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If recent trends in end-user computing (EUC) persist, EUC will represent ________ of
all information processing by the end of 2020.
A) 15% - 24%
B) 20% - 49%
C) 50% - 74%
D) 75% or more
The transaction cycle that includes product design is known as the
A) revenue cycle.
B) expenditure cycle.
C) production cycle.
D) financing cycle.
In a DFD, a "bubbles" is also known as a
A) data store.
B) transformation process.
C) data flow.
D) data destination.
Which of the following is true about accounting for fixed assets?
A) Depreciation expense under IFRS will likely be higher than under GAAP, because
acquisitions of assets with multiple components must be separately depreciated under
IFRS, whereas under GAAP assets could be bundled and depreciated over the longest
of the useful life for any of the components.
B) IFRS doesn't allow capitalization of any asset that separately accounts for less than
20% of total assets.
C) Depreciation expense under IFRS will likely be less than under GAAP, because
standards for depreciable lives on asset classes are much longer than under GAAP.
D) IFRS and GAAP account for fixed assets in much the same way.
Duplicate checking of calculations is an example of a ________ control, and procedures
to resubmit rejected transactions are an example of a ________ control.
A) corrective; detective
B) detective; corrective
C) preventive; corrective
D) detective; preventive
Hiring decisions at Maarja's Razors are made by Maimu Maarja, the Director of Human
Resources. Pay rates are approved by the Vice President for Operations. At the end of
each pay period, supervisors submit time cards to Kasheena, who prepares paycheck
requisitions. Paychecks are then distributed through the company's mail room. This
represents a(n) ________ segregation of duties.
A) partial
B) effective
C) ineffective
D) limited
Which of the following statements is not true about an XBRL instance document?
A) An instance document includes instruction code as to how the document should be
physically arranged and displayed.
B) An instance document contains facts about specific financial statement line items.
C) An instance document uses separate tags for each specific element.
D) An instance document can be used to tag financial and nonfinancial elements.
In an ERP system, the module used to record data about transactions in the
disbursement cycle is called
A) order to cash.
B) purchase to pay.
C) financial.
D) customer relationship management.
An accounting information system must be able to perform which of the following
tasks?
A) collect transaction data
B) process transaction data
C) provide adequate controls
D) all of the above
Which control would best prevent payments made to fictitious vendors?
A) Allow payments only to approved vendors.
B) Restrict access to any payment or approval documents.
C) Have an independent bank reconciliation.
D) Make sure all documents are in order before approving payments.
Mary Lamb is an insurance sales representative. Her company has provided her with a
laptop computer that uses wireless connectivity to access the accounting information
system from virtually anywhere in the country. She, and other sales reps, have access to
view customer and insurance product information. All sales reps also have access that
allows them to enter and cancel customer orders. The permissions for Mary define a
________ in the company's database management system.
A) conceptual-level schema
B) subschema
C) data dictionary
D) physical view
End-user development is inappropriate for which types of systems?
A) Systems that process a large number of transactions.
B) Systems that need to be developed rapidly.
C) Systems that must be easy to use.
D) Organizations that have large IT departments.
Which type of payroll report lists the voluntary deductions for each employee?
A) Payroll register.
B) Deduction register.
C) Employee earnings statement.
D) Federal W-4 form.
________ are used to transmit time and attendance data directly to the payroll
processing system.
A) Badge readers
B) Electronic time clocks
C) Magnetic cards
D) RFID tags
Relationships between resources and agents, such as Inventory and Supplier, reflect the
best practice of identifying preferred and alternative suppliers for specific inventory
items. Similar relationships between resources and employees can be used to model
________ and ________.
A) cost; revenue
B) performance; behavior
C) responsibility; accountability
D) segregation of duties; internal control
Identify the four parts of the transaction processing cycle.
A) data input, data storage, data processing, information output
B) data input, data recall, data processing, information output
C) data input, data recall, data transmission, information output
D) data input, data recall, data transmission, data storage
________ enables a system to continue functioning in the event that a particular
component fails.
A) An incremental backup procedure
B) Fault tolerance
C) Preventive maintenance
D) A concurrent update control
How has the U.S. government deployed computer-assisted audit techniques to reduce
the budget?
A) To identify fraudulent Medicare claims.
B) To identify fraudulent defense spending.
C) To identify fraudulent tax returns.
D) All of the above.
Which of the following activities is not part of data conversion?
A) Changing data content.
B) Moving file servers.
C) Changing file formats.
D) Moving files to a new storage medium.
Restricting access of users to specific portions of the system as well as specific tasks, is
an example of
A) authentication.
B) authorization.
C) identification.
D) threat monitoring.
Which statement below regarding the AIS is false?
A) The AIS must be able to provide managers with detailed and operational information
about the organization's performance.
B) Both traditional financial measures and operational data are required for proper and
complete evaluation of performance.
C) The AIS was often just one of the information systems used by an organization to
collect and process financial and nonfinancial data.
D) Traditionally, most AIS have been designed so that both financial and operational
data are stored in a manner that facilitates their integration in reports.
A serious exposure in the revenue cycle is loss of assets. What is the related threat and
applicable control procedure that address this exposure?
A) shipping errors; reconciliation of sales order with picking ticket and packing slip
B) theft of cash; segregation of duties and minimization of cash handling
C) making sales that turn out to be uncollectible; force sales people to make collection
calls on customers with past due balances
D) poor performance; preparation and review of performance reports
The process that screens individual IP packets based solely on the contents of the source
and/or destination fields in the packet header is known as
A) access control list.
B) deep packet inspection.
C) intrusion filtering.
D) packet filtering.
Which of the following is not generally changed when a company's accounting
information system is changed?
A) Employee compensation.
B) The organization's structure.
C) Employee headcount.
D) All of the above are generally changed.
The ________ handles the link between the way data are physically stored and each
user's logical view of that data.
A) database management software (DBMS)
B) database manager
C) data warehouse
D) data dictionary
Which of the following commonly initiates the data input process?
A) a business activity
B) automatic batch processing
C) an accounting department source document
D) a trial balance query
When integrating separate REA diagrams,
A) common resources are placed between the events that affect them.
B) each resource is connected to two agents.
C) resources are duplicated to show the give and get of economic duality relationships.
D) resources are merged if both events in the stockflow relationship are modeled.
Comparing quantities on a vendor invoice to quantities on the receiving report would
not prevent or detect which of the following situations?
A) receiving and accepting inventory not ordered
B) theft of inventory by receiving department employees
C) update of wrong inventory items due to data entry error
D) order for an excessive quantity of inventory
What is a dictionary attack?
A) It is an attack when the perpetrator is inserting malicious query in input such that it
is passed to and executed by an application program.
B) It is an attack when the perpetrator is inputting so much data that the input buffer
overflows. The overflow contains code that takes control of the company's computer.
C) It is an attack when the perpetrator uses software to guess company's addresses, send
employees blank e-mails, and add unreturned messages to spammer e-mail list.
D) It is an attacked when the perpetrator sends hundreds of messages from randomly
generated false addresses, overloading an Internet service provider's e-mail server.
A relationship between Skills and Employees is typically modeled as M:N in an REA
database model since
A) one employee may possess many skills, and one skill may be possessed by more
than one employee.
B) many employees possess skills, and many skills are possessed by employees.
C) employees can be trained to learn all skills, and all skills are possessed by at least
one employee.
D) The relationship would be 1:N not M:N, because most employees are hired for a
specific job that requires a specific skill, even though a specific job could be done by
many employees.
When an organization seeks to modify canned software, it is best when ________
because unauthorized modifications may make the program unreliable.
A) the vendor modifies the software
B) the intended end-user modifies the software
C) programmers with software experience modify the software
D) the organization's IT modifies the software
Increasing the effectiveness of internal controls would have the greatest effect on
A) reducing inherent risk.
B) reducing control risk.
C) reducing detection risk.
D) reducing audit risk.
