Part 4: Miscellaneous Multiple-Choice Questions 1. Which of the following statements about the internal environment is false? a. It is important to create an organizational culture that stresses a commitment to integrity and ethical values b. Management's attitudes toward internal control and ethical behavior have little impact on employee beliefs or actions c. A weak internal environment often results in breakdowns in risk management and control d. Independent audit committees play a role in internal controls by overseeing the company's internal control structure 2. A firm's sales procedure involves preparing sales invoices based on shipping documents; posting the sales amounts to accounts receivable records; and posting quantities billed to the inventory records. Due to control weaknesses in the procedure, certain goods that are shipped may not be reflected in the sales invoices. The exposure from this risk can result in: a. overstatements of revenues, receivables, and inventory b. understatements of revenues and receivables and over statement of inventory c. understatements of revenues, receivables, and inventory d. overstatements of revenues and receivables and understatement of inventory e. understatement of revenues and overstatements of receivables and inventory 3. A serious exposure for an organization that is connnected with the revenue cycle is the loss of assets. What is the related threat and applicable contrtol procudure associated with this exposure? a. receiving unordered goods; compare to valid order b. billing errors; reconciliation of shipping documents to sales order c. errors in accounts receivable; reconcile to general ledger d. shipping errors, data entry controls e. theft of inventory; documentation of all internal transfers of inventory 4. Which of the following attributes would most likely be a primary key in one of the tables of a company's database: a. Supplier name b. Supplier purchase order number c. Customer check number d. Cash receipts date e. Customer ID number 5. Which of the following is not part of the basic requirements for a well-structured relational database? a. Every attribute in every table is single-valued (i.e., each table is a flat file). b. Every event must be linked to at least one resource. c. Every table must have a primary key. d. Other non-key attributes in each table must be either a fact about the thing designated by the primary key or foreign keys used to link that table to another table. 6. Which of the following is not an advantage of a well designed Database Accounting System? a. increased efficiency for high volume applications b. minimize data redundancy c. data is independent of the programs that use data d. reduces data inconsistencies e. Data is easily accessed for reporting and cross-functional analysis