In Response to the Need for Internal Controls Above and Beyond

question 13

Multiple Choice

In response to the need for internal controls above and beyond what was described by COSO, the Information Systems Audit and Control Association developed an extensive framework of IT controls entitled:

• A)Trust Principles
• B)Control Objectives for Information Technology COBIT)
• C)Control Instrument for Certified Accountants CICA)
• D)American Internal Control Practice Association AICPA)

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Definitions:

Trade Discount

A reduction in the listed price of a product or service offered by sellers to buyers in the business-to-business sales.

Break-Even Default Rate

The rate at which the losses from defaulted loans equal the income generated from interest payments in a lending portfolio.

Net 30 Credit Policy

A common credit term indicating that payment is due in full 30 days after the goods are dispatched or a service is completed.

Monthly Interest Rate

The rate of interest applied to a loan or earned from an investment throughout a one-month timeline.