Which of the following best pairs an element of bookkeeping with an example of the
element?
A. Identifying economic information, reading a balance sheet
B. Identifying economic information, preparing a balance sheet
C. Measuring economic information, reading a balance sheet
D. Measuring economic information, preparing a balance sheet
An investigative auditor wanted to assess employees’ motivation for committing fraud.
Which of the following tools will be most beneficial to the auditor in that task?
A. Expectancy theory
B. Capability maturity model
C. Document analysis
D. Management audit
Internal control relates to an organization’s achievement of objectives in three major
categories. All of the following are examples of at least one category except:
A. Promoting compliance with the Sarbanes-Oxley Act.
B. Ensuring that plant assets are listed on the balance sheet at their net book value.
C. Developing a clear job description for each position in the company.
D. Providing conclusive proof that fraud has occurred.
Miguel and Rafaela were developing a risk management plan for their company
following the COSO framework. One of the company’s goals is to have sufficient cash
available for operations; that goal had been difficult to achieve due to seasonal
fluctuations in sales. To reduce that risk, Miguel and Rafaela recommended their
company invest some cash in short-term securities that could be liquidated quickly and
easily. Which element of the COSO framework is most related to their
recommendation?
A. Internal environment
B. Monitoring
C. Control activities
D. Risk response
As part of an inventory purchase, BSP Corporation paid a freight bill. The proper
treatment of the freight cost in BSP’s accounting information system is:
A. Capitalize to inventory.
B. Capitalize to cash.
C. Expense to inventory.
D. Expense to cash.
All of the following are elements of the CIA triad except:
A. Clarity
B. Confidentiality
C. Availability
D. Data integrity
Most accounting information systems comprise five elements. XBRL tagging software
is most closely associated with:
A. Inputs.
B. Processing.
C. Outputs.
D. Storage.
A ___ determines whether the various forms of information technology in an
accounting information system are producing expected results.
A. Financial audit
B. Compliance audit
C. Systems audit
D. Forensic audit
Schools of ethical thought are:
A. points of view that help decision makers determine what is ethical.
B. determined by the accounting profession.
C. Both points of view that help decision makers determine what is ethical and
determined by the accounting profession.
D. Neither points of view that help decision makers determine what is ethical nor
determined by the accounting profession.
As an internal control for source documents, sequential numbering is most likely to ___
an error.
A. Prevent
B. Detect
C. Correct
D. Eliminate
Consider the following list of items that might appear in a risk/control matrix:
i. At least twice a week
ii. Corrective
iii. Human error
iv. Inability to access class materials due to network outage
v. Insufficient time to study
vi. Local data backup
vii. Maximum budget = $50
viii. Preventive
ix. Systems
x. Time management software
Which of the following items are most likely to be grouped on a single row?
A. I, II, III, IV, V
B. I, III, VII, VIII, X
C. III, V, VII, VIII, X
D. III, VI, VII, VIII, X
In each statement that follows, circle the business risk or threat that most clearly applies
based on the list provided in the text.
a. Disclosure of confidential information or intrusion: Employee data are made
available on the Internet.
b. DOS attacks or extortion: Prevent computer systems from functioning in accordance
with their intended purpose.
c. Error or web site defacement: Digital graffiti.
d. Fraud or error: Losses can vary widely depending on where the problem originated.
e. Information theft or information manipulation: An employee creates fake refunds to
benefit a family member.
f. Intrusion or extortion: Main objective is to gain access to a network.
g. Intrusion or service interruption: Classified as accidental, willful neglect or malicious
behavior.
h. Malicious software or information theft: Logic bombs, replicating worm, Trojan
horse.
i. Service interruption or disclosure of confidential information: Can lead to missed
deadlines for receivables or payables.
j. Web site defacement or extortion: Criminal contacts an organization after
successfully stealing information.
Consider the following short case as you respond to the question:
VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT
Corporation; credit terms were 2/10, n/30. VLC paid the outgoing freight charge of $10.
PRT paid the invoice within the discount period.
Considering all entries VLC would make in its AIS to record all the preceding
transactions, how many different balance sheet accounts would be involved?
A. Two
B. Three
C. Four
D. More than four
Bumble Beasley, a recent accounting graduate from a private, for-profit university,
started his own accounting consulting firm. His web page discussed internal controls,
inputs, processes and outputs in relation to the design and implementation of accounting
information systems. Should his web page be considered a good source of information
about the generic structure of AIS?
A. Yes. Because he has a college degree, he has authority.
B. Yes. Because he is a recent graduate, the information is current.
C. No. Since his degree is from a private, for-profit university, he cannot be objective.
D. No. He is in violation of at least one of the UMUC criteria for evaluating
information.
Internal controls have four fundamental purposes. Which of the following pairs an
internal control for XBRL with an appropriate purpose of internal control?
A. Centralized approval process for taxonomy additions, encouraging compliance with
management directives
B. Daily data backups, safeguarding assets
C. Both centralized approval process for taxonomy additions, encouraging compliance
with management directives and daily data backups, safeguarding assets
D. Neither centralized approval process for taxonomy additions, encouraging
compliance with management directives nor daily data backups, safeguarding assets
Which of the following terms describes the relationship between XBRL and XML?
A. Extensible
B. Specification
C. Taxonomy
D. Instance document