Online Quiz http://highered.mheducation.com/sites/0078025494/student_view0/chap...

Home > Chapter 10 > Online Quiz

Course-wide Content
AIS Weblinks
Online Quiz
(See related pages)
Chapter 5 Comprehensiv...
Chapter 6 Comprehensiv...

Results Reporter
Quizzes
Online Quiz
More Resources Out of 10 questions, you answered 2 correctly with a final grade of 20%
PowerPoint Presentation 2 correct (20%)
8 incorrect (80%)
0 unanswered (0%)
Your Results:

The correct answer for each question is indicated by a .

1 Avoiding, accepting, reducing and sharing are components of ___ in Enterprise Risk Management?
INCORRECT
A) Risk response

B) Risk assessment

C) Control activities

D) Communication and monitoring

Feedback: Avoiding, accepting, reducing and sharing are four options regarding risk response.
2 Batch Processing is the aggregation of several business events over a set period of time with eventual processing of the
INCORRECT related data (periodic processing).
A) True

B) False
Feedback: Typical batch processing is comprised of four characteristic steps, with a delay between each step.
The sequence of each step is that a business event occurs, data is recorded in the system, the master files are
updated, and a report or other output is generated.
3 CORRECT A major reason of internal controls implemented for an information system is to provide perfect assurance that the
goals of each business process are achieved.
A) True

B) False
Feedback: Internal control for an information system is aimed to provide reasonable assurance that the goals
of each process are achieved.
4 Which edit check compares entered data to a predetermined acceptable upper and lower limit?
INCORRECT
A) Range check

B) Valid check

C) Field check

D) Sequence check
Feedback: Range checks test a numerical amount to ensure that it is within a predetermined range.
5 Bill is responsible for custody of the finished goods in the warehouse. If his company wishes to maintain strong internal
INCORRECT control, which of the following responsibilities are incompatible with his primary job?
A) He is responsible for the company's fix asset control ledger.

B) He is responsible for receiving of goods into the warehouse.

C) He is responsible for the accounting records for all the receipts and shipments of goods from the warehouse.

D) He is responsible for issuing goods for shipment.

Feedback: Segregation of duties is an important internal control. It requires the segregation of asset custody
and record keeping. Since Bill is responsible for the finished goods custody, he should not be also responsible
for keeping accounting records of the finished goods at the same time.
6 CORRECT Which of the following is considered a control environment factor by the COSO definition of internal control?

A) Control objectives

B) Integrity and ethical values

C) Reasonable assurance

D) Risk assessment
Feedback: The internal control environment provides the discipline and structure for all other components of
enterprise risk management. Internal environment factors include a firm's risk management philosophy and
risk appetite, integrity and ethical values, organizational structure, board of directors and the audit
committee, human resource policies and practices, assignment of authority and responsibility, commitment to
competence, and development of personnel.
7 Which duties should be completed by different people to achieve strong separation of duties?
INCORRECT
A) Journalizing and posting

PDF Creator - PDF4Free v2.0 http://www.pdf4free.com

1 of 2 12/5/2016 10:56 AM
Online Quiz http://highered.mheducation.com/sites/0078025494/student_view0/chap...

B) Receivables and payables

C) Authorization, custody and recordkeeping

D) Document numbering and document completion

Feedback: Separation of duties requires segregation of authorization, custody and recordkeeping.
8 Which is least likely to be provided by an application control?
INCORRECT
A) Accuracy

B) Completeness

C) Reliability

D) Authorization
Feedback: Reliability is a general property of the information system taken as a whole whereas application
deal with specific processing of subsets of data to support specific business functions.
9 Which of the following is not a component of COSO ERM?
INCORRECT
A) Event identification

B) External environment

C) Internal control evaluation

D) B and C
Feedback: Internal environment, objective setting, event Identification, risk assessment, risk response,
control activities, information and communication, and monitoring activities are the eight components in the
COSO ERM framework.
10 Under COSO ERM framework, which of the following objectives involves parties external to the organization?
INCORRECT
A) Strategic objectives

B) Compliance objectives

C) Operation objectives

D) Reporting objectives
Feedback: The ERM framework takes a risk-based, rather than a control-based approach to achieving the
firm's objectives in four categories: Strategic, compliance, operation and reporting. The reporting objective is
about the reliability of internal and external reporting. Hence, it may involve external parties.

E-mail Your Results

Date: Mon Dec 05 2016 10:52:44 GMT+0500 (Pakistan Standard Time)

My name:
Section ID:
E-mail these results to:
E-mail address: Format:
Me:
My Instructor:
My TA:
Other:

To learn more about the book this website supports, please visit its Information Center.

Copyright 2016 McGraw-Hill Global Education Holdings, LLC. All rights reserved.
Any use is subject to the Terms of Use and Privacy Center | Report Piracy

PDF Creator - PDF4Free v2.0 http://www.pdf4free.com

2 of 2 12/5/2016 10:56 AM