Benefits of generalized audit software

Final Exam –

My Name: ____________________________________________________

Score on Problem 1: ____________out of 25

Score on Problem 2: ___________out of 25

Score on MC Questions: ___________ out of 50

Total Score: ______________________out of 100

The final is open book, open note. However, you must not receive assistance from any current or former students of this course. It is due November 30, 2019 (note: Saturday night) at 11:59 pm-submit to Assignments in Leo where it says Final Exam. The test consists of two essay questions and 25 multiple choice questions. Answers to the two essay questions and the multiple choice can be provided using this one Word file with your name please as part of the file name. You should use this file and submit it with your answers on it, directly.

Essay Research Question 1 (25 points)

Discuss the advantages and the potential disadvantages of using generalized audit software. Provide examples of specific types of generalized audit software which are available. Use your own words (no cutting and pasting). This submission should be at least 2-pages in length, excluding any References, double-spaced (longer submissions are acceptable).

Essay Research Question 2 (25 points)

Thinking about the concepts in COSO regarding the importance of the Internal Environment in the overall internal control and overall risk management frameworks, which factors included in COSOs Internal Environment could impact, especially negatively, the quality, privacy, and the confidentiality of vendor data entered into the information system? Use your own words (no cutting and pasting). Be specific, please including specific examples, too, as part of your response. This submission should also be at least 2-pages in length, excluding any References, double-spaced (longer submissions are acceptable).

Multiple Choice Questions (50 points-2 points each) (Please darken in yellow color your chosen answer choice for each Question).

1. Which of the following is not a component of internal control as set forth by the COSO internal control framework?

a. Control environment.

b. Control activities.

c. Risk assessment.

d. Segregation of duties.

2. Which of the following is not a monitoring device for effective corporate governance?

a. The audit committee.

b. The chief financial officer.

c. The SEC.

d. External auditors.

3. Effective enterprise risk management will provide the following benefits for a company except:

a. Fewer financial surprises.

b. Ability to seize opportunities.

c. Avoidance of all significant risks.

d. Alignment of risk with risk appetite.

4. Which of the following is not an appropriate response to an identified enterprise risk?

a. Acceptance.

b. Avoidance.

c. Sharing.

d. Assessing

5. A data model developed specifically for use in designing accounting information databases is

a. REA data model.

b. Data definition language.

c. Entity-relationship model.

d. Networked model

6. The type of system most likely to be used to initially record the daily processing of transactions is

a. Transaction processing system.

b. Management information system.

c. Decision support system.

d. Executive information system.

7. Which of the following is correct concerning the Internet?

a. All communications are processed using URL—Uniform Resource Language.

b. It is composed of an international collection of networks of independently owned computers.

c. It requires the use of viruses, which invariably escape their proper primary use and infect user computers.

d. The operating center of the Internet is headquartered in the New York World Wide Web Center.

8. Devon Company is using an Enterprise Risk Management system. Management of the company has set objectives, identified events, and assessed risks. What is the next step?

a. Establish controls to manage the risks.

b. Monitor the risks.

c. Determine responses to the risks.

d. Identify activities

9. IDEA audit software is generally used for

a. testing controls

b. substantive testing of account balances

c. forensic accounting

d. all of the above

e. b and c only

10. Management has decided to respond to risk by hedging the risk with futures contracts. This is:

a. avoidance

b. acceptance

c. reduction

d. sharing

11. Which attribute is required to exist in each table of a relational database and serves as the “unique identifier” for each record in a table”

a. foreign key

b. unique identifier

c. primary key

d. key attribute

12. What describes each attribute in a database?

a. data dictionary

b. composite primary key

c. descriptive attributes

d. data dictionary

13. The advantages of storing data in a database include which of the following:

a. help in enforcing business rules

b. increased information redundancy

c. to communicate the results and insights found through the analysis

d. all of the above

e. a and c only

14. Why is a Supplier ID considered to be a primary key for a Supplier table?

a. it contains a unique identifier for each supplier

b. it is a 10-digit number

c. because supplier is always part of a many-to-many relationship.

d. it is used to identify different supplier categories.

15. What are attributes that exist in a relational database that are neither primary nor foreign keys?

a. nondescript attributes

b. descriptive attributes

c. composite key

d. relational table attribute

16. Which of the following is not a limitation of internal control?

a. human judgement in decision making may be faulty

b. external forces may attack the system

c. management may override internal control

d. controls may be circumvented by collusion.

17. Which of the following defines the time period, the level of materiality, and the expected time for an audit?

a. audit scope

b. potential risk

c. methodology

d. procedures and specific tasks

18. When there is an alarm in a continuous audit, but there is no abnormal event, we would call that a

a. false negative

b. true negative

c. true positive

d. false positive

19. XBRL stands for:

a. Extensible Business Reporting Language

b. Extensive Business Reporting Language

c. XML Business Reporting Language

d. Excel Business Reporting Language

19. Which term describes and defines each XBRL financial element

a. data dictionary

b. descriptive statistics

c. XBRL-GL

d. Taxonomy

20. Which of the following is not a benefit of enterprise risk management?

a. reduces operational surprises

b. provides integrated responses to multiple risks

c. ensures that the organization shares all major risks.

d. identifies opportunities

e. all of the above are benefits to an ERM

21. Which of the following is not a limitation to an Enterprise Risk Management System

a. Business objectives are not usually articulated

b. The system may break down

c. Collusion can result in system failure

d. Enterprise Risk Management Systems are subject to system override.

22. What is the process of assigning XBRL tags internally within a financial reporting enterprise system?

a. XBRL tagging

b. XBRL taxonomy

c. XBRL-GL

d. XBRL dictionary

23. When using [EmployeeID] as the unique identifier of the Employee table, [EmployeeID] is an example of which of the following?

a. Key attribute

b. Foreign key

c. Primary key

d. Composite key

24. XBRL uses a _______ to help describe each key data element.

a. data dictionary

b. terminology

c. taxonomy

d. schema

25. A system that stores transactions in a single database, but process them at various sites is referred to as

a. Centralized system.

b. Database management normalization system.

c. Decentralized system.

d. Distributed system