Day 23 Flashcards
What component of IC does specifying objectives fall under?
Risk Assessment - SAFR
- Speciy objectives
- analyze risks
- consider fraud
- assess changes
MCQ-00502
What is the most profitable market strategy?
Where marginal revenue equals marginal costs
Note: of marginal revenue exceeds marginal costs there are profits still left on the table
MCQ-07837
When will the demand for currencies increase?
When the demand increases due to higher interest rates
MCQ-07847
Examples of leading economic indicators:
- Orders for goods
- Building permits for residential properties
- Price changes of materials
Note: manufacturing and trade sales are coincidental
MCQ-07858
Define: Lagging Economic Indicator
Lagging indicators follow economic activity
Ex:
- Avg. Duration of unemployment
- Prime rate charged by banks
- Number of bank loans outstanding
MCQ-07816
When trying to predict how long an economy will be in it’s current recovery phase before entering into the expansionary phase, economist look at what indicators?
Leading Indicators:
- Data for new unemployment claims
- Building permits for new construction
- Changes of prices for materials used in production
MCQ-07825
Define: System Availability Control
Operational access controls
Ex: Servers are housed in a flood zone, the company raises the floors so the servers are higher than the flood zone
MCQ-14515
What is involved in the assess-and-report phase of an effective approach to monitoring IC?
Prioritize findings
CRIME - SOD
- Separate / Ongoing evaluations
- Communicate Deficiencies
MCQ-04329
According to SOX, when an issuers board of directors selects members to be on the company’s audit committee, they must pick who?
Per Title III: Audit Committee Members must be member’s of the company’s board of directors
They must be independent and CANNOT accept compensation for consulting or advisory services
Individuals who are employed by the company in a Financial Mgmt position
MCQ-08749
What is the difference between a Full Backup and a Differential Backup?
Full Backup = Exact copy of entire database
Differential Backup = Copies all changes made since the last Full Backup - only contains the cumulative effects of all activity since the last Full Backup
MCQ-13033
Periodic reconciliations of changes to data is what type of control?
Detective Control since it reviews changes
MCQ-14573
Why did the The Committee Of Sponsoring Organizations create the IC-Intergrated Framework?
to help businesses assess internal control
IC was invented in 1992
ERM was invented in 2004
MCQ-06752
When processing sales orders, what document authorizes the warehouse to send goods to the shipping department?
American Reading Company - Eddie & Chinese kid
Picking Ticket
MCQ-15766
MCQ-08980
What are the characteristics of Total Quality Management?
- Customer Focus/Needs
- Continuous Improvement
- Quality Circles
MCQ-06790
