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14 Cards in this Set
- Front
- Back
Business process control plans relate to those controls particular to a specific process or subsystem, such as billing or cash receipts. A) True |
True |
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According to the 2008 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by audits or internal controls than through tips. A) True |
False |
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Establishing a viable internal control system is primarily the responsibility of: A) the external auditors |
B |
|
Which component of the ERM framework is best described here: Management selects whether to avoid, accept, reduce, or share risk-developing a set of actions to align risks with the entity's risk tolerances and risk appetite. A) control activities |
D |
|
A process captures only authorized transactions but fails to record them only once. Which control goal does this fail to achieve? A) Validity |
C |
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A control that involves reprocessing transactions that are rejected during initial processing is an example of: A) preventive controls |
C |
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____ are the policies and procedures that help ensure that the risk responses are effectively carried out. A) Control environment |
C |
|
Events that could have a negative impact on organizational objectives: A) Controls |
D |
|
____ is a process that evaluates the quality of internal control performance over time. A) Control environment |
D |
|
The correct sequence of the control hierarchy, from top to bottom, is: A) control environment, IT general controls, pervasive controls, business process controls
|
C |
|
The major reasons for exercising control of the organization's business processes include: A) to provide reasonable assurance that the goals of the business are being achieved |
D |
|
The effect of an event's occurrence is: A) control |
B |
|
The ERM framework addresses four categories of management objectives. Which category addresses the effective and efficient use of resources? A) compliance |
B |
|
Three terms used in the chapter to refer to when a control plan is exercised are ____________, ___________ and corrective control plans. |
Preventative, Detective |