Perhaps the most striking fact about natural disasters in relation to AIS controls is that
A) many companies in one location can be seriously affected at one time by a disaster.
B) losses are absolutely unpreventable.
C) there are a large number of major disasters every year.
D) disaster planning has largely been ignored in the literature.
The attributes of which type of entity would provide a way for the system to compare
an employee’s reimbursement request with the permissible range of the amount of
reimbursement permitted?
A) Resources
B) Events
C) Agents
D) Type
Constructing a well-structured, well-developed REA diagram eliminates which anomaly
problem(s)?
A) Update.
B) Insert.
C) Delete.
D) All of the above.
The correct label for Shape 3 in the flowchart below is
A) Purchase Order 1.
B) Purchase Requisition 1.
C) Receiving Report 1.
D) 4.
Which of the following is not one of the principles of proper graph design for bar
charts?
A) Include data values with each element.
B) Use 3-D rather than 2-D bars to make reading easier.
C) Use colors or shades instead of patterns to represent different variables.
D) Use titles that summarize the basic message.
Modeling of the existing system occurs during the ________ phase of systems analysis.
A) information needs and system requirements
B) feasibility study
C) initial investigation
D) systems survey
Who of the following is not a stakeholder with whom an accounting information system
typically communicates directly?
A) The federal government.
B) Venture capitalist.
C) Company that supplies raw material.
D) Company that purchases finished goods for resale to consumers.
Post implementation review is conducted to
A) determine whether a new system meets its planned objectives.
B) determine how well the project team performed in developing the new system.
C) prioritize future modifications to the system.
D) provide external auditors assurance that a new system has been placed into service.
Identify one potential outcome of the insert anomaly.
A) inconsistent data
B) inability to add new data
C) unintentional loss of data
D) none of the above
The use of a secure file library and restrictions on physical access to data files are
control procedures used together to prevent
A) an employee or outsider obtaining data about an important client.
B) a data entry clerk from introducing data entry errors into the system.
C) a computer operator from losing or corrupting files or data during transaction
processing.
D) programmers making unauthorized modifications to programs.
Clemente Santiago has formed a business that sells carved gourmet coconuts. He has
hired five employees. The most senior is Mary, who manages the carving process. Jane
is the newest employee. She collects the coconuts. Joe takes calls from unhappy
customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler.
Annie sends letters to the wholesaler extolling the virtues of the latest production run of
nuts that are drifting across the bay.
Which of the following functions in the value chain is Mary performing?
A) Inbound logistics
B) Operations
C) Outbound logistics
D) Marketing and sales
E) Service
How does the U.S. Justice Department define computer fraud?
A) As any crime in which a computer is used.
B) As any act in which cash is stolen using a computer.
C) As an illegal act in which a computer is an integral part of the crime.
D) As an illegal act in which knowledge of computer technology is essential.
Product items are often coded with (select all that apply)
A) sequence codes.
B) block codes.
C) group codes.
D) mnemonic codes.
Carly Jackson is a staff auditor for a public accounting firm. She has been asked to
document the client’s existing accounting information system so the engagement team
can assess the client’s adequacy of controls around financial reporting. She decides to
begin by creating a flowchart to describe, analyze, and evaluate internal controls. What
documentation tool should she use for this purpose?
A) internal control flowchart
B) document flowchart
C) system flowchart
D) dataflow diagram
The process of turning off unnecessary features in the system is known as
A) deep packet inspection.
B) hardening.
C) intrusion detection.
D) modaling.
Matching customer account numbers and inventory item numbers to the numbers in the
customer and inventory master files is an example of a
A) completeness test.
B) field check.
C) reasonableness test.
D) validity check.
Which entity is most likely to be part of both the payroll cycle and the expenditure
cycle?
A) Receive Goods.
B) Customer.
C) Disburse Cash.
D) Inventory.
The scope of a(n) ________ audit encompasses all aspects of systems management.
A) operational
B) information systems
C) financial
D) internal control
The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Communications technology and the Internet can be used to reduce the time and costs
involved in disseminating financial statement information. Users of such financial
information still struggle in that many recipients have different information delivery
requirements and may have to manually reenter the information into their own decision
analysis tools. The ideal solution to solve these problems and efficiently transmit
financial information via the Internet is to use
A) HTML.
B) XML.
C) ACH.
D) XBRL.
An audit software program that generates programs that perform certain audit functions,
based on auditor specifications, is referred to as a(n)
A) input controls matrix.
B) CAATS.
C) embedded audit module.
D) mapping program.
Which process or activity relates to overproduction?
A) product design
B) planning and scheduling
C) production operations
D) cost accounting
Which entity is most likely to be part of the payroll cycle, expenditure cycle, and the
revenue cycle?
A) Customer.
B) Cash.
C) Supplier.
D) Inventory.
The ________ is the managerial report that shows planned cash inflows and outflows
for major investments or acquisitions.
A) journal voucher list
B) statement of cash flows
C) operating budget
D) capital expenditures budget
Melissa is a staff accountant for Quality Paper Company, which has strict corporate
policies on appropriate use of corporate resources. The first week of March, Melissa
saw Kent, the branch manager putting printer paper and toner into his briefcase on his
way out the door. This situation best reflects a weakness in which aspect of internal
environment, as discussed in the COSO Enterprise Risk Management Framework?
A) Integrity and ethical values.
B) Risk management philosophy.
C) Restrict access to assets.
D) Methods of assigning authority and responsibility.
Because many HRM / payroll master databases typically contain only descriptive
information (such as which employees possess which skills), many firms have deployed
________ to more effectively leverage employees knowledge and skills.
A) relational databases
B) knowledge management systems
C) talent management systems
D) cardinality systems
Which of the following is not usually a consideration when designing a coding system?
A) government coding regulations
B) standardization
C) future expansion needs
D) ease of reporting
The benefits of a lockbox arrangement with a bank are maximized when
A) the bank is located nearby to the company, so remittance advices can be delivered to
the company every day.
B) several banks around the country are used, in order to minimize the time payments
spend in the mail.
C) an arrangement is made with only one bank, so all remittance advices can be batched
for processing.
D) the bank deposits the payments and accesses the customer’s information system to
record the payments.
The temporal difference between Request Inventory and Order Inventory is reflected by
the
A) Request Inventory minimum cardinality of 1.
B) Request Inventory maximum of N.
C) Order Inventory maximum of N.
D) Order Inventory minimum of 0.
What is the first step to implementing an REA diagram in a relational database?
A) Assign attributes to appropriate tables.
B) Create a table for each distinct entity in the diagram and for each many-to-many
relationship.
C) Identify cardinalities.
D) Use foreign keys to implement one-to-one and one-to-many relationships.
