ACC 3385 EXAM 2 QUESTIONS AND CORRECT
ANSWERS 100% VERIFIED!!
1.Which of the following input controls would prevent an incorrect state abbreviation
from being accepted as legitimate data? (CPA)
A. reasonableness test
B. field check
C. digit verification check
D. validity check - ANSWER D. validity check
2. A clerk entered information regarding a new employee's home address, but
unintentionally omitted a city from the mailing address. The best control to detect this
omission is a (CPA)
A. batch total
B. completeness test
C. hash total
D. limit or reasonableness test - ANSWER B. completeness test
3. A clerk entered information regarding a new employee, but entered year 2070,
instead of 1970, as a birth year. The best control to detect this omission is a (CPA)
A. batch total
B. completeness test
C. hash total
D. limit or reasonableness test - ANSWER D. limit or reasonableness test
4. Which of the following input controls in a numeric value computed to provide
assurance that the original value has not been altered in construction? (CPA)
,A. hash total
B. parity check
C. encryption
D. check digit - ANSWER D. check digit
5. Which of the objectives listed below is not considered part of the internal control
process?
A. compliance with applicable laws and regulations
B. the prevention of fraud and embezzlement
C. effectiveness and efficiency of operations
D. reliability of financial reporting - ANSWER B. the prevention of fraud and
embezzlement
6. The internal control premise that concerns the relatives costs and benefits is known
as
A. responsibility
B. risk
C. reasonable assurance
D. exposure - ANSWER C. reasonable assurance
7. The component of internal control that is the foundation for all other components is
____
A. risk assessment
B. information and communication
C. control activities
D. control environment or internal environment - ANSWER D. control environment or
internal environment
10. Three types of functions that normally should be segregated to promote internal
, control are
A. recording transactions, authorizing transactions and approval
B. authorizing transactions, approving transactions, and custody of assets
C. authorizing transactions, recording transactions, and custody of assets
D. authorizing transactions, inputting data, and outputting data - ANSWER C.
authorizing transactions, recording transactions, and custody of assets
11. Audit-committee in a publicly-traded company
A. is composed only of an organization's shareholders
B. should be primarily composed of only external board members
C. ideally should be composed only of members who are also high-level executives in
the organization
D. ideally should report directly to the controller - ANSWER B. should be primarily
composed of only external board members
12. A weakness in an information security system is
A. threat
B. exposure
C. vulnerability
D. system fault - ANSWER C. vulnerability
13. Which of the following best describes the Foreign Corrupt Practices Act of 1977
(amended 1988)? - ANSWER Answer: It established provisions for record keeping and
internal control for companies registered with the Securities and Exchange Commision
14. Which of the following is not a responsibility of an audit committee?
A. hires the external auditor
B. attesting to the fairness of the financial statements
C. reviewing the significant financial information
ANSWERS 100% VERIFIED!!
1.Which of the following input controls would prevent an incorrect state abbreviation
from being accepted as legitimate data? (CPA)
A. reasonableness test
B. field check
C. digit verification check
D. validity check - ANSWER D. validity check
2. A clerk entered information regarding a new employee's home address, but
unintentionally omitted a city from the mailing address. The best control to detect this
omission is a (CPA)
A. batch total
B. completeness test
C. hash total
D. limit or reasonableness test - ANSWER B. completeness test
3. A clerk entered information regarding a new employee, but entered year 2070,
instead of 1970, as a birth year. The best control to detect this omission is a (CPA)
A. batch total
B. completeness test
C. hash total
D. limit or reasonableness test - ANSWER D. limit or reasonableness test
4. Which of the following input controls in a numeric value computed to provide
assurance that the original value has not been altered in construction? (CPA)
,A. hash total
B. parity check
C. encryption
D. check digit - ANSWER D. check digit
5. Which of the objectives listed below is not considered part of the internal control
process?
A. compliance with applicable laws and regulations
B. the prevention of fraud and embezzlement
C. effectiveness and efficiency of operations
D. reliability of financial reporting - ANSWER B. the prevention of fraud and
embezzlement
6. The internal control premise that concerns the relatives costs and benefits is known
as
A. responsibility
B. risk
C. reasonable assurance
D. exposure - ANSWER C. reasonable assurance
7. The component of internal control that is the foundation for all other components is
____
A. risk assessment
B. information and communication
C. control activities
D. control environment or internal environment - ANSWER D. control environment or
internal environment
10. Three types of functions that normally should be segregated to promote internal
, control are
A. recording transactions, authorizing transactions and approval
B. authorizing transactions, approving transactions, and custody of assets
C. authorizing transactions, recording transactions, and custody of assets
D. authorizing transactions, inputting data, and outputting data - ANSWER C.
authorizing transactions, recording transactions, and custody of assets
11. Audit-committee in a publicly-traded company
A. is composed only of an organization's shareholders
B. should be primarily composed of only external board members
C. ideally should be composed only of members who are also high-level executives in
the organization
D. ideally should report directly to the controller - ANSWER B. should be primarily
composed of only external board members
12. A weakness in an information security system is
A. threat
B. exposure
C. vulnerability
D. system fault - ANSWER C. vulnerability
13. Which of the following best describes the Foreign Corrupt Practices Act of 1977
(amended 1988)? - ANSWER Answer: It established provisions for record keeping and
internal control for companies registered with the Securities and Exchange Commision
14. Which of the following is not a responsibility of an audit committee?
A. hires the external auditor
B. attesting to the fairness of the financial statements
C. reviewing the significant financial information
