Question 1

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.

Accepted Answer

Audit fee increases do not directly relate to the increased use of forensic investigators in accounting. The other options are all factors that have led to an increased demand for forensic investigators in accounting.

Question 2

Describe the three principles that apply to the information and communication process.

Accepted Answer

The answer of Describe the three principles that apply to...

Question 3

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

Accepted Answer

Conducting software audits helps companies ensure that all software in use is properly licensed and compliant with copyright laws, reducing the risk of piracy lawsuits.

Question 4

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.

Accepted Answer

The Information and communication 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. This component focuses on ensuring that information is accurate, complete, and timely, and that it flows properly throughout the organization.

Question 5

SOX suggested the fraud hotline as a mechanism for employees to report fraud and abuse.

Accepted Answer

The Sarbanes-Oxley Act (SOX) does not specifically suggest a fraud hotline; however, it requires public companies to have procedures for handling complaints regarding accounting or auditing matters, which can include a hotline.

Question 6

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.

Accepted Answer

A neural network is a type of machine learning algorithm that is modeled after the human brain. It has the ability to learn and improve its performance based on the data it is fed. It does not have the capability to read text or interact with the human brain in any way.

Question 7

COSO requires that any internal deficiencies identified through monitoring be reported to whom?
A)The external auditor.
B)The company's management.
C)The board of directors.
D)The audit committee.

Accepted Answer

The answer of COSO requires that any internal deficiencies identified...

Question 8

Which of the following is not a key method of monitoring performance?
A)Performing internal control evaluation.
B)Implementing a benefit incentive plan.
C)Implementing effective supervision.
D)Implementing a whistleblower hotline.

Accepted Answer

While implementing a benefit incentive plan can motivate employees to work harder, it is not a key method of monitoring performance. The other options are all methods of monitoring performance by ensuring accountability, providing oversight, and encouraging reporting of improper behavior.

Question 9

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.

Accepted Answer

The updated COSO Integrated Control framework emphasizes the importance of communication and information in supporting internal control but does not specifically mandate surrounding internal control processes with information technology for identifying discrepancies. This choice does not accurately reflect the principles related to information and communication as outlined in the framework.

Question 10

Which type of audit assesses employee compliance with management policies and procedures?
A)External audit.
B)Internal audit.
C)Compliance audit.
D)Operational audit.

Accepted Answer

An internal audit assesses employee compliance with management policies and procedures, ensuring that internal controls are effective and being followed.

Question 11

Which type of audits can detect fraud and errors?
A)External audits.
B)Internal audits.
C)Network security audits.
D)all of the above

Accepted Answer

All types of audits, including external audits, internal audits, and network security audits, can detect fraud and errors. External and internal audits focus on financial and operational processes, while network security audits can uncover fraud and errors in information systems that could lead to financial discrepancies or vulnerabilities.

Question 12

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

Accepted Answer

Responsibility accounting systems are used to monitor and evaluate the performance of individual managers or departments within an organization based on specific responsibilities or areas of control. Budgets, quotas, and quality standards are examples of things that can be monitored by a responsibility accounting system. Vendor analysis is not typically something that would be monitored in this way, as it is not directly related to the performance of a specific manager or department.

Quiz 7: Control and Accounting Information Systems

Which of the following factors is not a reason forensic investigators are increasingly used in accounting?

Describe the three principles that apply to the information and communication process.

To ensure compliance with copyrights and to protect itself from software piracy lawsuits,companies should ________.

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?

SOX suggested the fraud hotline as a mechanism for employees to report fraud and abuse.

A neural network is a software program that has

COSO requires that any internal deficiencies identified through monitoring be reported to whom?

Which of the following is not a key method of monitoring performance?

Which of the following is not a principle related to information and communicating in the updated COSO Integrated Control framework?

Which type of audit assesses employee compliance with management policies and procedures?

Which type of audits can detect fraud and errors?

Which of the following is not an example of something monitored by a responsibility accounting system?