Exam 2 Flashcards
(44 cards)
Audits are…
Detective activities
Required vacations are…
Detective activities
Separation of duties are…
Preventative activities
Background investigations are…
Detective activities
Use of passwords are…
Preventative activities
Required authorizations are…
Preventative activities
Rotation of duties are…
Detective activities
Required approvals are…
Preventative activities
Alarm systems are…
Preventative activities
Use of locks are…
Preventative activities
Variance analysis are…
Detective activities
Reconciliations are…
Detective activities
Security guards and cameras are…
Preventative activities
Educations, training and monitoring of employees are…
Preventative activities
Physical inventories are…
Detective activities
Which of the following does not support business process management?
Systems
Business process management is supported by…3
1 approaches
2 techniques
3 measures
An example of a detective control activity would be…
Reconciliations
In relation to the internal control process, control sufficiency is…
Group of controls with a variety of degrees of precision necessary to achieve control objective
Control precision 2
1 Alignment between risk and control activity
2 designed to mitigate risk
Control sufficiency 2
1 group of controls with variety of degrees of precision
2 necessary to achieve control objective
When production levels increase but stay in the relevant range,
What happens to total fixed costs?
2) Total fixed costs per unit?
Total fixed costs remain unchanged
2 total fixed costs per unit stay the same
If after tax savings are $100,000 and depreciation is $50,000 per year, what is the before tax cash savings with a 40% tax rate?
$100,000 - $50,000 x 0.4 = $80,000
$80,000/0.6
Technique for managing Just in time inventory developed by the Japanese?
Kanban
