ACG 4401 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
Which of the following statements about the control environment is false? - Answers -
Management's attitude toward internal control and ethical behavior have little impact on
employee beliefs or actions.
The Balance Scorecard approach is advocated (by the book in the notes) as a control
for which General Ledger and Reporting Activity? - Answers - Produce management
reports
What was the biggest pressure on finance functions according to the "How Automation
is Driving Indian Finance Teams..." JOA article? (Also a major point I make in my
lectures) - Answers - Increasing the need to demonstrate the value to business
The documentation skills that accountants require vary with their job function. However,
they should at least be able to do which of the following? - Answers - Read
documentation to determine how the system works.
While all functions of internal controls are important for "defense-in-depth," which
function did I say was the most important for companies to invest the majority of their
resource in? - Answers - Preventative controls
Which is the main purpose for XBRL? - Answers - To make machine to machine
communication more efficient.
Why is it important to learn/understand documentation? - Answers - -It helps one
understand the quality of internal controls employed
-It can help a new employee understand the new job and its responsibilities
- It can help an external auditor understand a client's AIS
Which of the following DFD symbols represents the transformation of data and uses
action verbs in its label? - Answers - A process
Which of the flowcharts illustrates the flow of information among the different areas
within an organization? - Answers - A document flowchart
Which of the following does NOT represent a similarity between flowcharts and DFDs? -
Answers - Both can be used to identify weak or non-existent internal controls.
What two components of an information system produce "data," which later turns into
"information? - Answers - Hardware & software
ANSWERS
Which of the following statements about the control environment is false? - Answers -
Management's attitude toward internal control and ethical behavior have little impact on
employee beliefs or actions.
The Balance Scorecard approach is advocated (by the book in the notes) as a control
for which General Ledger and Reporting Activity? - Answers - Produce management
reports
What was the biggest pressure on finance functions according to the "How Automation
is Driving Indian Finance Teams..." JOA article? (Also a major point I make in my
lectures) - Answers - Increasing the need to demonstrate the value to business
The documentation skills that accountants require vary with their job function. However,
they should at least be able to do which of the following? - Answers - Read
documentation to determine how the system works.
While all functions of internal controls are important for "defense-in-depth," which
function did I say was the most important for companies to invest the majority of their
resource in? - Answers - Preventative controls
Which is the main purpose for XBRL? - Answers - To make machine to machine
communication more efficient.
Why is it important to learn/understand documentation? - Answers - -It helps one
understand the quality of internal controls employed
-It can help a new employee understand the new job and its responsibilities
- It can help an external auditor understand a client's AIS
Which of the following DFD symbols represents the transformation of data and uses
action verbs in its label? - Answers - A process
Which of the flowcharts illustrates the flow of information among the different areas
within an organization? - Answers - A document flowchart
Which of the following does NOT represent a similarity between flowcharts and DFDs? -
Answers - Both can be used to identify weak or non-existent internal controls.
What two components of an information system produce "data," which later turns into
"information? - Answers - Hardware & software
