The risk/control matrix illustrated in the chapter contains five columns. Which of the
following is not one of them?
A. Risk
B. Risk category
C. COSO category
D. Internal control
Consider the following partially completed flowchart as you respond to the questions:
In the partial flowchart, “D” could be replaced with:
A. a generic or predefined process symbol.
B. a predefined process or document symbol.
C. a generic process or decision symbol.
D. a decision or document symbol.
Charlie is a partner in a CPA firm. He wants to make some changes to the company’s
hiring practices, but is concerned current employees will lack the motivation to do so.
He should use ___ to address needed changes to hiring practices and ___ to address his
concern about current employees.
A. COSO’s enterprise risk management framework and expectancy theory
B. Expectancy theory and generalized model of business process management
C. Expectancy theory and the steps in the accounting cycle
D. Generalized model of business process management and expectancy theory
Raul was leading a team charged with developing a new system for budgeting. If he
decides to use the systems development life cycle, which of the following questions
would he most likely ask during its second step?
A. Do we really need a new budgeting system?
B. How many people should be on the team?
C. What goals should the new budgeting system achieve?
D. Should we use Excel or some other information technology tool?
Fill in the blanks in each statement below based on the flowchart design considerations
discussed in the text.
a. Flowcharts should be read from _____ and ______.
b. Flowcharts should have plenty of ______.
c. Flowcharts should have a ______.
d. Flowcharts should be organized in columns that depict ______.
e. Documents involved in a business process should have a clear ___ and a clear ___.
Relational databases and spreadsheets can be used for:
A. descriptive analytics only.
B. predictive analytics only.
C. both descriptive and predictive analytics.
D. neither descriptive nor predictive analytics.
Which of the following can serve as both an input to and an output of the
acquisition/payment process?
A. Check
B. Purchase order
C. Both check and purchase order
D. Neither check nor purchase order
Charlie is a partner in a CPA firm. He wants to make some changes to the company’s
hiring practices, but is concerned current employees will lack the motivation to do so.
Provided he uses an appropriate tool, which problem will be easier to address?
A. Making changes to hiring practices.
B. Motivating employees.
C. The two problems will be equally easy to address.
D. More information is needed to determine which problem will be easier to address.
Arrange the levels of the capability maturity model in order from least mature to most
mature.A.OptimizedB.ManagedC.ChaoticD.RepeatableE.Defined
A risk/control matrix has five columns, the last of which is labeled “comments.” Which
of the following statements is most true?
A. Because it is part of a risk/control matrix, the “comments” column is a control
activity.
B. Because it is part of a risk/control matrix, the “comments” column is a tool for risk
assessment.
C. If the comments are written by a department manager, they are part of establishing a
strong control environment.
D. Although the “comments” column may not align directly with one of the five
elements of the COSO framework, including it in the risk/control matrix is a good idea.
Requiring ___ on certain source documents is associated with transaction limits as an
internal control.
A. Sequential numbering
B. Physical security
C. Supervisory approval
D. Internal transaction notifications
Charlie is a partner in a CPA firm. He wants to make some changes to the company’s
hiring practices, but is concerned current employees will lack the motivation to do so.
Which of the following tools should Charlie use to address those problems?
A. COSO’s enterprise risk management framework and expectancy theory
B. Expectancy theory and generalized model of business process management
C. COSO’s enterprise risk management framework and generalized model of business
process management
D. Expectancy theory and the steps in the accounting cycle