An accounts receivable aging report is useful for doing everything except
A) estimating bad debts.
B) estimating future sales.
C) projecting the timing of future cash flows.
D) deciding whether to increase a specific customer’s credit limit.
Which symbol would be used in a flowchart to note that every sales order contains the
customer name, address, product number, quantity ordered, item cost, and credit terms?
A) #5
B) #8
C) #11
D) #16
In Chapter 1, Figure 1-4 shows the factors that influence the design of AIS. The
diagram shows a bi-directional arrow between the organizational culture and the AIS.
The reason for this two-way interchange between organizational culture and AIS is
A) that the AIS should not influence the values of the organizational culture.
B) because the organization’s culture influences the AIS, and likewise the AIS
influences the organization’s culture by controlling the flow of information within the
organization.
C) due to the transfer of managers between the two corporate elements.
D) the AIS impacts the organization’s key strategies.
When modeling the issuance of debt, the maximum cardinality from Disburse Cash to
Issue Debt is 1 because
A) interest is usually only paid at the maturity date.
B) one check is written for the total interest due.
C) The Issue Debt event is not related to Disburse Cash event; cash is received, not
given.
D) The minimum cardinality would be 1, but the maximum cardinality should be N.
Pat Owen is chair of the National Grizzly Society, which maintains a database of all
grizzly bears within the United States. One table will store the name, birth date, and
other characteristics of all of the grizzly bears that have been registered. Each grizzly
bear is uniquely identified by a registration number. A second table will contain data
that link each grizzly bear to its male and female parents by means of their registration
numbers. The primary key in the first table is
A) name.
B) birth date.
C) the primary key in the second table.
D) a foreign key in the second table.
Clemente Santiago has formed a business that sells carved gourmet coconuts. He has
hired five employees. The most senior is Mary, who manages the carving process. Jane
is the newest employee. She collects the coconuts. Joe takes calls from unhappy
customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler.
Annie sends letters to the wholesaler extolling the virtues of the latest production run of
nuts that are drifting across the bay.
Which of the following functions in the value chain is Tom performing?
A) Inbound logistics
B) Operations
C) Outbound logistics
D) Marketing and sales
E) Service
Which of the following is not an example of how an AIS adds value to an organization?
A) All employees at a hospital can access and update patient records from any computer
terminal in the hospital.
B) A customer service representative can find a customer’s account data, purchase
history, payment history, and salesperson’s name while on the phone with the customer,
to resolve issues quickly.
C) Suppliers are able to access sales data directly from the point-of-sale system of a
retailer and deliver inventory automatically when needed.
D) Client tax files are encrypted and made available on the CPA firm’s network to any
employee with an access code.
________ refers to involving users in the development, control, and deployment of
information systems.
A) Amateur user computing (AUC)
B) Competitive intra-organization systems development approach (CIOSDA)
C) End-user computing (EUC)
D) Novice information systems development (NISD)
The maximum amount of time between backups is determined by a company’s
A) recovery time objective.
B) recovery point objective.
C) recovery objective.
D) maximum time recovery objective.
________ attempts to minimize or eliminate carrying and stockout costs.
A) Just-in-time inventory
B) Materials requirements planning
C) Economic order quantity
D) Evaluated receipt settlement
A customer forget to include her account number on her check, and the accounts
receivable clerk credited her payment to a different customer with the same last name.
Which control could have been used to most effectively to prevent this error?
A) Closed-loop verification.
B) Duplicate values check.
C) Reasonableness test.
D) Reconciliation of a batch control total.
Identify the primary reason that it is important for a firm to identify the AIS
improvements likely to yield the greatest return.
A) because business strategy directly influences AIS, but not information technology
B) because most organizations have limited resources
C) because a firm never wants to waste time addressing issues that are not urgent
D) because it is expensive to improve accounting information systems
Falk Noam is the internal auditor for Matan Incorporated. Before investigating the
HRM / payroll cycle at Matan, Falk decided to read up on the proper segregation of
duties regarding payroll disbursement processes. For strongest segregation of duties, the
________ should record payroll.
A) accounts payable department
B) cashier
C) internal audit department
D) external auditor
ERP stands for
A) enterprise resource planning.
B) enterprise resource program.
C) enterprise reporting program.
D) none of the above
Identify the most correct statement with regards to an event.
A) An event identified by management will occur.
B) An event identified by management may or may not occur.
C) An event identified by management may not trigger other events.
D) It is easy to determine which events are most likely to occur.
A fraud technique that allows a hacker to place himself or herself between a client and a
host to intercept network traffic is called the ________ technique.
A) Trojan horse
B) man-in-the-middle
C) salami
D) trap door
Performing revisions to existing program code is an example of
A) debugging.
B) structured programming.
C) program maintenance.
D) walk through.
Every person in the world has a birthdate, but no person has more than one birthdate.
Thus, the cardinality that exists between birthdate and people is
A) one-to-one.
B) one-to-many.
C) many-to-many.
D) many-to-none.
Processing test data involves
A) managers observing the operation of the system by “walking through” the IT
department.
B) processing hypothetical data that are designed to identify errors in the system.
C) processing copies of real transactions in order to determine whether or not the
system meets requirements.
D) a thorough review of the procedures and program logic of the system.
A graphical depiction of a database’s contents showing the various entities being
modeled and the important relationships among them is called a(n)
A) REA diagram.
B) data diagram.
C) ERP diagram.
D) ER diagram.
When integrating multiple REA diagrams into an integrated REA diagram, to merge an
event that appears in both business cycle REA diagrams,
A) the event that appears in both business cycle REA diagrams may be linked to either
an event that is part of one business cycle or to an event that is part of another business
cycle.
B) the event that appears in both business cycle REA diagrams may be linked to an
event that is part of one business cycle and to an event that is part of another business
cycle.
C) One cannot merge an event that appears in both business cycles.
D) none of the above
Abby Burke has created custom statues made out of scrap metal for over ten years.
Abby has kept detailed records of every statue she has ever created. For every sale, she
obtains the customer’s name and address, a description of the statue, and a picture of the
statue sold to the customer. Her unique style has recently attracted the attention of
several celebrities. Ready to take her business to the next level, Abby has hired you to
construct an accounting information system, which she wants modeled after her paper
records. You begin development of the relational database that will form the core of the
AIS by envisioning the record stored in a single table with a column that represents
each attribute. You then begin to break this table down into smaller tables. This process
is called
A) integration.
B) optimization.
C) minimization.
D) normalization.
Rebus Fashions provides haircuts to men and women. Rebus uses an REA database to
record information that is important to the firm. Rebus has an M:N table named
“Customer-Sale” where it keeps information about customer sales. Identify the attribute
below that most likely does not belong in the Customer-Sale table.
A) Date of sale.
B) Time hair cut was started.
C) Name of customer.
D) All of the above are appropriate attributes for the Customer table.
What is the basic function of a help desk?
A) Control access to corporate data.
B) Provide technical maintenance and support.
C) Train end users and assist with application development.
D) All of the above are basic functions of a help desk.
Concatenated keys are
A) used when combining two or more REA diagrams.
B) foreign keys used to implement 1:N or 1:1 relationships.
C) multiple attribute keys used to implement 1:M relationships.
D) used to implement M:N relationships.
The most efficient way to conceal asset misappropriation is to
A) understate a stolen inventory item an asset account.
B) charge a stolen inventory item to an expense account.
C) not talk about the theft with anyone in the company.
D) record fictitious payments to vendors.
It was late on a Friday afternoon when Chloe Pike got a call at the help desk for Taggart
Corp. A man with an edge of panic in his voice was on the phone. “I’m really in a bind
and I sure hope that you can help me.” He identified himself as Joe Andrew from the
accounting department of Taggart Corp. He told Chloe that he had to work on a report
that was due on Monday morning and that he had forgotten to bring a written copy of
his new password home with him. Chloe knew that Taggart’s new password policy
required that passwords be at least fifteen characters long, must contain letters and
numbers, and must be changed every sixty days, had created problems for many users.
Consequently, Chloe provided the password to Joe. The caller turned out not to be Joe
Andrew, and Chloe was a victim of
A) phreaking.
B) war dialing.
C) identity theft.
D) social engineering.
The logical view of a database system refers to
A) how a user or programmer conceptually organizes and understands the data.
B) how the DBMS accesses data for a certain application program.
C) how and where the data are physically arranged and stored.
D) how master files store data values used by more than one application program.
The Bear Corporation uses a tool that embeds a code into all of its digital documents. It
then scours the internet, searching for codes that it has embedded into its files. When
Bear finds an embedded code on the internet, it knows that confidential information has
been leaked. Bear then begins identifying how the information was leaked and who was
involved with the leak. Bear is using
A) an information rights management software.
B) a data loss prevention software.
C) a digital watermark.
D) a stop leak software.
________ consists of translating the internal-level schema into the actual database
structures that will be
implemented in the new system.
A) Systems analysis
B) Conceptual design
C) Physical design
D) Implementation and conversion
The four phases of the unified process software development framework are
A) inception, transition, construction, and elaboration.
B) inception, transition, elaboration, and construction.
C) inception, construction, elaboration, and transition.
D) inception, elaboration, construction, and transition.
Identify the entity linked to almost every other entity in an REA diagram for
HRM/payroll cycles.
A) Employee.
B) Job title.
C) Payroll.
D) Salary.
Error logs and review are an example of
A) data entry controls.
B) data transmission controls.
C) output controls.
D) processing controls.
Shortly after a new automated quality assurance system was deployed, a firm’s
production output dropped by five percent. The shift manager blamed the new system,
declaring that “after we laid off staff, nothing went as fast.” This is an example of
dealing with change by
A) deterrence.
B) projection.
C) avoidance.
D) aggression.
Compare and contrast computer attack and abuse tactics.
Describe at least four considerations during controls design.
How are “Give and Take” transactions classified in business today and what impact
does this have on AIS?
How is a DFD different from a flowchart?
Explain the value of penetration testing.
Explain why organizations outsource their information systems, and evaluate the
benefits and risks of this strategy.
Describe five threats in the production cycle and the applicable control procedures used
to mitigate each threat.
Explain how an AIS adds value to an organization, how it affects and is affected by
corporate strategy, and its role in a value chain.
Describe the difference between concurrent audit techniques and embedded audit
modules.
Define an accounting information system.
Describe the methods used to collect data about business activities. Describe design and
control considerations for each of the data collection methods.
Describe structured programming.
Describe the major elements in the internal environment of a company.
Prepare and use business process diagrams to understand, evaluate, and document
information systems.
Define computer fraud and discuss the different computer fraud classifications.
Explain how a company could be the victim of fraud, even if ideal segregation of duties
is enforced.
Describe how organizations purchase application software, vendor services, and
hardware.
Describe four requirements of effective passwords .
Identify ten threats and applicable control procedures in the expenditure cycle.
