Question 1

Which of the following best describes the primary objective of an Accounting Information System (AIS)?

Accepted Answer

To control the organization so it can achieve its objectives.

Question 2

A company is evaluating the risk of a cyberattack on its accounting information system. The potential dollar loss if the attack occurs is $100,000, and the probability of occurrence is 5%. What is the expected loss from this threat?

Accepted Answer

$$ \5$$,000 $

Question 3

Which control framework is specifically designed for IT control and separates governance from management?

Accepted Answer

COBIT

Question 4

Which of the following is NOT a function of internal controls?

Accepted Answer

Profit maximization controls

Question 5

Under the COSO-ERM framework, which component involves identifying incidents that could affect the achievement of organizational objectives?

Accepted Answer

Event identification

Question 6

A company decides to buy insurance to protect against the risk of data loss. Which risk response strategy is this an example of?

Accepted Answer

Share

Question 7

Which of the following is a key element of the internal environment in the COSO framework?

Accepted Answer

Methods of assigning authority and responsibility

Question 8

Which legislation requires all publicly owned corporations to maintain a system of internal accounting control to prevent bribery of foreign officials?

Accepted Answer

Foreign Corrupt Practices Act (FCPA)

Question 9

A company is considering outsourcing its payroll function to reduce risk. According to the COSO-ERM risk response options, this is an example of:

Accepted Answer

Share

Question 10

Which of the following control activities is most effective in preventing employees from both authorizing and recording transactions?

Accepted Answer

Segregation of duties

Question 11

If a company estimates the probability of a threat occurring as $$0.02$$ and the potential impact as $$\250$$,000$, what is the expected loss?

Accepted Answer

$$ \5$$,000 $

Question 12

Which of the following is NOT a principle of the COBIT5 framework?

Accepted Answer

Focusing solely on financial reporting

Question 13

Which type of internal control is designed to discover problems that are not prevented?

Accepted Answer

Detective controls

Question 14

A company’s management is committed to integrity and ethical values. According to the COSO framework, this is part of which component?

Accepted Answer

Internal environment

Question 15

Which of the following best describes inherent risk?

Accepted Answer

Risk that exists before plans are made to control it

Question 16

Which control activity would be most effective in ensuring that only authorized personnel can approve large purchases?

Accepted Answer

Proper authorization of transactions and activities

Question 17

A company implements a fraud hotline and installs fraud detection software. These are examples of which internal control function?

Accepted Answer

Detective controls

Question 18

Which of the following is a compliance objective under the COSO-ERM framework?

Accepted Answer

Compliance with applicable laws and regulations

Question 19

A company’s Board of Directors oversees internal controls. This is an example of which COSO component?

Accepted Answer

Internal environment

Question 20

Which of the following is a detective control activity commonly used in companies?

Accepted Answer

Conducting periodic audits

Control and Accounting Information Systems: Internal Controls, Risk Management, and Regulatory Frameworks

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