96) Systems techniques may be used by
A) internal auditors.
B) external auditors.
C) systems personnel.
D) All of these answers are correct.
97) The component of an audit whose objective is to establish the degree of reliance that can be
placed on the organization’s internal control structure is called
A) the interim audit.
B) the financial statement audit.
C) work paper verification.
D) the internal audit.
98) To confirm the existence and assess the effectiveness of an organization’s internal controls,
auditors
A) create systems techniques.
B) perform substantive testing.
C) perform compliance testing.
D) create HIPO and IPO charts.
99) The flowchart which is most similar to a document flowchart is the
A) IPO chart.
B) DFD.
C) analytic flowchart.
D) HIPO chart.
100) The first step in preparing a flowchart is to
A) select the symbols to be used.
B) analyze the system.
C) sketch a rough draft of the system.
D) consult the work papers from previous audits.
101) How many general guidelines should be followed when preparing a flowchart?
A) Three
B) Five
C) Seven
D) Four
102) The goal of work measurement is to create a benchmark or yardstick to use in measuring
the efficiency of an operation. The first step taken in work measurement is to
A) identify the tasks.
B) analyze requirements.
C) examine IPO and HIPO documentation.
D) obtain time estimates for performing the tasks.
103) The formula used to compute total task time for work measurement purposes is
A) (average time / unit + idle time / unit) × average volume.
B) total time available / total task time.
C) (average volume / unit + average time / unit) × average volume.
D) total task time / total time available.
104) A branching table may be used to
A) validate the degree of reliance placed on an organization’s internal controls.
B) document the decision logic in a computer program.
C) document work measurement analysis.
D) validate the computing speed of a program.
105) A decision table format generally uses a(n)
A) “OR” premise.
B) “SOME-MANY” premise.
C) “IF-THEN” premise.
D) “ALL-NONE” premise.
106) In an application control matrix, row entries are
A) controls.
B) processing actions.
C) either controls or processing actions.
D) neither controls nor processing actions.
107) A block flowchart is also known as a(n)
A) data flow diagram.
B) HIPO chart.
C) analytic flowchart.
D) program flowchart.
108) A tabular technique used to represent a decision function in a flowchart is known as a
A) block flowchart.
B) logical data flow diagram.
C) decision table.
D) branching table.
109) The display symbol in a flowchart represents information displayed for human use using a
device such as a
A) video monitor.
B) plotter.
C) console printer.
D) All of these answers are correct.
110) Flowchart symbols that represent the I/O function and the medium upon which the
information is recorded, and/or the manner of handling such information, are known as
A) basic input/output symbols.
B) specialized input/output symbols.
C) LDFD symbols.
D) HIPO hierarchy chart modules.
111) The principle behind the “sandwich rule” states that
A) flowcharts should leave as little white space as possible on each page to minimize waste.
B) annotations should be placed between each key input and output symbol.
C) every process symbol should be placed between an input and output symbol.
D) flowcharts should use as many different types of symbols as possible to thoroughly document
basic I/O functions.
112) Connector symbols may be used in place of
A) comment symbols.
B) long flowlines.
C) data flow symbols.
D) communications links.
113) The on-line storage symbol would be used to represent
A) a deck of cards.
B) a magnetic tape.
C) an optical disk.
D) a punched tape.
114) An annotation or comment may be represented in a flowchart using a
A) brace.
B) flowline.
C) square.
D) diamond.
115) Which part of the Sarbanes-Oxley Act requires annual filings of publicly traded companies
to include a statement of management’s responsibility for establishing and maintaining an
adequate internal control structure and procedures for financial reporting?
A) ISO 404
B) ANSI X3.5
C) Section 404
D) Section X3.5
116) UML is a(n) ________ standard.
A) United States
B) international
C) ANSI
D) AICPA
117) UML includes techniques that are the functional equivalents of
A) data flow diagrams.
B) document flowcharting.
C) analytical flowcharting.
D) All of the above are included in the UML standard.
118) UML version 2.4 defines ________ types of diagrams, divided into two categories.
A) two
B) five
C) ten
D) more than a dozen
119) The two categories of diagrams under the UML version 2.4 include ________ diagrams.
A) structure and iteration
B) behavior and iteration
C) structure and behavior
D) form and interaction
120) A graphical representation focusing on the sequence of activities in a business process is
a(n)
A) analytical flowchart.
B) business process diagram.
C) process flowchart.
D) data flow diagram.
121) The basic symbols in a BPMN include
A) task, sequence flow, gateway, and event symbols.
B) process, flowline, input/output, and annotation.
C) task, flowline, event, and comments.
D) input/output, sequence flow, entities, and storage.
122) Presented below is a list of terms relating to accounting information systems, followed by
definitions of those terms.
Required: Match the letter next to each definition with the appropriate term. Each answer will be
used only once.
________ 1. On-line storage symbol
________ 2. Off-page connector symbol
________ 3. Manual input symbol
________ 4. Basic process symbol
________ 5. Decision symbol
________ 6. Off-line storage symbol
________ 7. Terminal symbol
________ 8. Basic input/output symbol
________ 9. Connector symbol
________ 10. Manual process symbol
A. To indicate that a factory employee uses a workstation on the factory floor to key in a code
that means that the production run has been completed
B. To indicate that the treasurer will sign the payroll checks
C. To indicate that a check is being mailed outside the company
D. To indicate that a document is being sent to another department
E. To indicate that the bank loan officer approves or does not approve of an increase in the
customer’s line of credit
F. To indicate that computer software will calculate the employees’ gross pay deductions, and
net pay
G. To indicate a file of paper documents
H. To indicate files stored on the hard disk
I. To indicate the general ledger file
J. To indicate the beginning or the end of the flowchart
123) Presented below is a list of terms relating to accounting information systems, followed by
definitions of those terms.
Required: Match the letter next to each definition with the appropriate term. Each answer will be
used only once.
________ 1. Systems techniques
________ 2. Work measurement
________ 3. Decision table
________ 4. HIPO chart
________ 5. Data flow diagram
________ 6. Program flowchart
________ 7. Systems development project
________ 8. Compliance testing
________ 9. Substantive testing
________ 10. Sandwich rule
________ 11. Business process diagram
________ 12. Unified modeling language
________ 13. Business process modeling notation
________ 14. Computer-aided software engineering
________ 15. Analytic flowchart
A. Consists of systems analysis, design, and implementation
B. Charting technique used to document the logical design of a system
C. Every process symbol should be placed between an input symbol and an output symbol
D. Techniques used to measure activities in a production framework
E. Tools used in the analysis, design, and documentation of systems
F. Confirms the existence and assesses the effectiveness of internal controls
G. Supplements or replaces flowcharts when there are a large number of alternative decision
paths
H. Indicates detailed processing functions
I. International standard predominately a software systems development technology
J. Uses pools and lanes in swimlanes to organize activities
K. Process of using computer software that supports development and maintenance
L. Charts the flow of documents and processing between different entities, represented by
columns
M. Graphical representation of the sequence of activities of business processes
N. A collection of IPO charts
O. The direct verification of financial statement figures
124) The following data is related to the time required to post checks drawn by the Last National
Bank’s depositors:
Number of checks posted 795
Total elapsed minutes 520
Rest period minutes 12
Interruption minutes 15
Required:
a. Calculate the standard posting time per check.
b. Calculate the combined rest and interruption time as a percentage of the standard time per
check.
125) The following data is related to the time required to post Kriptonite Corporation’s daily
general ledger entries:
Number of GL entries posted 850
Total elapsed minutes 340
Rest period minutes 6
Interruption minutes 6.5
Required:
a. Calculate the standard posting time per GL entry.
b. Calculate the combined rest and interruption time as a percentage of the standard time per GL
entry.
126) Complete the limited-entry decision table below to document credit card purchase
authorization procedures for The Whodunit Bookshop.
A purchase under $75 is approved automatically. Purchases between $75 and$500 (inclusive) are
given an authorization number. For purchases over $500, a hold is placed on the customer’s
account as well as an authorization number being assigned.
Rules:
Condition/Action 1 2 3
Purchase less than $75
Purchase between $75 and $500
Purchase over $500
Approve with no action
Assign authorization number
Place hold on account
127) The approval policies for sales on account at Barton Brothers Lumber Company are given
below:
A sale under $1,000 is automatically approved for a builder or contractor. Sales between $1,000
and $5,000 (inclusive) require the approval of the credit department. Sales over $5,000 require
the approval of the credit department and the vice president of the company.
Required: Create a limited-entry decision table to document the sales department approval
policies for Barton Brothers Lumber Company.
128) Name the four basic symbols used in analytic flowcharting, and briefly define them.
129) Name the four basic symbols used in data flow diagrams, and briefly define them.
130) Discuss one major characteristic of logical data flow diagrams which may be an advantage
over analytic flowcharts in some situations.
131) One broad type of resource utilization analysis is work measurement.
a. What fundamental assumption underlies work measurement?
b. What is an essential ingredient for an organization to be able to perform work measurement?
132) Describe the purpose and nature of the following types of flowcharts:
• Systems
• Program or block
• Analytic
• Document
• Forms distribution
133) Discuss the main activities in each systems development phase: systems analysis, systems
design, and systems implementation. Include two systems techniques in each phase.
134) How do systems techniques help in auditing?