ACCT444 Week 4 Quiz Latest 2017

Question Question 1 3 / 3 pts (TCO 5) Which of the following is responsible for establishing a private company's internal control? Management Auditors Management and auditors Committee of Sponsoring Organizations Question 2 3 / 3 pts (TCO 5) Which section of the Sarbanes-Oxley Act requires management to issue an internal control report? 202 203 404 408 Question 3 3 / 3 pts (TCO 5) Which of management's concerns with respect to implementing internal controls is the auditor primarily concerned? Efficiency of operations Reliability of financial reporting Effectiveness of operations Compliance with applicable laws and regulations Question 4 3 / 3 pts (TCO 5) Even with the most effectively designed internal control, the auditor must obtain audit evidence, beyond testing the controls, for every transaction. financial statement account. material financial statement account. financial statement account that will be relied upon by third parties. Question 5 3 / 3 pts (TCO 5) Which of the following is correct? A significant deficiency is always a material weakness. A reportable condition is always a material weakness. A material weakness is less significant that a control deficiency. A significant deficiency may be a material weakness. Question 6 3 / 3 pts (TCO 10) Which of the following is not a risk to IT systems? Need for IT experience Separation of IT duties Improved audit trail Hardware and data vulnerability Question 7 3 / 3 pts (TCO 10) The extent to which IT duties are separated in an organization depends on the organization's size. the organization's complexity. both A and B. neither A nor B. Question 8 3 / 3 pts (TCO 10) Which of the following is a category of general controls? Processing controls Output controls Physical and online security Input controls Question 9 3 / 3 pts (TCO 10) A control that relates to all parts of the IT system is called a(n) general control. systems control. universal control. applications control. Question 10 3 / 3 pts (TCO 10) Which of the following is not an example of an application control? An equipment failure causes system downtime. There is a preprocessing authorization of the sales transactions. There are reasonableness tests for the unit selling price of a sale. After processing, all sales transactions are reviewed by the sales department.