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ACTG 313 Practice Question With Correct
Answers 100% Verified.
A management information system - Answer✔supports the operations, management, and
decision-making functions in an organization
What s false about AIS? - Answer✔An AIS is best suited to solve problems where there is great
uncertainty and ill-defined reporting requirements
Your firm has recently converted its purchasing cycle from a manual process to an online
computer system. What is a probable result of the conversion? - Answer✔traditional duties are
less separated
in the organization of the information systems function, the most important segregation of
duties is: - Answer✔assuming that those responsible for programming the system do. not have
access to data processing operations
what risks are greater in computerized systems than in manual systems? - Answer✔1.
Erroneous data conversion
2. repetition of errors
3. concentration of data
a file containing relatively permanent information used as a source of reference and
periodically updates with detail is termed a: - Answer✔master file
what feature is LEAST likely to be found in a real-time application? - Answer✔turnaround
documents
Objectivity in the AICPA code of conduct refers to a CPA's ability to: - Answer✔maintain an
impartial attitude on all matters that come under the CPA's review
audit risk at the assertion level consist of inherent risk, control risk, and detection risk, what is
true regarding this? - Answer✔cash is more susceptible to theft than an inventory of coal
because it has greater inherent risk
1|Page
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the components of internal control include: - Answer✔a process of managing risks relevant to
preparing financial statements
in an audit of financial statements, an auditor's primary consideration regarding an internal
control is whether the control: - Answer✔affects management's financial statement assertions
the primary reason to establish internal controls is to - Answer✔provide reasonable assurance
that the objectives of the organization are achieved
internal control can provide only reasonable assurance of achieving an entity's control
objectives. The likelihood of achieving those objectives is affected by which limitation inherent
to internal control? - Answer✔the cost of internal control should not exceed its benefits
The risk of material misstatements (RNMs) should be assessed in terms of - Answer✔financial
statement assertions
what best describes managements requirements for strategic planning? - Answer✔wide scope
aggregate
future-oriented info
if internal controls is properly designed, the same employee may be permitted to -
Answer✔sign checks and also cancel supporting documents
The. internal control objectives of the revenue cycle include: - Answer✔1. Revenue cycle
transactions are properly executed
2. Transactions relating to revenue are properly recorded
3. Custody over assets resulting from the revenue cycle is properly maintained
an auditors test an entity's policy of obtaining credit approval before shipping goods to
customers in support of management's financial statement assertion of: - Answer✔Valuation
what control would most likely help ensure that all credit sales transaction of an entity are
recorded? - Answer✔the billing department supervisor matches prenumbered shipping
documents with entries in the sales journal
cash receipts from sales on account have been misappropriated what act would conceal this
defalcation and be least likely to be detected - Answer✔understating the sales journal entry
In retail cash sales environment, what control is often missing - Answer✔separation of duties
proper authorization of write-offs of uncollectible accounts should be approved in which
department? - Answer✔CFO
sound internal control activities dictate that defective merchandise returned by customers be
presented initially to the - Answer✔Receiving clerk
2|Page
ACTG 313 Practice Question With Correct
Answers 100% Verified.
A management information system - Answer✔supports the operations, management, and
decision-making functions in an organization
What s false about AIS? - Answer✔An AIS is best suited to solve problems where there is great
uncertainty and ill-defined reporting requirements
Your firm has recently converted its purchasing cycle from a manual process to an online
computer system. What is a probable result of the conversion? - Answer✔traditional duties are
less separated
in the organization of the information systems function, the most important segregation of
duties is: - Answer✔assuming that those responsible for programming the system do. not have
access to data processing operations
what risks are greater in computerized systems than in manual systems? - Answer✔1.
Erroneous data conversion
2. repetition of errors
3. concentration of data
a file containing relatively permanent information used as a source of reference and
periodically updates with detail is termed a: - Answer✔master file
what feature is LEAST likely to be found in a real-time application? - Answer✔turnaround
documents
Objectivity in the AICPA code of conduct refers to a CPA's ability to: - Answer✔maintain an
impartial attitude on all matters that come under the CPA's review
audit risk at the assertion level consist of inherent risk, control risk, and detection risk, what is
true regarding this? - Answer✔cash is more susceptible to theft than an inventory of coal
because it has greater inherent risk
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
the components of internal control include: - Answer✔a process of managing risks relevant to
preparing financial statements
in an audit of financial statements, an auditor's primary consideration regarding an internal
control is whether the control: - Answer✔affects management's financial statement assertions
the primary reason to establish internal controls is to - Answer✔provide reasonable assurance
that the objectives of the organization are achieved
internal control can provide only reasonable assurance of achieving an entity's control
objectives. The likelihood of achieving those objectives is affected by which limitation inherent
to internal control? - Answer✔the cost of internal control should not exceed its benefits
The risk of material misstatements (RNMs) should be assessed in terms of - Answer✔financial
statement assertions
what best describes managements requirements for strategic planning? - Answer✔wide scope
aggregate
future-oriented info
if internal controls is properly designed, the same employee may be permitted to -
Answer✔sign checks and also cancel supporting documents
The. internal control objectives of the revenue cycle include: - Answer✔1. Revenue cycle
transactions are properly executed
2. Transactions relating to revenue are properly recorded
3. Custody over assets resulting from the revenue cycle is properly maintained
an auditors test an entity's policy of obtaining credit approval before shipping goods to
customers in support of management's financial statement assertion of: - Answer✔Valuation
what control would most likely help ensure that all credit sales transaction of an entity are
recorded? - Answer✔the billing department supervisor matches prenumbered shipping
documents with entries in the sales journal
cash receipts from sales on account have been misappropriated what act would conceal this
defalcation and be least likely to be detected - Answer✔understating the sales journal entry
In retail cash sales environment, what control is often missing - Answer✔separation of duties
proper authorization of write-offs of uncollectible accounts should be approved in which
department? - Answer✔CFO
sound internal control activities dictate that defective merchandise returned by customers be
presented initially to the - Answer✔Receiving clerk
2|Page
