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Tools called ________ can be used to identify unused and, therefore, unnecessary
programs that represent potential security threats.
A) router scanners
B) vulnerabilities scanners
C) deep inspection scanners
D) TCP scanners
What role does the information systems steering committee play in the systems
development process?
A) It guides project development.
B) It is an executive-level group established to plan and oversee the information
systems function.
C) It designs system controls and periodically monitors the system to verify the controls
are implemented and functioning properly.
D) It guides project implementation.
A hash total is an example of which control below?
A) Data entry control.
B) Data transmission control.
C) Processing control.
D) Output control.
What is the purpose of an information systems audit?
A) To determine the inherent risk factors found in the system.
B) To review and evaluate the internal controls that protect the system.
C) To examine the reliability and integrity of accounting records.
D) To examine whether resources have been used in an economical and efficient
manner in keeping with organization goals and objectives.
The disbursement voucher and supporting documents are sent to the ________ for
payment prior to the due date.
A) cashier
B) treasurer
C) controller
D) accounts payable department
In addition to modeling Resources, Events, and Agents, identify the two additional
concepts an organization will need to incorporate if it wishes to extend the REA to
include information about firm policies.
A) Type and Rules.
B) Rules and Group.
C) Group and Rules.
D) Type and Group.
Which situation below makes it easy for someone to commit a fraud?
A) Placing excessive trust in key employees.
B) Inadequate staffing within the organization.
C) Unclear company policies.
D) All of the above situations make it easy for someone to commit a fraud.
In a complete REA model of any organization, every resource must be connected to at
least one ________ that increases that resource and to at least one event that decreases
it.
A) resource
B) event
C) agent
D) activity
A document typically encountered in the revenue cycle that is both an output document
and a source document is the
A) sales invoice.
B) customer purchase order.
C) sales order.
D) packing slip.
Data must be collected about three facets of each business activity. What are they?
A) the business activity, the resources it affects, the people who participate
B) the business activity, the transactions it creates, the impact on the financial
statements
C) the inputs, outputs and processes used
D) who is involved, what was sold, how much was paid
Which of the following is not an objective of a disaster recovery plan?
A) Minimize the extent of the disruption, damage or loss.
B) Establish a permanent alternative means of processing information.
C) Resume normal operations as soon as possible.
D) Train employees for emergency operations.
Carmie Iria, the director of a systems project committee, has received management
approval for the implementation of a new accounting information system. After sending
out an RFP to multiple vendors, the committee settled on purchasing a system from
Sysys, a vendor who will provide a standard software package and post-sale technical
support. Carmie's committee has decided to go with
A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.
A facility that contains all the computing equipment the organization needs to perform
its essential business activities is known as a
A) cold site.
B) hot site.
C) remote site.
D) subsidiary location.
Which of the following is not a benefit of using a payroll service bureau or a
professional employer organization?
A) freeing up of computer resources
B) increased internal control
C) reduced costs
D) wider range of benefits
Nonfinancial information should be collected because
A) it may indicate events that may affect resources.
B) it can be used to plan other activities.
C) it can be used in transaction processing.
D) both A and B
How can CAD software help improve the efficiency and effectiveness of the product
design process?
A) It can eliminate the costs associated with creating and destroying physical
prototypes.
B) It can simulate how new products will be manufactured.
C) It can store all the data associated with all products.
D) All of the above
Although there are some similarities between JIT and MRP, identify one major
difference below.
A) production scheduling
B) reducing the opportunity for inventory theft
C) reducing inventory carrying costs
D) requires more analysis than EOQ
Inserting a dummy entity in a company's system; processing test transactions to update
that will not affect actual records is an example of
A) integrated test facility.
B) snapshot technique.
C) system control audit review file.
D) audit hooks.
The maximum acceptable down time after a computer system failure is determined by a
company's
A) recovery time objective.
B) recovery point objective.
C) recovery objective.
D) maximum time recovery objective.
Which of the following is an example of an ERP system?
A) Alexis uses a computerized information system to keep track of all the financial data
generated by her bakery. She is considering opening a new bakery on the east side of
town.
B) Betty has a system that keeps track of the accounts payable and receivable for her
plumbing business. At the end of the year, the system helps her to prepare her taxes in
just two hours.
C) Charlie keeps records of all his business records in a shoe box. Each week he enters
all of the data into spreadsheets that automatically generate purchase orders, based on
predetermined inventory reorder points. Production quotas for the coming week are also
automatically generated based on customer orders.
D) Doug is a freelance photographer. He keeps records of all expenses and revenues on
his cell phone and then e-mails them to himself every month. The files are stored on his
personal computer and backed up to CD quarterly.
Manufacturing overhead is best described as
A) costs that cannot be traced directly to specific jobs or processes.
B) costs that are economically feasible to trace directly to specific jobs or processes.
C) costs that are not economically feasible to trace directly to specific jobs or processes.
D) costs that management has decided not to trace directly to specific jobs or processes.
End-user computing is likely to result in a(n)
A) well tested system.
B) well documented system.
C) rapidly developed system.
D) efficient system.
Assume an organization sells digital photographs to customers through its website (the
company only sells photographs in digital format, it does not provide a physical copy of
any photograph). Identify the attribute below that the organization would not need in its
Inventory entity.
A) Reorder point.
B) Price.
C) Photograph description.
D) Primary key.
Which auditing technique will not assist in determining if unauthorized programming
changes have been made?
A) The use of a source code comparison program.
B) The use of the reprocessing technique to compare program output.
C) By interviewing and making inquiries of the programming staff.
D) The use of parallel simulation to compare program output.
Which statement below concerning the database management system (DBMS) is false?
A) The DBMS automatically creates application software for users, based on data
dictionary parameters.
B) The DBMS automatically maintains the data dictionary.
C) Users' requests for information are transmitted to the DBMS through application
software.
D) The DBMS uses special languages to perform specific functions.
Which of the following is an example of a corrective control?
A) Physical access controls.
B) Encryption.
C) Intrusion detection.
D) Incident response teams.
The most vital control in preventing unauthorized changes to the payroll master file is
A) segregation of duties between the preparation of paychecks and their review.
B) segregation of duties between the preparation of paychecks and their distribution.
C) segregation of duties between the authorization of changes and the physical handling
of paychecks.
D) having the controller closely review and then approve any changes to the master file.
Wisconsin Dells, Wisconsin, is a popular tourist destination. During the winter months,
the population dwindles to a meager few, but when summer comes, the size of the town
surges. Hunter Jackson is the town sanitation engineer. When the size of the town
surges, so do his responsibilities. Among them is management of the sewage processing
volume.
In an interview with the local paper, Hunter complained that a report on tourist
population that he uses to adjust processing volume refers to data that was collected
four days ago and it takes him a week to make adjustments.
Which of the following characteristics of useful information is absent in the situation
described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge
purchases inventory from distributors at trade conventions. Each time Helge makes a
purchase, the company records the suppliers name, address, date, specific items
purchased, price paid for each, and the total amount spent. Helge later researches the
inventory items to set the customer price. The company assigns an inventory number to
each item purchased and records the customer price for each item. Helge buys price
tags and display supplies from Alwin Incorporated, a company that sells them at all
trade conventions. All inventory and supplies purchases are immediately paid for with
cash or with checks from a bank account in Helge's name. All cash received from sales
are also deposited to the same bank account. Several times a year Helge rents display
space at dealer conventions. A deposit is always required, and the entire fee is due the
day the convention starts. Helge records the deposit and final payment, along with the
convention's name and address, in the same worksheet on which purchases of inventory
and supplies are recorded.
Which of the following would not be an attribute in the Inventory table?
A) Total amount of purchase.
B) Price paid for inventory.
C) Asking price.
D) Inventory number.
Identify the item below that is not a desired result of an employee bonus system.
A) Employees may recommend unnecessary services to customers in order to exceed
set sales quotas and earn a bonus.
B) Employees may look for ways to improve service.
C) Employees may analyze their work environment and find ways to cut costs.
D) Employees may work harder and may be more motivated to exceed target goals to
earn a bonus.
Identify the components of an accounting information system.
What does the Sarbanes-Oxley Act require that is relevant to documentation tools?
Build a set of tables to implement an REA model of an AIS in a relational database.
Describe the four primary objectives of a systems survey conducted during systems
analysis.
What is the objective of output design? What are the output design considerations?
What are the various categories of outputs?
Describe data modeling.
You have been hired by a catalog company to computerize its sales order entry process.
Approximately 70% of all orders are received over the telephone by a sales person. The
other 30% of orders are received by a sales person through mail or fax. The catalog
company wants the phone orders processed real-time. The mail and fax orders will be
processed in batches of 50 orders. The following attributes are collected for every sales
order:
Customer number (if the order is from a new customer, a new number needs to be
assigned)
Customer name
Address
Payment method (credit card for phone and fax orders and check for mailed orders)
Credit card number and expiration date
Items ordered and quantity of each
Unit price of each item ordered
Identify and describe at least ten specific control policies and procedures you will
implement for the sales order process. Be very specific describing the controls and
number each new control you suggest.
Prepare and use flowcharts to understand, evaluate, and document information systems.
Describe the basic cycles and business activities for a typical merchandising company.
Describe the approaches to system conversion.
What is systems implementation? How do you plan for it?
Describe the purposes of a help desk.
Under what conditions is MRP more suitable than JIT and vice versa?
What output design considerations should be analyzed as part of the physical system
design phase?
What is a Business Process Diagram (BPD)?
Describe the nature, scope and objective of audit work, and identify the major steps in
the audit process.
Describe what a relational database is, how it organizes data, and how to create a set of
well-structured relational database tables.
Describe the various form of spoofing. Select one type of spoofing and search for an
actual case about the spoofing. Discuss what has happened and provide
recommendations as to how the spoofing could have been prevented.
