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ACC303 Module 5 Quiz 2017 (Perfect Answer)
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Question

Question 1

Which of the following frameworks is widely used by managers to organize and evaluate their corporate governance structure?

Question 1

COSO

COBIT

SAS No. 94

NIST

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Question 2

A responsibility that should be assigned to a specific employee and not shared is that of:

Question 2

attempting to collect a particular delinquent account.

access to the company's safe deposit box.

custodianship of the petty cash fund.

placing orders and maintaining relationships with a prime supplier.

Question 3

For control purposes, the quantities of materials ordered may be omitted from the copy of the purchase order which is:

Question 3

forwarded to the accounting department.

forwarded to the receiving department.

returned to the requisitioner.

retained in the purchasing department's files.

Question 4

Which of the following control procedures provides physical protection for a company's cash asset?

Question 4

Majority of authorized cash disbursements made by check

Daily cash receipts deposited intact at bank

Voucher system for cash disbursements

all of the above

Question 5

Which of the following is not a processing control?

Question 5

Record counts

Control totals

Check digits

Hash totals

Question 6

If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?

Question 6

Internal review of controls

Separation of duties

Competent employees

A good audit trail

Question 7

Which of the following fundamental concepts is stressed by the COSO report?

Question 7

Internal control is not affected by people.

Internal control is geared to the achievement of a company's objectives in the financial reporting area only.

Internal control is designed to detect all errors and irregularities that occur within a company's system.

Internal control is a process.

Question 8

A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department's procedures is called a (an):

Question 8

operational audit.

management-by-exception audit.

financial audit.

audit by exception.

Question 9

Regarding the internal audit function, which of the following statements is true?

Question 9

Within a company's system, it is preferable to establish the internal audit function as a separate subsystem.

Since many internal auditors have accounting backgrounds, the internal audit function should ideally be included within a company's accounting subsystem.

Because of the independence of external auditors, they should never accept previous work of evaluating controls performed by a company's internal auditors.

It is not proper for internal auditors to perform a fraud investigation within any part of their company's system.

Question 10

Which of the following is not a subcategory of input controls?

Question 10

Observation, recording and transcription of data

Data processing

Additional input controls

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