Each event in an REA model will in most cases have at least one ________ agent and
one ________ agent involved with the event.
A) internal; resource
B) external; entity
C) internal; employee
D) internal; external
Which of the following is an independent check on performance?
A) The Purchasing Agent physically reviews the contents of shipments and compares
them with the purchase orders he has placed.
B) Production teams perform quality evaluations of the products that they produce.
C) The General Manager compares budgeted amounts with expenditure records from all
departments.
D) Petty cash is disbursed by Fred Haynes. He also maintains records of disbursements,
places requests to finance to replace expended funds, and periodically reconciles the
petty cash balance.
Andile Uzoma is the CEO of Chibuzo Incorporated. The board of directors has recently
demanded that they receive more assurance that internal controls surrounding the
company’s information system are effective. Which type of audit would best suit the
demands of the board of directors?
A) Financial audit.
B) Information system audit.
C) Operational audit.
D) Sustainability audit.
Departments that mostly provide services to other units and charge those units for
services rendered should be evaluated as ________ centers.
A) cost
B) profit
C) investment
D) revenue
The Trust Services Framework reliability principle that states personal information
should be protected from unauthorized disclosure is known as
A) availability.
B) security.
C) privacy.
D) integrity.
The general ledger
A) summarizes the information on the trial balance.
B) is posted in total to the general journal.
C) only includes balance sheet accounts.
D) summarizes the transactions in journals.
The general ledger
A) is used to record infrequent or non-routine transactions.
B) simplifies the process of recording large numbers of repetitive transactions.
C) records all detailed data for any general ledger account that has individual
sub-accounts.
D) contains summary-level data for every account of the organization.
All of the following edit checks for online editing of accounts receivable transactions
would probably be included except
A) validity checks on customer ID and invoice numbers.
B) check digit verification on the amount of the sale.
C) closed loop verification on the customer ID.
D) field checks on the values in dollar fields.
M:N agent-event relationships occur whenever an activity is performed by ________
employee and management wants to retain the ability to monitor ________
performance.
A) more than one; group
B) more than one; individual
C) one; group
D) one; individual
If a firm uses an ERP, the best way to mitigate the risk of the destruction of master data
is to
A) frequently update the ERP system.
B) implement the ERP system in three separate instances.
C) periodically audit the ERP system.
D) integrate the ERP system with all IT functions.
A set of individual user views of the database is called the
A) conceptual-level schema.
B) internal-level schema.
C) external-level schema.
D) meta-schema.
It is industry standard to model attributes as ________ in entity-relationship diagrams.
A) rectangles
B) ovals
C) diamonds
D) There is no industry standard.
To be effective, the chart of accounts must
A) not use alpha-numeric characters.
B) contain sufficient detail.
C) utilize only one coding technique.
D) begin with account 001.
Using the database depicted above, “Unit Price” is best described as
A) an attribute.
B) a primary key.
C) a foreign key.
D) A, B, and C
Who is typically responsible for installing turnkey systems?
A) An organization’s IT department.
B) The vendor who provides the system.
C) A third-party hired by the system vendor.
D) Both the organization’s IT department and the vendor who provides the system.
In which phase of the systems development life cycle where the company hires and
trains employees, tests and modifies procedures, establishes standards and controls,
completes documentation, moves to the new system, and detects and corrects design
deficiencies?
A) Conceptual design.
B) Implementation and conversion.
C) Physical design.
D) Systems analysis.
Which of the following controls can minimize the threat of hiring unqualified or
larcenous employees?
A) Redepositing unclaimed paychecks and investigating cause.
B) Issuing earnings statements to employees.
C) Using biometric authentication.
D) Conducting criminal background investigation checks of all applicants for finance
related positions.
Identify the opportunity below that could enable an employee to commit fraud.
A) An employee’s spouse loses her job.
B) The company does not have a clear policies and procedures for the employee to
follow.
C) The employee is experiencing financial hardship.
D) An employee is upset that he was passed over for a promotion.
Internal controls are often segregated into
A) detective controls and preventive controls.
B) general controls and application controls.
C) process controls and general controls.
D) system controls and application controls.
Which of the following graphical symbols represents a minimum cardinality of one and
a maximum cardinality of many?
A)
B)
C)
D)
Identify the entity that stores most of the data typically found in the employee master
file.
A) Time Worked.
B) Employee.
C) Salary.
D) Payroll.
Identify one control that can be used to mitigate the threat of under-production.
A) production planning systems
B) analysis of warranty and repair costs
C) encryption
D) insurance
Which of the following is not one of the three fundamental information security
concepts?
A) Information security is a technology issue based on prevention.
B) Security is a management issue, not a technology issue.
C) The idea of defense-in-depth employs multiple layers of controls.
D) The time-based model of security focuses on the relationship between preventive,
detective and corrective controls.
In a DFD, a “data sink” is also known as a
A) data store.
B) transformation process.
C) data flow.
D) data destination.
What is the standard cardinality pattern for a relationship between an event and an
agent?
A) 1:1.
B) 0:1.
C) 0:N.
D) 1:N.
When a control deficiency is identified, the auditor should inquire about
A) tests of controls.
B) compensating controls.
C) the feasibility of a systems review.
D) materiality and inherent risk factors.
Subdividing program code into small, well-defined modules is
A) called debugging.
B) known as structured programming.
C) part of program maintenance.
D) done during testing.
Which of the following is a consideration during file and database design?
A) Form size.
B) Format.
C) Medium.
D) Organization.
Which of the following is false with regards to creating database tables from an REA
diagram?
A) A properly designed relational database has a table for each distinct entity in an REA
diagram.
B) A properly designed relational database has a table for each many-to-many
relationship in an REA diagram.
C) To reduce confusion, table names should not duplicate REA diagram entities’ names.
D) Many-to-many relationships will be shown in tables with hyphenated concatenations
of the entities’ names.
Reports produced using the data dictionary could include all of the following except a
list of
A) programs where a data item is used.
B) synonyms for the data items in a particular file.
C) outputs where a data element is used.
D) the schemas included in a database.
Which of the following is not one of the steps in implementing an REA diagram in a
relational database?
A) Implement many-to-many relationships with foreign keys.
B) Create tables for entities.
C) Assign attributes to tables and identify primary keys.
D) Implement one-to-many relationships with foreign keys.
Terrell and Monique Anderson run an antique store in their hometown of Dayton, Ohio.
To find items to sell in their shop, they travel around the United States and Europe
buying unique artifacts. Within an hour of making a purchase, they use their
smartphone to take a picture of the item and post a short tweet about the item on
Twitter. Which symbol should be used to represent the transfer of data to Twitter in a
context diagram of this process?
A)
B)
C)
D)
What is the correct sequence of the phases in the systems development life cycle?
A) Conceptual design, physical design, system analysis, implementation and
conversion, and operations and maintenance.
B) Operations and maintenance, conceptual design, system analysis, physical design,
implementation and conversion.
C) System analysis, conceptual design, physical design, implementation and
conversion, and operations and maintenance.
D) System analysis, physical design, conceptual design, and operations and
maintenance, implementation and conversion.
Identify the statement below that is not true of the 2013 COSO Internal Control updated
framework.
A) It more efficiently deals with control implementation and documentation issues.
B) It more effectively deals with control implementation and documentation issues.
C) It provides users with more precise guidance.
D) It adds many new examples to clarify the framework concepts.
