COSO has published integrated frameworks for both internal control and for enterprise
risk management. Which of the following statements about the frameworks is most
true?
A. The internal control framework is more useful than the enterprise risk management
framework.
B. The enterprise risk management framework is more useful than the internal control
framework.
C. Management attitudes are an element of both frameworks.
D. Both frameworks are required by the SE
C.
One of the transactions commonly associated with the financing process is the
distribution of dividends. Information needed to process that transaction includes:
A. Shareholder identification data.
B. Type of dividend.
C. Both shareholder identification data and type of dividend.D. Neither shareholder
identification data nor type of dividend.
Which of the following exemplifies “materiality” as the term is used in the FASB
conceptual framework?
A. BCC Corporation purchased a $30 wastebasket with an expected useful life of 10
years. BCC charged the entire cost to expense in the period incurred.
B. Reported account balances in DPT Corporation’s financial statements are rounded to
the nearest whole dollar.
C. Both BCC Corporation purchased a $30 wastebasket with an expected useful life of
10 years. BCC charged the entire cost to expense in the period incurred and reported
account balances in DPT Corporation’s financial statements are rounded to the nearest
whole dollar.
D. Neither BCC Corporation purchased a $30 wastebasket with an expected useful life
of 10 years. BCC charged the entire cost to expense in the period incurred nor reported
account balances in DPT Corporation’s financial statements are rounded to the nearest
whole dollar.
As the first step in the acquisition/payment process, goods are requested based on:
A. Monitored need.
B. The amount of cash in the bank.
C. The relationship between a buyer and a seller.
D. The use of information technology.
Consider the following short case as you respond to the question:
When the CEO of NTL Corporation resigned, the board of directors hired a recruitment
firm to look for a replacement. The recruitment firm prepared several job
announcements, then presented them to the board of directors. The board of directors
approved one of the job announcements; the recruitment firm used it to advertise the
position on the Internet and in relevant newspapers and professional publications. After
receiving several applications, the recruitment firm selected a pool of ten to pass on to
NTL’s board of directors. The board of directors, with the assistance of the recruitment
firm, went through three rounds of interviews, narrowing the pool from ten to three.
Each of the three finalists prepared a presentation on the strategic future of NTL and
delivered the presentation at a meeting of NTL shareholders. The board of directors
then made the final choice for a new CEO.
How would ‘shareholder presentation” be represented in a leveled set of DFDs of the
case?
A. With a circle
B. With a rectangle
C. With a set of parallel lines
D. None of these
Which kind of flowchart shows the logic associated with instructions given to a
computer?
A. Systems
B. Program
C. Document
D. Hardware
CGI Corporation uses a process costing system to manufacture its product. As part of
the processing activities in its human resource process, which of the following would
CGI use to record payroll costs of its factory workers?
A. Debit work in process, credit wages payable
B. Debit wages expense, credit wages payable
C. Debit wages payable, credit cash
D. Debit wages expense, credit retained earnings
According to COBIT 5, an organization’s information technology governance and
management should apply a single integrated framework for managing information.
Which of the following best pairs an established framework with an element of the
framework?
A. COSO enterprise risk management, cost of managing risk
B. COSO internal control, risk/control matrix
C. Both COSO enterprise risk management, cost of managing risk and COSO internal
control, risk/control matrix
D. Neither COSO enterprise risk management, cost of managing risk nor COSO
internal control, risk/control matrix
Nestor and Maureen are partners in a small consulting firm located in the Republic of
Bufflufia; the firm has six employees. For the last five years, the firm has focused on
tax planning and tax return preparation. But, Nestor and Maureen are now interested in
expanding the firm’s scope of services. They are considering risk management
consulting, fraud examination and business valuation as potential areas to expand the
firm. They are sure at least three of their six employees would put effort into at least
one of those three areas, but expanding the firm’s services would require additional
training for everyone.
Part of fraud examination is analyzing an accounting information system and other
sources to determine if fraud has occurred. If Nestor and Maureen expand their practice
into fraud examination, which of the following statements is most true?
A. The COSO enterprise risk management framework may be useful to their new
clients.
B. Expectancy theory may be a useful tool in conducting a fraud examination.
C. Both the COSO enterprise risk management framework may be useful to their new
clients and expectancy theory may be a useful tool in conducting a fraud examination
are true.
D. Neither the COSO enterprise risk management framework may be useful to their
new clients nor expectancy theory may be a useful tool in conducting a fraud
examination is true.
The text discussed five terms related to the structure of XBRL. Which of the following
pairs of items includes two examples of the same term?
A. XML, XBRL
B. Global Ledger, <documentType>invoice</documentType>
C. Global Ledger, XBRL
D. None of these