Consider the following REA model as you answer the question:
How many junction tables will be required by the preceding REA model?
A. Two
B. Three
C. Four
D. Some other number
Umble and Umble suggested six necessary conditions for a successful ERP
implementation. Expectancy theory can be useful in achieving all of the following
conditions except:
A. Obtaining organizational commitment.
B. Viewing ERP as an enterprise-wide venture.
C. Resolving multisite issues.
D. Ensuring data accuracy.
All of the following would be used as column headings in a systems flowchart except:
A. Cash receipts department
B. Bank deposit slip
C. Payroll clerk
D. Customer
At the end of 2014, CNC Corporation’s accounting information system produced the
following trial balance:
CNC completed the following transactions in January 2015:
a. Purchased inventory on account, $300.
b. Collected cash from customers for prior year sales, $500.
c. Paid current month’s wages, $900.
d. Had land appraised. Cost of doing the appraisal (paid in cash), $700. Appraised value
of land, $3,000.
e. Sold inventory with a cost basis of $200 on account, $800.
f. Declared dividends, $50.
g. Hired additional sales staff. Expected monthly salaries, $80.
h. Purchased supplies for cash, $150.
i. Paid creditors for previous purchases, $150.
j. Signed a contract for annual employee retreat, $450.
In CNC’s general ledger, the account number for inventory is 105. The account number
for land is 201. Which of the following transactions will involve the account numbered
301?A. Transaction A only.B. Transaction I only.C. Both transactions A and I.D. Neither
transactions A nor I.
Which of the following statements about systems flowcharts and data flow diagrams is
most true?
A. Processes are numbered in a flowchart, but not in a data flow diagram.
B. Processes are numbered in a data flow diagram, but not in a flowchart.
C. Processes are numbered in both flowcharts and data flow diagrams.
D. Processes are unnumbered in both flowcharts and data flow diagrams.
Which of the following best pairs a financing process risk with an internal control that
will address the risk?
A. Poorly trained employees in the finance department, required annual training
B. Inability to make required payments on long-term debt, properly developed cash
budget
C. Both poorly trained employees in the finance department, required annual training
and inability to make required payments on long-term debt, properly developed cash
budget
D. Neither poorly trained employees in the finance department, required annual training
nor inability to make required payments on long-term debt, properly developed cash
budget
Consider the following examples of computer crime as you answer the question:
i. Social Security numbers are stolen from a company’s database.
ii. A fraudster uses a computer to identify people over the age of 80 with annual
incomes of $250,000 or more.
iii. An employee receives threats from a co-worker via e-mail.
iv. An unhappy customer launches a denial-of-service attack.
Carter’s taxonomy of computer crime comprises four categories. Which of the
following pairs includes two items from the same category?
A. I and II
B. II and III
C. II and IV
D. I and IV
Accounting information systems have five basic elements. Which of the following is an
internal control associated with the human resources process?
A. Adequate supervision
B. Procedures manuals
C. Both adequate supervision and procedures manuals
D. Neither adequate supervision nor procedures manuals
Which of the following can serve as the basis for completing the first step in the
acquisition/payment process?
A. Information technology
B. Human judgment
C. The passage of time
D. All of these
According to COBIT 5, an organization’s information technology governance and
management should apply a single integrated framework for managing information.
Which of the following best pairs an established framework with an element of the
framework?
A. FASB Conceptual Framework of Accounting, qualitative characteristics of internal
control
B. FASB Conceptual Framework of Accounting, elements of financial statements
C. Both FASB Conceptual Framework of Accounting, qualitative characteristics of
internal control and FASB Conceptual Framework of Accounting, elements of financial
statements
D. Neither FASB Conceptual Framework of Accounting, qualitative characteristics of
internal control nor FASB Conceptual Framework of Accounting, elements of financial
statements
When the maximum cardinalities between two elements of a REA model are many and
many:
A. Create a junction table.
B. Redesign the REA model to eliminate them.
C. The REA model has errors.
D. One of the elements must be a resource.
Consider the following short case as you respond to the question:
When the CEO of NTL Corporation resigned, the board of directors hired a recruitment
firm to look for a replacement. The recruitment firm prepared several job
announcements, then presented them to the board of directors. The board of directors
approved one of the job announcements; the recruitment firm used it to advertise the
position on the Internet and in relevant newspapers and professional publications. After
receiving several applications, the recruitment firm selected a pool of ten to pass on to
NTL’s board of directors. The board of directors, with the assistance of the recruitment
firm, went through three rounds of interviews, narrowing the pool from ten to three.
Each of the three finalists prepared a presentation on the strategic future of NTL and
delivered the presentation at a meeting of NTL shareholders. The board of directors
then made the final choice for a new CEO.
A systems flowchart of the case is likely to be divided into how many columns?
A. One, since all activities are associated with the human resource process.
B. Two or three, one of which may be “applicants”
C. Four or five, one of which would be “NTL shareholders”
D. More than five, since there were more than five applicants.
Accounting information systems have five generic parts, one of which is internal
control. Please give two examples of applicable internal controls for each of the
remaining parts of the AIS.
1) Inputs
a. Example 1: _________________________________________________
b. Example 2: _________________________________________________
2) Processes
a. Example 1: _________________________________________________
b. Example 2: _________________________________________________
3) Outputs
a. Example 1: _________________________________________________
b. Example 2: _________________________________________________
4) Storage
a. Example 1: _________________________________________________
b. Example 2: _________________________________________________
Which of the following organizations is most likely to be subject to a compliance audit?
A. Yellow Pages Company
B. City of Los Angeles
C. Microsoft
D. All of these are likely to be subject to a compliance audit.
In preparation for her retirement, Debra, the chief information officer of TPC
Corporation, developed a diagram that showed all her areas of responsibility and how
they were related to one another. Her actions contributed to which of Call’s seven steps
for creating a knowledge management system?
A. The first step only.
B. The fourth step only.
C. Both the first and fourth steps.
D. Neither the first nor the fourth step.
TWR Corporation attempted to implement its first ERP system using the systems
development life cycle, but the project was deemed a failure. Some of the actions that
led to the failure are listed below. For each one, indicate the major cause of ERP
implementation failure suggested by Umble and Umble that most clearly applies. Do
not use any major cause more than once.
a. Employees using the ERP system were expected to learn how to use the system after
it was operational.
b. Employees who input information to the system made errors.
c. Only employees from the information systems department were on the project team.
d. The company president missed most of the planning meetings.
e. The ERP project team leader predicted a 90% reduction in information technology
costs after the system was implemented.
f. The project team leader promised that no-one would lose their job as a result of ERP
system implementation.
g. The project team skipped steps in the systems development life cycle.
h. The system implemented could not be customized for TWR’s operations.
i. TWR continued to rely on paper-based forms and spreadsheet software to track
inventory.
j. TWR’s existing computers could not run the software fast enough.