AIS CH 6 TEST YOURSELF

This term describes the policies, plans, and procedures implemented by a firm to protect the assets of the organization. 1. Internal control 2. SAS No. 94 3. Risk assessment 4. Monitoring

1. Internal Control

Which of the following is not one of the components of the 2017 COSO Enterprise Risk Management: Aligning Risk with Strategy and Performance Framework: 1. Risk and Compliance 2. Risk, Strategy, and Objective-Setting 3. Monitoring Enterprise Risk Management Performance 4. Risk in Execution

1. Risk and Compliance

Which of the following would a manager most likely use to organize and evaluate corporate governance structure? 1. The 2013 COSO Internal Control—Integrated Framework 2. The 2017 COSO Enterprise Risk Management—Aligning Risk with Strategy and Performance Framework 3. The Sarbanes-Oxley Act of 2002 4. COBIT

1. The 2013 COSO Internal Control - Integrated Framework

COSO recommends that firms to determine whether they should implement a specific control. 1. Use cost-benefit analysis 2. Conduct a risk assessment 3. Consult with the internal auditors 4. Identify objectives

1. Use cost-benefit analysis

Which of the following is not one of the four objectives of an internal control system? 1. Safeguard assets 2. Promote firm profitability 3. Promote operational efficiency 4. Encourage employees to follow managerial policies

2. Promote Firm Profitability

Which of the following is not one of the three additional components that was added in the 2004 COSO Enterprise Risk Management—Integrated Framework? 1. Objective setting 2. Risk assessment 3. Event identification 4. Risk response

2. Risk Assessment

Which of the following would a manager most likely use for risk assessment across the organization? 1. The 2013 COSO Internal Control—Integrated Framework 2. The 2017 COSO Enterprise Risk Management—Aligning Risk with Strategy and Performance Framework 3. The Sarbanes-Oxley Act of 2002 4. COBIT

2. The 2017 COSO Enterprise Risk Management—Aligning Risk with Strategy and Performance Framework

Segregation of duties is a fundamental concept in an effective system of internal control. But, the internal auditor must be aware that this safeguard can be compromised through: 1. lack of training of employees 2. collusion among employees 3. irregular employee reviews 4. absence of internal auditing

2. collusion among employees

Which of these is not one of the three major types of controls? 1. Preventive 2. Corrective 3. Objective 4. Detective

3. Objective

Which one of the following forms of audit is most likely to involve a review of an entity's performance of specific activities in comparison to organizational specific objectives? 1. Information system audit 2. Financial audit 3. Operational audit 4. Compliance audit

3. Operation audit

Separation of duties is an important control activity. If possible, managers should assign which of the following three functions to different employees? 1. Analysis, authorizing, transactions 2. Custody, monitoring, detecting 3. Recording, authorizing, custody 4. Analysis, recording, transactions

3. Recording, authorizing, custody

Section 404 affirms that management is responsible for establishing and maintaining an adequate internal control structure. This section may be found in which of the following? 1. The 2013 COSO Internal Control—Integrated Framework 2. The 2017 COSO Enterprise Risk Management—Aligning Risk with Strategy and Performance Framework 3. The Sarbanes-Oxley Act of 2002 4. COBIT

3. The Sarbanes-Oxley Act of 2002

An internal control system should consist of five components. Which of the following is not one of those five components? 1. The control environment 2. Risk assessment 3. Monitoring 4. Performance evaluation

4. Performance evaluation

When management of the sales department has the opportunity to override the system of internal controls of the accounting department, a weakness exists in 1. risk management 2. information and communication 3. monitoring 4. the control environments

4. the control environments