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.
The project development committee for Photomat Incorporated is discussing output
design alternatives for a new, organization-wide accounting information system. There
is a heated debate among the team regarding whether the quarterly sales report be
printed on paper, be viewable only on-screen, or be distributed as an e-mail. Mark
prefers the report be printed on paper, while Jan prefers the report be distributed via
e-mail to save trees. What output design consideration is the team debating?
A) Use.
B) Medium.
C) Format.
D) Location.
Two documents usually accompany goods shipped to a customer. What are the two
documents?
A) a bill of lading and an invoice
B) a packing slip and a bill of lading
C) an invoice and a packing slip
D) an invoice and a sales order
Information provided to potential vendors on a Request For Proposal (RFP) should
include
A) a budget for software and hardware.
B) detailed specifications for the AIS.
C) a timeframe required for completion of the project.
D) a high level needs for the AIS.
What is not a typical responsibility of an external auditor?
A) Helping management to improve organizational effectiveness.
B) Assisting in the design and implementation of an AIS.
C) Preparation of the company’s financial statements.
D) All of the above.
Chopra, Limited, is an Indian company operating in New York state. It offers stylized,
boutique public relations services to upscale retailers in quaint New England towns. A
major source of revenue is a weekly newsletter that reports on current and projected
tourist travel and spending patterns. Preparation of the newsletter requires study and
analysis of weather conditions, economic activity, and travel costs. It is available at an
annual subscription rate of $299.99. There are currently 190 subscribers. Preparation
and distribution of the newsletter costs $12,000 annually. Chopra has always been able
to manage to keep its newsletter operation above their breakeven point. The value of
information to Chopra is
A) $236.83.
B) $44,998.10.
C) less than $63.16.
D) at least $12,000.
All of the following are benefits of planning and managing systems development except
A) controlling costs.
B) ensuring systems are consistent with organizational goals.
C) guaranteeing that employees use the system.
D) aids in keeping the organization abreast of technological change.
On a Friday evening you use a bar’s ATM to withdraw $50 from your bank account.
However, as you complete your withdrawal, your card gets jammed in the ATM
machine. The individual waiting in line behind you approaches you and suggests
re-entering your PIN number. You do. However, your card remains jammed. You leave
the bar to call your bank to report the incident. However, after you left the individual
who offered to help you removed a sleeve he inserted in the ATM to jam your card. He
now has your ATM card and PIN number. You just fell victim to a ________ fraud.
A) tabnapping
B) Lebanese looping
C) phishing
D) pharming
Concerning the relationship from the Rent Item to the Receive Cash events: The
minimum cardinality is ________ because customers typically pay first, prior to taking
possession of the item. The maximum cardinality is ________ because there may be
additional charges imposed when the item is returned.
A) 0; 1
B) 1; 1
C) 1; N
D) N; M
How could auditors determine if unauthorized program changes have been made?
A) By interviewing and making inquiries of the programming staff.
B) By examining the systems design and programming documentation.
C) By using a source code comparison program.
D) By interviewing and making inquiries of recently terminated programming staff.
Variances for variable costs will be misleading when the planned output differs from
budgeted output. A solution to this problem would be
A) to use a stricter budgeting process.
B) to use flexible budgeting.
C) to better predict the final output.
D) to allow more judgement involve in the budgeting process.
Offering a free website, then charging the phone bills of the individuals who signed up
for the free website is known as
A) snarfing.
B) web cramming.
C) podpounding.
D) e-scraping.
Which of the following is not a way to reduce fraud losses?
A) Conduct periodic external and internal audits.
B) Maintain adequate insurance.
C) Use software to monitor system activity.
D) Store backup copies of program and data files.
When assigning attributes to each table,
A) the database designer must interview users to identify which facts should be
included in the database.
B) the database designer must interview management to identify which facts should be
included in the database.
C) the database designer must use the REA diagram to help determine in which tables
those facts belong.
D) the database designer must do all of the above.
The steps that criminals take to find known vulnerabilities and learn how to take
advantage of those vulnerabilities is called
A) scanning and mapping the target.
B) social engineering.
C) research.
D) reconnaissance.
An entity-relationship diagram
A) can represent the contents of any database.
B) is only used in conjunction with REA models.
C) can show a limited number of entities and relationships.
D) is used only to design new databases.
To accomplish the objectives set forth in the expenditure cycle, a number of key
management decisions must be addressed. Which of the decisions below is not
ordinarily found as part of the expenditure cycle?
A) How can cash payments to vendors be managed to maximize cash flow?
B) What is the optimal level of inventory and supplies to carry on hand?
C) Where should inventories and supplies be held?
D) What are the optimal prices for each product or service?
Data gathered by ________ can often be difficult to interpret properly.
A) observation
B) interviews
C) questionnaires
D) reviewing system documentation
Which is not a problem with CASE technology?
A) cost
B) incompatibility
C) lack of system documentation
D) unmet expectations
The efficiency of recording numerous business transactions can be best improved by the
use of
A) prenumbered source documents.
B) specialized journals.
C) posting references.
D) subsidiary ledgers.
The batch processing data entry control that sums a non-financial numeric field is called
A) record count.
B) financial total.
C) hash total.
D) sequence check.
An attribute in a table that serves as a unique identifier in another table and is used to
link the two tables is a
A) foreign key.
B) primary key.
C) relational key.
D) linkage key.
A type of data entry control that would ensure that adjusting entries are posted to
existing general ledger accounts is called a(n) ________ check.
A) validity
B) existence
C) closed loop verification
D) reasonableness
The ________ entity is used to collect and summarize data about the raw materials,
labor, and machine operations used during production of inventory.
A) Finished Goods Inventory
B) Raw Materials
C) Issue Raw Materials
D) Work-in-Process
________ is not a risk response identified in the COSO Enterprise Risk Management
Framework.
A) Acceptance
B) Avoidance
C) Monitoring
D) Sharing
Effective segregation of accounting duties is achieved when which of the following
functions are separated?
A) Authorization, recording, and custody.
B) Recording, monitoring, and information system.
C) Authorization, monitoring, and risk assessment.
D) Recording, risk assessment, and control procedures.
Nancy Kempf has been hired by Andersen Manufacturing as a staff accountant in the
internal audit department. She has been asked to thoroughly document the existing
accounting information system in preparation for making recommendations for
improvements. She decides to begin by meeting with the information technology staff
in order to develop an understanding of the computer programs used by the system. The
documentation tool that he should employ for this purpose is a
A) data flow diagram.
B) document flowchart.
C) system flowchart.
D) program flowchart.
When seeking to find answers to questions pertaining to “why,” the most useful
approach is to
A) conduct interviews.
B) make observations.
C) distribute questionnaires.
D) read system documentation.
Identify one of the benefits associated with procuring software from application service
providers.
A) Lower cost.
B) Scalability.
C) Greater effectiveness.
D) Faster processing speed.
Which factor is not investigated during the post-implementation review?
A) Accuracy.
B) Benefits.
C) Completion.
D) Costs.
What confidentiality and security risk does using VoIP present to organizations?
A) Internet e-mail communications can be intercepted.
B) Internet photographs can be intercepted.
C) Internet video can be intercepted.
D) Internet voice conversations can be intercepted.
The COSO Enterprise Risk Management Integrated Framework stresses that
A) risk management activities are an inherent part of all business operations and should
be considered during strategy setting.
B) effective risk management is comprised of just three interrelated components;
internal environment, risk assessment, and control activities.
C) risk management is the sole responsibility of top management.
D) risk management policies, if enforced, guarantee achievement of corporate
objectives.
Independent checks on performance include all the following except
A) data input validation checks.
B) reconciling hash totals.
C) preparing a trial balance report.
D) supervisor review of journal entries and supporting documentation.
Describe the five principles of the Trust Services Framework. Select one of the
principles and discuss the why it is important to an organization.
Explain how information system departments develop custom software.
Explain the functions of the payroll register, deduction register, and earnings statement.
Describe the three commonly used capital budgeting techniques.
Describe outsourcing and identify the two types of outsourcing agreements.
Describe the steps in developing an REA diagram.
Describe ways that the Treadway Commission has recommended to reduce fraudulent
financial reporting.
Why have accounting software packages been designed with separate transaction
modules?
Discuss the key issues, objectives, and steps in systems analysis.
Describe the differences between spyware, scareware, and ransomware.
Discuss redundancy as it applies to database design.
Discuss the various types and sources of input into the HRM/payroll cycle.
Describe the differences between general and specific authorization.
Explain where in the REA model you can find the information normally found in a
ledger.
