C Business functions, regulation and technology

Written by Mahnoor Sheikh (ACCA)

ACCA · Business and Technology · 9 questions

Name: ____________________ Date: ____________

Which function provides an independent review of an organisation's internal controls?
- A External audit
- B The sales department
- C Internal audit
- D Procurement
Which of these is a purpose of the statement of cash flows?
- A To show how the entity generated and used cash
- B To show the entity's profit
- C To show the budget for next year
- D To list the entity's assets
Which of these is a way of reducing the risk of fraud?
- A Removing all authorisation limits
- B Keeping blank cheques in an unlocked drawer
- C Allowing one person to authorise and record payments
- D Segregation of duties
Which three conditions are commonly associated with fraud?
- A Price, place and promotion
- B Profit, loss and tax
- C Pressure, opportunity and rationalisation
- D Planning, control and review
Money laundering is best described as:
- A Making the proceeds of crime appear to come from a legitimate source
- B Paying tax late
- C Overstating profit in the financial statements
- D Making a payment to a supplier early
Which control is an application control?
- A A firewall around the whole network
- B A security guard at the door
- C A backup of all company data
- D 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?
- A It removes the need for accountants
- B Lower costs of hardware and easier access from different locations
- C No need for security
- D No internet connection is needed
A distributed ledger such as blockchain is mainly characterised by:
- A A shared record that is difficult to change after it is made
- B A record kept on a single computer
- C A record that anyone can edit without a trace
- D A paper record held in one office
Which of these is a risk from a cyber-attack?
- A An increase in the number of committees
- B A fall in the level of inflation
- C Theft or loss of data
- D A rise in span of control

Answer key

1. C, 2. A, 3. D, 4. C, 5. A, 6. D, 7. B, 8. A, 9. C

Internal audit is part of the organisation. External audit gives an opinion on the financial statements.
The cash flow statement shows cash movements.
No one person should control a transaction from start to finish.
This is the fraud triangle.
Laundering disguises where the money came from.
Application controls apply to a specific system and its inputs and outputs. The others are general or physical controls.
Cloud services reduce infrastructure costs, but security still has to be managed.
The shared and linked structure makes changes easy to detect.
Cyber-attacks threaten data and operations.