C Business functions, regulation and technology

Which function provides an independent review of an organisation's internal controls?

• 1 External audit
• 2 The sales department
• 3 Internal audit
• 4 Procurement

Which of these is a purpose of the statement of cash flows?

• 1 To show how the entity generated and used cash
• 2 To show the entity's profit
• 3 To show the budget for next year
• 4 To list the entity's assets

Which of these is a way of reducing the risk of fraud?

• 1 Removing all authorisation limits
• 2 Keeping blank cheques in an unlocked drawer
• 3 Allowing one person to authorise and record payments
• 4 Segregation of duties

Which three conditions are commonly associated with fraud?

• 1 Price, place and promotion
• 2 Profit, loss and tax
• 3 Pressure, opportunity and rationalisation
• 4 Planning, control and review

Money laundering is best described as:

• 1 Making the proceeds of crime appear to come from a legitimate source
• 2 Paying tax late
• 3 Overstating profit in the financial statements
• 4 Making a payment to a supplier early

Which control is an application control?

• 1 A firewall around the whole network
• 2 A security guard at the door
• 3 A backup of all company data
• 4 A check that a customer number exists before an invoice is accepted

Which of these is a benefit of cloud computing for an accounting function?

• 1 It removes the need for accountants
• 2 Lower costs of hardware and easier access from different locations
• 3 No need for security
• 4 No internet connection is needed

A distributed ledger such as blockchain is mainly characterised by:

• 1 A shared record that is difficult to change after it is made
• 2 A record kept on a single computer
• 3 A record that anyone can edit without a trace
• 4 A paper record held in one office

Which of these is a risk from a cyber-attack?

• 1 An increase in the number of committees
• 2 A fall in the level of inflation
• 3 Theft or loss of data
• 4 A rise in span of control