Question 1

The IT Infrastructure Libarary (ITIL) is considered a de facto standard in which of the following regions?

Accepted Answer

A)  Asia and Australia.
B)  North America.
C)  The UK.
D)  Europe.E) B) and C)
F) A) and D)

Question 2

Public Company Accounting Oversight Board (PCAOB)encourages auditors to start from the basic/bottom of financial transaction records to identify the key controls.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is considered an application input control?

Accepted Answer

A)  Run control total.
B)  Edit check.
C)  Reporting distribution log.
D)  Exception report.E) All of the above
F) A) and C)

Question 4

Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

Accepted Answer

A) True 
 B)False

Question 5

In addition to focusing on controls,COBIT 5 expands its scope by incorporating which of the following broad perpsectives?

Accepted Answer

A)  How IT brings value to the firm.
B)  How IT can automate specific business processess.
C)  IT networking requirements.
D)  IT cost reductions.E) A) and B)
F) A) and C)

Question 6

Which of the following represents a residual risk for a services company?

Accepted Answer

A)  Two employees are colluding to facilitate theft.
B)  All checks require two signatures.
C)  Bank accounts are reconciled weekly.
D)  A manager reviews all account reconciliations.E) A) and C)
F) None of the above

Question 7

The main objective of the ISO 27000 series is to provide a model for establishing,implementing,operating,monitoring,maintaining,and improving information security.

Accepted Answer

A) True 
 B)False

Question 8

According to COSO which of the following is not a component of internal control?

Accepted Answer

A)  Control risk.
B)  Control activities.
C)  Monitoring.
D)  Control environment.E) A) and D)
F) All of the above

Question 9

All of the following are examples of internal control procedures except

Accepted Answer

A)  Using pre-numbered documents
B)  Reconciling the bank statement
C)  Processing customer satisfaction surveys
D)  Insistence that employees take vacationsE) A) and D)
F) None of the above

Question 10

The internal control provisions of SOX apply to which companies in the United States?

Accepted Answer

A)  All companies.
B)  SEC registrants.
C)  All issuer (public) companies and nonissuer (nonpublic) companies with more than $100,000,000 of net worth.
D)  All nonissuer companies.E) C) and D)
F) None of the above

Question 11

The ISO 27000 Series of standards are designed to address which of the following?

Accepted Answer

A)  Corporate governance.
B)  Internal controls.
C)  Information security issues.
D)  IT value.E) A) and C)
F) B) and C)

Question 12

If a Chief Technology Officer wanted to ensure a new system had appropriate input controls which of the following would he/she require?

Accepted Answer

A)  Disposal of documents.
B)  Access control.
C)  Sequence checks.
D)  URL Class diagram.E) None of the above
F) B) and D)

Question 13

In a computerized environment,internal controls can be categorized as general controls and application controls.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following best describes why firms choose to create codes of ethics?

Accepted Answer

A)  Because most people will not behave ethically without a written set of guidelines.
B)  Codes of ethics protect firms against lawsuits that may be filed due to corporate fraud.
C)  They allow firms to create a formal set of expectations for employees who may have different sets of personal values.
D)  Companies must have a written code of ethics in order to conduct interstate commerce in the U.S.E) A) and B)
F) A) and C)

Question 15

According to COSO ERM,which of the following is not one of the bases that should be used to analyze the risks of an identified event?

Accepted Answer

A)  Inherent risk.
B)  Organizational risk.
C)  Residual risk.
D)  Control risk.E) B) and C)
F) None of the above

Question 16

A customer intended to order 100 units of a product A,but incorrectly ordered nonexistent product B.Which of the following controls most likely would detect this error?

Accepted Answer

A)  Validity check
B)  Record count
C)  Hash total
D)  Parity checkE) A) and D)
F) None of the above

Question 17

COBIT (Control Objectives for Information and related Technology)is a generally accepted framework for IT governance in the U.S.

Accepted Answer

A) True 
 B)False

Question 18

The overall attitude and awareness of a firm's top management and board of directors concerning the importance of internal control is often reflected in its:

Accepted Answer

A)  Computer-based controls.
B)  System of segregation of duties.
C)  Control environment.
D)  Safeguards over access to assets.E) A) and B)
F) A) and C)

Question 19

The COSO ERM framework encourages a review of risks as they apply to achieving firms' objectives.Which of the following is not one of the listed categories of objectives to be considered?

Accepted Answer

A)  Environment.
B)  Operations.
C)  Strategic.
D)  Compliance.E) C) and D)
F) A) and B)

Question 20

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

Accepted Answer

A)  Risk reduction.
B)  Prospect theory.
C)  Risk sharing.
D)  Risk acceptance.E) A) and D)
F) B) and C)

Exam 13: Accounting Information Systems and Internal Controls

If a Chief Technology Officer wanted to ensure a new system had appropriate input controls which of the following would he/she require?

Correct AnswerverifiedShow Answer

In a computerized environment,internal controls can be categorized as general controls and application controls.

Correct AnswerverifiedShow Answer

Which of the following represents a residual risk for a services company?

Correct AnswerverifiedShow Answer

Which of the following is considered an application input control?

Correct AnswerverifiedShow Answer

The main objective of the ISO 27000 series is to provide a model for establishing,implementing,operating,monitoring,maintaining,and improving information security.

Correct AnswerverifiedShow Answer

In addition to focusing on controls,COBIT 5 expands its scope by incorporating which of the following broad perpsectives?

Correct AnswerverifiedShow Answer

The ISO 27000 Series of standards are designed to address which of the following?

Correct AnswerverifiedShow Answer

COBIT (Control Objectives for Information and related Technology)is a generally accepted framework for IT governance in the U.S.

Correct AnswerverifiedShow Answer

Which of the following best describes why firms choose to create codes of ethics?

Correct AnswerverifiedShow Answer

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

Correct AnswerverifiedShow Answer

The IT Infrastructure Libarary (ITIL) is considered a de facto standard in which of the following regions?

Correct AnswerverifiedShow Answer

The internal control provisions of SOX apply to which companies in the United States?

Correct AnswerverifiedShow Answer

According to COSO which of the following is not a component of internal control?

Correct AnswerverifiedShow Answer

According to COSO ERM,which of the following is not one of the bases that should be used to analyze the risks of an identified event?

Correct AnswerverifiedShow Answer

The COSO ERM framework encourages a review of risks as they apply to achieving firms' objectives.Which of the following is not one of the listed categories of objectives to be considered?

Correct AnswerverifiedShow Answer

Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

Correct AnswerverifiedShow Answer

All of the following are examples of internal control procedures except

Correct AnswerverifiedShow Answer

Public Company Accounting Oversight Board (PCAOB)encourages auditors to start from the basic/bottom of financial transaction records to identify the key controls.

Correct AnswerverifiedShow Answer

A customer intended to order 100 units of a product A,but incorrectly ordered nonexistent product B.Which of the following controls most likely would detect this error?

Correct AnswerverifiedShow Answer

The overall attitude and awareness of a firm's top management and board of directors concerning the importance of internal control is often reflected in its:

Correct AnswerverifiedShow Answer

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