ARM 400 - Chapter 7 Exam | Questions with 100%
Correct Answers | Verified | Latest Update
2026/2027
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Terms in this set (56)
A system or process that an Internal Control
organization uses to achieve its
operational goals, internal and
external financial reporting goals, or
legal and regulatory compliance
goals.
The degree of importance a board Control Environment
of directors and management place
on their organization's internal
control system and their related
actions.
A federal statutory law governing Sarbanes-Oxley Act of 2002
corporate directors in the areas of
investor protection, internal controls,
and penalties, both civil and criminal.
A system of specified standards or Management Controls
objectives against which an
organization's management
measures performance.
, Controls designed to prevent errors Preventive Controls
or inconsistencies.
Controls designed to detect errors Detective Controls
or inconsistencies after they have
occurred.
Safeguarding and protecting assets. Organizational Objectives
Ensuring legal and regulatory
compliance.
Improving internal and external
reporting reliability.
Preserving shareholders' or
stakeholders' interests.
Promoting operational efficiency and Transactional Objectives
effectiveness.
Ensuring adherence to policies and
procedures.
Guaranteeing accurate record
keeping.
For a system of internal controls to Control Environment
be effective, there must also be a
strong _________?
Accountability for internal controls Top
always starts at the (top or bottom?)
of the organization, with policies and
procedures that define employees'
responsibilities.
Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (56)
A system or process that an Internal Control
organization uses to achieve its
operational goals, internal and
external financial reporting goals, or
legal and regulatory compliance
goals.
The degree of importance a board Control Environment
of directors and management place
on their organization's internal
control system and their related
actions.
A federal statutory law governing Sarbanes-Oxley Act of 2002
corporate directors in the areas of
investor protection, internal controls,
and penalties, both civil and criminal.
A system of specified standards or Management Controls
objectives against which an
organization's management
measures performance.
, Controls designed to prevent errors Preventive Controls
or inconsistencies.
Controls designed to detect errors Detective Controls
or inconsistencies after they have
occurred.
Safeguarding and protecting assets. Organizational Objectives
Ensuring legal and regulatory
compliance.
Improving internal and external
reporting reliability.
Preserving shareholders' or
stakeholders' interests.
Promoting operational efficiency and Transactional Objectives
effectiveness.
Ensuring adherence to policies and
procedures.
Guaranteeing accurate record
keeping.
For a system of internal controls to Control Environment
be effective, there must also be a
strong _________?
Accountability for internal controls Top
always starts at the (top or bottom?)
of the organization, with policies and
procedures that define employees'
responsibilities.
