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.
In a REA model of the case, the cardinalities between “applicant” and “interview
applicant” would be:
A. Interview applicant (0,*) —- (1,1) Applicant
B. Interview applicant (1,1) —- (0,*) Applicant
C. Interview applicant (1,1) —- (1,1) Applicant
D. Interview applicant (0,*) —- (0,*) Applicant
WebTrust and SysTrust can be incorporated into an organization’s:
A. Internal control plan
B. Enterprise risk management plan
C. Both internal control plan and enterprise risk management plan
D. Neither internal control plan nor enterprise risk management plan
Which of the following best pairs a COBIT enabler with an element of the FASB
conceptual framework of accounting?
A. processes, the process of producing financial statements
B. information, elements of financial statements
C. culture, international elements of the conceptual framework
D. organizational structures, assumptions/principles/constraints on those structures
COBIT’s enablers include culture, ethics and behavior. Which element of the COSO
internal control framework is most closely related to that enabler?
A. control environment
B. control behaviors
C. behavioral environment
D. all of these
Which COBIT enabler focuses on things like product demand, employee satisfaction
and vendor reliability?
A. organizational structures
B. information
C. separating governance from management
D. meeting stakeholder needs
Fill in the blanks below based on the rules/conventions associated with data flow
diagrams presented in the text.
a. A data store has a ___ phrase label.
b. A process has a ___ phrase label.
c. No process can have only ___. If an object has only ___, it must be a data store.
d. No process can have only ___. If an object has only ___, then it must be an external
entity.
e. The ___ to a process should differ from the outputs of a process.
Consider the following illustration as you respond to the questions:
The most appropriate label for Symbol A is:
A. Submit application materials
B. Receive application materials
C. Application materials
D. Resume and references
Consider the following partially completed risk/control matrix as you answer the
questions:
Assume the risk/control matrix is organized like the one presented in the chapter. The
best entry for Item E is:
A. Sell only for cash
B. Rely on third party vendors
C. Allow sales staff to make credit decisions
D. Use the direct write-off method
Consider the following statements as you respond to the question:
i. Ask managers to think of one hundred uses for a brick, other than for building things.
ii. Assess the educational background and organizational experience of employees.
iii. Conduct a one-day seminar on how business processes can create value in the
marketplace.
iv. Encourage managers to suggest ideas, even if they are impractical.
v. Hold weekly meetings to update interested parties on the BPM project; ensure at least
one member of top management attends each meeting.
vi. Ignore opinions and insights from people not directly involved with a business
process.
The text discussed seven basic principles of business process management. Which of
the following both illustrates one of the principles and relates to the event identification
component of the COSO enterprise risk management framework?
A. I
B. IV
C. Both I and IV
D. Neither I nor IV
View-driven accounting information systems often foster the idea of stovepiping in
organizations. Which of the following is an example of stovepiping?
A. All department heads meet to discuss company strategy.
B. A sales representative quotes a price that is less than cost.
C. Both all department heads meet to discuss company strategy and a sales
representative quotes a price that is less than cost are examples of stovepiping.
D. Neither all department heads meet to discuss company strategy nor a sales
representative quotes a price that is less than cost is an example of stovepiping.
CPY Corporation replaces one third of its computers every year; SLP Corporation
replaces its computers when employees submit a request, but no more frequently than
once every four years. Which of the following statements is most true?
A. CPY’s replacement policy does a better job safeguarding assets.
B. SLP’s replacement policy does a better job safeguarding assets.
C. Neither replacement schedule helps achieve the internal control purpose of
safeguarding assets, but replacing a computer may help promote operating efficiency.
D. Neither replacement schedule helps achieve the internal control purpose of
safeguarding assets because information is not an asset reported on the balance sheet.
COBIT’s enablers include people, skills and competencies. Functional competencies
needed by accounting professionals include:
A. legal/regulatory perspective
B. measurement
C. professional demeanor
D. all of these