ACC 320 EXAM I EXAMINATION TEST 2026
Q&A WITH CORRECT ANSWERS GRADED A+
⫸ Which is the reason startup companies make the ideal candidate for
purchasing third-party vendor software or for using SaaS? Answer:
Lack of capital
⫸ Which is the most cost effective control activity for small
businesses? Answer: Logical access
⫸ Which of the following programs would a company use to make
their financials and other data more structured? Answer: Excel
⫸ Why would a small business invest in accounting software?
Answer: Payroll
⫸ A dispatch center will monitor its calls to make sure that the
dispatcher is answering and getting the correct help to the person if
needed in a timely manner. This is an example of Answer: continuous
monitoring.
⫸ Financial accountants implement controls including _______ to
address risk Answer: specific procedures
, ⫸ Choose the best description of risk Answer: The likelihood of an
unfavorable event occurring
⫸ Organize the three tasks below when performing risk assessment
Answer: Identity, categorize, and prioritize
⫸ A business function is a high-level ___ or _____ that performs
business processes to achieve company goals Answer: Business area,
department
⫸ Choose best definition of risk identification Answer: Identifying
the existing risks and their outcomes
⫸ Functions of Internal control Answer: Prevent,Detect, Correct
⫸ Management Override Answer: when internal control activities
don't work because management is not following policy or procedure•
When two employees collude, they work together to circumvent
controls
⫸ The Time-based Model of Controls Answer: Measures the residual
risk for technology attacks by comparing the relationship of the three
control functions
P > (D+C)
Q&A WITH CORRECT ANSWERS GRADED A+
⫸ Which is the reason startup companies make the ideal candidate for
purchasing third-party vendor software or for using SaaS? Answer:
Lack of capital
⫸ Which is the most cost effective control activity for small
businesses? Answer: Logical access
⫸ Which of the following programs would a company use to make
their financials and other data more structured? Answer: Excel
⫸ Why would a small business invest in accounting software?
Answer: Payroll
⫸ A dispatch center will monitor its calls to make sure that the
dispatcher is answering and getting the correct help to the person if
needed in a timely manner. This is an example of Answer: continuous
monitoring.
⫸ Financial accountants implement controls including _______ to
address risk Answer: specific procedures
, ⫸ Choose the best description of risk Answer: The likelihood of an
unfavorable event occurring
⫸ Organize the three tasks below when performing risk assessment
Answer: Identity, categorize, and prioritize
⫸ A business function is a high-level ___ or _____ that performs
business processes to achieve company goals Answer: Business area,
department
⫸ Choose best definition of risk identification Answer: Identifying
the existing risks and their outcomes
⫸ Functions of Internal control Answer: Prevent,Detect, Correct
⫸ Management Override Answer: when internal control activities
don't work because management is not following policy or procedure•
When two employees collude, they work together to circumvent
controls
⫸ The Time-based Model of Controls Answer: Measures the residual
risk for technology attacks by comparing the relationship of the three
control functions
P > (D+C)
