Financial Management Quiz

Which of the following are advantages of having non-executive directors on the company board?

• They can provide a wider perspective than executive directors.

• They provide reassurance to shareholders.

• They may have external experience and knowledge which executive directors do not possess.

• They have more time to devote to their role.

Which of the following is an aim of the control system relating to accounts payable and purchases?

• To ensure that all credit notes received are recorded in the general and payables ledger

• To ensure that goods and services are only supplied to customers with good credit ratings

• To ensure that all credit notes that have been issued are recorded in the general and receivables ledgers

• To ensure that potentially doubtful debts are identified

All the following statements except one are examples of the advantages that a computer-based accounting system used by a management accountant has over a manual system. Which statement is the exception?

• A computer-based accounting system is easier to update as new information becomes available

• A computer-based accounting system will always reject inaccurate financial information input to the system's database

• Financial calculations can be performed more quickly and accurately

• The management accountant can more readily present financial information to other business departments in a variety of forms

Audit committees are generally staffed by executive directors

• true

• false

Which of the following circumstances would cast doubt on the external auditor's ability to rely on the work of internal auditors?

• There is evidence that management and directors consistently act on internal audit recommendations

• The internal audit function has a direct line of communication to the audit committee

• No audit manuals or working papers are available for inspection

• Internal auditors are recruited on technical qualifications and demonstrated proficiency

Which of the following would be classed as a contingency control in an information system?

• Password-only access to the system

• System recovery procedures

• Audit trails

............... is a program which deals with one particular computerized business accounting system. Which of the following terms correctly completes this definition?

• Suite

• Module

• Spreadsheet

• Database

Backing up computer files and storing copies of software in separate locations to the main system are examples of which type of controls?

• Prevent

• Detect

• Correct