Question

1.
Which of the following is true regarding internal controls?


All financial areas use the same internal controls.


Internal controls help prevent theft but do not ensure compliance with laws.


Internal controls do little to improve efficiency.


Internal controls can be preventative, detective, or corrective.

2.
Rahul is certain to lock up the warehouse at his computer store every evening. What type of internal control is he using?


preventative control


corrective control


None of these internal controls is correct.


detective control

3.
Which benefit of using an accounting information system provides a secure environment for a company to store data?


accuracy


cost


safety


training

4.
What unique accounting requirement do public corporations have?


They are required to have an accounting firm audit their financial statements each year.


They do not have to pay income taxes on their profits.


The board of directors must be made up of previous employees.


Public corporations must use cash basis accounting.

5.
Each of the following is a characteristic of a closely held corporation except which example?


The majority of stock is held by fewer than five people.


They do not trade their stock.


They are required to submit the same government filings required of a publicly traded company.


They are often owned by members of the same family.

6.
Which of the following is a unique characteristic of third-party and supply chain attacks?


The security breach is done through access granted to a customer or vendor.


The security breach is the result of using old hardware.


The security breach is achieved by using fake social media accounts.


The security breach is the result of an employee accidentally providing their login information to a criminal.

7.
Why is a company’s reliance on technology, through the use of an accounting information system, a potential challenge?


Because some customers and vendors will require paper-based documentation.


Because opening the system to customers and vendors can compromise the data.


Because technology can be less accurate than paper-based records.


Because technology is only available in a one-size-fits-all form and cannot be customized to a business.

8.
Employee training is one of the best protections a company can put in place to defend against cyberattacks. On which of the following should employees be especially trained?


phishing and smishing


social engineering


supply chain attacks


endpoint attacks

9.
Each of the following would be recorded within an accounting information system except which example?


the payment of rent expense


the receipt of cash for services provided to a customer


the modification of a company’s logo


the closing of a temporary account

10.
If a company has employees that work remotely, which of the following can be used to securely transfer information between the company network and personal devices?


virtual private network


firewall


malware


social media accounts

11.
Which of the following is not typically included in a partnership agreement?


how to handle disputes within the firm


who has the authority to obligate the firm


how much the partnership expects to earn during its first year


the amount of work required of each partner

12.
Which of the following is a form of malware?


phishing


social engineering


ransomware


smishing

13.
Within an accounting information system, which of the following is a challenge that can exist due to the unwillingness of employees to learn a new system?


cost


accuracy


training


identification of errors

14.
Which of the following statements regarding identity theft is accurate?


It is both a type of computer fraud and a type of computer crime.


It is a type of computer fraud but is not a type of computer crime.


It is not a type of computer fraud, but it is a type of computer crime.


It is neither a type of computer fraud nor a type of computer crime.

15.
Which of the following is a typical task for a forensic accountant?


reviewing a company’s policies and procedures


performing computer system audits


testing inventory controls


serving as an expert witness in a court case

Answer 1

1. Internal controls can be preventative, detective, or corrective.

2. Preventative control.

3. Safety.

4. They are required to have an accounting firm audit their financial statements each year.

5. They are required to submit the same government filings required of a publicly traded company. (this is not a characteristic of closely held corps)

6. The security breach is done through access granted to a customer or vendor.

7. Because opening the system to customers and vendors can compromise the data.

8. Phishing and smishing.

9. The modification of a company’s logo.

10. Virtual private network.

11. How much the partnership expects to earn during its first year.

12. Ransomware.

13. Training.

14. It is both a type of computer fraud and a type of computer crime.

15. Serving as an expert witness in a court case.