4 ) Understand and create an REA diagram for the HR/payroll cycle.
Ans: not provided
2 ) Extend REA diagrams to include information about employee roles, M:N agentevent
relationships, locations, and relationships between resources and agents.
Ans: not provided
2 ) Extend REA diagrams to include information about employee roles, M:N agentevent
relationships, locations, and relationships between resources and agents.
Ans: not provided
Auditors have the ability to change control risk.
Queries need to be created every time to retrieve information from a database.
Embedded audit molecules can be used to continually monitor the system and collect
audit evidence.
Using the COSO definition of an event, an event represents uncertainty.
REA diagrams for individual business cycles may include some events that also appear
in the REA diagrams of another cycle.
The hidden cost of inadequate training is that users turn for help to coworkers who have
mastered the system, decreasing the productivity of coworkers and increasing company
costs.
Merging redundant resources will affect cardinalities.
Most fraud perpetrators have previous criminal record; they were dishonest and
disrespected members of their community.
It is impossible to eliminate the risk of downtime.
Business process management (BPM) evolved from business process reengineering
(BPR) because BPR had such a high success rate that firms wanted to expand it to
cover all aspects of a firm’s business process operations.
In order to maintain uniformity and enhance comparability, there are a fixed number of
symbols that can be used in drawing a Business Process Diagram (BPD).
The COSO ERM contains all five of the same COSO-Integrated Framework
components.
The existence of relevant data guarantees the data are useful.
The HRM department should immediately delete records of employees who quit to
prevent other employees from assuming their identities.
The Sarbanes-Oxley Act requires auditors to create flowcharts to document business
processes.
During the evidence evaluation stage of an operational audit, the auditor measures the
system against generally accepted accounting principles (GAAP).
Researchers found significant differences between white-collar criminals and the
public.
Implementing a modern costing approach often results in short-term declines in
profitability.
The bill of lading is a legal contract that defines responsibility for the goods in the
company’s warehouse.
Security is a technology issue and not just a management issue.
At Facebook, an automated system for verifying configuration value errors backfired,
causing every single client to try to fix accurate data it perceived as invalid. Since the
fix involved querying a cluster of databases, that cluster was quickly overwhelmed by
hundreds of thousands of queries a second. The resultant crash took the Facebook
system offline for two-and-a-half hours.
A credit sale should always be reviewed by a credit manager if it exceeds the customer’s
credit limit.
CAN-SPAM applies to both commercial and personal e-mail.
65% to 80% of product costs are determined at the product design stage of the
production process.
A disgruntled employee in Australia hacked into a sewage system, causing a quarter of
a million gallons of raw sewage to flood a hotel and a park.
In the data flow diagram below, a customer order must be approved before the company
checks to make sure the inventory is available.
Best practice requires backups be retained indefinitely.
Organizations should set their balanced scorecard targets to reflect industry benchmark
values.
External parties are not needed to participate in an organization’s systems development
and analysis process.
The creation of a digital signature is a two-step process.
It is important that a firm’s AIS collect and integrate financial and non-financial
information about the organization’s activities if the firm uses its AIS to gain a
competitive advantage.
The operation of an imprest petty cash fund technically violates the principle of
segregation of duties.
Cloud computing can potentially generate significant cost savings for an organization.
Encryption is not a panacea to protecting confidential information.
Preventive controls are usually superior to detective controls
The correct label for Shape 1 in the flowchart below is
A) Purchase Order 3
B) Purchase Requisition 1
C) Accounts Payable Trial Balance
D) Purchase Order 2
An employee receives a reimbursement check prepared in the company’s disbursement
process. Which one of the following diagrams represents this activity?
A)
B)
C)
D)
When a request for proposal (RFP) is solicited based on ________, total costs are
usually lower and less time is required for vendor preparation and company evaluation.
A) specific equipment needs
B) general software needs
C) exact hardware and software specifications
D) system efficiency
One of the basic activities in the expenditure cycle is the receiving and storage of
goods, supplies, and services. What is the counterpart of this activity in the revenue
cycle?
A) sales order entry process
B) shipping function
C) cash collection activity
D) cash payments activity
Which consideration below is not considered important to output design?
A) Format.
B) Location.
C) Medium.
D) Source.
Undetected data transmission errors are an example of a(n) ________ threat.
A) natural and political disasters
B) software errors and equipment malfunctions
C) unintentional acts
D) intentional acts (computer crimes)
Which of the following control considerations will help ensure that all input,
processing, storage, and output activities are authorized by the appropriate managers?
A) Security.
B) Accuracy.
C) Authorization.
D) Validity.
Which of the following is false regarding a well-structured relational database?
A) A foreign key cannot be null.
B) A primary key cannot be null.
C) Every column in a row must be single valued.
D) All nonkey attributes in a table must describe a characteristic of the object identified
by the primary key.
Which of the following controls can minimize the threat of poorly designed reports and
graphs?
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.
The best control procedure for accurate data entry is
A) the use of on-line terminals.
B) an access control matrix.
C) passwords and user IDs.
D) automation of data collection.
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. Then, they ship the item back to Dayton for sale in their shop. Which symbol
should be used to represent Twitter in a context diagram of this process?
A)
B)
C)
D)
IFRS stands for
A) International Financial Reporting Standards.
B) International Forensic Response System.
C) International and Financial Reporting Statements.
D) International Financial Recovery System.
Which characteristic of the fraud triangle often stems from a lack of internal controls
within an organization?
A) Pressure
B) Opportunity
C) Rationalization
D) Concealment
In an ERP system, the module used to record data about transactions in the production
cycle is called
A) order to cash.
B) purchase to pay.
C) manufacturing.
D) logistics.
Which of the following documents would be found in the expenditure cycle?
A) delivery ticket
B) time card
C) credit memo
D) purchase order
Which activity below is not performed by Human Resources management (HRM)?
A) Product design.
B) Training.
C) Job assignment.
D) Recruitment and hiring.
Data matching is an example of a(n)
A) data entry control.
B) data transmission control.
C) processing control.
D) input control.
Fraud perpetrators do not typically
A) attempt to return or pay back stolen amounts soon after the initial theft, but find they
are unable to make full restitution.
B) use trickery or lies to gain the confidence and trust of others at the organization they
defraud.
C) become bolder and more greedy the longer the theft remains undetected.
D) begin to rely on stolen amounts as part of their income.
An auditor calculates the current ratio of the company to determine its ability to pay off
its current financial obligation. This is an example of
A) review of the documentation.
B) vouching.
C) confirmation.
D) analytical review.
Which of the following is not a common control for ensuring inventory is secure and
inventory counts are accurate?
A) control of physical access to the inventory storage areas
B) transfers of inventory with proper documentation
C) sending “blind” copies of purchase orders to inventory control for data entry
D) making physical counts of inventory at least once per year
In a customer payment processing DFD, the “update receivables” activity will be
represented by ________, the “accounts receivable file” will be represented by
________, and the “credit manager” will be represented by ________.
A) a square; two horizontal lines; a circle.
B) a rectangle; a square; a circle.
C) a circle; two horizontal lines; two horizontal lines.
D) a circle; two horizontal lines; a square.
Usually the supplier will give the buyer permission to correct the invoice for any
discrepancies in quantity. In the case of damaged or poor-quality goods, a document
called a(n) ________ is prepared after the supplier agrees to take back the goods or to
grant a price reduction.
A) credit memo
B) debit memo
C) adjustment memo
D) return memo
Which symbol would be used in a flowchart to represent manually prepared control
totals?
A) #9
B) #10
C) #4
D) #7
Direct labor must be tracked and accounted for as part of the production process.
Traditionally, direct labor was tracked using ________ but an AIS enhancement is to
use ________ to record and track direct labor costs.
A) job-time tickets; coded identification cards
B) move tickets; coded identification cards
C) employee earnings records; job-time tickets
D) time cards; electronic time entry terminals
Issuing a purchase order is part of which transaction cycle?
A) the revenue cycle
B) the expenditure cycle
C) the human resources cycle
D) the production cycle
Which of the following is not a benefit of outsourcing?
A) Access to greater expertise and more advanced technology.
B) Ability to gain greater control.
C) Improved development time.
D) Lower costs.
Accountants can help executive compensation plan boards
A) comply with legal and regulatory requirements.
B) by identifying the best ways to keep the details of compensation plans out of the
hands of external parties.
C) avoid paying excessive amounts of “perks” to executives.
D) distribute information regarding how well each executive is performing their job.
The balanced scorecard attempts to solve what major issue associated with traditional
accounting reports?
A) Traditional accounting reports focus too narrowly on financial performance.
B) Traditional accounting reports are not easily understood by non-accountants.
C) Traditional accounting reports are expensive to produce.
D) Traditional accounting reports are produced too slowly to provide value.
Identify the party below that is not internal to the firm.
A) customer
B) management
C) employees
D) CEO
The correct shape for the triangle labeled “Supplier” in the flowchart below should be a
A) magnetic tape.
B) terminal.
C) manual process.
D) off-page connector.
Explain the key decisions and information needs in production operations, the threats to
those activities, and the controls that can mitigate those threats.
Discuss two measures that can address the threats of inefficiencies and quality controls
problems.
Discuss how an organization can develop custom software.
Describe the four strategies used to determine AIS requirements.
Describe what you think will be the main impact of database technology in your career.
Describe symmetric encryption and identify three limitations.
Explain two reasons why it is important to have a working knowledge of DFDs and
flowcharting.
What is RFID tags and how do companies use them to improve their shipping process?
Describe the reason why it is acceptable to have null foreign key, but it is unacceptable
to have a null primary key. Use the concept of entity integrity rule and referential
integrity rule in your answer.
Describe the three basic rules that apply to the REA model pattern.
Identify and discuss the two common methods of production planning.
Why are most fraud not being reported or prosecuted?
Discuss and evaluate the options for outsourcing HRM/payroll cycle activities.
Describe what information security process the term hardening refers to.
Describe the different types of documentation that should be prepared for a new system.
Discuss the systems conversion process and the activities in this phase.
Why is the event Issue Debt often modeled as a separate event entity?
Discuss the steps for designing and implementing a database system.
Explain the key decisions and information needs in product design, the threats to those
activities, and the controls that can mitigate those threats.
Identify the main reasons why companies change existing systems?