Business process reengineering:
a) Is an incremental approach to redesigning business processes
b) Involves redesigning business processes from scratch
c) Is rarely successful in cutting an organization’s costs
d) Is always welcomed by an organization’s employees
Answer:
AIS documentation is useful for accomplishing all of the following except:
a) Standardizing communications with others
b) Auditing AISs
c) Helping businesses comply with the Sarbanes Oxley Act
d) Saving businesses money
e) Documentation helps in all of the above
Answer:
Which of the following is not one of the trial balances typically produced as part of the
financial accounting cycle?
a) Closing trial balance
b) Unadjusted trial balance
c) Adjusted trial balance
d) Post-closing trial balance
Answer:
Utilizing tax preparation software from a cloud service provider is an example of:
a) SaaS
b) PaaS
c) IDEA
d) XML
Answer:
Assume that a company designs and implements a control procedure whereby the
accountant that is responsible for recording cash receipts transactions does not have
access to the cash itself. This control procedure is an example of a:
a) Detective control
b) Preventive control
c) Corrective control
d) Feedback control
Answer:
The output from a company’s ERP system displays graphs and charts depicting sales by
different regions of the country is often called a:
a) Figure
b) Portal
c) Graphic design
d) Dashboard
Answer:
Manual forms, in terms of database form design, are:
a) Archaic
b) Used to guide the development of electronic forms
c) Used to collect information electronically
d) Used by many offices already
Answer:
In the REA framework, an account receivable would be classified as a(n):
a) Asset
b) Event
c) Resource
d) none of these
Answer:
Most CASE tools:
a) Generate modifications with difficulty
b) Can detect inconsistencies in system designs
c) Rarely generate computer code
d) Need word processors to finish the documentation
Answer:
Which of the following is true about XBRL?
a) It is a business application of XML
b) It uses tags such as <b> like HTML
c) It is used by the SEC to collect and store financial information about companies
d) all of the above are true about XBRL
Answer:
Probably the most important federal legislation governing activities involving
computers is:
a) CAN-SPAM Act of 2003
b) Federal Privacy Act of 1974
c) Computer Fraud and Abuse Act of 1986
d) Cyber Security Act of 1987
Answer:
Which of the following types of errors will check digits usually detect?
a) Transposition of two digits
b) Inaccuracy of one digit
c) Double mistakes canceling out each other
d) Fraudulent data
Answer:
When an auditor audits with the computer, the auditor:
a) Uses the computer to process transaction data under normal processing conditions
b) Uses the computer as a tool to assist in various other auditing tasks
c) Relies heavily upon test data to evaluate the presence or absence of specific
computer controls
d) Must also use an integrated test facility
Answer:
AISs can be used to evaluate the performance of not-for-profit organizations by:
a) Using various process measures
b) Comparing budget goals to actual performance
c) Using a number of nonmonetary measures of performance
d) all of the above
Answer:
An interesting dimension of public key encryption is that:
a) It actually requires two keys
b) It only requires one key
c) Everyone can decode a message written in it
d) none of these
Answer:
Controls that do not allow users to update the same database record at the same time are
examples of:
a) Data integrity controls
b) Data processing controls
c) Concurrency controls
d) Privacy controls
Answer:
The sales process begins with:
a) Placing an order with a vendor
b) A customer order for goods or services
c) Production of goods or services
d) Delivery of goods or services
Answer:
A school administrator wishes to select the names of all students who live in a certain
city. That city has exactly two zip codes in it. Which of these would be the best
approach to use for this task?
a) Perform two separate select queries, using only one zip code for each task
b) Perform a single select query, placing the zip codes on the same Criteria line of the
query
c) Perform a single select query, placing the zip codes on separate Criteria lines of the
query
d) Perform a single, update query
e) none of these (this is not possible using Microsoft Access)
Answer:
A reader of a document flowchart is able to distinguish between the preparation of a
document in one department and its receipt in another department by:
a) Logic
b) Arrows
c) Column
d) Narratives
Answer:
As used in the chapter, the term “knowledge workers”:
a) Are blue collar workers in non-managerial positions
b) Are the same as delivery clerks
c) Include most accountants
d) Does not include most accountants
Answer:
Which of these features is desirable in database form design?
a) Use garish colors to attract the user’s attention
b) Create forms that require several screens for display purposes
c) Use unique fonts for different fields in the same form
d) Resize data fields to ensure they display all the data in the underlying table
Answer:
Time and billing systems are most often used by:
a) Health care organizations
b) Professional service organizations
c) Retail organizations
d) Not-for-profit organizations
Answer:
_____________ permit data to be written on a magnetic tape.
a) File protection rings
b) Lock out procedures
c) Rollback processing
d) Fault-tolerant systems
Answer:
This company is one of the largest “auction houses” on the web:
a) Wal-Mart
b) Sears, Roebuck
c) eBay
d) Forester
Answer:
When management of the sales department has the opportunity to override the system
of internal controls of the accounting department, a weakness exists in
a) Risk management
b) Information and communication
c) Monitoring
d) The control environment
Answer:
Which of the following control mechanisms is common to both observation and
recording control:
a) Confirmation slips
b) Dual observation
c) Preprinted forms
d) Turn around document
Answer:
Due to an unusual program error which had never happened before, the accounts
receivable updating run did not process three transactions. The error was not noted by
the operator because he was busy working on another project. There were control totals
for the file which were printed out. An examination of the printout would have
disclosed the error. The best control procedure would be:
a) An error message requiring operator response before processing continues
b) Reconciliation of control total by control clerk
c) Internal audit review of console log
d) Label checking by next computer program
Answer:
The “A” in the term IDEA (used by the SEC) stands for:
a) Accounting
b) Association
c) Addition
d) Applications
e) Access
Answer:
Which of these secondary storage media is likely to cost the least?
a) Hard disk
b) Blue-ray disc
c) CD-ROM
d) Flash drive
Answer:
Minicomputers, mainframe computers, supercomputers, and laptops are examples of:
a) Input devices
b) Output devices
c) Central processing units
d) Display devices
Answer:
After successfully implementing a new system, what activities should the
implementation team normally perform in their follow-up work?
a) Evaluate the control procedures of the new system
b) Determine if output schedules for reports are being met under the new system
c) Observe some of the employees’ work performances under the new system
d) all of the above activities should normally be performed
Answer:
Suppose a relationship indicates that a sale is related to one and only one customer. This
indicates that:
a) There is only one sale made and this sale is made to only one customer
b) There are many sales over time, but each sale is made to only one customer
c) There is only one customer, and one sale is made to this customer
d) There are many customers, and each customer is involved in only one sale
Answer:
When we say that an organization has an “integrated security policy”, what do we
mean?
a) The organization is working with suppliers and customers to improve security up and
down the supply chain
b) Managers in various departments within the firm meet to assess risk and develop
security options for top management
c) The organization is using a variety of security measures, such as firewalls, virus
protection, intrusion detection systems, virtual private networks, etc.
d) none of the above
Answer:
It’s usually easier to create a database form from scratch instead of using the Wizard.
Answer:
An effective approach for maintaining a good audit trail for cash disbursements is to
utilize a voucher system with coins and currency issued for each disbursement.
Answer:
Why is it important to design the layout for a report prior to creating the report?
Answer:
The control of input and output of accounting transactions to and from the information
processing subsystem should be performed by an independent control group.
Answer:
The availability of cloud services is available in accounting packages developed for
medium and larger companies, but not available in packages developed for small
businesses.
Answer:
Accountants are usually classified as “line workers” within business organizations.
Answer:
Define preventive, detective, and corrective controls. Give an example of each.
Answer:
The E-R model refers to the “entity-relationship” model.
Answer:
Control activities and monitoring are one and the same.
Answer:
When drawing a decision tree, a node can represent an entire subset of conditions,
which can be drawn later in a separate tree.
Answer:
The term vertical market refers to software distribution processes.
Answer:
A possible advantage of outsourcing is that it frees corporate assets for other projects.
Answer:
Most computer abuse that we have caught so far has been because of good accounting
controls.
Answer:
Debit/credit memoranda are issued when there is a discrepancy about the amount owed
or when goods are returned.
Answer:
The basic unit of information in an accounting information database is a table.
Answer:
It is impossible for the prices used by the accounting department to be different from
the prices stored on the company’s website.
Answer:
Some possible career opportunities for AIS majors or minors include consulting
positions, computerized auditing, or computer security positions.
Answer: