RVW Corporation uses an enterprise resource planning system. An accountant wants to
create a report of the last month’s purchases sorted by vendor that also includes the
name of the purchasing agent who assisted with each transaction. Which modules of the
ERP system will provide the relevant information?
A. Supply chain management and human resource management
B. Supply chain management and customer relationship management
C. Customer relationship management and supply chain management
D. Such a report cannot be generated from the ERP system.
Consider the following diagram as you answer the questions:
All of the following will be fields in the “interview finalists” table except:
A. Employee ID
B. Applicant ID
C. Interview date
D. Interview time
Consider the following illustration as you respond to the questions:
The illustration would best be described as:
A. a pair of systems flowcharts
B. a leveled set of data flow diagrams
C. a comprehensive set of data flow diagrams
D. two pages of a systems flowchart
Consider the following short case as you respond to the question:
Melissa is an internal auditor for the County of Bufflufia. Her job responsibilities
include providing training on information systems security and checking the work of
data entry clerks. Melissa is also part of a team that responds to denial-of-service
attacks on the county’s information system. Her co-worker, Eugene, ensures that all the
county’s computers have the most up-to-date antivirus software; he also enforces the
county’s policy of backing up sensitive data, such as employee social security numbers
and other payroll information, at least once a day. The back-ups are dated and stored in
a locked filing cabinet.
Which employee has responsibilities related to technical security controls?
A. Melissa only
B. Eugene only
C. Both Melissa and Eugene
D. Neither Melissa nor Eugene
According to ISACA, one of COBIT’s enablers is required for keeping the organization
running and well governed; that enabler is often the key product of the enterprise itself.
It is therefore most closely related to which generic element of the accounting
information system?
A. inputs
B. internal control
C. storage
D. outputs
Bell’s characteristics of a professional include the ability to think in which of the
following ways?
A. Rationally
B. Logically
C. Coherently
D. All of these
Jared is a loan officer at a bank whose responsibilities include taking applications from
prospective borrowers. Jared also makes an initial recommendation regarding each
loan, although final approval requires the authorization of both a branch manager and a
loan specialist at the bank’s corporate headquarters. Within the context of a loan
transaction, which of the following best pairs a risk with an internal control that will
address the risk?
A. Approving a loan for a friend who does not meet the criteria, limit checks
B. Including false or misleading information on the loan application, preformatted data
entry screen
C. Submitting an incomplete loan application, preformatted data entry screen
D. Submitting an incomplete loan application, limit checks
Ethan was in charge of developing a web site that could be used to sell products and
services to his company’s clients. If he decides to use the systems development life
cycle to structure his work, which of the following statements is most true?
A. He should be able to complete the task in no more than six months.
B. He should work alone.
C. It will be difficult for him to estimate the project’s cost.
D. All of these are true.
Consider the business processes described below. For each one, indicate which level of
the capability maturity model most clearly applies. Circle the phrase that led you to
your choice.
a. Joe tried various ways to process purchase orders to see which one would work best.
b. Marie, an independent consultant, was trying to develop a better way for her client to
monitor inventory. She interviewed several employees and looked at the company’s
historical records for guidance.
c. Mark led monthly discussion groups focused on how to improve various business
processes throughout the company.
d. Mark prepared a list of common documents used in his job as an accounts receivable
clerk; the list also indicated how many copies of each document were normally
required. Mark kept the list in his desk.
e. The CEO of Marie’s client explained to her that the new inventory monitoring system
could cost no more than $500 per month to use.
Samantha and Josephine were preparing to start their own clothing business; they
contacted their friend David, a recent graduate from Big State University’s accounting
program, to learn about setting up their accounting information system. Which of the
following questions should David ask them as part of Step 1 of Steps for Better
Thinking?
A. What is your budget for developing the AIS?
B. Which is more important to you: cost or quality?
C. Either what is your budget for developing the AIS? or which is more important to
you: cost or quality?
D. Neither what is your budget for developing the AIS? nor which is more important to
you: cost or quality?
Leigh is a corporate accounting manager with six employees reporting to her. Most of
the employees do good work, but one of them consistently lacks motivation. Which of
the following tools should Leigh use to address the problem?
A. COSO’s enterprise risk management framework
B. Generalized model of business process management
C. Basic principles of business process management
D. Expectancy theory
In the notation <ifrs-gp:AssetsHeldSale>, ifrs-gp is a ___ which would reside in a ___
on the Internet.
A. Namespace; taxonomy
B. Taxonomy; specification
C. Namespace; specification
D. Taxonomy; namespace
In which module of an ERP system would you expect to find the most detailed
information about purchase orders?
A. Customer relationship management
B. Human resource management
C. Supply chain management
D. Financial management
Computer crimes that fall under Carter’s “target” category are most closely associated
with which generic element of an accounting information system?
A. Processing
B. Storage
C. Both processing and storage
D. Neither processing nor storage
The American Accounting Association’s definition of accounting includes the items
listed on the right. Which item is most clearly related to the examples on the left? Some
elements of the definition may be used more than once; others may not be used at all.
Each item on the left has only one best answer.
Create all necessary database specifications (table names and field names) for PTW
Corporation’s acquisition/payment process based on the following narrative. Indicate
primary keys by underlining and foreign keys with brackets. PTW Corporation sells
computer peripherals and related devices, such as printers, ink, flash drives and cables.
PTW has a staff of three purchasing agents, each of whom is in charge of a specific set
of inventory items. Each purchasing agent uses his/her discretion in making decisions
about when to order inventory, how much inventory to order and which vendor to
purchase from. When ordered inventory arrives at PTW, one of two receiving clerks
matches the items, quantities and vendors against a copy of the purchase order, then
either stocks the merchandise on the shelves or puts it in the storeroom. PTW’s
accountant receives a copy of the invoice from the vendor, as well as an e-mail from
one of the receiving clerks indicating that merchandise has been received. The e-mail
also includes the relevant purchase order number. The accountant files the invoice by
date in a filing cabinet; once a week, the accountant removes invoices from the filing
cabinet and pays them by check. To cut down on clutter in the office, the accountant
shreds the vendor invoice after the check has been paid by the bank. The accountant
also completes a bank reconciliation within two weeks of receiving the bank statement
in the mail.
Dreambox Creations is an Internet services firm that designs web sites, develops
content management systems and recommends online marketing strategies; Dreambox
has used the COSO enterprise risk management framework to develop its own ERM
plan. For each statement below, identify the element of the COSO framework that most
clearly applies. You must use each element of the framework exactly one time.
1> Dreambox assigned one of its three corporate officers the responsibility for annually
reviewing the plan.
2> Dreambox chose “reducing” and ‘sharing” as discussed in the COSO framework.
3> Dreambox developed a plan to hire additional marketing professionals whose main
job would be to pursue new clients.
4> Dreambox had set a strategic goal of acquiring at least three new clients every year.
5> Dreambox planned several meetings with its staff to explain the importance of ERM,
the development of the ERM plan and its implications for the firm.
6> Dreambox’s management had committed to developing an ERM plan.
7> If Dreambox lacked the staff with the skills and desire to pursue new clients, they
might not be able to achieve their strategic goal.
8> The potential impact of that risk was great. At an inherent level, it was also high.
Ina
Internal controls have four basic purposes in organizations. Please match each item on
the left with the most relevant purpose on the right.
YRC Corporation’s operations had been limited to the US, Canada and Mexico, but
management wanted to expand into other countries. In preparation for the expansion,
they designed a knowledge management system which included the knowledge map
shown below. Based on the knowledge map and the principles of database
normalization, create specifications (table names and field names) for three database
tables YRC should use to capture, analyze, categorize and distribute knowledge.
In your own words, explain the steps used to create a REA model.
The text discussed four common coding systems for AIS documents, charts of accounts
and other applications. It also discussed a few common internal controls associated with
the steps in the accounting cycle. Can the use of block or hierarchical coding in the
chart of accounts be considered a form of internal control? Justify your response.