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According to the ERM model, ________ help the company address all applicable laws
and regulations.
A) compliance objectives
B) operations objectives
C) reporting objectives
D) strategic objectives
The Trust Services Framework reliability principle that states that users must be able to
enter, update, and retrieve data during agreed-upon times is known as
A) availability.
B) security.
C) maintainability.
D) integrity.
The first step in developing an REA diagram for a specific transaction cycle begins with
identifying
A) relevant events.
B) agents involved.
C) resources affected.
D) relationship cardinalities.
Using a file-oriented approach to data and information, data is maintained in
A) a centralized database.
B) many interconnected files.
C) many separate files.
D) a decentralized database.
Which of the following is not a general threat to the revenue cycle?
A) inaccurate master data
B) loss of customers
C) poor performance
D) unauthorized disclosure of sensitive information
Which method of data gathering is most likely to result in information that represents
the personal biases and opinions of the person giving the information?
A) A questionnaire.
B) An interview.
C) Observation by the analyst.
D) System documentation.
Which of the following is not one of the 10 internationally recognized best practices for
protecting the privacy of customers' personal information?
A) Provide free credit report monitoring for customers.
B) Inform customers of the option to opt-out of data collection and use of their personal
information.
C) Allow customers' browsers to decline to accept cookies.
D) Utilize controls to prevent unauthorized access to, and disclosure of, customers'
information.
The first major business activity in the expenditure cycle is
A) ordering inventory, supplies, or services.
B) a customer sale.
C) shipping goods to customers.
D) receiving goods from vendors.
At what point in the systems development life cycle does the company determine how
the conceptual AIS design is to be implemented?
A) The conceptual design phase.
B) The implementation and conversion phase.
C) The physical design phase.
D) The operation and maintenance phase.
Yasin, a professional in information technology services, received an e-mail from Adil
in the Sales Department. The e-mail read: "Yasin, I need you to run that inventory
report you prepared for me last month again. Please send it to me by e-mail. Thank you,
Adil." What type of report is Adil asking Yasin to provide?
A) Scheduled report.
B) Special-purpose analysis report.
C) Triggered exception report.
D) Demand report.
What system privileges should an employee involved in the general ledger and
reporting system be given?
A) General privileges to create, delete, update, or modify data.
B) No privileges permitting the creation, deletion, updating, or modification of data.
C) Only the specific privileges necessary to perform an employee's assigned duties.
D) Read-only privileges.
The revenue cycle's primary objective is to
A) maximize the company's profit.
B) provide quality product in order to maximize market share.
C) lower expenses.
D) provide the right product in the right place at the right time for the right price.
Sule Technologies initiated a just-in-time inventory system in 2013. Now the
production manager, Chan Ziaou, wants to apply the same principles to the entire
production process. His recommendation is that Sule adopt a
A) master production scheduling system.
B) lean manufacturing system.
C) manufacturing resource planning system.
D) computer-integrated manufacturing system.
The process of creating value for customers is the result of nine activities that form a
A) value chain.
B) capitalist operation.
C) profitable business.
D) information system.
The update anomaly in non-normalized database tables
A) occurs because of data redundancy.
B) restricts addition of new fields or attributes.
C) results in records that cannot be updated.
D) is usually easily detected by users.
The ________ to auditing provides auditors with a clear understanding of possible
errors and irregularities and the related risks and exposures.
A) risk-based approach
B) risk-adjusted approach
C) financial audit approach
D) information systems approach
A(n) ________ helps top-level managers with high-level activities that demand
frequent and regular attention.
A) boundary system
B) diagnostic control system
C) interactive control system
D) belief system
What is a key decision that needs to be made with regards to borrowing money from
lenders?
A) the location
B) pro forma income statement
C) how much capital to acquire
D) job descriptions
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 has access to view customer and
insurance product information. She also has access that allows her to enter and cancel
customer orders. The permissions for Mary (and other sales reps) define a ________ in
the company's database management system.
A) conceptual-level schema
B) data dictionary
C) external-level schema
D) physical view
More than one arrow is needed between symbols on a DFD if
A) data elements always flow together.
B) data elements flow at different times.
C) data elements flow to different locations.
D) there is no guideline on use of single or multiple arrows.
Which of the following graphical symbols represents a minimum cardinality of zero
and a maximum cardinality of many?
A)
B)
C)
D)
Which electronic files are either read or updated when goods are ordered from a
vendor?
A) inventory, vendors, and accounts payable
B) vendors and accounts payable
C) inventory, vendors, and open purchase orders
D) open purchase orders and accounts payable
REA models are usually depicted in which diagramming form?
A) Entity-relationship diagrams.
B) Economics-relationship diagrams.
C) Entity-resource diagrams.
D) Stock-flow diagrams.
Using special software to bypass system controls and perform illegal acts is called
A) superzapping.
B) tabnapping.
C) pretexting.
D) piggybacking.
The Sarbanes-Oxley Act requires independent auditors to
A) create flowcharts to document business processes.
B) understand a client's system of internal controls.
C) establish effective internal controls.
D) prepare and understand all types of system documentation.
A power outage is 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)
For a service business, the minimum cardinalities between Sales event and Inventory
entity are most likely both 0 for all except which of the following reasons?
A) Service businesses don't sell inventory, they only use inventory to perform services.
B) A sale doesn't have to include any inventory.
C) Inventory can exist that hasn't been part of a sale yet.
D) Some services only require labor.
You are an internal auditor for Ron Burgandy Suits. The CEO has asked you to perform
an audit of the program modifications process. Identify one procedure you might use to
test controls surrounding the program modification process.
A) Review logical access control policies.
B) Discuss modification policies with management, users, and systems personnel.
C) Verify logical access controls are in effect for program changes.
D) Separate development, test, and production versions of programs.
The task of improving the efficiency of Crawford Insurance's accounting information
system was given to a project development team. During the ________ step in the
systems development life cycle, the team defined the procedures needed to back up and
secure the new system's data.
A) operations and maintenance
B) implementation and conversion
C) physical design
D) conceptual design
Source documents generally help to improve accuracy in transaction processing
because
A) they specify which information to collect.
B) logically related data can be grouped in the same area of the document.
C) they provide directions and steps for completing the form.
D) All of the above are correct.
Which of the following statements is not true with regards to a correctly drawn
enterprise-wide REA diagram?
A) Every event must be linked to at least one resource.
B) Merging two transaction cycles on a common event may affect the minimum
cardinalities between the merged event and the other events.
C) Events can only be merged if they share the same resources and events.
D) Creating a set of tables from an REA diagram automatically results in a
well-structured relational database.
Encryption has a remarkably long and varied history. Spies have been using it to convey
secret messages ever since there were secret messages to convey. One powerful method
of encryption uses random digits. Two documents are prepared with the same random
sequence of numbers. The spy is sent out with one and the spy master retains the other.
The digits are used as follows. Suppose that the word to be encrypted is SPY and the
random digits are 352. Then S becomes V (three letters after S), P becomes U (five
letters after P), and Y becomes A (two letters after Y, restarting at A after Z). The spy
would encrypt a message and then destroy the document used to encrypt it. This is an
early example of
A) a hashing algorithm.
B) asymmetric key encryption.
C) symmetric key encryption.
D) public key encryption.
How can query languages be used to help make better decisions?
A) They can suggest a course of action.
B) They can gather relevant data for decision making.
C) They can help the decision maker to interpret results.
D) They can model choose among alternative courses of action.
