Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Which of the following balance sheet items is least likely to be associated with the
acquisition/payment process?
A. Cash
B. Accounts payable
C. Raw materials
D. Treasury stock
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. Once the enterprise risk management framework was published, the internal control
framework became obsolete.
B. In each framework, one or more elements can be omitted without risk.
C. "Risk assessment" refers to similar processes in both frameworks.
D. A "risk response" in the ERM framework could be considered a "control activity" in
the internal control framework.
Consider the following statements as you respond to the question:
i. Based on my research and reading, I'm sure I want to pursue a career in fraud
examination.
ii. Good grades and leadership skills generally lead to a good job.
iii. I am sure I'll pass the CPA exam on my first attempt.
iv. I can definitely complete my accounting degree within four years.
v. I've spoken to several friends and family members who work for large corporations.
Which pair of statements relates to the same variable in expectancy theory?
A. I and II
B. II and III
C. III and IV
D. I and V
Consider the flowchart below as you respond to the question:
Systems flowcharts can be used in AIS work to evaluate internal controls. Which of the
following statements is most true based on the systems flowchart above?
A. Allowing the salesperson to approve customer credit weakens internal control.
B. Using an electronic database for customer data weakens internal control.
C. Both allowing the salesperson to approve customer credit weakens internal control
and using an electronic database for customer data weakens internal control.
D. Neither allowing the salesperson to approve customer credit weakens internal
control nor using an electronic database for customer data weakens internal control.
Costs associated with e-business include:
A. Financial costs associated with setting up networks.
B. Need to develop different, better internal control systems.
C. Potential for customer distrust.
D. All of these.
Consider the following case as you respond to the questions:
HSO Corp. designs, manufactures and sells golf carts, scooters and similar vehicles.
When a prospective client contacts one of their seven corporate offices, the office
manager fills out an "intake questionnaire" to determine if HSO can meet the
prospective client's needs. The office manager assembles a team of employees with
expertise in design, production, marketing and accounting; the team reviews the intake
questionnaire and determines if HSO can take on the order. If so, the office manager
prepares a three-page written proposal for the prospective client; the proposal explains
the responsibilities of both HSO and the client, along with a timeline and a budget. The
proposal is forwarded to the prospective client electronically, and the client has ten
calendar days to accept it. If HSO cannot take on the order, the prospective client
receives an automatically generated form letter; if the prospective client does not accept
the proposal within ten calendar days, they receive a different form letter. The new
client remits half of the fee at the time the proposal is accepted, and HSO prepares
weekly progress reports as the project moves forward. The reports are filed in HSO's
database; a hard copy is sent to the client. On a monthly basis, HSO's office manager
prepares a comprehensive status report for all current engagements. One week before
each project is concluded, HSO bills the client for half of the remaining amount due;
after the client has paid all outstanding invoices, HSO completes the work and bills the
client for all remaining amounts. HSO delivers the finished product; the client must pay
the full amount due within 30 days of the final invoice date. If the client pays within 15
days, HSO gives a 3% discount off the amount due.
Reviewing the completed intake questionnaire is most closely related to the ___ step of
the sales/collection process.
A. first
B. third
C. sixth
D. none of these
Internal controls that address liquidity risk include:
A. Sales and cash collections budgets.
B. Aggressive collection policies.
C. Both sales and cash collections budgets and aggressive collection policies.
D. Neither sales and cash collections budgets nor aggressive collection policies.
According to ISACA, which COBIT enabler provides the vehicle for translating desired
behavior into practical guidance for day-to-day management?
A. principles, policies and frameworks
B. culture, ethics and behavior
C. services, infrastructure and applications
D. people, skills and competencies
Causes of information overload include:
A. Personal factors.
B. Information characteristics.
C. Organizational design.
D. All of these.
In ___, auditors examine a company's rules and procedures for conducting business.
A. A financial audit
B. An operational audit
C. A compliance audit
D. A systems audit
The basic principles of business process management discussed in the text include:
A. Enlist top management support.
B. Make sure consultants' tasks are well defined.
C. Both enlist top management support and make sure consultants' tasks are well
defined.
D. Neither enlist top management support nor make sure consultants' tasks are well
defined.
Because XBRL is an "open source" information technology tool, companies can:
A. Add tags as necessary.
B. Choose which tagging software they will use.
C. Both add tags as necessary and choose which tagging software they will use.
D. Neither add tags as necessary nor choose which tagging software they will use.
While both A and B are true, neither of them is related to the fact that XBRL is open
source.
Booksellers of Bufluffia is a small, independent bookstore that both publishes and sells
very specialized titles. They currently have about 50 clients; they publish and sell 30
different books at present. The company's management has asked you to create database
tables to support their operations. Which of the following junction tables is likely to be
included in the database?
A. Clients/inventory
B. Clients/sales
C. Inventory/sales
D. All of these.
A bank's information system was hacked in an effort to obtain clients' personal financial
information. Which category of computer crime best describes that situation?
A. Target
B. Instrumentality
C. Incidental
D. Associated
Which of the following is an example of an AIS output?
A. Journal entries
B. Statement of cash flows
C. Sales transaction file
D. General ledger software
Which category of computer crime in Carter's taxonomy recognizes that the presence of
computers has generated new versions of traditional crimes?
A. Target
B. Instrumentality
C. Incidental
D. Associated
For each independent case below: (1) indicate which source better fulfills the indicated
UMUC criterion for information evaluation AND (2) circle the phrase that led you to
your decision.
a. Objectivity:
i. A Wall Street Journal article about financial statement fraud cases, written by an
investigative reporter whose contact information is provided
ii. A presentation on financial statement fraud cases, given by an experienced
independent consultant to prospective clients
b. Accuracy:
i. A web site that correctly defines six elements of financial statements from the FASB
Conceptual Framework
ii. An article that accurately gives examples of four constraints from the FASB
Conceptual Framework
c. Authority:
i. A presentation delivered by a retired IRS agent on tax fraud
ii. An attorney's web site recommending strategies for avoiding tax audits
d. Currency:
i. A web site last modified in 2010 that gives examples of internal controls for
international companies
ii. A 2009 article in a practitioner journal that gives examples of how companies are
implementing international financial reporting standards
e. Coverage:
i. An article titled "Elements of the Balance Sheet" that explains (only) the difference
between current assets and plant assets
ii. An article titled "Emerging Technologies in Accounting" that briefly discusses three
new technologies used by a single company
XBRL is organized in taxonomies. All of the following are XBRL taxonomies except:
A. US Country Taxonomy 2009
B. IFRS-GP
C. XML taxonomy
D. XBRL-GL
As a form of internal control, sequential numbering is most likely to be associated with
which step in the accounting cycle?
A. First
B. Fifth
C. Sixth
D. Last
