Question 1

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.

Accepted Answer

A strategic master plan outlines the long-term goals of a company and the IT projects and needs necessary to achieve them. It serves as a roadmap for the organization's IT decision-making and investments. A performance evaluation is an assessment of employee performance, a project development plan outlines the specific steps and resources needed for a single project, and a data processing schedule outlines the timing and processes for data processing activities.

Question 2

COSO requires that any internal deficiencies identified through monitoring be reported to whom?
A)the external auditor
B)appropriate federal,state,or local authorities
C)the board of directors
D)the audit committee

Accepted Answer

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

Question 3

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.

Accepted Answer

The General Manager comparing budgeted amounts with expenditure records from all departments is an independent check on performance as it is not done by the departments themselves. This helps to ensure that departments are not overspending and staying within their budgets. The other options involve checks done within the departments themselves and may not be fully independent.

Question 4

Explain how a company could be the victim of fraud,even if ideal segregation of duties is enforced.

Accepted Answer

The answer of Explain how a company could be the...

Question 5

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 may be a factor that led to the increased use of forensic investigators in accounting as companies seek more cost-effective ways to detect and prevent fraud. The other factors listed, including the Sarbanes-Oxley Act, new accounting rules, and pressure from boards of directors, have all contributed to a greater emphasis on financial transparency and accountability, which has in turn increased demand for forensic investigators with specialized skills in uncovering fraudulent activities.

Question 6

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.
A)custody; authorization
B)custody; recording
C)recording; authorization
D)management; custody

Accepted Answer

The Director of Information Technology had recording and authorization duties, which allowed her to make purchases on behalf of the City from her own company and potentially overcharge them without proper oversight.

Question 7

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

Accepted Answer

While employing a chief risk officer can be helpful in identifying and assessing potential risks, it is not a key method of monitoring performance. The other options - performing internal control evaluation, implementing effective supervision, and monitoring system activities - are all important methods of monitoring performance.

Question 8

Describe the differences between general and specific authorization.

Accepted Answer

The answer of Describe the differences between general and specific...

Question 9

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 ERM Framework is concerned with understanding how transactions are initiated, data are captured and processed, and information is reported. This component emphasizes the importance of timely and accurate information, effective communication, and appropriate channels for reporting and escalation of risks.

Question 10

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 11

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

Accepted Answer

A project development plan is a comprehensive document that outlines how a project will be completed. It includes information about the project's scope, objectives, tasks, timelines, budgets, stakeholders, resources, risks, and other relevant details. The plan helps to ensure that everyone involved in the project understands their roles and responsibilities and can work together effectively to achieve the project's goals. A performance evaluation assesses how well a project or individual has performed after completion, a steering committee is a group of individuals who provide oversight and guidance for a project, and a strategic master plan is a long-term plan that outlines an organization's goals and objectives.

Question 12

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

The answer of To ensure compliance with copyrights and to...

Question 13

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 controller
B)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

Accepted Answer

The answer of The organization chart for Renata Corporation includes...

Question 14

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

Accepted Answer

This represents an effective segregation of duties because different individuals are responsible for different tasks related to the payment of employees. Maimu Maarja makes hiring decisions, the Vice President for Operations approves pay rates, and Kasheena prepares paychecks. By having different individuals responsible for different tasks, the company reduces the risk of errors or fraud. Additionally, the use of the mail room to distribute paychecks adds another layer of separation and reduces the risk of unauthorized access to sensitive information.

Question 15

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

Accepted Answer

A steering committee is specifically created to guide and oversee systems development and acquisition. A performance evaluation assesses the performance of an individual or a system. A project development plan outlines the activities and tasks required to complete a project. A strategic master plan is a comprehensive plan that outlines an organization's long-term goals and strategies.

Question 16

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

Accepted Answer

An internal audit assesses employee compliance with management policies and procedures. External audits are conducted by an independent third party, while network security audits focus on the security of an organization's technical infrastructure. Therefore, only option B is the correct choice.

Question 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.
A)ideal
B)effective
C)ineffective
D)limited

Accepted Answer

Having the same individual handle disbursement, record-keeping, fund replenishment requests, and reconciliation does not effectively segregate duties, increasing the risk of errors or fraud.

Question 18

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 designed to mimic the way the human brain works, which means that it has the ability to learn from experience and improve its performance over time. It does not have the ability to read text or extract/inject information from/into the human brain.

Question 19

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 monitor the performance of individuals or departments in relation to their assigned responsibilities. Budgets, quotas, and quality standards are all examples of performance metrics that can be monitored through a responsibility accounting system. However, vendor analysis is not a responsibility of an individual or department and therefore would not be included in a responsibility accounting system.

Question 20

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

The answer of Which type of audits can detect fraud...

Quiz 7: Control and Accounting Information Systems

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

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

Which of the following is an independent check on performance?

Explain how a company could be the victim of fraud,even if ideal segregation of duties is enforced.

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

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

Describe the differences between general and specific authorization.

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?

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

A ________ shows how a project will be completed,including tasks and who will perform them as well as a timeline and cost estimates.

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

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 ________ is created to guide and oversee systems development and acquisition.

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

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.

A neural network is a software program that has

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

Which type of audits can detect fraud and errors?