Data about all of the following facets of a business activity are most likely to be
recorded in a master file except the
A) business activity.
B) resources affected by the business activity.
C) people who participate in the business activity.
D) place the business activity occurs.
Ghassan in Marketing received an e-mail from Asif at regional headquarters. “Ghassan,
I just reviewed the annual sales report for your district. You blew your sales goal away
again, you top gun!” What type of report did Asif use?
A) Scheduled report.
B) Special-purpose analysis report.
C) Triggered exception report.
D) Demand report.
Most frauds are detected by
A) external auditors.
B) hotline tip.
C) internal auditors.
D) forensic accountants.
Which of the following transactions is represented by the diagram below?
A) A lumber yard where customers may pay with cash for all purchases.
B) A buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to
the dealer.
C) A consulting firm that offers a variety of consulting services to other businesses.
D) A department store that allows customers to carry a balance and to make installment
payments, if they choose.
Basic segregation of duties requires the credit manager reports to the ________ and the
treasurer report to the ________.
A) treasurer; controller
B) treasurer; vice president of finance
C) controller; vice president of finance
D) marketing manager; vice president of finance
A ________ control entails verifying that the proper number of bits are set to the value
1 in each character received.
A) echo check
B) field check
C) parity check
D) trailer record
Which of the following controls can minimize the threat of inaccurate financial
statements?
A) Training and experience in applying IFRS and XBRL.
B) Responsibility accounting.
C) Backup and disaster recovery procedures.
D) Restriction of access to general ledger.
ShareIt is a social networking site that boasts over a million registered users and a
quarterly membership growth rate in the double digits. As a consequence, the size of the
information technology department has been growing very rapidly, with many new
hires. Each employee is provided with a name badge with a photo and embedded
computer chip that is used to gain entry to the facility. This is an example of a(n)
A) authentication control.
B) biometric device.
C) remote access control.
D) authorization control.
Which of the following is not one of the controls when customer payments are
commingled with other mail?
A) preparing a remittance list as mail is opened
B) restrictively endorsing checks when received
C) requiring two mail room clerks to open mail together
D) requiring the controller to be personally present when mail is received and opened
Which of the following is not a guideline that should be used to select an outside,
custom-system developer?
A) The outside developer should have an in-depth understanding of how the company
conducts its business.
B) The outside developer should have experience in the company’s industry.
C) The outside developer should possess a good understanding of business in general.
D) The outside developer should be able to complete the system independently, without
requiring frequent contact to ask questions.
A voucher package should include
A) a purchase requisition, vendor invoice, and receiving report.
B) a purchase order, vendor invoice, and receiving report.
C) a purchase requisition, purchase order, and receiving report.
D) a bill of lading and vendor invoice.
Identify the item below that is not a step you could take to prevent yourself from
becoming a victim of identity theft.
A) Shred all documents that contain your personal information.
B) Only print your initial and last name on your personal checks.
C) Monitor your credit reports regularly.
D) Refuse to disclose your social security number to anyone or any organization.
A value chain typically consists of five primary activities that can directly provide value
to customers. The activities that help distribute finished products or services to
customers represent
A) inbound logistics.
B) outbound logistics.
C) marketing and sales.
D) operations.
Rebus Fashions provides haircuts to men and women. Rebus uses an REA database to
record information that is important to the firm. Rebus has a table named “Customer”
where it keeps information about its customers. Identify the attribute below that most
likely does not belong in the Customer table.
A) Customer hair color.
B) Customer hair style.
C) Customer address.
D) All of the above are appropriate attributes for the Customer table.
Whitewater Rapids provides canoes to tourists eager to ride Whitewater river’s rapids.
Management has determined that there is one chance in a thousand of a customer being
injured or killed. Settlement of resulting lawsuits has an average cost of $850,000.
Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless
there is evidence of criminal negligence. What is the expected loss without insurance?
A) $10
B) $850
C) $100,000
D) $850,000
Which of the following diagrams represents the cardinality pairs in a situation where a
specific skill is taught at training sessions, but training is not offered for all skills at
each session?
A)
B)
C)
D)
Tom Wilson is chairman of the Rare Car Club, where he maintains a database of
registered rare cars and their history. One table will store the model, make, vehicle
identification number, and other characteristics of all of the registered rare cars. Each
rare car is uniquely identified by a registration number. A second table will contain data
that link each rare car to its most recent estimated fair market value by means of their
registration numbers. The primary key in the first table is
A) vehicle identification number.
B) registration number.
C) model.
D) make.
The first step in a risk-based audit approach is to
A) evaluate the control procedures.
B) determine the threats facing the AIS.
C) identify the control procedures that should be in place.
D) evaluate weaknesses to determine their effect on the audit procedures.
A copy of a database, master file, or software that will be retained indefinitely as a
historical record is known as a(n)
A) archive.
B) cloud computing.
C) differential backup.
D) incremental backup.
Which of the following is an advantage of CASE?
A) It exhibits a high degree of cross-system compatibility.
B) It is an inexpensive technology that is accessible to small businesses.
C) Documentation is generated automatically.
D) It enhances the congruence between user expectations and the final system.
Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area.
Antia uses computer technology to provide superior customer service. The store’s
database system was designed to make detailed information about each Japanese fan
easily accessible to her customers. Accordingly, the fan price and condition are
provided for each fan, along with many pictures of each fan. In Antia’s database, the
price of the Japanese fans is a(n)
A) entity.
B) attribute.
C) field.
D) record.
Which of the following would not be true about the well-structured tables in a
well-designed relational database used to generate this sales invoice?
A) Quantity would be generated from the Sales table.
B) 34567 would be a primary key in the Sales table.
C) Unit Price would be generated from the Inventory table.
D) Hardware City is an example of a non-key data value in the Customer table.
Identify the minimum cardinality of any REA diagram relationship.
A) 0 or 1.
B) 0 or N.
C) 1 or N.
D) none of the above.
Which of the following is not proposed to be an advantage of activity-based costing?
A) Better product mix decisions.
B) Better product pricing decisions.
C) Less complex than traditional cost systems.
D) Better decision.
Zeus is an example of a
A) virus.
B) worm.
C) Trojan horse.
D) war dialing.
If a firm does not use an ERP, the best way to mitigate the risk of the destruction of
master data is to
A) implement backup and disaster recovery procedures.
B) use an ERP.
C) proper segregation of duties.
D) use multiple master data files.
Which of the following lists represent the sequence of elements in developing the
conceptual design specifications?
A) Input, data storage, processing procedures and operations, and output.
B) Input, output, data storage, and processing procedures and operations.
C) Output, data storage, input, and processing procedures and operations.
D) Processing procedures and operations, input, data storage, and output.
Which of the following is generally not shown on a receiving report?
A) price of the items
B) quantity of the items
C) purchase order number
D) counted and inspected by
Abby Burke has created custom statues made out of scrap metal for over ten years.
Abby has kept detailed records of every statue she has ever created. For every sale, she
obtains the customer’s name and address, a description of the statue, and a picture of the
statue sold to the customer. Her unique style has recently attracted the attention of
several celebrities. Ready to take her business to the next level, Abby has hired you to
construct an accounting information system, which she wants modeled after her paper
records. As you look over her records, you notice that some customer last names have
different first names in different records. For example, R. Framington Farnsworth, Bob
Farnsworth, and Sam Farnsworth all seem to be the same person. You explain to Abby
that every customer must be identified by a unique customer number in the AIS. You
are referring to the
A) entity integrity rule.
B) referential integrity rule.
C) update anomaly.
D) insert anomaly.
When the human resources manager wants to build a data dictionary, the manager
would use which language?
A) Data Manipulation Language
B) Data Query Language
C) Data Report Language
D) Data Definition Language
Understand and create an REA diagram for the production cycle.
What are the advantages and disadvantages of custom software and of canned software
for meeting application software needs?
Describe the standards that should be used to evaluate design alternatives.
Integrate separate REA diagrams for individual business cycles into a single,
comprehensive, organization-wide REA diagram.
Explain two fundamental concepts: why information security is a management issue,
and the time-based model of information security.
Describe guidelines that an organization can follow to prevent behavioral problems
when implementing a system.
Explain the process and key decisions involved in ordering goods and services, identify
the threats to those activities, and describe the controls that can mitigate those threats.
Why do fraudulent acts often go unreported and are therefore not prosecuted?
Identify and explain the input, processing, and output controls designed to ensure
processing integrity.
What types of decision-making and strategic information should the AIS provide in the
expenditure cycle?
Describe what a man-trap is and how it contributes to information security.
Describe some of the most frequent fraudulent financial reporting schemes.
Discuss the physical systems design process and the activities in this phase.
Briefly describe tests that can be used to detect unauthorized program modifications.
Differentiate between an AIS course and other accounting courses.
Describe the concept of Internet of Things (IoT) and its security implications.
