Question 1

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 objectives or goals, such as safeguarding assets, ensuring reliable financial reporting, and promoting efficient operations. Therefore, choice A, control goals, is the best answer. Control plans are specific steps or procedures put in place to achieve control objectives, and general controls refer to the overall control environment in an organization. The control matrix is a tool used to document internal controls and assess their effectiveness.

Question 2

____ relate to a specific AIS process or to the technology used to implement the process.
A)Control procedures
B)Information processing procedures
C)Business process control plans
D)Operations system control plans

Accepted Answer

Business process control plans are designed to ensure that specific AIS processes are carried out correctly and efficiently, often involving the technology used to implement these processes.

Question 3

The programmed verification of a customer number is a ____ control.
A)preventive
B)detective
C)corrective
D)application

Accepted Answer

Programmed verification is a preventive control as it helps to prevent errors or fraud by detecting them before they occur. It ensures that the customer number is valid and accurate at the time of entry, thereby reducing the likelihood of errors or fraudulent activity. Detective controls, on the other hand, are designed to detect errors or fraud after they have occurred, while corrective controls are implemented to correct errors or fraud that have been detected. Application controls are controls implemented within specific applications to ensure the accuracy and completeness of data processing.

Question 4

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 helps evaluate the effectiveness of controls in a business process by matching control goals with relevant control plans. It provides a structured approach to ensure that each control objective has a corresponding control plan and helps identify any potential gaps in the control environment. ERM (Enterprise Risk Management) is a broader framework that includes risk identification, assessment, and mitigation, among other things, and is not solely focused on controls. Control plans and internal controls are components of a control matrix but not the tool itself.

Question 5

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

Ensuring that cash collections are credited to the right customer in the accounts receivable master data is an action that ensures update accuracy because it guarantees that the accounts receivable balances are accurate and up-to-date. This control helps prevent errors or frauds that could arise from incorrect or incomplete updates to customer account balances. Ensuring input accuracy or completeness, on the other hand, would focus on verifying the accuracy or completeness of the data being entered into the system at the point of data entry, which is not the main control goal addressed by this measure. Ensuring update completeness would involve ensuring that all relevant data changes are recorded in the master data, which is also not the primary focus of this control measure.

Question 6

A control plan requires that a manager sign his/her approval of timecards for employees in that department.This control plan is an example of:
A)a systems control
B)the control environment
C)a pervasive control plan
D)a business process control plan

Accepted Answer

This control plan is a business process control plan as it involves a specific procedure within a business process, namely the approval of timecards by a manager.

Question 7

Which of the following business scandals involved accusations that bribes were paid in at least a dozen countries, and that senior executive may have been aware of the practice?
A)DaimlerChrysler
B)WorldCom
C)Enron
D)Tyco

Accepted Answer

The scandal involving accusations of bribes being paid in multiple countries and possible awareness among senior executives is most likely referring to the DaimlerChrysler scandal.

Question 8

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

Accepted Answer

The control goal for the information system for the applicable master data is to ensure update accuracy, which means that any changes made to the master data are accurate and correctly reflected in the system. This is important for maintaining the integrity and reliability of the data. While input validity, accuracy, and completeness are also important control goals for master data, they do not specifically relate to ensuring the accuracy of updates to the data.

Question 9

Information-processing policies and procedures that assist in accomplishing control goals are known as:
A)control plans
B)control systems
C)control objectives
D)control outcomes

Accepted Answer

Control plans are the specific policies and procedures designed to achieve control objectives and ensure that control goals are met.

Question 10

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 designed to stop problems from occurring in the first place. This type of control is proactive and helps to reduce the likelihood of risks and issues arising. Detective controls, on the other hand, are designed to identify and respond to problems once they have occurred. Corrective controls are put in place to fix problems that have occurred, and programmed controls are automated actions within a system that help to prevent errors or issues.

Question 11

These are applied to all IT service activities.
A)control goals
B)control plans
C)IT general controls
D)the control matrix

Accepted Answer

IT general controls are a set of practices and procedures that apply to all IT service activities and are designed to ensure the confidentiality, integrity, and availability of information. These controls include policies and procedures, physical controls, access controls, and monitoring controls. Control goals and control plans may be part of IT general controls, but they are not specific to IT services. The control matrix is a tool used to assess the effectiveness of controls.

Question 12

Why is there usually no control goal called update validity?
A)Update completeness achieves 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 ensuring that the data being updated is valid and accurate. Input validity, which is usually a control goal, focuses on ensuring that the data being inputted into the system is valid and can help ensure that the data being used for updates is also valid. Therefore, input validity guarantees update validity.

Question 13

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

Ensuring that the accounts receivable master data reflects all cash collections recorded in the cash receipts event data is related to the control goal of ensuring update completeness. This control goal ensures that all transactions are recorded and updated in the system to prevent incomplete and inaccurate data.

Question 14

Control plans that relate to a multitude of goals and processes are called:
A)business process control plans
B)internal control systems
C)pervasive control plans
D)management control systems

Accepted Answer

Pervasive control plans are designed to apply to all aspects of an organization's operations, including multiple goals and processes. These plans help to ensure that there is a consistent level of control throughout the organization, reducing the risk of errors or fraud. Options A, B, and D all focus on more specific types of controls or systems.

Question 15

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

Accepted Answer

Ensuring input completeness requires that all valid objects or events are captured and entered into a system's database. This helps to minimize the risk of errors or omissions that could negatively impact the accuracy and integrity of the data. A and B are incorrect because they focus on the accuracy of the input and update processes, respectively, but do not address the need to capture all valid data in the first place. D is incorrect because it focuses on the completeness of updates, rather than inputs.

Question 16

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

Accepted Answer

Input completeness ensures that all transactions are recorded in the system, including customer orders for the purchase of inventory. Failing to record a customer's order would mean that the input is not complete. Accuracy and validity are also important goals, but they are not directly related to this particular scenario.

Question 17

________________________________________ is a process, effected by an entity's board of
directors, management and other personnel, applied in strategy setting and across the
enterprise, designed to identify potential events that may effect 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 18

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

Accepted Answer

The goal of ensuring input accuracy is to ensure that the data recorded by the system accurately represents the economic events or objects that they are intended to represent. Discrepancies between recorded data and underlying economic events violate this control goal. The other control goals listed (ensure input validity, ensure input completeness, ensure update completeness) are not relevant to this specific issue.

Question 19

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 quantity on hand attribute in the inventory master data was incorrectly updated with the sale of an item. This error resulted in inaccurate inventory records. The other control goals of ensuring input accuracy, input completeness, and update completeness may still have been achieved.

Question 20

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 implemented to correct errors and exceptions that have already occurred. Reprocessing rejected transactions falls under this category as it involves identifying and correcting errors that were not detected during the initial processing. Preventive controls are designed to prevent errors from occurring in the first place, while detective controls are put in place to identify errors after they have occurred. Programmed controls involve automated procedures for processing transactions.

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

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

____ relate to a specific AIS process or to the technology used to implement the process.

The programmed verification of a customer number is a ____ control.

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:

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 control plan requires that a manager sign his/her approval of timecards for employees in that department.This control plan is an example of:

Which of the following business scandals involved accusations that bribes were paid in at least a dozen countries, and that senior executive may have been aware of the practice?

Which of the following is a control goal for the information system for the applicable master data?

Information-processing policies and procedures that assist in accomplishing control goals are known as:

Controls that stop problems from occurring are called:

These are applied to all IT service activities.

Why is there usually no control goal called update validity?

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

Control plans that relate to a multitude of goals and processes are called:

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

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

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

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