CPA 12

ning Objective 1 S8-1 Defining internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records. Requirements 1. Which objective do you think is most important? 2. Which objective do you think the internal controls must accomplish for the busi- ness to survive? Give your reason.

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From a financial accounting perspective, the main purposes of a system of internal control are to improve the accuracy and reliability of accounting information and to safeguard assets. True or False True False G + 100% O

Test your knowledge The role of management accounting does not normally include the function of • A. Decision-making • B. Planning and control C. Formulating corporate strategy D. Cash management

General accounting Mcq

QUESTION 1 The objectives of internal control are to a. provide control over "internal-use only" reports and employee internal conduct b. prevent fraud, and promote the social interest of the company c. provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with d. control the internal organization of the accounting department personnel and equipment

Q14 An audit of the financial statements of a company is referred to as a(n)   a. Financial audit. b. Compliance audit. c. Operational audit. d. Integrated financial audit

1.13Match the following terms to the appropriate statement. Some terms may be used more than once and some others may not be used at all: Direction A. Accounting systems that must follow Generally Accepted Accounting Principles Creditors B. External parties for which financial accounting reports are prepared Audit C. Terms played by managers when monitoring day-to-day operations and keeping the company on track Financial D. Internal decision-makers Managerial E. Accounting system that provides information about the company's past performance. Directors F. Accounting system not limited by GAOP Programming G. The function of management that includes the selection of goals and decides how to achieve them. Shareholders

5. Which of the following is not an internal user?a. Corporate officersb. Staff employeesc. Stockholdersd. Department manager 6. Which term describes management accounting reports?a. GAAP reportsb. Special purposec. General-purposed. Regulatory reports

QUESTION 25 One of the reasons that businesses use accounting is it: O a. supplies information that permits informed judgements and decisions Ob.s casy to understand product information Ocs required by the government d. is a simple way to track company performance

Question 8 organizations use the GAAP framework of internal control as a benchmark when assessing the effectiveness of internal control over financial reporting.  True  False

Show all workings and provide descriptions of how all answers were derived.

What is the relationship between Accounting and an Accountinginformation system?  • What has happened to the relationship over the years? • What is accounting information?  • Name 4 uses of Accounting Information?  • Use an example to illustrate the difference between data,information, and intelligence?  • Discuss security concerns related to shadow data and businessintelligence technologies.  • Discuss the role of accounting professionals in thedevelopment of shadow data.  System Documentation • What is system documentation?  • Why is it important to know system documentation?  • Explain the 4 elements that makes up the Data Flow Diagrams?  • Give an example of who or when one of these documents may berequired  • What are Flowcharts?  • List an example of an Input/output, processing and storage Symbols  • Differentiate between different types of Flowchart? • If you were a new factory employee on your first day at a vastfactory, indicate which level Flowcharts would be required and •…

Comprehension questions 11 and 12 page 58 11. How does accounting information reduce agency problems in relationships between management and debt holders?

Chapter 10   Accounting Information Systems   Short Problem 10-3, page 394: Using the following table as a guide, describe for each function from Figure 10.1: A risk (an event or action that will cause the organization to fail to meet its goals/objectives) A control/process or use of technology that will address the risk.