Started on Tuesday, 9 April 2024, 2:21 PM

State Finished
Completed on Tuesday, 9 April 2024, 2:31 PM
Time taken 9 mins 49 secs
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
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Consider the following BPMN diagram of a subprocess. Which of the following is required to
correct an error in the diagram?
Select one:

a.
Drop the activity named Discard Errors.

b.
Change the intermediate event to a start event.

c.
Change the intermediate error event to an exclusive gateway

d.
Add a sequence flow to an end event after the discard errors activity.

Question 2
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Which of the following is the best way to compensate for the lack of adequate segregation of
duties in a small organization?
Select one:

a.
Disclosing lack of segregation of duties to external auditors during the annual review.

b.
Allowing for greater management oversight of incompatible activities.

c.
Replacing personnel every three or four years.

d.
Requiring accountants to pass a yearly background check.

Question 3
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Segregation of duties reduces the risk of errors and irregularities in accounting records.
Select one:
True
False

Question 4
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Which of the following is not a basic activity in the conversion process?
Select one:

a.
Perform work and account for labor
b.
Authorize production

c.
Issue raw material

d.
Ship products to stores

Question 5
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Which of the following is considered an application input control?
Select one:

a.
Edit check.

b.
Reporting distribution log.

c.
Exception report.

d.
Run control total.

Question 6
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Conversion labor costs become part of cost of goods sold.
Select one:
True
False

Question 7
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Which of the following best describes the purpose of an intermediate error event?
Select one:

a.
Delays the sequence until a specified time

b.
End a process

c.
Direct sequence flow when an activity aborts

d.
Waits for external messages

Question 8
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The main objective of the ISO 27000 series is to provide a model for establishing, implementing,
operating, monitoring, maintaining, and improving information security.
Select one:
 True
False

Question 9
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Application controls limit access to viewing and changing records in a system.
Select one:
True
False

Question 10
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According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to
establish and maintain the effectiveness of internal control.
Select one:
True
False

Question 11
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Business rules describe appropriate actions to take based on process conditions.
Select one:
True
False

Question 12
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Processing controls are IT general controls.
Select one:
True
False

Question 13
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Which of the following best describes the purpose of a bill of material class?
Select one:

a.
Shows the issues of raw material items into work in process.

b.
Shows the raw material usage variance.

c.
Links finished goods to production.

d.
Links each raw material item to one or more finished good items.

Question 14
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Which of the following is not a basic activity in the conversion process?
Select one:

a.
Perform, work and account for labor

b.
Authorize production

c.
Issue raw material

d.
Ship products to stores

Question 15
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Which of the following is the best reason that a collaboration model would not be used to
diagram the conversion process?
Select one:

a.
The choreography between pools is not shown in a collaboration model.

b.
All conversion activities are internal to the organization.

c.
The orchestration of the activities is not shown in a collaboration model.

d.
A collaboration model does not include swimlanes.

Question 16
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In a computerized environment, internal controls can be categorized as general controls and
application controls.
Select one:
True
False

Question 17
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Gateways can direct sequence flow to support looping.
Select one:
True
False

Question 18
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 Flag question

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In a large pubic corporation, evaluating internal control procedures should be responsibility of:
Select one:

a.
Security management staff who report to the chief facilities officer.

b.
Accounting management staff who report to the CFO.

c.
Operations management staff who report to the chief operation officer.

d.
Internal audit staff who report to the board of directors.

Question 19
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COBIT (Control Objectives for Information and related Technology) is a generally accepted
framework for IT governance in the U.S.
Select one:
True
False

Question 20
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Which of the following best describes the purpose of an intermediate error event?
Select one:

a.
Delays the sequence until a specified time

b.
Waits for external messages

c.
Ends a process

d.
Directs sequence flow when an activity aborts

Question 21
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Which of the following least reflects the purpose of a business rule in the conversion process?
Select one:

a.
Segregating authorizing, issuing, and conversion work duties

b.
Assuring that all products meet quality standards

c.
Ensuring no production without a customer order
d.
Limiting who can view and change records in the system

Question 22
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Which of the following items is one of the eight components of COSO's enterprise risk
management framework?
Select one:

a.
Reporting.

b.
Compliance.

c.
Operations.

d.
Monitoring.

Question 23
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Which of the following types of businesses is least likely to employ a conversion process?
Select one:

a.
Bakery
b.
Restaurant

c.
Retail store

d.
Machine shop

Question 24
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Which of the following is the best reason that a collaboration model would not be used to
diagram the conversion process?
Select one:

a.
The orchestration of the activities is not shown in a collaboration model.

b.
The choreography between pools is not shown in a collaboration model.

c.
A collaboration model does not include swimlanes.

d.
All conversion activities are internal to the organization.

Question 25
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 Question text
The chief executive officer is ultimately responsible for enterprise risk management.
Select one:
True
False

Question 26
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The risk of a company's internal auditing processes failing to catch the misstated dollar amount
of revenue on the company's income statement is classified as inherent risk.
Select one:
True
False

Question 27
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The Sarbanes-Oxley Act of 2002 (SOX) 2002 requires the management of all companies and
their auditors to assess and report on the design and effectiveness of internal control over
financial reporting annually.
Select one:
True
False

Question 28
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 Flag question

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In a basic UML diagram of the conversion process, which of the following best describes the
purpose of a duality association?
Select one:

a.
Shows the participation of employees in the process.

b.
Links work in process events to the original production authorization.

c.
Tracks completion of work in process and increase to finished goods inventory.

d.
Indicates issue of raw material into the process.

Question 29
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A labor plan class would establish standard overhead allocation rates.
Select one:
True
False

Question 30
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 Flag question

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Which of the following represents an inherent limitation of internal controls?
Select one:

a.
Shipping documents are not matched to sales invoices.

b.
Bank reconciliations are not performed on a timely basis.

c.
Customer credit check not performed.

d.
The CEO can request a check with no purchase order.

Question 31
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Review of the audit log is an example of which of the following types of security control?
Select one:

a.
Corrective.

b.
Preventive.

c.
Detective.
d.
Governance.

Question 32
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Internal controls guarantee the accuracy and reliability of accounting records.
Select one:
True
False

Question 33
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According to COSO, which of the following components of the enterprise risk management
addresses an entity's integrity and ethical values?
Select one:

a.
Internal environment.

b.
Information and communication

c.
Control activities.

d.
Risk assessment.
Question 34
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Which of the following is not a component of internal control as defined by COSO?
Select one:

a.
Control activities.

b.
Control environment.

c.
Inherent risk

d.
Monitoring.

Question 35
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Which of the following control activities should be taken to reduce the risk of incorrect
processing in a newly installed computerized accounting system?
Select one:

a.
Independently verify the transactions.

b.
Segregation of duties.
c.
Ensure proper authorization of transactions.

d.
Adequately safeguard assets.

Question 36
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Review the following diagram. Which answer provides the best interpretation of the
multiplicities for the association between the Employees and Production Authorization classes?
Select one:

a.
Each production authorization results in the increase to the quantity on hand of one product.

b.
Employees manage multiple products.

c.
The employee records the completion of a job and updates finished goods.

d.
One employee can authorize production multiple times.

Question 37
Correct
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Consider the following BPMN diagram of a subprocess. Which of the following is required to
correct an error in the diagram?
Select one:

a.
Drop the activity named Discard Errors.

b.
Change the intermediate error event to an exclusive gateway

c.
Change the intermediate event to a start event

d.
Add a sequence flow to an end event

Question 38
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Review the following diagram. Which answer provides the best interpretation of the
multiplicities for the association between the Products and Production Authorization classes?
Select one:

a.
Each product is related to one production authorization.

b.
The employee records the completion of a job and updates finished goods.

c.
One employee can authorize production multiple times.

d.
Each production authorization is related to one product.

Question 39
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Which of the following statement is correct regarding internal control?
Select one:

a.
Internal control in a necessary business function and should be designed and operated to detect
errors and fraud.

b.
A well-designed internal control environment ensures the achievement of an entity's control
objectives.

c.
A well-designed and operated internal control environment should detect collusion perpetrated
by two people.

d.
An inherent limitation to internal control is the fact that controls can be circumvented by
management override.

Question 40
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Which of the following businesses is least likely to employ a conversion process?
Select one:

a.
Restaurant

b.
Machine Shop
c.
Bakery

d.
Retail Store