Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 10 Information Systems Controls for Systems Reliability Part 3: Processing Integrity
and Availability
1) The best example of a hash total for a payroll transaction file could be
A) total of employees’ social security numbers.
B) sum of net pay.
C) total number of employees.
D) sum of hours worked.
2) Error logs and review are an example of
A) data entry controls.
B) data transmission controls.
C) output controls.
D) processing controls.
3) Following is the result of batch control totals on employee Social Security Numbers in a payroll
processing transaction:
Correct
Values From
Masterfile
Values
Entered
During
Processing
487358796
487358796
534916487
534916487
498374526
498374526
514873420
514873420
534196487
534916487
678487853
678487853
471230589
471230589
3719438158
3720158158
The difference in the control totals is 720,000. Which data entry control would best prevent similar data
entry errors in the future?
A) Modulus 11
B) Validity check
C) Check digit
D) Sequence check
4) Which of the following data entry controls would not be useful if you are recording the checkout of
library books by members?
A) Sequence check
B) Prompting
C) Validity check
D) Concurrent update control
5) A customer failed 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) Validity check
D) Reconciliation of a batch control total
6) If invoices are processed in groups of fifty, which fields from the document shown below would not
be used to create a hash control total?
A) Amount
B) Item Number
C) Quantity Ordered
D) Sales Order number
7) A data entry input control in which the application software sums the first four digits of a customer
number to calculate the value of the fifth digit and then compares the calculated number to the number
typed in during data entry is an example of a
A) check digit verification.
B) validity check.
C) closed-loop verification.
D) duplicate data check.
8) All of the following controls for online entry of a sales order would be useful except
A) check digit verification on the dollar amount of the order.
B) validity check on the inventory item numbers.
C) field check on the customer ID and dollar amount of the order.
D) concurrent update control.
9) A specific inventory record indicates that there were 12 items on hand before a customer brings two
of the items to the check stand to be purchased. The cashier accidentally entered quantity 20 instead of
2. Which data entry control would best have prevented this error?
A) sign check
B) limit check
C) validity check
D) field check
10) When processing weekly payroll, an employee accidentally entered 400 for hours worked. The best
data entry control for this error would be
A) a limit check.
B) a check digit.
C) batch total reconciliation.
D) a field check.
11) The data entry control that would best prevent entering an invoice received from a vendor who is not
on an authorized supplier list is
A) a validity check.
B) an authorization check.
C) a check digit.
D) closed-loop verification.
12) Forms design is an example of this type of control.
A) Data entry control
B) Processing control
C) Output control
D) Input control
13) Sequentially prenumbered forms is an example of a(n)
A) data entry control.
B) data transmission control.
C) processing control.
D) input control.
14) Turnaround documents are an example of a(n)
A) data entry control.
B) output control.
C) processing control.
D) input control.
15) A validity check is an example of a(n)
A) data entry control.
B) data transmission control.
C) output control.
D) input control.
16) Parity checks are an example of a(n)
A) data entry control.
B) data transmission control.
C) output control.
D) processing control.
17) User reviews are an example of a(n)
A) data entry control.
B) data transmission control.
C) output control.
D) processing control.
18) Data matching is an example of a(n)
A) data entry control.
B) data transmission control.
C) processing control.
D) input control.
19) Batch totals are an example of a(n)
A) data entry control.
B) data transmission control.
C) output control.
D) processing control.
20) Cancellation and storage of documents means that
A) data are copied from a document and stored, after which the document is shredded.
B) documents are defaced before being shredded.
C) documents are defaced and stored.
21) Check digit verification is an example of a(n)
A) data transmission control.
B) output control.
C) processing control.
D) input control.
22) This ensures that the input data will fit into the assigned field.
A) Limit check
B) Range check
C) Size check
D) Validity check
23) This tests a numerical amount to ensure that it does not exceed a predetermined value nor fall below
another predetermined value.
A) Completeness check
B) Field check
C) Limit check
D) Range check
24) This determines if all required data items have been entered.
A) Completeness check
B) Field check
C) Limit check
D) Range check
25) This determines the correctness of the logical relationship between two data items.
A) Range check
B) Reasonableness test
C) Sign check
D) Size check
26) This determines if characters are of the proper type.
A) Field check
B) Alpha-numeric check
C) Range check
D) Reasonableness test
27) This tests a numerical amount to ensure that it does not exceed a predetermined value.
A) Completeness check
B) Limit check
C) Range check
D) Sign check
28) This batch processing data entry control sums a field that contains dollar values.
A) Record count
B) Financial total
C) Hash total
D) Sequence check
29) This batch processing data entry control sums a non-financial numeric field.
A) Record count
B) Financial total
C) Hash total
D) Sequence check
30) When I enter a correct customer number, the data entry screen displays the customer name and
address. This is an example of
A) prompting.
B) preformatting.
C) closed-loop verification.
D) error checking.
31) This control ensures that the correct and most current files are being updated.
A) Cross-footing balance test
B) Data matching
C) File labels
D) Write-protect mechanism
32) This batch processing data entry control sums the number of items in a batch.
A) Financial total
B) Hash total
C) Record count
D) Sequence check
33) This data entry control compares the ID number in transaction data to a master file to verify that the
ID number exists.
A) Reasonableness test
B) User review
C) Data matching
D) Validity check
34) File labels are an example of
A) data entry controls.
B) output controls.
C) processing controls.
D) source data controls.
35) A computer operator accidentally used the wrong master file when updating a transaction file. As a
result, the master file data is now unreadable. Which control could best have prevented this from
happening?
A) Internal header label
B) Validity check
C) Check digit
D) Parity check
36) Chaz Finnerty called the IT Help Desk in a huff. “I‘m trying to open an Excel file and I get a
message that says that the file is locked for editing. What’s going on?” The answer is likely that
A) the file is corrupted due to a computer virus.
B) there is no problem. Chaz is editing the file, so it is locked.
C) concurrent update controls have locked the file.
D) Chaz probably opened the file as read-only.
37) This control protects records from errors that occur when two or more users attempt to update the
same record simultaneously.
A) Concurrent update controls
B) Cross-footing balance test
C) Data conversion controls
D) Recalculation of batch totals
38) Modest Expectations Investment Services (MEIS) allows customers to manage their investments
over the Internet. If customers attempt to sell more shares of a stock than they have in their account, an
error message is displayed. This is an example of a
A) reasonableness test.
B) field check.
C) validity check.
D) limit check.
39) Modest Expectations Investment Services (MEIS) allows customers to manage their investments
over the Internet. If customers attempt to spend more money than they have in their account, an error
message is displayed. This is an example of a
A) reasonableness test.
B) field check.
C) validity check.
D) limit check.
40) The Spontaneous Combustion Rocket Shoppe in downtown Fargo, North Dakota, generates three
quarters of its revenue from orders taken over the Internet. The revenue clearing account is debited by
the total of cash and credit receipts and credited by the total of storefront and Internet sales. This is an
example of a
A) data integrity test.
B) zero-balance test.
C) trial balance audit.
D) cross-footing balance test.
41) 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
42) Concerning system availability, which of the following statements is true?
A) Human error does not threaten system availability.
B) Proper controls can maximize the risk of threats causing significant system downtime.
C) Threats to system availability can be completely eliminated.
D) Threats to system availability include hardware and software failures as well as natural and man-
made disasters.
43) Which of the following is not an objective of a disaster recovery plan?
A) Minimize the extent of the disruption, damage or loss.
B) Permanently establish an alternative means of processing information.
C) Resume normal operations as soon as possible.
D) Train employees for emergency operations.
44) Which item below would not typically be part of an adequate disaster recovery plan?
A) a system upgrade due to operating system software changes
B) uninterruptible power systems installed for key system components
C) scheduled electronic vaulting of files
D) backup computer and telecommunication facilities
45) A facility that contains all the computing equipment the organization needs to perform its essential
business activities is known as a
A) cold site.
B) hot site.
C) remote site.
D) subsidiary location.
46) A facility that is pre-wired for necessary telecommunications and computer equipment, but doesn’t
have equipment installed, is known as a
A) cold site.
B) hot site.
C) remote site.
D) subsidiary location.
47) When a computer system’s files are automatically duplicated on a second data storage system as they
are changed, the process is referred to as
A) real-time mirroring.
B) batch updating.
C) consistency control.
D) double-secure storage.
48) ________ enables a system to continue functioning in the event that a particular component fails.
A) An incremental backup procedure
B) Fault tolerance
C) Preventive maintenance
D) A concurrent update control
49) A copy of a database, master file, or software that will be retained indefinitely as a historical record
is known as a(n)
A) archive.
B) cloud computing.
C) differential backup.
D) incremental backup.
50) While this type of backup process takes longer than the alternative, restoration is easier and faster.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
51) ________ involves copying only the data items that have changed since the last partial backup.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
52) ________ copies all changes made since the last full backup.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
53) 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.
54) The maximum acceptable down time after a computer system failure is determined by a company’s
A) recovery time objective.
B) recovery point objective.
C) recovery objective.
D) maximum time recovery objective.
55) The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per
hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in
the event of a system failure is 25,000 transactions. If the firm’s recovery time objective is 120 minutes,
then the worst case recovery time objective is
A) 1 hour
B) 2 hours
C) 3 hours
D) 4 hours
56) The accounting department at Synergy Hydroelectric records an average of 10,000 transactions per
hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in
the event of a system failure is 20,000 transactions. If the firm’s recovery time objective is 60 minutes,
then the worst case recovery time objective is
A) 1 hour
B) 2 hours
C) 3 hours
D) 4 hours
57) The accounting department at Synergy Hydroelectric records an average of 10,000 transactions per
hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in
the event of a system failure is 40,000 transactions. The firm’s recovery point objective is therefore
A) 40,000 transactions
B) 10,000 transactions
C) 10 hours
D) 4 hours
58) The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per
hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in
the event of a system failure is 25,000 transactions. The firm’s recovery point objective is therefore
A) 25,000 transactions
B) 12,500 transactions
C) 1 hour
D) 2 hours
59) This control entails verifying that the proper number of bits are set to the value 1 in each character
received.
A) Echo check
B) Field check
C) Parity check
D) Trailer record
60) Probably the most important change management control is
A) monitoring user rights and privileges during the change process.
B) testing all changes thoroughly prior to implementation on a stand-alone computer.
C) updating all documentation to reflect changes made to the system.
D) management’s careful monitoring and review.
61) Which of the following is true?
A) Cloud computing is a control technique for system availability.
B) Cloud computing eliminates the need for backup of applications and data.
C) Cloud computing refers to the practice of storing application files and backup data on satellites ‘in the
clouds’.
D) Cloud computing eliminates the need for companies to own their own software and servers.
62) Discuss how cloud computing could both positively and negatively affect system availability.
63) Define and contrast a recovery point objective and a recovery time objective.