The project committee for ALDI corporation is attempting to evaluate design
alternatives proposed for a new, organization-wide accounting information system.
However, there is a great deal of debate regarding whether the system should be
standardized on using tapes, disks, hard drives, or paper. Which design consideration is
most appropriately associated with these alternatives?
A) Communication channels.
B) Data storage structure.
C) File organization and access.
D) Input medium.
Information technology managers are often in a bind when a new exploit is discovered
in the wild. They can respond by updating the affected software or hardware with new
code provided by the manufacturer, which runs the risk that a flaw in the update will
break the system. Or they can wait until the new code has been extensively tested, but
that runs the risk that they will be compromised by the exploit during the testing period.
Dealing with these issues is referred to as
A) change management.
B) cloud computing.
C) patch management.
D) user account management.
In which entity would information about depreciation formula(s) and assumption(s) be
stored in an REA model?
A) Resource.
B) Event.
C) Agent.
D) Both resource and agent.
Companies that specialize in processing payroll are known as
A) paycheck distribution companies.
B) payroll service bureaus.
C) professional employer organizations.
D) semi-governmental organizations.
The ________ normally triggers the billing process in the revenue cycle.
A) sales order received from the sales department
B) picking ticket received from the sales department
C) packing slip received from the shipping department
D) journal voucher received from the shipping department
Which of the following is the most effective way in uncovering fraud schemes that
require ongoing perpetrator’s attention?
A) Hiring a forensic specialist.
B) Requiring employees to take mandatory vacations.
C) Installing security cameras to monitor employees activities.
D) Implementing a fraud hotline.
A type of business document in which part of the original document is returned to the
source for further processing is called a ________ document.
A) feedback
B) returnable
C) closed-loop
D) turnaround
What is the key difference between the MRP and JIT inventory management
approaches?
A) Only JIT reduces costs and improves efficiency.
B) MRP is especially useful for products such as fashion apparel.
C) JIT is more effectively used with products that have predictable patterns of demand.
D) MRP schedules production to meet estimated sales needs; JIT schedules production
to meet customer demands.
In a relational database, requiring that every record in a table have a unique identifier is
called the
A) entity integrity rule.
B) referential integrity rule.
C) unique primary key rule.
D) foreign key rule.
The management at Barks-a-Million is considering a new inventory control system. The
current system is inadequate because it frequently causes stockouts that interrupt
production and lead to excess stock of other materials — resulting in markdowns and
high carrying costs. The new system will focus on ensuring that these costs are
minimized. The new inventory control system will likely employ
A) a reorder point.
B) a just-in-time inventory system.
C) the economic order quantity.
D) materials requirements planning.
“Cooking the books” is typically accomplished by all the following except
A) overstating inventory.
B) accelerating recognition of revenue.
C) inflating accounts payable.
D) delaying recording of expenses.
Which of the following is not an example of social engineering?
A) Developing phony websites with names and URL addresses very similar to
legitimate websites in order to obtain confidential information.
B) Setting up a computer that allows the user to use a next door neighbor’s unsecured
wireless network
C) Using e-mail to request others into revealing their user IDs and passwords.
D) Obtaining another person’s credit card number without consent.
Which of the following is not one of the essential criteria for successfully implementing
each of the principles that contribute to systems reliability, as discussed in the Trust
Services Framework?
A) Developing and documenting policies.
B) Effectively communicating policies to all outsiders.
C) Designing and employing appropriate control procedures to implement policies.
D) Monitoring the system and taking corrective action to maintain compliance with
policies.
The combination of the database, the DBMS, and the application programs that access
the database through the DBMS is referred to as the
A) data warehouse.
B) database administrator.
C) database system.
D) database management system.
Anong Mali is the purchasing manager at Wattana Technologies. She has responsibility
for reviewing and authorizing purchase orders. Receiving reports are prepared by
shipping and receiving based on the relevant purchase order(s). Purchase orders,
receiving reports, and vendor invoices are reconciled by accounts payable, which
authorizes payment. Which of the following would correct control weaknesses related
to these activities?
A) Controls are adequate under the current system.
B) Accounts payable should authorize purchase orders.
C) Receiving reports should be reviewed and corrected by the purchasing manager.
D) Vendor invoices should be reviewed by the purchasing manager to ensure that they
are correct.
Identify a recent technological advance that provides an opportunity to gain a
competitive advantage.
A) CVVP analysis
B) discounted cash flows
C) predictive analysis
D) economic order quantity (EOQ)
The purpose of a general ledger payroll clearing account is
A) to check the accuracy and completeness of payroll recording and its allocation to
cost centers.
B) to make the bank reconciliation easier.
C) to make sure that all employees are paid correctly each week.
D) to prevent the cashier from having complete control of the payroll cycle.
A ________ ensures input data will fit into the assigned field.
A) limit check
B) size check
C) range check
D) field check
Which of the following diagrams represents the cardinality pairs for a typical,
hierarchical organization?
A)
B)
C)
D) All of the above.
In which phase of the systems development life cycle where the information needed to
purchase, develop, or modify a system is gathered?
A) Conceptual design.
B) Implementation and conversion.
C) Physical design.
D) Systems analysis.
Materials requirements planning (MRP)
A) reduces the uncertainty about when materials are needed, thereby reducing the need
to carry large levels of inventory.
B) is able to compute exactly the cost of purchasing by taking into account all costs
associated with inventory carrying.
C) requires vendors to deliver inventory to the production site exactly when needed and
in the correct quantities.
D) None of the above is correct.
In an ERP system, the module used to record data about transactions in the revenue
cycle is called
A) order to cash.
B) purchase to pay.
C) financial.
D) customer relationship management.
Which of the following is not one of the four main events in a typical production cycle
REA diagram?
A) Issuance of raw materials.
B) Order raw materials.
C) Use of labor in production.
D) Use of machinery and equipment in production.
When programmers are working with program code, they often employ utilities that are
also used in auditing. For example, as program code evolves, it is often the case that
blocks of code are superseded by other blocks of code. Blocks of code that are not
executed by the program can be identified by
A) embedded audit modules.
B) scanning routines.
C) mapping programs.
D) automated flow charting programs.
Which of the following will not reduce the likelihood of an occurrence of fraud?
A) Encryption of data and programs.
B) Use of forensic accountants.
C) Adequate insurance coverage.
D) Required vacations and rotation of duties.
As part of the bidding process required for bidding on providing a new software system
to Kinect Incorporated, Thorton Wilder prepared a functional program that simulated
the new system’s input and output interface. This program is an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.
When a customer places an order (on account) for a certain product, what should be
done before the order is checked for inventory availability?
A) The customer’s available credit should be checked.
B) The sales order should be created and written to a file.
C) Shipping should be notified of an order in process.
D) A picking list should be generated for the warehouse.
A report of wages and withholdings for each employee is called
A) form W-2.
B) form W-3.
C) form 1099-Misc.
D) form 941.
In an ERP system, the module used to record marketing data is called
A) marketing.
B) advertising.
C) customer relationship management.
D) customer service.
Cindy Vindoolo logged on to her e-mail account to find that she had received 50
e-mails from a company called LifeCo that promised her extreme weight loss if she
bought their diet pills. Cindy angrily deleted all 50 e-mails, realizing she was a victim
of
A) telemarketing.
B) spam.
C) direct mail.
D) MLM.
Which statement below is true with regards to an audit trail?
A) An audit trail begins with the general journal.
B) An audit trail provides the means to check the accuracy and validity of ledger
postings.
C) An audit trail is a summary of recorded transactions.
D) An audit trail is automatically created in every computer-based information system.
Lapping is best described as the process of
A) applying cash receipts to a different customer’s account in an attempt to conceal
previous thefts of cash receipts.
B) inflating bank balances by transferring money among different bank accounts.
C) stealing small amounts of cash, many times over a period of time.
D) increasing expenses to conceal that an asset was stolen.
If an organization asks you to disclose your social security number, but fails to establish
a set of procedures and policies for protecting your privacy, the organization has likely
violated which of the Generally Accepted Privacy Principles?
A) Management.
B) Notice.
C) Choice and consent.
D) Use and retention.
All of the following are guidelines for developing a good coding system except
A) be consistent with its intended use.
B) be flexible to allow for growth.
C) be as sophisticated as possible to promote usage.
D) be consistent with the company’s organization structure.
Which one of the following results corresponds to the query below?
A)
B)
C)
D)
What is QR codes and can companies use them to improve interactions with their
customers?
Discuss who perpetrates fraud and why it occurs, including the pressures, opportunities,
and rationalizations that are present in most frauds.
Describe the controls that can be used to protect the confidentiality of an organization’s
information.
Discuss the most important control for protecting confidentiality.
Describe the conceptual design specifications once a design alternative is selected.
How and to whom does an auditor communicate the audit results?
Explain the cash collections process, key decisions that need to be made,and threats to
that process, and describe the controls that can be used to mitigate those threats.
Discuss how organizations can timely respond to attacks against their information
system.
What is image processing technology and how can it help companies improve the
efficiency and effectiveness of managing their customer accounts?
Describe how audit evidence can be collected.
Describe the control objectives companies need to set and how to identify events that
affect organizational uncertainty.
Explain the purpose and nature of posting adjusting entries, the threats to that process,
and the controls that can be used to mitigate those threats.
Identify three ways users can be authenticated and give an example of each.
Create REA data models for the revenue and expenditure cycles of other types of
organizations besides retail.
Describe what is a Gantt chart and both of its advantage and disadvantage.
