Question 1

____ relate to a specific AIS process, such as billing or cash receipts.
A) Control procedures
B) Information processing procedures
C) Business process control plans
D) Operations system control plans

Accepted Answer

Business process control plans relate specifically to controlling and monitoring specific AIS processes, such as billing or cash receipts. These plans are designed to ensure that transactions are processed accurately, completely, and in a timely manner. Control procedures are more general in nature and can apply to multiple processes, while information processing procedures and operations system control plans are not as specific to AIS processes.

Question 2

Strong antifraud controls include:
A) segregation of duties
B) job rotations
C) mandatory vacations
D) all of the above

Accepted Answer

All of the choices are strong antifraud controls in their own right.

- Segregation of duties involves dividing key tasks and responsibilities among separate individuals to ensure that no single person has control over an entire process or transaction. This helps prevent fraud by making it more difficult for one person to carry out a fraudulent act without detection.
- Job rotations involve periodically reassigning employees to different roles or departments, which can help prevent fraud by reducing the likelihood that an employee will become too comfortable or familiar with their current duties and begin to exploit weaknesses in the system.
- Mandatory vacations require employees to take time off from work on a regular basis, so that others can review their work and identify any irregularities or errors. This can help prevent fraud by ensuring that no one person is able to carry out a fraudulent act over an extended period of time without detection.

Question 3

Achieving which control goal requires that all valid objects or events are captured and entered into a system's database once and only once?
A) ensure input validity
B) ensure update accuracy
C) ensure input completeness
D) ensure update completeness

Accepted Answer

Input completeness control ensures that all valid objects or events are entered into the system's database once and only once without omitting any of them.

Question 4

______________________________ is a process, effected by an entity's board of directors, management and other personnel, applied in strategy settings and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

Accepted Answer

The answer of ______________________________ is a process, effected by an...

Question 5

Which of the following is a control goal regarding master data?
A) ensure input validity
B) ensure update accuracy
C) ensure input accuracy
D) ensure input completeness

Accepted Answer

The control goal regarding master data is to ensure update accuracy, which ensures that the changes made to the data are accurate and do not introduce errors or inconsistencies. Ensuring input validity, accuracy, and completeness are also important control goals, but they are more related to data entry rather than data maintenance.

Question 6

A programming error causes the sale of an inventory item to be added to the quantity on hand attribute in the inventory master data. Which control goal was not achieved?
A) ensure update completeness
B) ensure input accuracy
C) ensure update accuracy
D) ensure input completeness

Accepted Answer

The control goal of ensuring update accuracy was not achieved because the programming error caused an incorrect update to the quantity on hand attribute. The other control goals of ensuring update completeness, input accuracy, and input completeness may still have been achieved.

Question 7

Assuring that cash collections recorded in the cash receipts event data are credited to the right customer in the accounts receivable master data addresses the control goal of:
A) ensure input accuracy
B) ensure input completeness
C) ensure update accuracy
D) ensure update completeness

Accepted Answer

The control goal being addressed is ensuring update accuracy, which involves ensuring that updates to master data are accurate and reflect the correct information. In this case, cash collections need to be accurately credited to the correct customer in the accounts receivable master data. Input accuracy and completeness refer to the accuracy and completeness of data entered into the system, while update completeness refers to ensuring that all required updates are made to master data when necessary.

Question 8

Assuring that the accounts receivable master data reflects all cash collections recorded in the cash receipts event data addresses the control goal of:
A) ensure input accuracy
B) ensure input completeness
C) ensure update accuracy
D) ensure update completeness

Accepted Answer

The control goal of ensuring that the accounts receivable master data reflects all cash collections recorded in the cash receipts event data relates to update completeness, as it aims to ensure that all relevant updates are made to the master data. This control is important to maintain accurate and up-to-date accounts receivables records.

Question 9

Why is there usually no control goal called update validity?
A) Input and update completeness achieve update validity.
B) Input validity guarantees update validity.
C) Update accuracy guarantees update validity.
D) Input accuracy achieves update validity.

Accepted Answer

Update validity refers to the accuracy and completeness of data that is entered or updated within a system. Input and update completeness ensure that all required data is entered, which leads to accurate and valid updates. Input validity ensures that the data entered is accurate, which in turn ensures that any updates made are also accurate and valid. Therefore, option A is the best choice as it explains how input and update completeness achieve update validity.

Question 10

_____________ control plans relate to a multitude of goals and processes.
A) Pervasive
B) IT general
C) Business process
D) Preventive

Accepted Answer

Pervasive control plans are designed to apply across an organization's operations and relate to a multitude of goals and processes. This includes controls related to financial reporting, IT security, human resources, and more. The other options are more specific types of control plans. IT general controls relate specifically to IT systems, business process controls relate specifically to business processes, and preventive controls relate specifically to minimizing risk and preventing errors or fraud.

Question 11

The business process objectives that an internal control system is designed to achieve are:
A) control goals
B) control plans
C) general controls
D) the control matrix

Accepted Answer

Internal control systems are designed to achieve control goals, which are the specific objectives that the system seeks to accomplish. These may include objectives such as ensuring the accuracy of financial statements, safeguarding assets from loss or theft, and promoting adherence to laws and regulations. Control plans, general controls, and the control matrix are all components of an internal control system, but do not represent the overall objectives of the system.

Question 12

Control goals of operations processes include:
A) validity
B) the control environment
C) accuracy
D) security of resources

Accepted Answer

The answer of Control goals of operations processes include:
A) validity
B)...

Question 13

Failing to record a customer's order for the purchase of inventory violates the control goal of:
A) ensure input accuracy
B) ensure input completeness
C) ensure input validity
D) ensure input accuracy and input validity

Accepted Answer

Failing to record a customer's order for the purchase of inventory violates the control goal of ensuring input completeness, as the order was not recorded in the system. The other control goals do not necessarily apply to this specific scenario.

Question 14

A tool designed to assist you in evaluating the potential effectiveness of controls in a business process by matching control goals with relevant control plans is:
A) ERM
B) control plans
C) control matrix
D) internal controls

Accepted Answer

A control matrix is a tool that lists control goals on one axis and corresponding control plans on another axis. It helps to evaluate the effectiveness of controls by matching the control goals with the relevant control plans. ERM (Enterprise Risk Management) is a broader framework for managing risks and opportunities across an organization, while control plans and internal controls are specific strategies and tactics used to mitigate risks and ensure compliance with policies and regulations.

Question 15

A process captures only authorized transactions but fails to record them only once. Which control goal does this fail to achieve?
A) validity
B) accuracy
C) completeness
D) effectiveness

Accepted Answer

This scenario fails to achieve the control goal of completeness because even though the transactions are authorized, the process fails to record them entirely. This means that important data could be missing and result in incomplete financial reporting. Validity refers to ensuring that transactions are legitimate and authorized, accuracy refers to ensuring that recorded information is correct, and effectiveness refers to achieving the intended result or outcome. While these control goals are also important, completeness is the best fit for the given scenario.

Question 16

Automated business process controls contained within IT systems are called:
A) preventive controls
B) pervasive controls
C) application controls
D) management controls

Accepted Answer

Automated business process controls contained within IT systems are known as application controls, as they are specific to individual applications and are designed to detect errors or irregularities within those applications. Preventive controls are designed to prevent errors or irregularities from occurring in the first place, pervasive controls are broader controls that are integrated throughout an organization, and management controls are policies and procedures designed to ensure the effective and efficient use of an organization's resources.

Question 17

The third level of protection in the control hierarchy is:
A) the control environment
B) business process control plans
C) pervasive control plans
D) IT general controls

Accepted Answer

The third level of protection in the control hierarchy is business process control plans. This level focuses on specific risks and controls within each business process. It includes detailed procedures, policies, and monitoring activities to ensure that the risk is effectively managed. The other options listed are part of the control environment (A), which is the first level, pervasive control plans (C), which is the second level, and IT general controls (D), which is the fourth level.

Question 18

A control that involves reprocessing transactions that are rejected during initial processing is an example of:
A) preventive controls
B) detective controls
C) corrective controls
D) programmed controls

Accepted Answer

Corrective controls are designed to correct or fix problems that have already been identified, such as reprocessing transactions that were initially rejected. Preventive controls are designed to prevent problems from occurring in the first place. Detective controls are designed to detect problems after they have occurred. Programmed controls are automated controls that are built into software applications.

Question 19

Discrepancies between data items recorded by a system and the underlying economic events or objects they represent are a violation of the control goal of:
A) ensure input validity
B) ensure input completeness
C) ensure input accuracy
D) ensure update completeness

Accepted Answer

Ensuring input accuracy involves verifying that the data entered into the system is accurate and correctly represents the economic events or objects. Discrepancies between data and the underlying economic events or objects indicate inaccuracies and therefore violate this control goal. The other choices are not directly related to this issue.

Question 20

Controls that stop problems from occurring are called:
A) preventive controls
B) detective controls
C) corrective controls
D) programmed controls

Accepted Answer

Preventive controls are put in place to stop potential problems before they occur. This includes things like access controls, training, and policies and procedures. Detective controls, on the other hand, aim to identify problems that have already occurred, while corrective controls are designed to fix problems that have been identified. Programmed controls are a type of control that is built into computer systems and software to perform specific functions or tasks.

Quiz 7: Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

____ relate to a specific AIS process, such as billing or cash receipts.

Strong antifraud controls include:

Achieving which control goal requires that all valid objects or events are captured and entered into a system's database once and only once?

Which of the following is a control goal regarding master data?

A programming error causes the sale of an inventory item to be added to the quantity on hand attribute in the inventory master data. Which control goal was not achieved?

Assuring that cash collections recorded in the cash receipts event data are credited to the right customer in the accounts receivable master data addresses the control goal of:

Assuring that the accounts receivable master data reflects all cash collections recorded in the cash receipts event data addresses the control goal of:

Why is there usually no control goal called update validity?

_____________ control plans relate to a multitude of goals and processes.

The business process objectives that an internal control system is designed to achieve are:

Control goals of operations processes include:

Failing to record a customer's order for the purchase of inventory violates the control goal of:

A tool designed to assist you in evaluating the potential effectiveness of controls in a business process by matching control goals with relevant control plans is:

A process captures only authorized transactions but fails to record them only once. Which control goal does this fail to achieve?

Automated business process controls contained within IT systems are called:

The third level of protection in the control hierarchy is:

A control that involves reprocessing transactions that are rejected during initial processing is an example of:

Discrepancies between data items recorded by a system and the underlying economic events or objects they represent are a violation of the control goal of:

Controls that stop problems from occurring are called: