Identify the type of information below that is least likely to be considered confidential
by an organization.
A) Audited financial statements.
B) Legal documents.
C) Top executives’ salaries.
D) New product development plans.
Moneka Jones is the CIO for Noela Incorporated. Moneka wants to replace the firm’s
existing system, but wants to leave the technical issues to the vendor because she is not
well-informed on the latest technologies. When preparing an RFP, Moneka most likely
should
A) disclose exact hardware and software specifications.
B) disclose specific performance objectives and requirements.
C) disclose general software requirements.
D) disclose general performance objectives and requirements.
Preimer Life Company is a life insurance company that collects, stores, prepares and
provides customerized life insurance policy to customers in the Midwest. When a
customer’s information is received, it is recorded in a database and a ticket is provided
to the policy underwriter . When the life insurance policy is issued, the database is
updated so that it always reflects the correct amount of life insurance coverage and the
length of the policy available to the customers. In a data flow diagram, which type of
symbol would be used to represent the system processing customer’s information?
A)
B)
C)
D)
Source data automation is often effective in reducing
A) unintentional errors.
B) intentional errors.
C) accuracy.
D) theft.
Mircea Vasilescu maintains an online brokerage account. In early March, Mircea
received an e-mail from the firm that explained that there had been a computer error
and asked Mircea to call a phone number to verify his customer information. When
Mircea called the number, a recording asked that he enter the code from the e-mail, his
account number, and his social security number. After he did so, he was told that he
would be connected with a customer service representative, but the connection was
terminated. He contacted the brokerage company and was informed that they had not
sent the e-mail. Mircea was a victim of
A) Bluesnarfing.
B) vishing.
C) splogging.
D) typosquatting.
Which objective listed below is not a cost accounting objective for the production
cycle?
A) Provide information for planning, controlling, and evaluating the performance of
production operations.
B) Provide cost data about products used in pricing and product mix decisions.
C) Collect and process the information used to calculate inventory and cost of goods
sold amounts that appear in the financial statements.
D) Provide tests of audit control functions as part of the AIS.
An REA diagram must link every event to at least one ________ and two ________.
A) resource; agents
B) agent; resources
C) transaction; entities
D) resource; relationships
Checking the quantity of inventory available before accepting a sales order is a good
practice for all of the reasons except to
A) determine which items may need to be back ordered.
B) verify the accuracy of the perpetual inventory records.
C) inform the customer about availability and delivery times.
D) update inventory records to reduce the quantity available by the number of items
ordered.
Identify the statement below that is not a major reason companies change their
information systems.
A) In response to changes in user needs.
B) In response to technological changes.
C) To gain a competitive advantage.
D) To take advantage of tax benefits.
In an REA-based relational database, the information normally found in a ________ is
contained in the tables used to record data about ________.
A) journal; events
B) journal; resources
C) ledger; events
D) ledger; resources
All of the following are disadvantages of an ERP system except
A) an ERP provides an integrated view of the organization’s data.
B) ERP software and hardware can cost midsized companies between $10 million and
$20 million dollars.
C) ERPs frequently cause organizations to change their business processes to
standardized ones.
D) ERPs are relatively complex.
How can PLM software improve the efficiency and effectiveness of the product design
process?
A) It can eliminate the costs associated with creating and destroying physical
prototypes.
B) It can simulate how new products will be manufactured.
C) It can store all the data associated with all products.
D) All of the above
The database design method in which a designer uses knowledge about business
processes to create a diagram of the elements to be included in the database is called
A) normalization.
B) decentralization.
C) geometric data modeling.
D) semantic data modeling.
Which of the following transactions is represented by the diagram below?
A) Vendors send a bill for each inventory item purchased which is payable on receipt.
B) A single purchase of inventory is paid for with multiple payments.
C) Inventory vendors send a monthly bill for merchandise delivered. The seller does not
accept or allow installment payments.
D) Some inventory purchases are paid for with multiple payments and some payments
may apply to multiple purchases.
Which of the following statements about a master file is false?
A) A master file is conceptually similar to a ledger in a manual AIS.
B) A master file’s individual records are rarely, if ever, changed.
C) A master file exists across fiscal periods.
D) A master file stores cumulative information.
Baggins Incorporated identifies new product development and product improvement as
the top corporate goals. An employee developed an innovation that will correct a
shortcoming in one of the company’s products. Although Baggins current Return on
Investment (ROI) is 12%, the product innovation is expected to generate ROI of only
10%. As a result, awarding bonuses to employees based on ROI resulted in
A) goal conflict.
B) information overload.
C) goal congruence.
D) decreased value of information.
Identify the piece of information below that is typically needed to acquire a building.
A) job descriptions
B) vendor performance
C) market coverage
D) capacity needs
________ is a system test that determines whether a program is operating as designed.
A) An acceptance test
B) A debugging test
C) A test data processing
D) A walk-through
Direct deposit of employee paychecks is one way an organization can improve
efficiency and reduce payroll-processing costs. Which statement regarding direct
deposit is false?
A) The cashier does not authorize the transfer of funds from the organization’s checking
account to a payroll checking account.
B) The cashier does not have to sign employee paychecks.
C) Employees who are part of a direct deposit program receive a copy of their paycheck
indicating the amount deposited.
D) Employees who are part of a direct deposit program receive an earnings statement
on payday rather than a paper check.
Which of the following controls can minimize the threat of theft of cash?
A) Separation of billing and shipping functions.
B) Use of cash registers.
C) Bar-code and RFID technology.
D) Restriction of access to master data.
Marina Filimena is an accountant at Jasmina Hair Products. Marina received the
following error message while making an adjusting entry to the general ledger: “The
account number referenced in your journal entry does not exist. Create a new account?”
This is an example of a
A) validity check.
B) closed loop verification.
C) zero-balance check.
D) completeness test.
Accounting information plays major roles in managerial decision making by
A) identifying situations requiring management action.
B) reducing uncertainty.
C) providing a basis for choosing among alternative actions.
D) all of the above
The general ledger system of an organization should be designed to serve the
information requirements of both internal and external users. This means that the
system should support
A) producing expansive regular periodic reports to cover all information needs.
B) the real-time inquiry needs of all users.
C) producing regular periodic reports and respond to real-time inquiry needs.
D) access by investors and creditors of the organization to general ledger balances.
Evaluated receipt settlement approves payment of vendor invoices after reconciling the
purchase order and the
A) receiving report.
B) vendor invoice.
C) sales invoice.
D) disbursement voucher.
a) What is test data processing? b) How is it done? c) What are the sources that an
auditor can use to generate test data?
What agency did the United States create to use cyber weapons and to defend against
cyber attacks?
A) U.S. Cyber Command
B) Department of Network Security
C) Department of Cyber Defense
D) Department of Technology Strategy
In a payroll processing DFD, the “prepare reports” activity will be represented by
________, the “employee payroll file” will be represented by ________, and the
“management” will be represented by ________.
A) a circle; two horizontal lines; a square.
B) a circle; two horizontal lines; two horizontal lines.
C) a rectangle; a square; a circle.
D) a square; two horizontal lines; a circle.
Identify the most correct statement with regard to how the various accounting
subsystems update the general ledger.
A) Individual journal entries for each accounting subsystem transaction update the
general ledger every 24 hours.
B) Summary journal entries that represent the results of all transactions for a certain
time period are used to update the general ledger.
C) The controller or treasurer must approve accounting subsystem journal entries before
any updating may occur.
D) Nonroutine transactions are entered into the system by the treasurer’s office.
Fairfax Corporation uses two systems for revenue cycle transaction processing. One
system keeps track of customer sales. The other system keeps track of accounts
receivable. Last year, Fairfax Corporation decided to merge the two systems into one so
that both functions could be performed in the same system. This is an example of
A) competitive advantage.
B) technological innovation.
C) productivity gains.
D) systems integration.
A wireless network with the same name as another wireless access point is referred to
as
A) sniffers.
B) zombies.
C) botsquats.
D) evil twins.
The shipping department at Eka Toys follows policies that determine which carrier will
deliver orders according to the size, weight, and destination of the shipment. It
maintains standing agreements with shippers that specify legal responsibility for the
shipment while it is in transit. The terms of the shipping agreements are documented on
A) picking tickets.
B) packing slips.
C) bills of lading.
D) RFID tags.
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.
Melissa is a staff accountant for Quality Paper Company suspected that management
might have used “creative accounting” to improve company performance. This situation
best reflects a weakness in which aspect of internal environment, as discussed in the
COSO Enterprise Risk Management Framework?
A) Integrity and ethical values.
B) Risk management philosophy.
C) Restrict access to assets.
D) Methods of assigning authority and responsibility.
Separating the shipping and billing functions is designed to reduce the threat of
A) failure to bill customers.
B) billing customers for wrong quantities.
C) billing customers before merchandise has been shipped.
D) shipping the wrong merchandise.
Explain the importance of using a request for proposal.
Define cardinality.
What is the CITP designation and why is it important to AIS?
Describe the important characteristics of extreme programming (XP).
Identify the important steps for drawing a Business Process Diagram (BPD). Select one
step from your list and why it could be the most important one to consider when
preparing a BPD. Support your choice with an example.
Describe the basic steps criminal use to attack an organization’s information system.
Select one of the steps and find a news story that relates to the step that you have
chosen.
Describe the steps in the development of a company’s risk assessment and response
strategy.
How can accountants help in the systems development life cycle (SDLC) process?
What factors does a steering committee consider when evaluating different system
designs?