Question 1

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Accepted Answer

The answer of Section 302 requires the management of public...

Question 2

Opportunity involves direct access to assets and/or access to information that controls assets.

Accepted Answer

Opportunity is one of the three components of the fraud triangle, along with motivation and rationalization. It involves having access to assets or information that controls assets, which can be used to commit fraud. Therefore, the statement is true.

Question 3

An input control that tests time card records to verify than no employee has worked more 50 hours in a pay period is an example of a range test.

Accepted Answer

The answer of An input control that tests time card...

Question 4

Spooling is a form of processing control.

Accepted Answer

The answer of Spooling is a form of processing control....

Question 5

In a computerized environment, all input controls are implemented after data is input.

Accepted Answer

In a computerized environment, input controls should be implemented before data is input to prevent errors and ensure data integrity.

Question 6

Shredding computer printouts is an example of an output control.

Accepted Answer

Shredding computer printouts is a method of controlling the output of sensitive information, ensuring that it is properly disposed of and kept confidential.

Question 7

A check digit is a method of detecting data coding errors.

Accepted Answer

A check digit is added to data to help detect data coding errors during data entry or transmission. It is a numerical value calculated based on the other digits in the data, and can be used to verify the integrity of the data.

Question 8

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Accepted Answer

Cash larceny involves stealing cash from an organization after it has been recorded on the organization's books and records.

Question 9

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Accepted Answer

The fraud triangle is actually a theory developed by criminologist Donald Cressey to explain the three key components that must be present for most cases of occupational fraud to occur: opportunity, pressure, and rationalization. It is not a physical location.

Question 10

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Accepted Answer

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Question 11

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Accepted Answer

The Sarbanes-Oxley Act mandates that the audit committee of a publicly listed company has the responsibility to appoint, compensate and oversee the work of external auditors.

Question 12

Section 404 requires that corporate management (including the CEO) certify their organization's internal controls on a quarterly and annual basis.

Accepted Answer

Section 404 of the Sarbanes-Oxley Act requires annual (not quarterly) management assessment of internal controls over financial reporting, but it does not mandate a quarterly certification. CEOs and CFOs must certify the accuracy of financial reports quarterly and annually, but the specific requirement for assessing internal controls is annual.

Question 13

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records

Accepted Answer

Skimming involves stealing cash from an organization before it is recorded on the organization's books and records, making it harder to detect.

Question 14

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, they are not prohibited from performing such services for non-audit clients or privately held companies.

Accepted Answer

The Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, but they are not prohibited from performing such services for non-audit clients or privately held companies.

Question 15

Which ethical principle states that the benefit from a decision must outweigh the risks, and that there is no alternative decision that provides the same or greater benefit with less risk?
A) minimize risk
B) justice
C) informed consent
D) proportionality

Accepted Answer

The principle of proportionality states that the benefit from a decision must outweigh the risks, and that there is no alternative decision that provides the same or greater benefit with less risk. This principle is often used in medical decision-making, where the risks and benefits of a particular treatment must be weighed against each other. By ensuring that the benefits of a decision outweigh the risks, this principle helps to ensure that decisions are made in an ethical and responsible manner.

Question 16

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

Accepted Answer

Situational pressure can create a sense of pressure or urgency, making it easier for someone to rationalize dishonest behavior. Personal or job-related stresses such as financial pressure or fear of losing a job can contribute to situational pressure.

Question 17

A run-to-run control is an example of an output control.

Accepted Answer

The answer of A run-to-run control is an example of...

Question 18

Input controls are intended to detect errors in transaction data after processing.

Accepted Answer

Input controls are intended to prevent errors in transaction data before processing.

Question 19

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?
A) para computer ethics
B) pop computer ethics
C) theoretical computer ethics
D) practical computer ethics

Accepted Answer

The answer of Individuals who acquire some level of skill...

Question 20

Systems that use sequential master files employ a backup technique called destructive update.

Accepted Answer

In systems that use sequential master files, the backup technique typically involves creating a new master file with the updated information while retaining the old master file, rather than overwriting or destroying the old data. This is known as a non-destructive update.

Quiz 3: Ethics, Fraud, and Internal Control

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Opportunity involves direct access to assets and/or access to information that controls assets.

An input control that tests time card records to verify than no employee has worked more 50 hours in a pay period is an example of a range test.

Spooling is a form of processing control.

In a computerized environment, all input controls are implemented after data is input.

Shredding computer printouts is an example of an output control.

A check digit is a method of detecting data coding errors.

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Section 404 requires that corporate management (including the CEO) certify their organization's internal controls on a quarterly and annual basis.

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, they are not prohibited from performing such services for non-audit clients or privately held companies.

Which ethical principle states that the benefit from a decision must outweigh the risks, and that there is no alternative decision that provides the same or greater benefit with less risk?

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

A run-to-run control is an example of an output control.

Input controls are intended to detect errors in transaction data after processing.

Individuals who acquire some level of skill and knowledge in the field of computer ethics are involved in which level of computer ethics?

Systems that use sequential master files employ a backup technique called destructive update.