Quiz 6 AIS 3326

Student Name___________________________________

October 15, 2014

Instructor: Linda G. Acevedo

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
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)
corrective control.
B)
authorization control.
C)
preventive control.
D)
detective control.
2)
Which of the following measures can protect a company from AIS threats?
A)
Correct and recover from threats that do occur.
B)
Take a proactive approach to eliminate threats.
C)
Detect threats that do occur.
D)
All of the above are proper measures for the accountant to take.
3)
Which type of control is associated with making sure an organization's control environment is stable?
A)
detective
B)
application
C)
general
D)
preventive
4)

Congress passed this federal law for the purpose of preventing financial statement fraud, to make financial reports more
transparent and to strengthen the internal control of public companies.
A)
The Sarbanes-Oxley Act of 2002
B)
The Control Provision of 1998
C)
Foreign Corrupt Practices Act of 1977
D)
The Securities Exchange Act of 1934
5)
Applying the COBIT5 framework, governance is the responsibility of
A)
management.
B)
external audit.
C)
internal audit.
D)
the board of directors.
6)
Personnel policies such as background checks, mandatory vacations, and rotation of duties tend to deter
A)
fraud by outsiders.
B)
employee fraud or embezzlement.
C)
unintentional errors.
D)
disgruntled employees.
7)
The amount of risk a company is willing to accept in order to achieve its goals and objectives is
A)
risk assessment.
B)

risk appetite.
C)
residual risk.
D)
inherent risk.
8)
________ objectives help ensure the accuracy, completeness and reliability of internal and external company reports,
Applying the ERM framework.
A)
Compliance objectives
B)
Operations objectives
C)
Reporting objectives
D)
Strategic objectives
9)
________ is the risk that exists before management takes any steps to mitigate it.
A)
Risk appetite
B)
Inherent risk
C)
Residual risk
D)
Risk assessment
10)
Upon getting into your new car, you suddenly became worried that you might become injured in an auto accident. In
response, you decided to drive 5 miles under the speed limit. You chose to ________ the risk of being injured in an auto
accident.
A)
reduce

B)
share
C)
avoid
D)
accept

1)
C
D
C
A
D
B
B
C
B
A

2)
3)
4)
5)
6)
7)
8)
9)
10)