Question 1

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

Accepted Answer

A)  Internal controls
B)  A control environment
C)  Risk assessment
D)  Management consultants

Question 2

Risk portfolio represents the amount and type of risk that an organization is willing to accept in pursuit of its goals and objectives.

Accepted Answer

A) True 
 B)False

Question 3

A good internal control system will contribute towards detecting accidental errors made by employees.

Accepted Answer

A) True 
 B)False

Question 4

COSO did not change its definition of enterprise risk management when it released the 2017 COSO ERM Report.

Accepted Answer

A) True 
 B)False

Question 5

The five components of internal control articulated in the 2013 COSO Report include Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

Accepted Answer

A) True 
 B)False

Question 6

COBIT 5's principles guide effective management and governance of IT within the enterprise.

Accepted Answer

A) True 
 B)False

Question 7

Both cash and credit customers are educated to expect a sales ticket.Tickets are serially numbered.All numbers are accounted for daily.

Accepted Answer

A)  Customers complain that their monthly bills contain items that have been paid
B)  Some customers have the correct change for the merchandise purchased; they pay and do not wait for a sales ticket
C)  Customers complain that they are billed for goods they did not purchase
D)  Customers complain that goods ordered are not received
E)  Salesclerks destroy duplicate sales tickets for the amount of cash stolen

Question 8

The 2013 COSO Report stresses that:

Accepted Answer

A)  Internal control is a process
B)  An internal control system, if properly designed, can become a substitute for management
C)  People only at high levels of an organization are an important part of an internal control system
D)  An internal control system should consist of three interrelated components: the control environment, risk assessment, and control activities

Question 9

The 2013 COSO Report identifies five components for an effective internal control system.Which of those five includes the methods used to record, process, summarize, and report a company's transactions?

Accepted Answer

A)  Control procedures
B)  Control environment
C)  Control activities
D)  Information and communication

Question 10

Many organizations have an internal audit function that makes periodic reviews of each department within the organization.The focus of these reviews is to:

Accepted Answer

A)  Conduct an investigation of each department to be sure fraud is not taking place
B)  Evaluate the efficiency and effectiveness of the department
C)  Evaluate the performance of the manager of the department
D)  Report to the organization's top managers and board of directors

Question 11

Segregation of duties is a fundamental concept in an effective system of internal control.Nevertheless, the internal auditor must be aware that this safeguard can be compromised through

Accepted Answer

A)  Lack of training of employees
B)  Collusion among employees
C)  Irregular employee reviews
D)  Absence of internal auditing

Question 12

When assessing a company's internal control structure policies and procedures, the primary consideration is whether they

Accepted Answer

A)  Prevent management override
B)  Relate to the control environment
C)  Reflect management's philosophy and operating style
D)  Affect the financial statement assertions

Question 13

The 2013 COSO Report identifies five components for an effective internal control system.These are:

Accepted Answer

A)  Control environment, risk assessment, control activities, information and communication, and monitoring
B)  Control environment, control procedures, control activities, communication, and monitoring
C)  Control procedures, control activities, information, communication, and monitoring
D)  Control procedures, risk assessment, control activities, information and communication, and monitoring

Exam 6: Introduction to Internal Control Systems and Risk Management

COSO did not change its definition of enterprise risk management when it released the 2017 COSO ERM Report.

Correct Answer
verified

When assessing a company's internal control structure policies and procedures, the primary consideration is whether they

Correct Answer
verified

Many organizations have an internal audit function that makes periodic reviews of each department within the organization.The focus of these reviews is to:

Correct Answer
verified

The 2013 COSO Report identifies five components for an effective internal control system.Which of those five includes the methods used to record, process, summarize, and report a company's transactions?

Correct Answer
verified

The 2013 COSO Report stresses that:

Correct Answer
verified

COBIT 5's principles guide effective management and governance of IT within the enterprise.

Correct Answer
verified

Risk portfolio represents the amount and type of risk that an organization is willing to accept in pursuit of its goals and objectives.

Correct Answer
verified

Both cash and credit customers are educated to expect a sales ticket.Tickets are serially numbered.All numbers are accounted for daily.

Correct Answer
verified

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

Correct Answer
verified

The five components of internal control articulated in the 2013 COSO Report include Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

Correct Answer
verified

A good internal control system will contribute towards detecting accidental errors made by employees.

Correct Answer
verified

Segregation of duties is a fundamental concept in an effective system of internal control.Nevertheless, the internal auditor must be aware that this safeguard can be compromised through

Correct Answer
verified

The 2013 COSO Report identifies five components for an effective internal control system.These are:

Correct Answer
verified

Exam 6: Introduction to Internal Control Systems and Risk Management

COSO did not change its definition of enterprise risk management when it released the 2017 COSO ERM Report.

Correct AnswerverifiedShow Answer

When assessing a company's internal control structure policies and procedures, the primary consideration is whether they

Correct AnswerverifiedShow Answer

Many organizations have an internal audit function that makes periodic reviews of each department within the organization.The focus of these reviews is to:

Correct AnswerverifiedShow Answer

The 2013 COSO Report identifies five components for an effective internal control system.Which of those five includes the methods used to record, process, summarize, and report a company's transactions?

Correct AnswerverifiedShow Answer

The 2013 COSO Report stresses that:

Correct AnswerverifiedShow Answer

COBIT 5's principles guide effective management and governance of IT within the enterprise.

Correct AnswerverifiedShow Answer

Risk portfolio represents the amount and type of risk that an organization is willing to accept in pursuit of its goals and objectives.

Correct AnswerverifiedShow Answer

Both cash and credit customers are educated to expect a sales ticket.Tickets are serially numbered.All numbers are accounted for daily.

Correct AnswerverifiedShow Answer

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

Correct AnswerverifiedShow Answer

The five components of internal control articulated in the 2013 COSO Report include Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

Correct AnswerverifiedShow Answer

A good internal control system will contribute towards detecting accidental errors made by employees.

Correct AnswerverifiedShow Answer

Segregation of duties is a fundamental concept in an effective system of internal control.Nevertheless, the internal auditor must be aware that this safeguard can be compromised through

Correct AnswerverifiedShow Answer

The 2013 COSO Report identifies five components for an effective internal control system.These are:

Correct AnswerverifiedShow Answer

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