The best example of an effective payroll transaction file record count would most likely
be
A) sum of net pay.
B) total number of employees.
C) sum of FICA.
D) total of employees’ social security numbers.
Lebanese looping is
A) verifying credit card validity; buying and selling stolen credit cards.
B) inserting a sleeve into an ATM so that it will not eject the victim’s card, pretending to
help the
victim as a means of obtaining his PIN, and using the card and PIN to drain the account.
C) a technique that tricks a person into disclosing confidential information.
D) changing data before, during, or after it is entered into the system in order to delete,
alter, or add key system data.
In a data flow diagram of the customer payment process, “Customer” will appear above
or in
A) a square.
B) a circle.
C) two horizontal lines.
D) none of the above
The ________ occurs when more than one occurrence of a specific data item in a
database exists.
A) inconsistency anomaly
B) insert anomaly
C) delete anomaly
D) update anomaly
What is the most effective way to ensure information system availability?
A) High bandwidth.
B) Maintain a hot site.
C) Maintain a cold site.
D) Frequent backups.
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.
As each payroll transaction is processed, the system should also
A) allocate labor costs to appropriate general ledger accounts
B) use cumulative totals generated from a payroll to create a summary journal entry to
be posted to the general ledger
C) both A and B above
D) The HRM system should not perform either activity A or B.
Several types of documentation must be prepared for a new system. The type of
documentation that includes the files and databases accessed and file retention
requirements is called
A) development documentation.
B) operations documentation.
C) reference documentation.
D) user documentation.
Identify the statement below that is false with respect to cardinalities.
A) Cardinalities describe the nature of the relationship between two entities.
B) No universal standard exists for representing information about cardinalities in REA
diagrams.
C) The minimum cardinality can be zero or one.
D) The maximum cardinality can be zero, one, or many.
A DFD created at the highest-level or summary view is referred to as a
A) process diagram.
B) overview diagram.
C) content diagram.
D) context diagram.
What are the best strategies for determining system requirements?
A) Analyze existing systems, ask users what they need, prototyping, and monitoring.
B) Ask users what they need, analyze existing systems, develop concept of new system,
and prototyping.
C) Ask users what they need, analyze existing systems, examine existing system
utilization, and prototyping.
D) Ask users what they need, analyze existing systems, examine existing system
utilization, and develop concept of new system.
In a data flow diagram of the customer payment process, “update receivables” will
appear above or in
A) a square.
B) a circle.
C) two horizontal lines.
D) none of the above
Information that is free from error or bias and accurately represents the events or
activities of the organization is
A) relevant.
B) reliable.
C) verifiable.
D) timely.
One group that relies on both the adequate collection and transformation of data for
decision-making purposes for an organization is
A) management.
B) interested outsiders.
C) competitors.
D) the government.
Dysfunctional employee behavior in response to implementation of a new computerized
information system is likely to be the result of
A) poor human resource policies.
B) lack of communication and training.
C) weak system controls.
D) inadequate compensation policies.
Secretly changing an already open browser tab using JavaScript is called
A) superzapping.
B) tabnapping.
C) pretexting.
D) piggybacking.
Why might an organization find it most beneficial to involve accountants in product
design?
A) Because generally at least 65% of product costs are determined in the design stage
and accountants can help minimize product costs
B) Because accountants are generally able to improve the quality of new products
C) Because involving accountants in product design boosts firm morale
D) Because accountants are generally able to identify what consumers want in a new
product
Identify the most likely relationship where cardinalities have zero minimums and N
maximums.
A) Agent-event relationship.
B) Resource-event relationship.
C) Event-event relationship.
D) Agent-agent relationship.
Preimer Life Company is a life insurance company that collects, stores, prepares and
provides customerized life insurance policy to customers in the Midwest. When a
customer’s information is received, it is recorded in a database and a ticket is provided
to the policy underwriter . When the life insurance policy is issued, the database is
updated so that it always reflects the correct amount of life insurance coverage and the
length of the policy available to the customers. In a data flow diagram, which type of
symbol would be used to represent the process of updating customers’ life insurance
records in the system?
A)
B)
C)
D)
Because it is the most fungible of all assets, the management of cash has always been
the most difficult of all control issues. The most important of cash controls is
A) minimization of cash handling.
B) lockbox arrangements.
C) segregation of duties.
D) frequent reconciliation of records.
Upon acquiring a new computer operating system, management at Berryhill worried
that computer virus might cripple the company’s operation. Management decided to
install anti-virus software and to build a firewall for its operating system. Berryhill
chose to ________ the risk of being crippled by computer virus.
A) reduce
B) share
C) avoid
D) accept
What is a drawback to using the requirement costing method of software and hardware
evaluation?
A) Dollar estimates of costs and benefits are not included.
B) Intangible factors such as reliability and vendor support are overlooked.
C) The weights and points used are assigned subjectively.
D) There is no drawback to using the requirements costing method.
At a movie theater box office, all tickets are sequentially prenumbered. At the end of
each day, the beginning ticket number is subtracted from the ending number to calculate
the number of tickets sold. Cash is counted and compared with the number of tickets
sold. Which of the following situations does this control detect?
A) Some customers presented tickets purchased on a previous day when there wasn’t a
ticket taker at the theater entrance (so the tickets didn’t get torn.)
B) A group of kids snuck into the theater through a back door when customers left after
a show.
C) The box office cashier accidentally gives too much change to a customer.
D) The ticket taker admits his friends without tickets.
A(n) ________ measures company progress by comparing actual performance to
planned performance.
A) boundary system
B) diagnostic control system
C) interactive control system
D) belief system
The accounts receivable clerk destroys all invoices for sales made to family and friends
and does not record the sales in the accounts receivable subsidiary ledgers. The family
and friends usually give the clerk cash as a “thank you.” Which procedure will not
prevent or detect this fraud?
A) Send monthly statements to all customers with balances owed.
B) Reconcile sales invoices in the billing department to the total debits to accounts
receivable subsidiary ledgers.
C) Sequentially prenumber all invoices and prepare a sequence check at the end of each
day.
D) Reconcile the accounts receivable control account to the accounts receivable
subsidiary ledger.
The ________ stage of the auditing process involves (among other things) the auditors
observing the operating activities and having discussions with employees.
A) audit planning
B) collection of audit evidence
C) communication of audit results
D) evaluation of audit evidence
Identify the threat below that is not one of the four types of threats faced by accounting
information systems.
A) Natural and political disasters
B) Software errors and equipment malfunctions
C) Unintentional acts
D) System design inefficiency
It was 8:03 A.M. when Jiao Jan, the Network Administrator for South Asian
Technologies, was informed that the intrusion detection system had identified an
ongoing attempt to breach network security. By the time that Jiao had identified and
blocked the attack, the hacker had accessed and downloaded several files from the
company’s server. Using the notation for the time-based model of security, in this case
A) D > P
B) P > D
C) P > C
D) C > P
Who does the payroll system issue checks to?
A) Employees and to banks participating in direct deposit.
B) The company’s payroll bank account.
C) Insurance companies.
D) All of the above are correct.
A dental office would likely model the relationships between the Sales event and both
the Services and Supplies Resource entities as
A) M:N.
B) 1:1.
C) 1:N.
D) 1:M.
Describe four advantages and four disadvantages of implementing an ERP system at a
multinational corporation.
Explain why the Foreign Corrupt Practices Act was important to accountants.
Describe the difficulties that could be encountered when developing an AIS.
Explain the process of preparing financial statements, the threats to that process, the
controls that can be used to mitigate those threats, and how IT developments such as
XBRL can improve the efficiency and effectiveness of preparing financial statements.
Define minimum and maximum cardinalities.
Identify five important guidelines for drawing a flowchart. Select one from your list and
describe why it could be the most important one to consider when preparing a
flowchart. Support your choice with an example.
Define and give examples of embedded audit modules.
Explain the difference between file-oriented transaction processing systems and
relational database systems. Discuss the advantages and disadvantages of each system.
Describe the five phases of systems analysis.
Describe the eight basic steps in program design.
Write one question that should be asked about each of the controls design
considerations.
Explain why management’s philosophy and operating style are considered to be the
most important element of the internal environment.
Describe the four basic actions that organizations must take to preserve the
confidentiality of sensitive information.
Discuss how organizations use enterprise resource planning (ERP) systems to process
transactions and provide information
Describe the basic business activities in the revenue cycle and discuss the general
threats to that process and the controls that can be used to mitigate those threats.
How many side panels should the company budget for use in week two?
Bill of Materials
Define and contrast a recovery point objective and a recovery time objective. Provide a
numeric example.
Use the REA data model to design an AIS database.
Discuss the concept of a system and the issues of goal conflict and goal congruence.