Results Reporter

Out of 10 questions, you answered 10 correctly with a final grade of 100%

10
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(100%
)
0
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ct
(0%)
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The correct answer for each question is indicated by a
Online Quiz

no

Accounting Inform

10

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4955977

0078025494
1

1
CORREC
T

Avoiding, accepting, reducing and sharing are components of ___ in Enterprise Risk
Management?

A)

B)

C)

D)

Risk response

Risk assessment

Control activities

Communication and monitoring

Feedback: Avoiding, accepting, reducing and sharing are four options

regarding risk response.

2
CORREC
T

Batch Processing is the aggregation of several business events over a set period of
time with eventual processing of the related data (periodic processing).

A)

B)

True

False

Feedback: Typical batch processing is comprised of four characteristic steps,

with a delay between each step. The sequence of each step is that a business
event occurs, data is recorded in the system, the master files are updated,
and a report or other output is generated.

3
CORREC
T

A major reason of internal controls implemented for an information system is to

provide perfect assurance that the goals of each business process are achieved.

A)

B)

True

False

Feedback: Internal control for an information system is aimed to provide

reasonable assurance that the goals of each process are achieved.

4
CORREC
T

Which edit check compares entered data to a predetermined acceptable upper and
lower limit?

A)

B)

C)

D)

Range check

Valid check

Field check

Sequence check

Feedback: Range checks test a numerical amount to ensure that it is within a

predetermined range.

5
CORREC
T

Bill is responsible for custody of the finished goods in the warehouse. If his
company wishes to maintain strong internal control, which of the following
responsibilities are incompatible with his primary job?

A)

B)

He is responsible for the company's fix asset control ledger.

He is responsible for receiving of goods into the warehouse.

He is responsible for the accounting records for all the receipts and shipments of
C)goods from the warehouse.

D)

He is responsible for issuing goods for shipment.

Feedback: Segregation of duties is an important internal control. It requires

the segregation of asset custody and record keeping. Since Bill is responsible
for the finished goods custody, he should not be also responsible for keeping
accounting records of the finished goods at the same time.

6
CORREC
T

Which of the following is considered a control environment factor by the COSO

definition of internal control?

A)

B)

C)

D)

Control objectives

Integrity and ethical values

Reasonable assurance

Risk assessment

Feedback: The internal control environment provides the discipline and

structure for all other components of enterprise risk management. Internal
environment factors include a firm's risk management philosophy and risk
appetite, integrity and ethical values, organizational structure, board of
directors and the audit committee, human resource policies and practices,
assignment of authority and responsibility, commitment to competence, and
development of personnel.

7
CORREC

Which duties should be completed by different people to achieve strong separation

of duties?

A)

B)

C)

D)

Journalizing and posting

Receivables and payables

Authorization, custody and recordkeeping

Document numbering and document completion

Feedback: Separation of duties requires segregation of authorization,

custody and recordkeeping.

8
CORREC
T

Which is least likely to be provided by an application control?

A)

B)

C)

D)

Accuracy

Completeness

Reliability

Authorization

Feedback: Reliability is a general property of the information system taken

as a whole whereas application deal with specific processing of subsets of
data to support specific business functions.

9
CORREC
T

Which of the following is not a component of COSO ERM?

A)

B)

Event identification

External environment

C)

D)

Internal control evaluation

B and C

Feedback: Internal environment, objective setting, event Identification, risk

assessment, risk response, control activities, information and
communication, and monitoring activities are the eight components in the
COSO ERM framework.

10
CORREC
T

Under COSO ERM framework, which of the following objectives involves parties
external to the organization?

A)

B)

C)

D)

Strategic objectives

Compliance objectives

Operation objectives

Reporting objectives

Feedback: The ERM framework takes a risk-based, rather than a controlbased approach to achieving the firm's objectives in four categories:
Strategic, compliance, operation and reporting. The reporting objective is
about the reliability of internal and external reporting. Hence, it may involve
external parties.