How many tables are needed to implement an REA data model that has three distinct
entities, two M:N relationships and two 1:N relationships in a relational database?
A) 5
B) 7
C) 8
D) 10
Which table is most likely to have a concatenated key?
A) Inventory.
B) Sales.
C) Sales-inventory.
D) Accounts receivable.
Financial statements are prepared in a certain sequence. Which statement is prepared
first?
A) The adjusted trial balance.
B) The income statement.
C) The balance sheet.
D) The statement of cash flows.
One disadvantage of a Gantt chart is the fact that
A) it does not show the entire schedule for a project.
B) it does not show project progress.
C) it does not show relationships among project activities.
D) it does not permit an individual to quickly determine which activities are behind
schedule.
Taking control of a phone to make calls, send text messages, listen to calls, or read text
messages is called
A) masquerading.
B) bluebugging.
C) eavesdropping.
D) podslurping.
Downloading a master list of customers and selling it to a competitor is an example of
A) data fraud.
B) output theft.
C) download fraud.
D) fraudulent financial reporting.
As the head of the internal audit department for Orange Computing, you want to hire a
person to serve as one of Orange’s operational auditors. Identify the candidate below
that is likely to be the most qualified person for the job.
A) Jane, a CPA who has 10 years of audit experience
B) Kasheena, an MBA who has 10 years of management experience
C) Joe, a CISA who has 10 years of IT audit experience
D) Vahlia, a CPA who has 7 years of audit experience and 3 years of management
experience
The project committee for ALDI corporation is attempting to evaluate design
alternatives proposed for a new, organization-wide accounting information system.
However, there is a great deal of debate regarding whether the system should interface
via telephone, internet, cable, or satellite. Which design consideration is most
appropriately associated with these alternatives?
A) Communication channels.
B) Data storage structure.
C) File organization and access.
D) Input medium.
Best Friends, Incorporated is a publicly traded company where three BFF’s (best friends
forever) serve as its key officers. This situation
A) violates the Sarbanes-Oxley Act.
B) violates the Securities and Exchange Act.
C) increases the risk associated with an audit.
D) All of the above.
The traditional approach to inventory management to ensure sufficient quantity on hand
to maintain production is known as
A) safety stock.
B) just-in-time production.
C) economic order quantity.
D) optimal inventory quantity.
Which of the following would be the best control to prevent receiving department
employees from stealing inventory and claiming the ordered quantity wasn’t received
from the vendor?
A) Reconcile quantity on packing slip to physical count when accepting delivery.
B) Restrict physical access to the receiving area.
C) Require all deliveries be made at the receiving area.
D) Require dual signatures on the move ticket when receiving delivers the inventory to
the warehouse.
Which type of control prevents, detects, and corrects transaction errors and fraud?
A) general
B) application
C) detective
D) preventive
Regularly reviewing an accounts receivable aging report can help management do
what?
A) spot firms who are falling behind in their payments
B) identify customers who have not purchased anything lately
C) improve the speed which customers make payments
D) determine whether the firm’s pricing policy is effective
File-oriented approaches create problems for organizations because of
A) multiple transaction files.
B) a lack of sophisticated file maintenance software.
C) multiple users.
D) multiple master files.
Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The
management at Lasalle Investment group
A) asked their auditors to make recommendations for the redesign of their information
technology system and to aid in the implementation process.
B) did not mention to auditors that the company had experienced material weaknesses
in the company’s internal control systems during the past year.
C) selected the company’s CEO to chair the audit committee.
D) hired the manager from the external audit team as company CFO twelve months
after the manager had worked on the audit.
Which of the following is not one of the three steps to implementing an REA diagram
in a relational database?
A) Assign attributes to appropriate tables.
B) Create a table for each distinct entity in the diagram and for each many-to-many
relationship.
C) Link every event to at least one resource.
D) Use foreign keys to implement one-to-one and one-to-many relationships.
Reconciliation procedures is an example of
A) a data entry control.
B) a data transmission control.
C) an output control.
D) a processing control.
________ includes all the activities associated with transferring data from existing
systems to the new database AIS, testing the new system, and training employees how
to use it.
A) Systems analysis
B) Conceptual design
C) Physical design
D) Implementation and conversion
Which of the following statements is not correct?
A) The audit trail is intended to verify the validity and accuracy of transaction
recording.
B) The audit trail consists of records stored sequentially in an audit file.
C) The audit trail provides the means for locating and examining source documents.
D) The audit trail is created with document numbers and posting references.
Which of the statements below is false with respect to enterprise-wide REA diagrams?
A) Merging two or more REA diagrams that contain the same resource entity does not
require any changes to the cardinality pairs in the individual diagrams.
B) Merging two or more diagrams that contain a common event entity, however, often
requires changing the minimum cardinalities associated with the other events to 0, to
reflect the fact that the merged event may be connected to any one of several different
events, but not to all of them simultaneously.
C) The minimum cardinalities associated with agents may also have to be changed to 0.
D) All of the above are true.
Use the chart below to answer the following questions regarding flow chart symbols.
Which symbol would be used in a flowchart to represent a communication link?
A) #12
B) #13
C) #11
D) #15
A general journal
A) would be used to record monthly depreciation entries.
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.
Which of the following transactions is represented by the diagram below?
A) A junkyard holds weekly sales where it sells its entire inventory.
B) A shoe store sells products to consumers.
C) A stay-at-home mom creates furniture for doll houses. When one piece is finished,
she sells it on Amazon.com.
D) Netflix sells movies to consumers through its online downloading service.
Use the chart below to answer the following questions regarding flow chart symbols.
Which symbol would be used in a flowchart to represent a beginning, an ending, or a
connection to another procedure?
A) #13
B) #14
C) #15
D) #16
Identify in which of the following scenarios a company could adjust the balance due the
vendor by issuing a debit memo.
A) quantity different from that ordered
B) damage to the goods
C) goods that fail inspection for quality
D) All of the above are possible scenarios.
Which of the following is the greatest risk to information systems and causes the
greatest dollar losses?
A) Human errors and omissions
B) Physical threats such as natural disasters
C) Dishonest employees
D) Computer crime
Data modeling is an element of
A) systems analysis.
B) conceptual design.
C) system analysis and conceptual design.
D) system analysis and physical design.
The first step in developing a prototype emphasizes
A) developing a good prototype into a fully functional system.
B) speed and low cost rather than efficiency of operation.
C) that users identify changes to be made in an iterative process.
D) what output should be produced rather than how it should be produced.
Using an REA database design, which is the most likely primary key for the
Inventory–Request_Goods table?
A) Product number.
B) Product number – Purchase order number.
C) Product number – Purchase requisition number.
D) Purchase order number.
Integrating separate REA diagrams developed for individual transaction cycles into a
single, comprehensive enterprise-wide data model
A) is possible.
B) requires understanding what the cardinalities in each separate diagram reveal about
the organization’s business policies and activities.
C) provides a single comprehensive enterprise-wide model of the organization.
D) All of the above are true.
The two most common types of fraud impacting financial statements are
A) corruption and fraudulent financial reporting.
B) misappropriation of assets and embezzlement.
C) fraudulent financial reporting and e-commerce fraud.
D) fraudulent financial reporting and misappropriation of assets.