF's (best friends forever) serve as its key officers. This situation 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. |
C) increases the risk associated with an audit. |
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3) ________ remains after management implements internal control(s).
A) Inherent risk B) Residual risk C) Risk appetite D) Risk assessment |
B) Residual risk
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4) ________ is the risk that exists before management takes any steps to mitigate it.
A) Inherent risk B) Residual risk C) Risk appetite D) Risk assessment |
A) Inherent risk
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5) How is expected loss calculated when performing risk assessment?
A) impact times expected loss B) impact times likelihood C) inherent risk times likelihood D) residual risk times likelihood |
B) impact times likelihood
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6) The first step of the risk assessment process is generally to 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. |
C) identify the threats that the company currently faces. |
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7) 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 impact of this risk without insurance? A) $50 B) $650 C) $50,000 D) $650,000 |
D) $650,000 |
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8) 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? |
B) $650 |
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9) 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 with insurance? A) $50 B) $650 C) $50,000 D) $650,000 |
A) $50 |
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10) 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. Based on cost-benefit analysis, what is the most that the business should pay for the insurance? A) $50 B) $500 C) $600 D) $650 |
C) $600
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11) According to the COSO Enterprise Risk Management Framework, the risk assessment process incorporates all of the following components except A) reporting potential risks to auditors. B) identifying events that could impact the enterprise. C) evaluating the impact of potential events on achievement of objectives. D) establishing objectives for the enterprise. |
A) reporting potential risks to auditors. |
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12) As a result of an internal risk assessment, Allstate Insurance decided it was not profitable to provide hurricane insurance in the state of Florida. Allstate apparently chose to ________ the risk of paying hurricane claims in Florida. A) reduce B) share C) avoid D) accept |
C) avoid |
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13) Upon getting into your new car, you suddenly became worried that you might become injured in an auto accident. You decided to buckle your seat belt in response. You chose to ________ the risk of being injured in an auto accident. A) reduce B) share C) avoid D) accept |
A) reduce |
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14) Upon getting into your new car, you suddenly became worried that you might become injured in an auto accident. In response, you decided to drive 5 miles under the speed limit. You chose to ________ the risk of being injured in an auto accident. A) reduce B) share C) avoid D) accept |
A) reduce |
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15) Upon getting into your new car, you suddenly became worried that you might become injured in an auto accident. In response, you decided to ride your bike instead. You chose to ________ the risk of being injured in an auto accident. A) reduce B) share C) avoid D) accept |
C) avoid |
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1) 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. Then, ticket stubs collected at the theater entrance are counted and compared with the number of tickets sold. Which of the following situations does this control detect? 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.) |
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2) 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? 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. |
C) The box office cashier accidentally gives too much change to a customer. |
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3) Independent checks on performance include all the following except
A) data input validation checks. B) reconciling hash totals. C) preparing a trial balance report. D) supervisor review of journal entries and supporting documentation. |
A) data input validation checks.
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4) One of the key objectives of segregating duties is to 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. |
D) make sure that different people handle different parts of the same transaction. |
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5) Identify the statement below which is true.A) Requiring two signatures on checks over $20,000 is an example of segregation of duties. B) Although forensic specialists utilize computers, only people can accurately identify fraud. C) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. D) Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check. |
C) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. |
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6) Of the following examples of fraud, which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties. A) A mail room employee steals a check received from a customer and destroys the documentation. B) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods. C) An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car. D) Mike issues credit cards to him and Maxine, and when the credit card balances are just under $1,000, Maxine writes off the accounts as bad debt. Mike then issues new cards. |
D) Mike issues credit cards to him and Maxine, and when the credit card balances are just under $1,000, Maxine writes off the accounts as bad debt. Mike then issues new cards. |
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7) Which of the following is a control related to design and use of documents and 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 |
B) sequentially prenumbering sales invoices |
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8) Which of the following duties could be performed by the same individual without violating segregation of duties controls? A) approving accounting software change requests and testing production scheduling software changes B) programming new code for accounting software and testing accounting software upgrades C) approving software changes and implementing the upgraded software D) managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices |
A) approving accounting software change requests and testing production scheduling software changes |
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9) With a limited work force and a desire to maintain strong internal control, which combination of duties would result in the lowest risk exposure? A) updating the inventory subsidiary ledgers and recording purchases in the purchases journal B) approving a sales return on a customer's account and depositing customers' checks in the bank C) updating the general ledger and working in the inventory warehouse D) entering payments to vendors in the cash disbursements journal and entering cash received from customers in the cash receipts journal |
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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10) A store policy that allows retail clerks to process sales returns for $500 or less, with a receipt dated within the past 30 days, is an example of A) general authorization. B) specific authorization. C) special authorization. D) generic authorization. |
A) general authorization. |
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11) An accounting policy that requires a purchasing manager to sign off on all purchases over $5,000 is an example of A) general authorization. B) specific authorization. C) special authorization. D) generic authorization. |
B) specific authorization. |
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12) 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 A) performance evaluation. B) project development plan. C) data processing schedule. D) strategic master plan |
D) strategic master plan. |
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13) A ________ is created to guide and oversee systems development and acquisition.
A) performance evaluation B) project development plan C) steering committee D) strategic master plan |
C) steering committee
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14) A ________ shows how a project will be completed, including tasks and who will perform them as well as a timeline and cost estimates. A) performance evaluation B) project development plan C) steering committee D) strategic master plan |
B) project development plan |
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15) The organization chart for Renata Corporation includes a controller and an information processing manager, both of whom report to the vice president of finance. Which of the following would be a control weakness? A) assigning the programming and operating of the computer system to an independent control group which reports to the controllerB) providing for maintenance of input data controls by an independent control group which reports to the controller C) periodically rotating assignment of application processing among machine operators, who all report to the information processing manager D) providing for review and distribution of system-generated reports by an independent control group which reports to the controller |
A) assigning the programming and operating of the computer system to an independent control group which reports to the controller |
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16) Which of the following is an independent check on performance? 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. |
C) The General Manager compares budgeted amounts with expenditure records from all departments. |
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17) Petty cash is disbursed by the Manuela Luisina in the Cashier's Office. Manuela also maintains records of disbursements, places requests to the Finance Department to replace expended funds, and periodically reconciles the petty cash balance. This represents a(n) ________ segregation of duties. |
C) ineffective |
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18) Hiring decisions at Maarja's Razors are made by Maimu Maarja, the Director of Human Resources. Pay rates are approved by the Vice President for Operations. At the end of each pay period, supervisors submit time cards to Kasheena, who prepares paycheck requisitions. Paychecks are then distributed through the company's mail room. This represents a(n) ________ segregation of duties.A) partial B) effective C) ineffective D) limited |
B) effective |
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19) The Director of Information Technology for the city of Tampa, Florida formed a company to sell computer supplies and software. All purchases made on behalf of the City were made from her company. She was later charged with fraud for overcharging the City, but was not convicted by a jury. The control issue in this case arose because the Director had both ________ and ________ duties. |
C) recording; authorization |
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1) 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? A) information and communication B) internal environment C) event identification D) objective setting |
A) information and communication |
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2) Which of the following is not a principle related to information and communicating in the updated COSO Integrated Control framework? A) Communicate relevant internal control matters to external parties. B) Obtain or generate relevant, high-quality information to support internal control. C) Surround internal control processes with information technology that enables discrepancies to be identified. D) Internally communicate the information necessary to support the other components of internal control. |
C) Surround internal control processes with information technology that enables discrepancies to be identified. |
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3) COSO requires that any internal deficiencies identified through monitoring be reported to whom?
A) the external auditor B) appropriate federal, state, or local authoritiesC) the board of directors D) the audit committee |
C) the board of directors
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4) Which of the following is not a key method of monitoring performance? A) performing internal control evaluation B) employing a chief risk officer C) implementing effective supervision D) monitoring system activities |
B) employing a chief risk officer |
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5) To ensure compliance with copyrights and to protect itself from software piracy lawsuits, companies should ________. A) periodically conduct software audits B) update the operating system frequently C) buy software from legitimate suppliers D) adopt cloud operating platforms |
A) periodically conduct software audits |
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6) Which type of audits can detect fraud and errors? A) external audits B) internal audits C) network security audits D) all of the above |
D) all of the above |
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7) Which of the following is not an example of something monitored by a responsibility accounting system? A) budgets B) quotas C) vendor analysis D) quality standards |
C) vendor analysis
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8) Which type of audit assesses employee compliance with management policies and procedures? A) external audit B) internal audit C) network security audit D) all of the above |
B) internal audit |
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9) Which of the following factors is not a reason forensic investigators are increasingly used in accounting? A) the Sarbanes-Oxley Act B) new accounting rules C) audit fee increases D) pressure from boards of directors |
C) audit fee increases |
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10) A neural network is a software program that has A) the ability to read text. B) the ability to learn. C) the capability to extract information from an individual's brain. D) the capability to inject information into an individual's brain |
C) audit fee increases
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