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Study Resources (Accounting)

Objective 3 1) The system development life cycle lists what steps to complete. 2) Many system development methodologies exist, which one is the best fit for the project depends on the nature of the project and the specific requirements. 3) The waterfall methodology of software development consists of two stages: Baseline and Customization. 4).
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Objective 3 1) A well developed and articulated risk management philosophy can provide consistency in risk attitudes throughout the entire enterprise. 2) In ERM risk assessment, possibility may refer to assessing likelihood using a quantitative measure, such as percentages. 3) When risk responses are being considered, the costs and benefits of options may.
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41) Which category in Weatherbe's PIECES framework affects revenues (benefits) or costs? A) Control problem B) Economic problem C) Service problem D) Performance problem 42) In the ABC methodology of software development, which stage of the customer stage involves reviewing and updating user requirements for the new accounting system? A) Plan B) Analyze C) Install D) Deploy 43) In the.
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Objective 3 1) The information security principle integrity ensures that sensitive data at each point in information processing is secure and protected from unauthorized access. 2) This security management principle ensures that sensitive data at each point in information processing is secure and protected from unauthorized access. A) Confidentiality B) Integrity C) Private D) Availability 3).
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12) Which general IT control includes control over SDLC phases for software upgrades and modifications? A) Program development controls B) Access security controls C) Computer operations controls D) Program change controls 13) Which general IT control covers acquisition, implementation, and maintenance of system software including the operating system, DBMS, network software, and security software? A).
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Objective 2 1) The COSO Enterprise Risk Management framework replaces the COSO framework for internal control. 2) Given the impossibility of foreseeing every conceivable control to address all threats, risk management uses the approach of assessing risk to determine the probability of risk, its frequency, and its impact. 3) It is possible.
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Objective 2 1) The accounting profession is self-regulated. 2) The SOX legislation basically requires management of privately held companies must assess and report on the effectiveness of internal controls for financial reporting using a recognized framework. 3) SOX emphasizes a strong system of internal control as a way of avoiding Enron-sized accounting.
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Objective 12 1) The IT used in an enterprise can actually create vulnerabilities to cyberattacks on its confidential accounting data. 2) New IT security technology A) Is usually worth the investment B) Is less vulnerable to cyberattacks C) May create vulnerabilities and risks to confidential data contained in the accounting system D) Are usually.
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Objective 1 1) Cybersecurity combines people, processes, and technology to continually monitor vulnerabilities and respond proactively to secure the system. 2) Personal data, such as home address and credit card number, are stored on hotel card keys. 3) ________ developed the 10-domain Common Body of Knowledge (CBK) for IT security and controls. 4).
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Objective 4 1) Most entrepreneurs need to hire custom programmers to write accounting programs. 2) For most enterprises it is more cost-effective to hire programmers to write custom software programs for all of their accounting functions. 3) Most accounting systems today are built using an ABC methodology. 4) The baseline stage of the.
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Chapter Extension 10A 1) The ________ of internal auditors establishes trust and thus provides the basis for reliance on their judgment. 2) Internal auditors exhibit the highest level of professional ________ in gathering, evaluating, and communicating information about the activity or process being examined. Match the internal auditors code of ethics principle to.
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30) What is risk tolerance? Provide an example. 31) What are five external events that may pose a risk to an enterprise's ability to achieve objectives? Provide examples. 32) What are four internal events that may pose a risk to an enterprise's ability to achieve objectives? Provide examples. 33) Assessment techniques used to.
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11) In ERM risk assessment, ________ may refer to assessing likelihood using qualitative measures, such as high, medium, or low. 12) In ERM risk assessment, ________ may refer to assessing likelihood using a quantitative measure, such as percentages. 13) In the context of enterprise risk management, ________ refers to the process.
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Objective 4 1) Increasingly the expectation is that the auditor and the IT professional learn more about the other's field. 2) Internal controls for the accounting system are incomplete without IT controls. 3) Application controls ensure completeness and accuracy of transaction processing, authorization, and validity. 4) Input controls ensure data is processed properly. 5).
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21) A ________ analysis identifies any difference between the specifications of the baseline accounting system and the enterprise-specific user requirements. 22) According to Weatherbe's PIECES framework for problem analysis, a problem that relates to system issues, such as system availability, is classified as a(n) ________ problem. Match the category in Weatherbe's.
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Objective 3 1) Internal control is designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. 2) The internal control category control environment includes identifying, analyzing, and managing risks affecting the ability to report financial.
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31) Technical feasibility 32) Schedule feasibility 33) Cultural feasibility 34) Risk feasibility 35) Which stage of the ABC methodology of software development focuses on the features common to most accounting systems? A) Baseline stage B) Analysis stage C) Design stage D) Customization stage 36) Which stage of the ABC methodology of software development focuses on meeting the specific needs.
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11) When investigating fraud, ________ enables auditors to extract, analyze, and interpret evidence to detect unusual patterns and irregularities. 12) A(n) ________ in internal control over financial reporting is defined as a deficiency as such that there is a reasonable possibility that a material misstatement of financial statements will not be.
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Objective 8 1) Physical security frameworks are useful to provide guidance on how to secure the physical facilities, grounds, and IT assets. 2) The physical and environmental security domain addresses A) Activities and procedures required to keep information technology running securely B) The physical security of information technology components, such as hardware and.
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Match the legislation to the description. A) This legislation requires organizations that handle credit and debit card data to meet cybersecurity requirements to safeguard the data. B) Frank-Dodd Wall Street Reform and Consumer Protection Act C) This legislation requires each federal agency to develop, document, and implement an agency-wide information security program. D) This.
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Objective 5 1) The reporting framework for Service Organization Control (SOC) consists of five SOC reports. 2) Service organizations are external organizations that perform services to the company being audited. 3) ________ reports are issued by the service organization to report on its controls relevant to a company's internal control over financial reporting. 4).
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7) ________ adds tags as information is processed, similar to adding bar codes during the manufacturing process. 8) ________ tagging permits companies to make more extensive use of XBRL for internal decision making. 9) A(n) ________ database can store data but not metadata. 10) Organizations using integrated enterprise systems with a.
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Objective 6 1) Spreadsheets introduce significant risks into the financial reporting process for organizations. 2) Storing the spreadsheet on the server increases the difficulty to track changes made by multiple users. 3) The use of access security controls on spreadsheets is not an effective method to improve spreadsheet risk management. 4) A.
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16) The prototyping methodology of software development has how many basic steps? A) 9 B) 8 C) 14 D) 10 17) The baseline stage of the ABC methodology of software development has now many basic steps? A) 5 B) 3 C) 6 D) 4 18) The customization stage of the ABC methodology of software development has how many basic steps? A).
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Objective 2 1) The SDLC provides a common language for communicating with programmers, system analysts, database administrators, and other IT professionals engaged in accounting system development. 2) The plan phase of a SDLC involves designing new system models to satisfy user requirements, either by creating a new model or by modifying.
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16) Which of the activities are performed in the deploy phase of the SDLC? A) Budget preparation B) Patch installation C) Final fine tuning of the system D) Creation of business models 17) Which activity is a cross-life-cycle activity? A) Testing B) Analysis C) Documentation D) Deploy 18) Which of the activities are performed in the design phase of the.
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Objective 1 1) Luckily, project management questions are not part of the CPA exam. 2) Project management uses techniques to organize and streamline the project. 3)  System development life cycle is the order and timing of when the SDLC phases are completed. 4) ________ design the system, specifying the components needed for the.
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11) Which principle in the Code of Ethics for internal auditors states that the are to make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments? A) Confidentiality B) Competency C) Objectivity D) Integrity 12) Which principle in the Code of.
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Objective 5 1) Telecommunications, networks, and the internet all relate to data transmission. 2) ________ is a network used by external customers and/or suppliers. 3) Network cyberattacks typically target ________ because they offer access to the network. 4) ________ firewall is a special type of firewall located on a server used to intercept and.
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11) Design feasibility includes operational, economic, technical, schedule, cultural, and risk feasibility of the proposed IT architecture for the new system. 12) Economic feasibility assesses the probability of successful implementation and use of the new system, including any legal considerations. 13) Risk feasibility assess the probability of successful implementation and use.
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11) In the COSO Internal Control-Integrated Framework, control activities do NOT include A) Independent reconciliations of assets and accounting records B) Physical controls C) Segregation of duties D) Management controls 12) Which COSO Internal Control-Integrated Framework essential component of an effective internal control system includes the accounting system for identifying, recording, processing, and reporting transactions.
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16) Which of the following is part of the ERM units? A) Internal Environments B) Entity-level C) Operations D) Monitoring 17) Which ERM objective relates to the effective and efficient use of a corporation's resources? A) Operational objective B) Compliance objective C) Strategic objective D) Reporting objective 18) Which ERM objective relates to the goals that support a corporation's mission? A).
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16) Which network protocol (software) is commonly used to connect computers to create a LAN? A) Internet protocol (IP) B) Ethernet protocol C) Electronic data interchange (EDI) D) Transport control protocol (TCP) 17) Security of the IT architecture should be considered in which phase of the system development life cycle (SDLC)? A) All the phases B) Design.
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11) How long does the typical fraud last before being detected? A) Six months B) One year C) Two years D) Three years 12) What percentage of fraud cases were inadequate internal controls cited as a primary contributing factor? A) 48% B) 29% C) 35% D) 42% 13) Earnings management focuses on managing when revenues and expenses are recorded in.
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Objective 6 1) A ________ is a hardware device containing a password generator protocol that creates a new password each time the token is used. 2) Which access control threat are programs or devices that examine traffic on the enterprise network? A) Password attack B) Network sniffer C) Identify theft D) Spoofing at log-on 3) Which.
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15) Which of the following is NOT part of IT controls? A) Event controls B) IT general controls C) Entity-level controls D) Application controls 16) The IT control associated with top management is A) IT general controls B) Entity-level controls C) Application controls D) Event controls 17) The IT control associated with business processes is A) Entity-level controls B) IT general controls C).
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21) Hiring competent employees who are provided ongoing training A) Can increase risks from accidents and errors B) Can increase the amount of fraud C) Can reduce risks from accidents and errors D) Can reduce an enterprise's risk tolerance 22) Which of the following is NOT an external factor that might affect an enterprise's ability.
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Objective 5 1) Focusing on sustainable operations increases the risk of dependence on dwindling natural resources that may become cost prohibitive in the future. 2) Effective implementation of ERM requires a robust discussion of the potential impact of not mitigating risks and the likelihood that the risk will impact the organization. 3).
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Objective 1 1) Motive and opportunity without means still results in fraud. 2) Corruption involves theft of assets for personal gain. 3) Fraudulent financial reporting includes misstating financial statements to meet earnings targets. 4) Not even the strongest system of controls can eliminate all risk of organizations being defrauded by employees who are sufficiently.
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Objective 1 1) The largest provider of relational database tools is Sun Microsystems Inc. 2) Information assets are the new currency of business. 3) The database integrity rule Referential Integrity states that field values must be from a predefined domain. 4) The database integrity rule Primary Key Integrity states each record in the database.
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11) The ________ element defines the time frame. 12) The ________ element defines the company. 13) The XBRL linkbase ________ link defines different kinds of relationships between elements. For example, ZIP code is the postal code used in the United States. Match the following elements to the appropriate definitions. A) Unit of measure B).
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Objective 4 1) Wide area networks (WANs) cover a large geographic region, such as the lower Midwest. 2) The Internet is a collection of many networks of various types, connecting different LANs 3) Bridges connect LANs of similar or different types to create an intranet. 4) Enterprise security architecture studies the enterprise architecture.
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Objective 1 1) The SEC requires company boards to report in-depth on how their enterprises identify risk, set risk tolerances, and manage risk/reward trade-offs. 2) Controls are not task driven. Understanding risk is not a prerequisite to the appreciation and application of control. 3) Enterprise risk management (ERM) goes beyond just security and.
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Objective 4 1) ISO 13000 is not the only internationally accepted enterprise risk management standard. 2) The risk time frame ________ relates to the organization's strategy, affecting three to five years or longer. 3) The risk time frame ________ related to tactics, such as new projects that initiate change. 4) The risk time frame.
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44) What information does the following XBRL tag provide? <ifrs-gp:OtherOperatingExpenses contextRef="Dec312014" unitRef="USD" decimals="3">6920000</ifrs-gp:OtherOperatingExpenses> 45) What information does the following XBRL tag provide? <us-gaap:PrepaidExpenseCurrent contextRef="Dec312013" unitRef="USD" decimals="4">12984000000</us-gaap:PrepaidExpenseCurrent> 46) What information does the following XBRL tag provide? <us-gaap:Assets contextRef="Jan012014" unitRef="USD" decimals="4">763500000</us-gaap:Assets> 47) What information does the following XBRL tag provide? <us-gaap:InventoryNet contextRef="Jan012014" unitRef="USD" decimals="6">391400000000</us-gaap:InventoryNet> 48) What information does the following.
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