Accounts Payable Specialist Certification IOFM Exam
Questions with Correct Verified Answers Latest Update
(2024/2025) Guaranteed Pass
Internal Controls - ANSWER a system of processes and procedures intended to provide a
reasonable safeguard of company assets and other company resources
Sarbanes-Oxley Act - ANSWER 2002; requires that all publicly traded companies establish
internal controls and document, test, and maintain those controls to ensure their effectiveness
By setting objectives, a company can: - ANSWER measure the effectiveness of internal controls
by how well the objectives are achieved
COSO's 5 Components of Internal Controls - ANSWER Control Environment;
Risk Assessment;
Control Activities;
Information and Communications;
Monitoring;
Control Environment - ANSWER foundation of internal control systems; provides the structure
and discipline; examples: integrity, ethics, values, and competence
Risk Assessment - ANSWER an organization must assess risk in light of their strategy and
objectives
Control Activities - ANSWER the policies and procedures established to insure actions are
executed to achieve the organization's objectives; examples: authorization, approvals,
reconciliation, etc
, Information and Communications - ANSWER reliable and relevant information from both
internal and external sources must be captured, processed, and communicated to all necessary
people.
Monitoring - ANSWER ensures that internal controls continue to operate efficiently and
effectively; examples: self-assessments, peer reviews, and internal auditing
Four elements to consider in evaluating the need for specific internal controls: - ANSWER
Understanding the Risk;
Identity Control Activity;
Benefits vs. Costs;
Establish Internal Control;
Two Categories of Internal Controls - ANSWER Process Controls (Preventative & Detective);
System Controls (General & Application);
Preventative Process Controls - ANSWER attempt to deter or prevent undesirable events from
occurring; examples: authorizations, approvals, and verification
Segregation of Duties - ANSWER duties are segregated among different people to reduce the
risk of inappropriate actions
Detective Process Controls - ANSWER attempt to detect undesirable actions; examples:
reconciliation and performance measurements
Reconciliation - ANSWER the process of comparing entries in the general ledger to supporting
documentation
Questions with Correct Verified Answers Latest Update
(2024/2025) Guaranteed Pass
Internal Controls - ANSWER a system of processes and procedures intended to provide a
reasonable safeguard of company assets and other company resources
Sarbanes-Oxley Act - ANSWER 2002; requires that all publicly traded companies establish
internal controls and document, test, and maintain those controls to ensure their effectiveness
By setting objectives, a company can: - ANSWER measure the effectiveness of internal controls
by how well the objectives are achieved
COSO's 5 Components of Internal Controls - ANSWER Control Environment;
Risk Assessment;
Control Activities;
Information and Communications;
Monitoring;
Control Environment - ANSWER foundation of internal control systems; provides the structure
and discipline; examples: integrity, ethics, values, and competence
Risk Assessment - ANSWER an organization must assess risk in light of their strategy and
objectives
Control Activities - ANSWER the policies and procedures established to insure actions are
executed to achieve the organization's objectives; examples: authorization, approvals,
reconciliation, etc
, Information and Communications - ANSWER reliable and relevant information from both
internal and external sources must be captured, processed, and communicated to all necessary
people.
Monitoring - ANSWER ensures that internal controls continue to operate efficiently and
effectively; examples: self-assessments, peer reviews, and internal auditing
Four elements to consider in evaluating the need for specific internal controls: - ANSWER
Understanding the Risk;
Identity Control Activity;
Benefits vs. Costs;
Establish Internal Control;
Two Categories of Internal Controls - ANSWER Process Controls (Preventative & Detective);
System Controls (General & Application);
Preventative Process Controls - ANSWER attempt to deter or prevent undesirable events from
occurring; examples: authorizations, approvals, and verification
Segregation of Duties - ANSWER duties are segregated among different people to reduce the
risk of inappropriate actions
Detective Process Controls - ANSWER attempt to detect undesirable actions; examples:
reconciliation and performance measurements
Reconciliation - ANSWER the process of comparing entries in the general ledger to supporting
documentation
