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The big bang approach
a. is more ambitious and risky than the phased in approach.
b. is a popular alternative to the phase-in approach.
c. reduces the change of system failure.
d. all of the above.
e. none of the above.
Supervision is often called a(n) ------------ control.
a. access
b. verification
c. compensating
d. input
Operational inefficiencies occur because
a. accounts both common and unique to many concurrent transactions need to be
updated in real time.
b. accounts common to many concurrent transactions need to be updated in real time.
c. accounts unique to many concurrent transactions need to be updated in real time.
d. None of the above are true statements
Which of the following is NOT a control over the risk of unauthorized inventory
purchases?
a. Transaction authorization
b. Automated purchase approval
c. Scanner technology
d. All of the above are controls over the risk of unauthorized inventory purchases.
A copy of the purchase order (PO) is sent to the
a. vendor
b. accounts payable function
c. receive goods function
d. all of the above
What is the economic order quantity if the annual demand is 10,000 units, set up cost of
placing each order is $3 and the holding cost per unit per year is $2?
a. 174
b. 123
c. 245
d. 116
The greatest risk of theft occurs
a. in the receiving department
b. in the warehouse
c. in the mailroom
d. both a. and b.
Which symbol represents a magnetic tape (sequential storage device)?
a.
b.
c.
d.
Giving, receiving, offering or soliciting something of value because of an official act
that has been taken is
a. bribery
b. a conflict of interest
c. an illegal gratuity
d. economic extortion
Which of the following tasks is NOT performed by the cash disbursement clerk?
a. Review the supporting documents for completeness and accuracy.
b. Prepare checks.
c. Sign checks.
d. Mark the supporting documents paid.
SOX requires:
a. public companies to report all off-balance sheet transactions
b. management to accept responsibility for maintaining adequate internal controls
c. Officers to certify that company accounts fairly present the results of operations
d. all of the above.
Which of the following is not true regarding ABC?
a. ABC is too time-consuming and complicated for practical applications over a
sustained period.
b. ABC identifies the most and least profitable products and customers.
c. ABC promotes the lean manufacturing philosophies of process simplification and
waste elimination.
d. All of the statements are true.
What are the steps taken in the basis technology cash disbursement system?
List the steps involved in creating a relational database using a top-down approach.
HTML controls web browsers that access the web.
An objective of segregation of duties is to structure the organization so that the
perpetration of a fraud requires collusion between two or more individuals. What must a
company do to achieve this objective? Why?
Discuss inappropriate performance measures and how to avoid them.
Describe and discuss embedded instructions.
Use the internal control procedures listed below to complete the statements.
The internal audit department recalculates payroll for several employees each pay
period. This is an example of --------------------------.
Use the internal control procedures listed below to complete the statements.
Approving a price reduction because goods are damaged is an example of
--------------------------.
What documents are involved in a three-way match and what role does each play in this
control?
Explain how a voucher payable system works. How is the balance of AP determined?
