1) Why are threats to accounting information systems increasing?
A) Many companies do not realize that data security is crucial to their
survival.
B) LANs and client/server systems are easier to control than centraliz
...
1) Why are threats to accounting information systems increasing?
A) Many companies do not realize that data security is crucial to their
survival.
B) LANs and client/server systems are easier to control than centralized,
mainframe systems.
C) Many companies believe that protecting information is a strategic requirement.
D) Computer control problems are often overestimated and overly emphasized by
management.
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.
B) detective control.
C) corrective control.
D) authorization control.
3) Identify the preventive control below.
A) reconciling the bank statement to the cash control account
B) approving customer credit prior to approving a sales order
C) maintaining frequent backup records to prevent loss of data
D) counting inventory on hand and comparing counts to the perpetual inventory
records
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.
B) performing tests of the company's internal control structure.
C) certifying the accuracy of the company's financial reporting process.
D) overseeing day-to-day operations of the internal audit department.
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5) Which of the following measures can protect a company from AIS threats?
A) Take a proactive approach to eliminate threats.
B) Detect threats that do occur.
C) Correct and recover from threats that do occur.
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.
A) event
B) activity
C) process
D) system
7) Duplicate checking of calculations is an example of a ________ control, and
procedures to resubmit rejected transactions are an example of a ________
control.
A) corrective; detective
B) detective; corrective
C) preventive; corrective
D) detective; preventive
8) Which type of control is associated with making sure an organization's
control environment is stable?
A) general
B) application
C) detective
D) preventive
9) Which type of control prevents, detects, and corrects transaction errors and
fraud?
A) general
B) application
C) detective
D) preventive
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