8. IT Controls can be divided into two categories, general controls and application controls. Which of the following is an example of a general control?

A. The alignment of a companys IT strategy with its business strategy

B. The use of passwords to allow only authorized users to log into an IT-based accounting system

C. The use of an elaborate set of checks and balances whereby a companys leadership is held accountable for building shareholder value

D. A company performing background checks on employees of its IT department

9. This group of stakeholders is responsible for financial matters, including reporting, controls, and the audit function.

A. Audit Committee

B. External Auditors

C. Board of Directors

D. Internal Auditors

10. Internal controls can be effective in preventing or detecting all of the following types of fraud except:

A. Customer Fraud

B. Management Fraud

C. Vendor Fraud

D. Employee Fraud

15. An example of Cash receipts fraud would include:

A. an employee steals checks collected from customers.

B. an employee overstates hours worked on a timecard.

C. management understates accounts payable amounts .

D. an employee steals checks before being paid to vendors.

16. The certified statement, signed by the CEO, CFO, and other responsible offices, indicate their acceptable of the responsibilities. Those responsibilities include:

A. The signing offices have reviewed the report in detail.

B. Based on the officers knowledge, the financial statements and related disclosures are fairly presented.

C. The signing officers are responsible for the establishment, maintenance, and effectiveness of internal controls.

D. All of the above.