The terms target, instrumentality, incidental and associated from Carter’s taxonomy are
most closely associated with which form of risk from Brown’s taxonomy?
A. Human error
B. Liquidity
C. Systems
D. Market
As a form of internal control, transaction limits are most likely to be associated with
which step in the accounting cycle?
A. Second
B. Fourth
C. Ninth
D. Last
Debra and Dexter are CPAs specializing in tax planning and preparation. Recently,
Dexter commented that there is nothing ethically wrong with tax evasion, so long as the
number of people who benefit is greater than the number of people harmed. Which
school of ethical thought does Dexter follow?
A. ethical egoism
B. utilitarianism
C. deontology
D. virtue ethics
Refer to theA. Process 1.0 is likely to be labeled “Perform intake interview.”
B. Process 2.0 is likely to be labeled “Bill client and collect payment.”
C. Both process 1.0 is likely to be labeled “Perform intake interview” and process 2.0 is
likely to be labeled “Bill client and collect payment” are true.
D. Neither process 1.0 is likely to be labeled “Perform intake interview” nor process 2.0
is likely to be labeled “Bill client and collect payment” is true.
A company’s accountant was able to approve payment of invoices and write company
checks to a family member, with whom the accountant would split the proceeds. The
accountant covered up the theft with journal entries in the AIS. Which duties should be
separated to prevent such problems in the future?
A. Authorization and custody
B. Custody and recordkeeping
C. Authorization and recordkeeping
D. Control environment and control activities
In manufacturing units of Product A27, Mike is supposed to use three pounds of raw
material for each unit. But, due to poor quality in a recent batch of raw materials, he
used an average of four pounds. Mike’s company is therefore exposed to ___ risk.
A. Hazard
B. Human error
C. Credit
D. Market
Which of the following statements best applies a characteristic of a professional in the
context of accounting?
A. Beverly, a government accountant, prepared two versions of a presentation on
governmental financial statements to deliver to two different audiences.
B. Mark, a corporate accountant, resolved an ethical dilemma based on the steps
recommended by Langenderfer and Rockness.
C. Both Beverly, a government accountant, prepared two versions of a presentation on
governmental financial statements to deliver to two different audiences and Mark, a
corporate accountant, resolved an ethical dilemma based on the steps recommended by
Langenderfer and Rockness.
D. Neither Beverly, a government accountant, prepared two versions of a presentation
on governmental financial statements to deliver to two different audiences nor Mark, a
corporate accountant, resolved an ethical dilemma based on the steps recommended by
Langenderfer and Rockness.
The acquisition/payment process includes all of the following steps except:
A. Authorize a purchase.
B. Prepare adjusting journal entries.
C. Receive goods and services.
D. Disburse cash.
Joe was a recent graduate of Big State University’s accounting program. He was
assigned to an audit team managed by Pam, a licensed CP
A. Based on those two statements alone, which of the following is most true?
A. At least one of the “general” GAAS is upheld.
B. At least one of the “field work” GAAS is upheld.
C. Both at least one of the “general” GAAS is upheld and at least one of the “field
work” GAAS is upheld are true.
D. Neither at least one of the “general” GAAS is upheld nor at least one of the “field
work” GAAS is upheld is true.
Please refer to the following short case as you respond to the question:
A painter accepts orders for original works from customers in person or via the Internet.
Based on the order, the painter creates an initial sketch, which must be approved by the
customer; the customer may make changes to the initial sketch. After customer
approval, the painter selects appropriate materials and gives the customer a price quote.
If the customer accepts the price quote, the painter creates the original work; if not, the
project is abandoned. The painter stores data about customers, previous orders and
previously completed works in an electronic database.
A data flow diagram of the case includes two circles connected by a line. The three
symbols are most likely to be labeled with which of the following?
A. Develop price quote, price quote, create original work
B. Create original work, original work, completed works database
C. Either develop price quote, price quote, create original work or create original work,
original work, completed works database
D. Neither develop price quote, price quote, create original work nor create original
work, original work, completed works database
Hewlett-Packard builds and sells computers and related accessories. It can engage in
which of the following forms of e-business?
A. B2C
B. B2B
C. Both of these.
D. None of these.
AIS is an important area of study for future accountants, since a well-designed AIS can
respond to many elements of the FASB Conceptual Framework. Indicate which element
of financial statements from the FASB Conceptual Framework best describes each item
below.
a. Accounts payable
b. Cash
c. Common stock
d. Cost of goods sold
e. Depreciation expense
f. Interest earned
g. Inventory
h. Loss on sale of land
i. Retained earnings
j. Sales
For each IT control listed below, indicate the group which most clearly applies: (a)
physical security control, (b) technical security control or (c) administrative security
control.
1> Audible alarm when a computer detects a virus-infected e-mail attachment
2> Conflict of interest policy
3> Different passwords for each ERP module
4> Filing cabinets requiring keys
5> Fire suppression systems
6> Keystroke monitoring software
7> Locking compartments in desks
8> Log-ins requiring fingerprint identification
9> Mandatory password rotation
10> Periodic internal audits
Consider the following short case as you respond to the question:
Scott and Logan are the CEO and CFO of MLN Corporation. The firm has lately been
losing customers to MLN’s competitors; Scott and Logan believe an ERP system could
help MLN obtain more timely information that will enable them to retain old customers
and acquire new ones. They formed a six-person team with representatives from three
of MLN’s ten departments and instructed them to use the steps in the systems
development life cycle to choose and implement an ERP system. A year later, the team
had completed its work and implemented the system by transferring data from MLN’s
general ledger software to the ERP system.
Umble and Umble suggested six necessary conditions for a successful ERP
implementation. Which of the following is most closely related to communicating
strategic goals clearly?
A. The firm has lately been losing customers to MLN’s competitors.
B. They formed a six-person team.
C. A year later, the team had completed its work.
D. Use the steps in the systems development life cycle.