QUESTION 1

Which of the following is an example of an internal control question that an auditor may ask?

		Do you make daily intact deposits of each day's receipts?
		Do you restrictively endorse checks "for deposit only?"
		Do you reconcile bank deposit receipts against credits to accounts receivables?
		All of the above.

QUESTION 2

Those controls that are relevant to implementing good internal control processes within specific transaction cycles are called:

		general controls.
		transaction processing controls.
		management controls.
		all of the above.

1 points

QUESTION 3

The general plan of organization for data processing should include:

		general controls.
		transaction processing controls.
		segregation of duties.
		all of the above.

1 points

QUESTION 4

Application controls can be classified as:

		general controls.
		process controls.
		transaction processing controls.
		input, processing, and output controls.

1 points

QUESTION 5

Application controls ensure:

		accuracy.
		integrity.
		security.
		all of the above.

1 points

QUESTION 6

Internal controls specific to a simple job-order are part of internal controls in a:

		production cycle.
		purchasing cycle.
		finance cycle.
		expenditure cycle

1 points

QUESTION 7

Customer payments received via mail should:

		be held in the mail room until someone from the receivable s department retrieves them.
		be signed by the CFO or treasurer.
		be opened by mailroom staff, bundled and then sent the inter office mail to the receivables department.
		be immediately endorsed restrictively "for deposit only" to the company's account.

1 points

QUESTION 8

When employees use a cash register, how should each register drawer be maintained?

		All employees on a shift should work from one register to alleviate multiple reconciliations at the end of the day.
		Only one employee should work at a specific register and have authority to void sales as they need to for greater customer satisfaction.
		Only one employee should work at a specific register and have the ability to open the register without a sale to facilitate making change for customers.
		Only one employee should work at a specific register and they should never have authority for special functions on a register.

1 points

QUESTION 9

When it comes time to replenish petty cash, how should it occur?

		It should be replenished in even $100 increments.
		It should be replenished to the projected amount needed by its manager.
		It should be replenished by totaling its receipts.
		It should be replenished during the adjustment process routinely, regardless of its use.

1 points

QUESTION 10

The primary control in the purchasing side of the finance cycle is that:

		only purchasing officials should place the actual order.
		payments only be made by an independent treasury function based on approved invoices from other departments.
		payments only be made by the department that placed the order.
		an audit trail must include a cost justification and vendor selection listing.

1 points

QUESTION 11

In regards to daily deposits and reconciliations, the deposits should consist of:

		Intact totals of both cash sales and money received from customers on account.
		Intact totals from money received from customers, but not cash sales.
		Intact totals from cash sales, but not money received from customers.
		A total of all sales and cash receipts, less money used for petty cash.

1 points

QUESTION 12

Offering a reward to customers if they don't get a sales receipt is an example of a:

		customer complaint.
		sales audit.
		customer audit.
		security monitoring control.

1 points

QUESTION 13

Every time cash changes hands within a business, it should be:

		audited.
		counted.
		rebundled.
		reconciled to a sales total.

1 points

QUESTION 14

Inventories and other physical assets should be:

		received and counted by the department which initially ordered it.
		placed in service as soon as received to maximize profit.
		received in a central receiving department before being routed to their destination.
		reconciled and paid for prior to being routed to their destination.

1 points

QUESTION 15

When a systems developer is working with company employees to identify needs and priorities, he or she is using the:

		classical approach.
		business blueprint approach.
		ERM approach.
		Six-Sigma approach.

1 points

QUESTION 16

If a systems developer is using a pre-developed system as a starting point for the final system, he or she is using the:

		classical approach.
		business blueprint approach.
		ERM approach.
		Six-Sigma approach.

1 points

QUESTION 17

The Public Company Accounting Oversight Board was created by the ________?

		Sarbanes-Oxley Act of 2002.
		Securities and Exchange Commission.
		Financial Accounting Standards Board.
		United States Congress.

1 points

QUESTION 18

The Public Company Accounting Oversight Board has the power to do what?

		Enforce internal controls within auditing firms.
		Audit the firms who perform audits.
		Impose sanctions against auditing firms that fail to fulfill their professional responsibilities when auditing public companies.
		Challenge audit findings of internal auditing committees.

1 points

QUESTION 19

In what year was the Securities and Exchange Commission formed?

		1928.
		1933.
		1942.
		2002.

1 points

QUESTION 20

The FASB issues financial standards that are collectively known as:

		Financial Accounting Standards.
		Internal Revenue Code.
		Audit Review Standards.
		Generally Accepted Accounting Principles.

1 points

QUESTION 21

The board that is similar to the FASB but provides rules for governmental entities is called:

		Securities and Exchange commission.
		House Ethics committee.
		Governmental Accounting Standards Board.
		Governmental Board for Accounting Reporting.

1 points

QUESTION 22

In 2003, what board replaced the AICPA as the auditing standard-setter for companies that are publicly held?

		SOX.
		SEC.
		FASB.
		PCAOB.

1 points

QUESTION 23

The Institute of Internal Auditors (IIA) publishes what?

		FASB Statements.
		GAAP.
		SIAS.
		SAIS.

1 points

QUESTION 24

Which of the following is NOT an international board that effects the accounting profession?

		Financial Accounting Standards Board.
		International Auditing and Assurance Standards Board.
		The International Accounting Standards Board.
		None of the above.

1 points

QUESTION 25

When auditors are judging materiality, they are concerned with:

		Magnitude.
		Errors.
		Intentional omissions.
		All of the above.