ACCY 310 FINAL WENGER UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Audit Risk
Answer:
The risk that the auditors may unknowingly fail to appropriately modify their
opinion on financial statements that are materially misstated.
Question:
2. Data Warehouses
Answer:
A collection of information gathered from an assessment of external and
operational (I.e. internal) databases to facilitate reporting for decision making and
business analysis
Often serve as the main repository of the firm's historical data (corporate memory)
and as an archive of past firm performance
Kept separate from the operational database, but work together with them to
provide insight (especially with CRM and SCM)
Designed to facilitate decision making (especially in managerial accounting)
Question:
3. Concepts from SAP Projects
Answer:
Question:
4. Reporting Process
Answer:
Data Warehouses- often serve as the main repository of the firm's historical data
(corporate memory) and as an archive of past firm performance
Business Intelligence- uses computer-based techniques to accumulate and
analyze data that might be helpful to the firm's strategic initiatives
Digital Dashboards- track critical firm performance in a way that is easily
accessible to executives
Question:
5. XBRL
Answer:
Extensible Business Reporting Language
Serves as a means to electronically communicate business information to facilitate
business reporting of financial and nonfinancial data to users
Can greatly enhance the speed and accuracy of business reporting
, Question:
6. Corporate Governance
Answer:
the way in which a corporation is structured and the effect that structure has on
the corporation's behavior
Question:
7. Internal Control
Answer:
Objectives:
-Safeguard assets
-Check accuracy and reliability of accounting data
-Promote operational efficiency
-Enforce prescribed managerial policies
Three main types:
-Preventative controls: deter problems before they arise (authorization)
-Detective controls: find problems when they arise (bank reconciliations and
monthly trial balances)
-Corrective controls: fix problems that have been identified (backup files to
recover corrupted data)
They are continuous, effected by people, able to provide reasonable assurance,
and are adaptable
Question:
8. COSO
Answer:
Committee of Sponsoring Organizations,
One of the most widely accepted authority on internal control, providing a
baseline for evaluating, reporting, and improving internal control
Three Areas of Focus:
1. Internal Control
2. Enterprise Risk Management
3. Fraud Deterrence
Question:
9. COBIT
Answer:
Control Objectives for Information and Related Technology
A control framework for the governance and management of enterprise IT
QUESTIONS AND CORRECT ANSWERS
Question:
1. Audit Risk
Answer:
The risk that the auditors may unknowingly fail to appropriately modify their
opinion on financial statements that are materially misstated.
Question:
2. Data Warehouses
Answer:
A collection of information gathered from an assessment of external and
operational (I.e. internal) databases to facilitate reporting for decision making and
business analysis
Often serve as the main repository of the firm's historical data (corporate memory)
and as an archive of past firm performance
Kept separate from the operational database, but work together with them to
provide insight (especially with CRM and SCM)
Designed to facilitate decision making (especially in managerial accounting)
Question:
3. Concepts from SAP Projects
Answer:
Question:
4. Reporting Process
Answer:
Data Warehouses- often serve as the main repository of the firm's historical data
(corporate memory) and as an archive of past firm performance
Business Intelligence- uses computer-based techniques to accumulate and
analyze data that might be helpful to the firm's strategic initiatives
Digital Dashboards- track critical firm performance in a way that is easily
accessible to executives
Question:
5. XBRL
Answer:
Extensible Business Reporting Language
Serves as a means to electronically communicate business information to facilitate
business reporting of financial and nonfinancial data to users
Can greatly enhance the speed and accuracy of business reporting
, Question:
6. Corporate Governance
Answer:
the way in which a corporation is structured and the effect that structure has on
the corporation's behavior
Question:
7. Internal Control
Answer:
Objectives:
-Safeguard assets
-Check accuracy and reliability of accounting data
-Promote operational efficiency
-Enforce prescribed managerial policies
Three main types:
-Preventative controls: deter problems before they arise (authorization)
-Detective controls: find problems when they arise (bank reconciliations and
monthly trial balances)
-Corrective controls: fix problems that have been identified (backup files to
recover corrupted data)
They are continuous, effected by people, able to provide reasonable assurance,
and are adaptable
Question:
8. COSO
Answer:
Committee of Sponsoring Organizations,
One of the most widely accepted authority on internal control, providing a
baseline for evaluating, reporting, and improving internal control
Three Areas of Focus:
1. Internal Control
2. Enterprise Risk Management
3. Fraud Deterrence
Question:
9. COBIT
Answer:
Control Objectives for Information and Related Technology
A control framework for the governance and management of enterprise IT
