Appendix A: Business Environment and Concepts Sample Examination
Testlet 1
1. Which of the following is not a component of internal control as set forth by the COSO internal control framework?
a. Control environment.
b. Control activities.
c. Risk assessment.
d. Segregation of duties.
2. Which of the following is not a monitoring device for effective corporate governance?
a. The audit committee.
b. The chief financial officer.
c. The SEC.
d. External auditors.
3. Which of the following is a compensation system that may result in shirking on the part of management?
a. A fixed salary.
b. A fixed salary plus a bonus based on accounting income.
c. A fixed salary plus stock options.
d. A fixed salary plus stock grants.
4. Effective enterprise risk management will provide the following benefits for a company except:
a. Fewer financial surprises.
b. Ability to seize opportunities.
c. Avoidance of all significant risks.
d. Alignment of risk with risk appetite.
5. Which of the following is not an appropriate response to an identified enterprise risk?
a. Acceptance.
b. Avoidance.
c. Sharing.
d. Assessing.
6. Which of the following is a part of the central processing unit?
a. Analog translator converter.
b. Arithmetic/logic unit.
c. Optical disk.
d. Printer unit.
7. A data model developed specifically for use in designing accounting information databases is
a. REA data model.
b. Data definition language.
c. Entity-relationship model.
d. Networked model.
8. The type of system most likely to ...
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