Midterms: Suggest Whether The Following Suggests A Strong or Weak Internal Control Environment

Midterms
Total points29/30
The respondent's email (jozelle.padel@one.uz.edu.ph) was recorded on submission of this form.
Suggest whether the following suggests a strong or weak internal control environment
Strong Control Environment
Weak Control Environment
Score
the firm has an up-to-date organizational chart
1/1

monthly reports comparing actual performance to budget are distributed to managers
1/1

performance evaluations are prepared every three years
1/1

the audit committee meets quarterly with the external auditors
1/1

the internal audit group reports to the audit committee of the board of directors
1/1

there is no segregation of duties between organization functions
1/1

there are questions about the integrity of management
1/1

adverse business conditions exist in the industry
1/1

the mailroom clerk authorizes credit memos
1/1

the record keeping clerk maintains both accounts receivable and accounts payable subsidiary
ledgers
1/1

the warehouse clerk obtains a signature before releasing goods for shipment
1/1

the accounts receivable clerk prepares customer statements every month
1/1

the firm has an up-to-date organizational chart
monthly reports comparing actual performance to budget are distributed to managers
performance evaluations are prepared every three years
the audit committee meets quarterly with the external auditors
the internal audit group reports to the audit committee of the board of directors
there is no segregation of duties between organization functions
there are questions about the integrity of management
adverse business conditions exist in the industry
the mailroom clerk authorizes credit memos
the record keeping clerk maintains both accounts receivable and accounts payable subsidiary
ledgers
the warehouse clerk obtains a signature before releasing goods for shipment
the accounts receivable clerk prepares customer statements every month

The characteristics that distinguish between batch and real-time systems include all
of the following except
1/1
a. time frame
b. resources used
c. file format

d. efficiency of processing

In contrast to a batch processing system, in a real-time system
1/1
a. a lag occurs between the time of the economic event and when the transaction is recorded
b. relatively fewer hardware, programming, and training resources are required
c. a lesser resource commitment per unit of output is required
d. processing takes place when the economic event occurs

Which of the following is not an element of the internal control environment?
1/1
a. management philosophy and operating style

b. organizational structure of the firm
c. well-designed documents and records

d. the functioning of the board of directors and the audit committee

Which of the following is not an element of internal control ?
1/1
Monitoring
Segregation of Duties
Control Environment
Risk Assessment

__________ involves giving, offering, soliciting, or receiving things of value to influence
an official in the performance of his or her lawful duties.
1/1
Conflict of Interest
Bribery

Illegal Gratuity
Lapping

Data flow diagrams
1/1
depict logical tasks that are being performed, but not who is performing them

illustrate the relationship between processes, and the documents that flow between them and
trigger activities
represent relationships between key elements of the computer system
describe in detail the logic of the process

Which system produces information used for inventory valuation, budgeting, cost
control, performance reporting, and make-buy decisions?
1/1
a. sales order processing

b. purchases/accounts payable
c. cash disbursements
d. cost accounting

The order of the entries made in the ledger is by
1/1
a. transaction number
b. account number

c. date
d. user

The order of the entries made in the general journal is by
1/1
a. date

b. account number
c. user
d. customer number

The Management Reporting System provides the external financial information
needed to manage a business.
1/1
True
False

Internal Control Systems have limitations
1/1
True

False

To have a good control environment , the management must have commitment to
integrity and ethical values
1/1
True

False

Management Reporting System is a component of Management Information System
1/1
True
False

Identify if the activity is a component of Revenue, Expenditure or Production Cycle
Revenue
Expenditure
Production
Score
Payment of Cash to Suppliers
1/1

Shipping finished goods to Customers
0/1

Distribution of paychecks to employees
1/1

Recording cash receipts in cash receipts journal
1/1

Transfer of goods from assembly to painting department
1/1

Payment of Cash to Suppliers
Distribution of paychecks to employees
Recording cash receipts in cash receipts journal
Transfer of goods from assembly to painting department
Correct answers
Revenue
Expenditure
Production
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Midterms

a. management philosophy and operating style

a. sales order processing

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