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An internal audit department€s independence is compromised when the department
reports to:
a. the company controller
b. the audit committee of the board of directors
c. Both a. and b.
d. Neither a. nor b.
XRLB reporting:
a. must be used by banks to file required quarterly "Call Reports"
b. is used substantially both in the US and internationally.
c. facilitates the fulfillment of legal requirements stipulated in SOX.
d. All of the above.
e. None of the above.
The formal name for a row in the physical database table is
a. attribute
b. schema
c. tuple
d. link
Which of the following situations is not a segregation of duties violation?
a. The purchasing department initiates purchases when the purchasing supervisor
determines inventory levels are too low.
b. The warehouse clerk, who has the custodial responsibility over inventory in the
warehouse, keeps the official inventory records.
c. The sales manager has the responsibility to approve credit and the authority to write
off accounts.
d. The accounting clerk who shares the record keeping responsibility for the accounts
receivable subsidiary ledger performs the monthly reconciliation of the subsidiary
ledger and the control account.
e. All of these are segregation of duty violations.
Which of the following is not a risk associated with ERP implementation?
a. Opposition to changes in the business culture
b. Choosing the wrong ERP
c. Choosing the wrong consultant.
d. All of these are risks associated with ERP implementations.
According to the ACFE study, when it comes to fraud losses
a. the median fraud loss caused by males is more than double that caused by females
b. most frauds are committed by individuals acting alone
c. managers commit more frauds that employees
d. all of the above.
Task-data dependency is
a. failure to update the files of all users affected by a change
b. another term for data redundancy
c. user's inability to obtain additional information as needs change
d. none of the above
Economic extortion
a. involves giving, offering, soliciting, or receiving things of value to influence an
official in the performance of his or her lawful duties
b. occurs when an employee acts of behalf of a third party during the discharge or his or
her duties
c. is the use of threat of force by an individual or organization to obtain something of
value
d. involves stealing cash from an organization before it is recorded in its books and
records
Which of the following is not one of the problems that accounts for most systems
failures?
a. poorly specified systems requirements
b. ineffective development techniques
c. lack of user involvement in systems development
d. insufficient dollar investment in the new system
Operational control decisions
a. set the goals and objectives for the firm
b. involve motivating managers to use resources as productively as possible.
c. are more focused than tactical decisions
d. have a fairly high degree of uncertainty
The COSO internal control framework includes
a. monitoring
b. information and communication
c. both a. and b.
d. none of the above
The big bang method
a. is more ambitious than the phased-in method.
b. has been associated with many failures.
c. both a. and b.
d. neither a. nor b.
A Trojan horse
a. burrows into a computer's memory and replicates itself into areas of idle memory
b. is a destructive program triggered by some predetermined event
c. allows unauthorized access to a system without going through normal log on
procedures
d. captures IDs and passwords from unsuspecting users
An entity is
a. a physical resource
b. an event
c. an agent
d. all of the above are entities
Properly designed physical database tables must
a. have a unique name for each column that may not be repeated in other tables
b. confirm to the rules of normalization
c. Both a. and b.
d. Neither a. nor b.
According to common law, to be fraudulent act must
a. intend to cause injury or loss regardless of whether or not such loss occurred
b. include a false statement or nondisclosure
c. both a. and b.
d. neither a. nor b.
Define repeating groups, partial dependencies and transitive dependencies and discuss
how they are dealt with in the process of normalizing tables.
Discuss outsourcing the payroll function. What are the advantages and risks?
Define and describe the importance of physical controls.
Discuss the documents used in a batch processing system.
Discuss two IT controls or edits that can be programmed into a system to minimize the
risk from data input errors.
Task-data dependency is directly related to data redundancy.
What is the payback method and how is it used?
Four underlying problems that called pre-SOX federal security law adequacy into
question were addressed in the text. Discuss two of these problems.
What are the advantages and disadvantages of surveying the current system?
