AISStudy2 - Name: _ Date: _ 1. The separation of duties...

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Name: __________________________ Date: _____________ 1. The separation of duties control would not be violated if a company's cashier was also responsible for recording cash transactions. A) True B) False 2. A company's control environment is unimportant when developing an internal control system. A) True B) False 3. The separation of duties control does not eliminate completely the possibility of embezzlement by employees. A) True B) False 4. Timely performance reports contribute towards achieving the monitoring component of an internal control system. A) True B) False 5. Controls that specifically encourage operating efficiency are often called preventive controls. A) True B) False 6. Controls that attempt to safeguard asset resources are often called detective controls. A) True B) False 7. COBIT extensively examined the internal control area. A) True B) False 8. The Basle Committee published a framework for the evaluation of internal control systems in banking organizations. A) True B) False Page 1
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9. It is normally considered good organizational design to establish the internal audit function within the accounting subsystem. A) True B) False 10. An effective approach for maintaining a good audit trail for cash disbursements is to utilize a voucher system with coins and currency issued for each disbursement. A) True B) False 11. The introduction of a computer into an organization's data processing system will normally eliminate problems associated with following the organization's audit trail. A) True B) False 12. A good internal control system will contribute towards detecting accidental errors made by employees. A) True B) False 13. Preventive and corrective controls are established solely to discourage fraud and embezzlement by an organization's employees. A) True B) False 14. For a specific internal control to be effective, both the preventive and the detective aspect of the control must exist and be interrelated. A) True B) False 15. Operational audits are performed by a company's internal audit staff. A) True B) False 16. An organization should always attempt to implement ideal controls into its system. A) True B) False Page 2
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17. Control activities and monitoring are one and the same. A) True B) False 18. The personnel subsystem has the important function of matching job qualifications to people qualifications. A) True B) False 19. The COSO report failed to define internal control. A) True B) False 20. A good audit trail is an important element within a company's internal control system. A) True B) False 21. In most companies, contingency planning is unnecessary. A) True B) False 22. Output controls for the computerized accounting information system focus primarily on the security and distribution of print media prepared by the computer center. A) True
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AISStudy2 - Name: _ Date: _ 1. The separation of duties...

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