Accounting Information Systems, 13e (Romney/Steinbart) Chapter 7 Control and Accounting Information Systems exam question and answersr

Document Content and Description Below

1) Why are threats to accounting information systems increasing? A) Many companies do not realize that data security is crucial to their survival. B) LANs and client/server systems are easier to co... ntrol than centralized, mainframe systems. C) Many companies believe that protecting information is a strategic requirement. D) Computer control problems are often overestimated and overly emphasized by management. 2) 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) preventive control. B) detective control. C) corrective control. D) authorization control. 3) Identify the preventive control below. A) reconciling the bank statement to the cash control account B) approving customer credit prior to approving a sales order C) maintaining frequent backup records to prevent loss of data D) counting inventory on hand and comparing counts to the perpetual inventory records 4) According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is directly responsible for A) hiring and firing the external auditors. B) performing tests of the company's internal control structure. C) certifying the accuracy of the company's financial reporting process. D) overseeing day-to-day operations of the internal audit department. 1 5) Which of the following measures can protect a company from AIS threats? A) Take a proactive approach to eliminate threats. B) Detect threats that do occur. C) Correct and recover from threats that do occur. D) All of the above are proper measures for the accountant to take. 6) Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities. A) event B) activity C) process D) system 7) Duplicate checking of calculations is an example of a ________ control, and procedures to resubmit rejected transactions are an example of a ________ control. A) corrective; detective B) detective; corrective C) preventive; corrective D) detective; preventive 8) Which type of control is associated with making sure an organization's control environment is stable? A) general B) application C) detective D) preventive 9) Which type of control prevents, detects, and corrects transaction errors and fraud? A) general B) application C) detective D) preventive [Show More]

Last updated: 1 year ago

Preview 1 out of 25 pages