DR.LORAAS AIS EXAM 1 UPDATED Exam Questions and CORRECT Answers
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Course
DR.LORAAS AIS
Institution
DR.LORAAS AIS
DR.LORAAS AIS EXAM 1 UPDATED
Exam Questions and CORRECT Answers
What are the 5 Elements of the COSO Framework - Correct Answer- 1) Control enviornment
2) Risk Management
3) Control Activities
4) Information & communication
5) Monitorning
Control Environment - Correct Answer- Tone at the Top
DR.LORAAS AIS EXAM 1 UPDATED
Exam Questions and CORRECT Answers
What are the 5 Elements of the COSO Framework - Correct Answer- 1) Control enviornment
2) Risk Management
3) Control Activities
4) Information & communication
5) Monitorning
Control Environment - Correct Answer- Tone at the Top
Integrity and ethical values
Board demonstrates independance from managers
develop and train competent people
includes the boundaries of acceptable behavior, importance of internal controls, and the
overall culture of the company
Risk Management - Correct Answer- Organization identifies potential for fraud
Identifies risk to internal controls
Opportunity, Rationalization, Pressure
Control activities - Correct Answer- Control activities that contribute to the mitigation of
risks:
Policies & Procedures: Can be- Preventative, Detective, or Corrective
Information & Comunication - Correct Answer- Company obtains or generates relevant,
quality information
for the business to run effectively
What Is a business Process? - Correct Answer- An activity, or set of activities that accomplish
a specific organizational goal.
Sales, Purchasing, payroll. Etc.
, Why do we Care? - Correct Answer- Because they end up on our financial statements.
Sales= REVENUES
Purchases= Expenses,assets, liabilities
payroll= expenses, Liabilities
What types of posts are likely to be exaggerated? - Correct Answer- Sales, Revenues
What types of post are likely to be played down? - Correct Answer- expenses, liabilities. etc...
Occurance - Correct Answer- All transactions that have been recorded have occurred and
pertain to the entity
ANYTHING a Manager might want to OVERSTATE to make financials look better.
SALES = High Occurance
Completeness - Correct Answer- All transactions that SHOULD have been recorded have
been recorded.
More concerned with Understatements
Authorization - Correct Answer- All transactions and events have been properly authorized.
Credit check
Shipment of goods
Setting Price Includes freight & terms
Approvals of Credit to accounts receivable, returns and allowances or write off of
uncollectibles
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