Maintaining backup copies of files, correcting data entry errors, and resubmitting transactions for subsequent processing are examples of what type of control? - ANS Corrective Control
According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is directly ...
Maintaining backup copies of files, correcting data entry errors, and resubmitting transactions
for subsequent processing are examples of what type of control? - ANS Corrective Control
According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is
directly responsible for - ANS hiring and firing external auditors
Internal control is often referred to as a(n) ________, because it permeates an organization's
operating activities and is an integral part of management activities. - ANS Process
Internal controls are often segregated into - ANS general and application controls
Duplicate checking of calculations is an example of a ________ control, and procedures to
resubmit rejected transactions are an example of a ________ control. - ANS detective and
corrective
Which of the following is not a component of the COSO Enterprise Risk Management Integrated
Framework (ERM)? - ANS ethical culture
The COSO Enterprise Risk Management Integrated Framework stresses that - ANS risk
mgmt is inherent part of all activities and should ne considered during strategy
Melissa is a staff accountant for Quality Paper Company suspected that management might
have used "creative accounting" to improve company performance. This situation best reflects a
weakness in which aspect of internal environment, as discussed in the COSO Enterprise Risk
Management Framework? - ANS risk mgmt philosophy
Which of the following is not a factor of internal environment according to the COSO Enterprise
Risk Management Framework - ANS analyzing past financial reporting and performance
How is expected loss calculated when performing risk assessment? - ANS impact X
likelihood
As a result of an internal risk assessment, Berryhill Insurance decided it was no longer profitable
to provide flood insurance in the southern states. Berryhill apparently chose to ________ the
risk of paying flood claims in the southern states.
Question options:
, A)
avoid
B)
reduce
C)
share
D)
accept - ANS avoid
Which of the following duties could be performed by the same individual without violating
segregation of duties controls?
Question options:
A)
Programming new code for accounting software and testing accounting software upgrades.
B)
Approving software changes and implementing the upgraded software.
C)
Approving accounting software change requests and testing production scheduling software
changes.
D)
Managing accounts payable function and revising code for accounting software to more
efficiently process discount due dates on vendor invoices. - ANS c
With a limited work force and a desire to maintain strong internal control, which combination of
duties would result in the lowest risk exposure?
Question options:
A)
Updating the general ledger and working in the inventory warehouse.
B)
Updating the inventory subsidiary ledgers and recording purchases in the purchases journal.
C)
Approving a sales return on a customer's account and depositing customers' checks in the
bank.
D)
Entering payments to vendors in the cash disbursements journal and entering cash received
from customers in the cash receipts journal. - ANS D
Which of the following is an independent check on performance?
Question options:
A)
The Purchasing Agent physically reviews the contents of shipments and compares them with
the purchase orders he has placed.
B)
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