+1 855 855 2485

Home » Accounting Assignment Help » AIS Assignment Help » Cengage Mindtap AIS Chapter 7 Quiz

Cengage Mindtap AIS Chapter 7 Quiz

cengage exam helpQ1. The key provisions of SOX are that SOX:

  • Increased accountability of company officers and directors
  • Strengthened auditor independence rules
  • All of these choices
  • Created a new accounting oversight board

Q2. Elements common to definitions of internal control include all of the following, except:

  • Compliance with applicable laws and regulations
  • Effectiveness of operations
  • Reliability of financial reporting
  • Automation of business processes

Q3. The difference between risks and opportunities is:

  • Risks could have a positive impact and opportunities could have a negative impact on the organization’s objectives.
  • Opportunities require response, whereas risks are channeled back to the strategy-setting process.
  • Risks and opportunities are identified through risk identification.
  • Risks could have a negative impact and opportunities could have a positive impact on the organization’s objectives.

Q4. Risk responses do not include:

  • Sharing a risk by, for example, buying insurance or outsourcing the activity
  • Staying in the activity that is giving rise to the risk
  • Accepting a risk by taking no action
  • Reducing a risk by taking actions that reduce the likelihood of an event

Q5. The eight elements of ERM do not include:

  • Issue management
  • Objective setting
  • Risk management
  • Information and communication

Q6. Who is responsible for creating an organization’s control environment?

  • Directors
  • SOX
  • Shareholders
  • Management

Q7. What is the relationship between fraud and internal control?

  • Includes cost center accounting, profitability analysis for sales, activity-based accounting, and budgeting
  • Foreign Corrupt
  • Includes recording customer orders, shipping goods to the customer, but not billing customers
  • Internal control must be designed to address the risks of fraud

Q8. Organizational governance is:

  • Tactical management
  • Day to day management of the organization
  • A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance
  • Compliance

Q9. Enterprise Risk Management (ERM):

  • Provides reasonable assurance regarding the achievement of entity objectives
  • All of these choices are correct are features of an ERM
  • Is designed to manage risk
  • Is the responsibility of an entity’s board of directors, management, and other personnel

Q10. ______control plans relate to a multitude of goals and processes and business _______control plans relate to the technology used to implement the process

  • Process, pervasive
  • IT, general
  • General, IT
  • Pervasive, process