Some MCQ chapter 7 - 413 PDF

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1) Why are threats to accounting information systems increasing? A) Many companies do not realize that data security is crucial to their survival. 2) A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n) A) preventive control. 3) Identify the preventive control below. A) reconciling the bank statement to the cash control account. 4) According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is directly responsible for A) hiring and firing the external auditors. 5) Which of the following measures can protect a company from AIS threats? D) All of the above are proper measures for the accountant to take. 6) Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities. C) process 7) Duplicate checking of calculations is an example of a ________ control, and procedures to resubmit rejected transactions are an example of a ________ control. B) detective; corrective 15) Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware B) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit. 16) The Sarbanes-Oxley Act (SOX) applies to D) all publicly traded companies. 1) Which of the below is not a component of the COSO ERM? A) monitoring 2) The COSO Enterprise Risk Management Integrated Framework stresses that A) risk management activities are an inherent part of all business operations and should be considered during strategy setting.

3) Nolwenn Limited has been diligent in ensuring that their operations meet modern control standards. Recently, they have extended their control compliance system by incorporating policies and procedures that require the specification of company objectives, uncertainties associated with objectives, and contingency plans. Nolwenn Limited is transitioning from a ________ to a ________ control framework. 1 Copyright © Pearson Education Limited 2015.

D) COSO-Integrated Framework; COSO-ERM

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4) Discuss the weaknesses in COSO's internal control framework that led to the development of the COSO Enterprise Risk Management framework.

5) True or False: The COSO ERM contains all five of the same COSO-Integrated Framework components.

7) Why was the original 1992 COSO - Integrated Control framework updated in 2013? A) Congress required COSO to modernize. B) U.S. stock exchanges required more disclosure. C) to more effectively address technological advancements D) to comply with International accounting standards 8) Which internal control framework is widely accepted as the authority on internal controls? A) COBIT B) COSO Integrated Control C) COSO Enterprise Risk Management D) Sarbanes-Oxley Control Framework

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