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.
WorldWide Supermarket, a grocery store with 5,000 locations around the world
surprised financial markets by announcing that it was selling all of its computers to
CompuService and hiring the firm to operate and manage the supermarket’s system.
WorldWide Supermarket just engaged in which type of outsourcing agreement?
A) A locked-in agreement.
B) A mainframe agreement.
C) A client/server agreement.
D) A cloud computing agreement.
A document that shows all projects that must be completed and the related IT needs in
order to achieve long-range company goals is known as a
A) performance evaluation.
B) project development plan.
C) data processing schedule.
D) strategic master plan.
In the Customer table above, “Customer #” is best described as
A) an attribute.
B) a primary key.
C) a foreign key.
D) A, B, and C
Which of the following is not an example of a common activity in an AIS?
A) buy and pay for goods and services
B) sell goods and services and collect cash
C) summarize and report results to interested parties
D) record sales calls for marketing purposes
Which of the following would be least effective to reduce exposure to a computer
virus?
A) Only transfer files between employees with USB flash drives.
B) Install and frequently update antivirus software.
C) Install all new software on a stand-alone computer until it is tested.
D) Do not open e-mail attachments from unknown senders.
The manager of Cezary Foods was purchasing inventory from Bogumil Distributors
online. The manager entered the items and quantities, completed the checkout and
payment process, but received the following error message before the order could be
processed: “Please enter your phone number.” This message is likely the result of a
A) validity check.
B) completeness test.
C) closed-loop verification.
D) customer relationship management software application.
The ________ method calculates and compares the processing times of different AIS to
compare system performance.
A) benchmark problem
B) mandatory requirements
C) point scoring
D) requirements costing
Why might the same REA diagram result in different relationship cardinalities?
A) Different organizations might have different business policies.
B) Different designers might implement an REA diagram differently.
C) Different consultants might draw an REA diagram differently.
D) Errors occur in the REA diagram.
Identify one major drawback that is frequently associated with canned software.
A) A commercial software development company develops it.
B) Canned software is sold on the open market to a broad range of users with similar
requirements.
C) Canned software may not meet all of a company’s information or data processing
needs.
D) Canned software may offer easy availability and lower costs.
A consideration of whether an organization’s employees will use a new or revised
system represents the ________ aspect of a feasibility study.
A) economic feasibility
B) operational feasibility
C) scheduling feasibility
D) technical feasibility
The collection of customer payment is part of which transaction cycle?
A) the revenue cycle
B) the production cycle
C) the human resources cycle
D) the expenditure cycle
Immediately after the adjusting entries are posted, the next step in the general ledger
and reporting system is to prepare
A) an adjusted trial balance.
B) closing entries.
C) financial statements.
D) an unadjusted trial balance.
Payroll deductions fall into the broad categories of ________ and ________.
A) payroll tax withholdings; voluntary deductions
B) unemployment; social security taxes
C) unemployment taxes; income taxes
D) voluntary deductions; income taxes
How is credit approval generally handled for established customers with a documented
payment history?
A) A new credit application is requested.
B) General authorization by a sales clerk
C) Specific authorization by the credit manager
D) A formal credit check should be made for each sale.
If an organization asks you to disclose your social security number, but fails to tell you
about its privacy policies and practices, the organization has likely violated which of the
Generally Accepted Privacy Principles?
A) Management.
B) Notice.
C) Choice and consent.
D) Use and retention.
Estimating future cash flows and discounting them back to the present is part of which
capital budgeting technique?
A) The future value method.
B) The annuity method.
C) The net present value method.
D) The payback method.
A ________ 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
Which of the following statements about data processing methods is true?
A) Online real-time processing does not store data in a temporary file.
B) Batch processing cannot be used to update a master file.
C) Control totals are used to verify accurate processing in both batch and online batch
processing.
D) Online real-time processing is only possible with source data automation.
Which of the following threats is not specific to the purchase requisition process of the
expenditure cycle?
A) stockouts
B) purchasing from unauthorized vendors
C) requisitioning goods not needed
D) All of the above are threats in the purchase requisition process.
The receiving clerk at Wattana Technologies examines incoming shipments and
reconciles their contents with the relevant purchase orders. A receiving report is then
sent to accounts receivable and the vendor’s invoice is approved for payment. Which of
the following would correct control weaknesses related to these activities?
A) Accounts payable should reconcile the purchase order and the receiving report.
B) The invoice should be approved for payment by the shipping clerk after the purchase
order and receiving report are reconciled.
C) Invoices, purchase orders, and receiving reports should be reconciled by the
receiving clerk.
D) Controls are adequate under the current system.
Which of the following statements is true about the chart below?
A) The x-axis is in reverse chronological order, which violates a principle of proper
graph design.
B) The chart appears to conform to the principles of proper graph design.
C) The vertical axis doesn’t appear to start at the origin (zero).
D) The chart used 2-D bars instead of 3-D, which violates a principle of proper graph
design.
Which of the choices below best describes a risk-based audit approach?
A) A four-step approach to internal control evaluation.
B) A three-step approach to internal control evaluation.
C) A four-step approach to financial statement review and recommendations.
D) A three-step approach to financial statement review and recommendations.
With regards to systems availability, deploying and using multiple components provides
an AIS with
A) fault tolerance.
B) cost savings.
C) enhanced processing speed.
D) maximum sales.
What is a key feature of materials requirements planning (MRP)?
A) minimize or entirely eliminate carrying and stockout costs
B) reduce required inventory levels by scheduling production rather than estimating
needs
C) determine the optimal reorder point
D) determine the optimal order size
Developers of computer systems often include a user name and password that is hidden
in the system, just in case they need to get into the system and correct problems in the
future. This is referred to as a
A) Trojan horse.
B) key logger.
C) spoof.
D) back door.
Who generally is responsible for providing the accounting department with information
about financing and investing activities to create the appropriate general ledger journal
entries?
A) The budget department.
B) The CFO.
C) The treasurer.
D) The CEO.
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 50,000 transactions.
If the firm’s recovery time objective is 120 minutes, then the worst case recovery time
objective is
A) 2 hours.
B) 4 hours.
C) 6 hours.
D) 8 hours.
Which of the following is not an advantage of a voucher system?
A) Several invoices may be included on one voucher, reducing the number of checks.
B) Disbursement vouchers may be pre-numbered and tracked through the system.
C) The time of voucher approval and payment can be kept separate.
D) It is a less expensive and easier system to administer than other systems.
Data must be converted into information to be considered useful and meaningful for
decision making. There are seven characteristics that make information both useful and
meaningful. If the information is free from error or bias, it is representative of the
characteristic of
A) reliability.
B) relevance.
C) verifiability.
D) truthful.
Researchers have compared the psychological and demographic characteristics of
white-collar criminals, violent criminals, and the general public. They found that
A) few differences exist between white-collar criminals and the general public.
B) white-collar criminals eventually become violent criminals.
C) most white-collar criminals invest their illegal income rather than spend it.
D) most white-collar criminals are older and not technologically proficient.