Question : 31) A system that relies electronic communications, not paper documents, : 1212728

31) A system that relies on electronic communications, not paper documents, to transfer cash is known as:

A) electronic remittance.

B) electronic funds transfer.

C) electronic mail.

D) electronic imaging.

32) Internal and external auditors are part of which of the following components of internal control?

A) monitoring controls

B) information systems

C) control procedures

D) control environment

33) A pharmaceutical company testing drugs to determine possible side effects is a part of:

A) monitoring controls.

B) information systems.

C) control procedures.

D) risk assessment.

34) Before any internal control procedure is initiated, a question which should be addressed by the company is:

A) Will this stop all theft?

B) Is this the best security money can buy?

C) How much benefit will be derived from the cost of the procedure?

D) Will this prevent all accounting errors?

35) Which of the following describes the control environment?

A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.

B) The control environment is the “tone at the top” of the business.

C) The control environment is designed to ensure that the business’s goals are achieved.

D) A company must identify its risks.

36) Which of the following describes the internal control component monitoring of controls?

A) Internal auditors monitor company controls to safeguard assets, and external auditors evaluate the controls to ensure that the accounting records are accurate.

B) Monitoring of controls is the “tone at the top” of the business.

C) Monitoring of controls is designed to ensure that the business’s goals are achieved.

D) A company must identify its risks.

37) In the following situation, which internal control procedure needs strengthening?

Hofstra Services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard. That employee has not yet been adequately trained on the maintenance needs of the equipment.

A) assignment of responsibilities

B) competent, reliable, and ethical personnel

C) separation of duties

D) documents

38) Which of the following is a security procedure designed for e-commerce that rearranges text messages by a mathematical process?

A) Trojans

B) firewalls

C) encryption

D) phishing

Match the following.

A) external auditors

B) control environment

C) internal auditors

D) control procedures

E) an audit

F) electronic funds transfer

39) Employees of a business whose job it is to ensure that all employees are following company policies and that operations are running efficiently

40) Independent accounting professionals hired to determine that the organization’s financial statements are prepared in accordance with generally accepted accounting principles.

41) System that transfers cash by digital communication rather than paper documents

42) An examination of a company’s financial statements and its accounting system

43) Methods designed to ensure that the business’s goals are achieved