Using the database depicted above, in the Sales table, “Customer #” is best described as
A) an attribute.
B) a primary key.
C) a foreign key.
D) A, B, and C
Identify one way “rainbow tables” are often used.
A) To discover plaintext passwords associated with a hash.
B) To integrate different tables into one, master table.
C) To perform a zero-balance check.
D) To ensure referential integrity of all the associated tables.
Business Process Management views business processes as
A) strategic organizational assets.
B) a series of small tasks to be closely managed.
C) related activities that, once perfected, should be managed on an exception basis.
D) subsets of organizational strategy that should not be owned by any specific person or
department.
What is the best control to mitigate the threat of paying prices that are too high for
goods ordered?
A) Require the receiving department to verify the existence of a valid purchase order.
B) Use only approved suppliers and solicit competitive bids.
C) Only pay invoices that are supported by the original voucher package.
D) Use bar-code technology to eliminate data entry errors.
Updating accounts receivable is part of which transaction cycle?
A) Human resources/payroll.
B) Expenditure.
C) Financing.
D) Revenue.
Applying the COBIT5 framework, governance is the responsibility of
A) internal audit.
B) external audit.
C) management.
D) the board of directors.
Before a shipping notice is prepared during the revenue cycle, shipping department
personnel should match the inventory received from the warehouse to the
A) sales order.
B) picking tickets.
C) picking ticket and sales order.
D) sales order and bill of lading.
How does outsourcing improve an organization’s utilization of assets?
A) By allowing a company to eliminate its IS department, which will reduce its payroll
costs.
B) By allowing the company to sell assets to outsourcers and improve their cash
position.
C) By eliminating the expense of keeping up with the latest technology and, thus,
eliminate the drain on cash reserves.
D) Both B and C above are correct.
The ________ step of the systems development life cycle (SDLC) is where the system
is periodically reviewed and necessary modifications and improvements are made.
A) conceptual design
B) implementation and conversion
C) physical design
D) operations and maintenance
There is a symmetrical interdependence between a firm’s expenditure cycle and its
suppliers’
A) production cycle.
B) revenue cycle.
C) expenditure cycle.
D) general ledger and reporting system.
Catarina Boards is a skateboard retailer located in Pueblo, New Mexico. Catarina
Boards is a sole proprietorship that stocks an inventory of between 30 and 50 different
skateboards. Inventory is updated in real time by the AIS. If Catarina wishes to keep a
cumulative information about its company’, it might use a
A) relational ledger.
B) transaction file.
C) master file.
D) specific ledger.
When canned software is used for systems acquisition, the implementation and
conversion phase of the systems development life cycle (SDLC)
A) involves the documentation step.
B) requires the company to have trained IS personnel.
C) requires the develop and test software step.
D) involves both A and C.
An auditor creates a fictitious customer in the system and then creates several fictitious
sales to the customer. The records are then tracked as they are processed by the system.
The auditor is using
A) an integrated test facility.
B) the snapshot technique.
C) a system control audit review file.
D) continuous and intermittent simulation.
A data warehouse
A) is primarily used for analysis rather than transaction processing.
B) stores transaction processing records in hard copy.
C) replaces traditional transaction processing databases.
D) increases the speed of transaction processing.
Due to a power outage, the sales clerk manually prepares a sale receipt to her customer.
Which one of the following diagrams represents this activity?
A)
B)
C)
D)
Abby Burke has created custom statues made out of scrap metal for over ten years.
Abby has kept detailed records of every statue she has ever created. For every sale, she
obtains the customer’s name and address, a description of the statue, and a picture of the
statue sold to the customer. Her unique style has recently attracted the attention of
several celebrities. Ready to take her business to the next level, Abby has hired you to
construct an accounting information system, which she wants modeled after her paper
records. As you look over her records, you realize that sometimes the same customer is
recorded by a slightly different name. For example, Mike Mulligan bought a horse
statue, M. Mulligan bought a bear statue, and Mike M. all seem to be the same person.
This is an example of what type of problem in the existing records?
A) entity integrity
B) referential integrity
C) update anomaly
D) insert anomaly
To ensure proper segregation of duties, only the ________ has authority to issue credit
memos.
A) accounts receivable supervisor
B) controller
C) credit manager
D) cashier
In which stage(s) of the database design process should accountants participate?
A) the systems analysis stage
B) the conceptual design stage
C) the implementation and conversion stage
D) in all of the stages above
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 overall operation of the AIS, including data
entry, storage, and output. 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.
According to a survey discussed in your textbook, what percentage of outsourcing
experiences have been labeled as “disasters” by company executives?
A) 5%.
B) 17%.
C) 33%.
D) 50%.
Which of the following is an important control to prevent buffet overflow
vulnerabilities?
A) Limit check.
B) Size check.
C) Range check.
D) Field check.
Which of the following activities is performed during the systems development life
cycle?
A) Assessing the ongoing feasibility of the project.
B) Managing the behavioral reactions to change.
C) Planning.
D) All of the above activities are performed during the life cycle.
The principle of identifying and assessing changes that could significantly impact the
system of internal control belongs to which of the COSO’s Internal Control Model’s
component?
A) Control environment.
B) Risk assessment.
C) Control activities.
D) Information and communication.
The control that protects records from errors that occur when two or more users attempt
to update the same record simultaneously is called
A) concurrent update controls.
B) cross-footing balance test.
C) data conversion controls.
D) recalculation of batch totals.
Which of the following controls can minimize the threat of check alteration?
A) The use of positive pay.
B) Do not inform receiving employees about quantity ordered.
C) The use of ERS.
D) Perpetual inventory system.
Which of the following controls design considerations will help ensure that all customer
inquiries are answered in real-time?
A) Security.
B) Authorization.
C) Accuracy.
D) Integrity.
Which systems use the same key to encrypt communications and to decrypt
communications?
A) Asymmetric encryption.
B) Symmetric encryption.
C) Hashing encryption.
D) Public key encryption
Explicitly identifying the different employees who participate in each event by their job
functions is helpful when verifying
A) internal controls.
B) job descriptions.
C) proper supervision.
D) segregation of duties.
When seeking to find anonymous answers, the most useful approach is to
A) conduct interviews.
B) make observations.
C) distribute questionnaires.
D) read system documentation.
The maximum cardinality of any REA diagram relationship is
A) zero or one.
B) one or many.
C) zero or many.
D) many or none.
The purpose of the COSO Enterprise Risk Management framework is
A) to improve the organization’s risk management process.
B) to improve the organization’s financial reporting process.
C) to improve the organization’s manufacturing process.
D) to improve the organization’s internal audit process.
