Internal Control in Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What are rules and regulations that are put into place to guard assets owned by a person or a company?

Question 2 2. _____ means to separate one big job into several small jobs, with a different individual performing each.

Question 3 3. How many goals are there for having effective safeguards in place in the banking industry?

Question 4 4. Rachel works as a teller at the bank. Normally she reports all the transactions that have been made to the accountant at the end of the day. On this particular day, Rachel decided to just enter all the information herself rather than give them to the accountant to verify and enter, in order to save time so she could go home earlier. In doing this, has Rachel violated one of the five goals of safeguards?

Question 5 5. Measures that are taken to prevent someone or something from an undesirable outcome are called _____.

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Question 6 6. In which of the CoCo (Criteria of Control) framework areas could the following question be posed: Are the actions of employees in our department coordinated with the rest of the company?

Question 7 7. Which of the following is NOT one of the areas that CoCo (Criteria of Control) criteria address?

Question 8 8. On which level of the organization does the CoCo (Criteria of Control) framework begin?

Question 9 9. Who created the CoCo (Criteria of Control) framework?

Question 10 10. In which of the CoCo (Criteria of Control) framework areas could the following question be posed: As an employee, do I understand what I'm accountable for and do I know my areas of responsibility?

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Question 11 11. Which of the following is a coverage area from COSO's framework?

Question 12 12. What does COSO stand for?

Question 13 13. Which type of division may not be based on physical proximity, but rather based on the type of work they do?

Question 14 14. What activity shares the financial health of the company, to internal or external stakeholders?

Question 15 15. Which of the following is NOT one of the dimensions of the COSO framework?

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Question 16 16. Proper documentation is necessary to prove that a transaction was all of the following EXCEPT:

Question 17 17. What is the MAIN purpose of internal controls?

Question 18 18. Which of the following is an example of segregation of duties?

Question 19 19. Which of the following is NOT an appropriate response to risk?

Question 20 20. Internal controls are important in a government department because:

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Question 21 21. Which of the following is a control deficiency because an internal control does not exist in a process or procedure?

Question 22 22. How is risk best defined, in the business context?

Question 23 23. Cheryl started working as an accounts payable clerk at a new company. Part of her job included managing payments to vendors that were set up to be paid electronically, directly to their bank account. No one specifically told her about a process or procedure for changing a vendor's bank information, but she received an email - supposedly from the vendor, although it looked a little fishy - requesting that a vendor's banking information be changed. While she could change this and process the payment, she thought it would be important to put a preventative internal control in place so a scammer couldn't request a false change, acting like a vendor, and get payments into their account. Which of the following is a preventative control that would accomplish Cheryl's objective?

Question 24 24. Which nonprofit organization, a consortium of five industry associations, provides guidance on how auditors can assess risks faced by their organizations?

Question 25 25. Which type of internal control is put in place to mitigate risk before the risk occurrence might happen?

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Question 26 26. Identify the principle fundamental system principle that sanctions the use of dashboards and flash reports.

Question 27 27. Identify the correct definition of internal controls.

Question 28 28. Select the correct definition of the control principle.

Question 29 29. Identify what monthly bank reconciliations, physical inventories, keeping payroll information under lock and key, and using passwords are examples of.

Question 30 30. Select the goal of an accounting information system.

Internal Control in Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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